Business Creativity &

Innovation
BM017-3-M
FALL 2019

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 Organisational Conditions for
Creative Thinking
1. Invention and Innovation
BASIS FOR COMPARISON INVENTION INNOVATION
Meaning Invention refers to the occurrence Innovation implies the
Nothing is permanent in this world, neither products nor technology. As day by
of an idea for a product or
process that has never been
implementation of idea for
product or process for the very
day, improvements and updations are made in technology, leading to new
made before. first time.

inventions and innovations

What is it? Creation of a new product. Adding value to something
already existing.

 Invention: an idea when proved

Concept workable,
An original
theory.
it is
idea and its working incalled as an invention
Practical implementation
idea.
of new

 Innovation: is an act of making

Skills required changes
Scientific skills to the existing product
Set of marketing,
strategic skills.
or the process
technical and

by introducing new ways or ideas.

Occurs when New idea strikes a scientist. A need is felt for a product or
improvement in existing product.
Concerned with Single product or process. Combination of various products
and process.
Activities Limited to R & D department. Spread across the organization.

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Organisational Conditions for
Creative Thinking
Characteristics
1. Inventive (better than imitative)
Which type of invention is Right for your Organization?
Based on company’s current standing, resources, and company culture.
2. Radical (Disruptive)/ incremental
Two ways that companies can innovate, incrementally or radically
Think of incremental innovation as cost cutting or feature improvements in existing
products or service; little bit at a time
Radical: radical innovation blows up the existing system or process and replaces it with
something entirely new.
Blue Ocean Strategy: don’t compete or fight for market share, branch off and create your
own

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Organisational Conditions for
Creative Thinking
3. 1st / last mover
◦1st mover breaks new ground; Copyright holder; Creates
buyer switching costs
◦2nd mover obtains advantage of market knowledge
◦Late mover - adopts innovation because rival has it

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Conditions of Creative Thinking
Receptivity : Detaching oneself from one’s
current activities and simply paying attention
to the ideas that arise.
Immersion: state which requires great deal of
time, energy and devotion for the activity.
Seeing questions: ‘Often in great discoveries
the most important thing is that a certain
question is found.’
Utilization of errors: error in helping us to
arrive at better solutions.
Detached devotion:

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 Problem Solving & Creativity

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Problem Solving & Creativity (Review)
◦ Problem
◦ Aspects of Difficulty/Problem
◦ 1) Structured & 2) ISP
◦ Different Determinants of (ISP) [ Novelty, Complexity, Ambiguity]
◦ Creativity & problem Solving [ General methodology]
◦ Phases of Problem Solving [Preparation/identification,
production/development, judgment/selection, review]
# Lecture on 10.11.2019 2nd Half
# Lecture on 11.11.2019
Reference: Henry J. (2001) Creative Management Chapter 4; Kaufmann G -Creativity & Problem
Solving.

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The Cognitive Theory Of Creativity
Memory
◦ Short Term
◦ Long Term
◦ CPS: adds efficient to use both & un-blocks
How do we get ideas
The Index Metaphor (Page 52 Proctor)

Semantic N/W Diagram

Quillian (1968)

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