1. CREATIVITY & INNOVATION

2. Creativity & Innovation
 Creativity
 The ability to generate & combine ideas in a
unique way or to make an unusual association.
 Innovation
 Turning the outcomes of the creative process into
useful products, services, or work methods.

3.  “Innovative” is an “external” word. It can be
measured. It generally talks about things that
have been tested properly and found to have
worked in the real world.
 “Creative”, however, is more of an “internal”
word. It’s subjective, it’s murkier. It’s far
harder to measure, it’s far harder to define.
It’s an inward journey, not outward.

4. Creativity = Ideas
but
Innovation = Ideas + Action

5. Systems View of Innovation
13–5

6. NEED FOR INNOVATION
 Organisations face challenges to meet the growing demands of
the consumers and hence Innovation helps to meet those
demands.
 Innovation helps to cope with:
1. Uncertainty
2. Ambiguity
3. Diversity
4. Complexity
 It is regarded as strategic resource for sustainable competitive
advantage

7. Innovation Vs Invention
 A new product or process originally made is
termed as Invention,
Whereas,
 Conversion of new knowledge into new or
modified products, process and services is
known as Innovation
 E.g. MP3 and i-pod

9. Creating the “Right”
Environment for Innovation
 Structural Variables
 Adopt an organic structure
 Make available plentiful resources
 Engage in frequent interunit communication
 Minimize extreme time pressures on creative
activities
 Provide explicit support for creativity

10.  Cultural Variables
 Accept ambiguity
 Tolerate the impractical
 Have low external controls
 Tolerate risk taking
 Tolerate conflict
 Develop an open-system focus
 Provide positive feedback

11.  Human Resource Variables
 Actively promote training and development to
keep employees’ skills current.
 Offer high job security to encourage risk taking.
 Encourage individual to be “champions” of
change.

12. TYPES OF INNOVATION
 Product and Process Innovation
 Radical and Incremental Innovation
 Technical and Social Innovation