Creativity and Innovation Management

Syllabus
Batch B: Wednesday - 3:00-5:00 pm; Classroom 203

Instructors:
Ozzie Mascarenhas S.J., Ph.D.
Charles H. Kellstadt Professor Marketing, CBA/UDM
Chairman: MBA at AIMIT
Mr. Girish Madla
Assistant Professor of Marketing, AIMIT
Coordinator: Quality Enhancement and Placement Services

Course Outline:
This course reviews, analyzes and synthesizes more recent concepts, models, theories, strategies and cases of
creativity and innovation management. The entire course focuses on the strategic leader of the organization
who must lead, identify, formulate and resolve simple and wicked problems in ones’ corporate business
environment, and thus strategize creative, innovative and competitive long-term business solutions. Part One
of the course reviews the role of the leader in creatively formulating simple and “wicked” problems in the
business world using systems and critical thinking. Part Two explores the role of the leader in resolving these
problems using the latest concepts, tools and techniques of creativity and innovation management at the
product and corporate levels so as to ensure sustained competitive advantage and steady corporate growth.

Course Objectives:
The major objective of the course is learning the discipline and culture of organizational learning, critical
thinking, creative problem formulating and resolving, creativity management and innovation management.
Students are challenged to train themselves with the following knowledge-sets, skills and competences:
[Chapter numbers refer to the Required Text]

PART ONE:

• To understand the role of a strategic leader as a systems thinker for the corporation (Ch 04).
• To understand the role of a strategic leader in identifying, formulating and resolving “simple” and
structured problems (Ch 05).
• To examine the role of a strategic leader in formulating strategies that identify, formulate and
resolve complex, unstructured and “wicked” problems (Ch 06).

PART TWO:

• To explore the role of a strategic leader as maximizing creativity management in the firm (Ch 07).
• To explore the role of a strategic leader as empowering innovation management in the firm (Ch 08).
• To appreciate the role of a strategic leader as spearheading corporate-wide innovative management
(Ch 09).
• To appreciate the role of a strategic leader as optimizing innovative and sustainable competitive
advantage for the firm (Ch 10). And, lastly,

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 • To understand the role of a strategic leader in leveraging creative and innovative corporate growth
of the firm (Ch 11).

Course Content

Required Text:
Mascarenhas, Oswald A. J. (2010), Business Transformation Strategies: The Role of the CEO as a
Strategic Leader of Innovative Transformation, New Delhi, India: Sage Books (forthcoming).

Suggested Supplementary Book Readings:

Covey, Stephen R. (2004), The 8th Habit: From Effectiveness to Greatness. Free Press.

Csikszentmihalyi, Mihaly (1997), Creativity: Flow and the Psychology of Discovery and Innovation, Harper
Collins Publishers.

De Bono, Edward (2009), Think! Before It’s Too Late. London: Vermillion Books.

Govindarajan, Vijay and Chris Trimble (2005), 10 Rules for Strategic Innovators: From Idea to Execution, Harvard
Business School Press.

Kao, John (2007), Innovation Nation: How America is Losing its Innovation Edge, Why it matters, and What we can do
to get it back. Free Press.

Kim, W. Chan and Renée Mauborgne (2005), Blue Ocean Strategy: How to Create Uncontested Market Space and make
the Competition Irrelevant, Harvard Business School Press.

Neumeier, Marty (2009), The Designful Company: How to build a Culture of Nonstop Innovation, Berkeley, CA: New
Riders.

Prahalad, C. K. and M. S. Krishnan (2008), The New Age of Innovation: Driving Co-Created Value through Global
Networks, New Delhi, India: Tata McGraw-Hill.

Senge, Peter M. (2006), The Fifth Discipline: The Art and Practice of the Learning Organization, Revised edition, New
York, Currency: Doubleday.

Course Evaluation:
Individual Class Assignments: 20%
Group Take-Home Exam 1 - 25%
Group Take-Home Exam 2 - 25%
Group Presentation of Take-Home Exam I and 2 in class - 20%
Class attendance and participation – 10%

Office Hours:

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Tuesday and Thursday: Before and after the class.
Other times outside class hours by appointment.
Contact the instructors at:
Fr. Ozzie Mascarenhas SJ:

Landline (Off.): 2201396

Mobile: 9591349683
mascao@staloysius.ac.in
mascao37@gmail.com

Mr. Girish:
Landline (Off.): 2286887
Mobile: 9880707554
girish@staloysius.ac.in

Creativity and Innovation Management

Course Schedule in Details
Session Date Major Topics and Subtopics Readings:
# Mascarenhas
(2010)
1 18/08/10 Introductory: Syllabus and Structure of the Course
Course Outline Syllabus
Course Objective
Course Readings
Course Content & Schedules in detail
Course Methodology
Course Assignments
Course Expectations and Evaluation

Creativity and Innovation Mgmt: Part I

1 18/08/10 The Strategic Leader as a Systems Thinker: Part I Chapter 04

Systems Thinking as the Fifth Discipline

The Importance of Systems Thinking.
What is a System?
What is Systems Thinking?
Major Features of Systems Thinking
The Concept of Feedback
The Reinforcing and Balancing Feedback Processes
The Concept of Delays in Systems Thinking.
Laws of Systems Thinking
Archetypes of Systems Thinking: Nature’s Templates that Control Human
Events

2 25/08/10 The Strategic Leader as a Systems Thinker: Part II Chapter 04

Synthesizing Archetypes

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 The Concept and Principle of Leverage
Case Applications of the Laws and Archetypes of Systems Thinking
Wondertech and its Premature Failure
People Express Airlines and its Premature Disappearance
The Acme Story
Eroding Goals in Detroit Public and Private School Systems
Concluding Remarks
References
Business Transformation Exercises
Appendix 4.1: Did China precipitate the Current U. S. Financial and
Mortgage Crisis?

3 01/09/10 The CEO as a Critical Thinker of Simple Strategic Chapter 05

Problems: Part I
What is a Problem?
Step One: Problem Definition and Identification
Step Two: Problem Formulation
The Process of Problem Formulation
A Structure for Problem Formulation.
Step Three: Problem Specification
Knowledge, Certainty, Risk, Uncertainty and Ambiguity
Rapid Learning from Deliberate Mistakes
Integrative Thinking

4 08/09/10 The CEO as a Critical Thinker of Simple Strategic Chapter 05

Problems: Part II
Step Four: Problem Resolution
Critical Thinking and Problem Formulation-Resolution
Various Approaches to Critical Thinking
Critical Thinking as Making a better Sense of the World around us
Critical Thinking as Thinking Critically
Critical Thinking as Thinking that Challenges
Critical Thinking as Independence in Moral Reasoning.
Critical Thinking as Positive and Normative Science.
Critical Thinking as Spiritual Intelligence
Hierarchy in Critical Thinking.
Resolving problems: Choose the right means for the right ends
Step Five: Problem Resolution Assessment
Concluding Remarks: The Basic Tenets of Critical Thinking
References.
The Current Crisis in the Subprime Market
Home Mortgage Stock Prices are Down
References
Business Transformation Exercises
Appendix 5.1: The Collapsing Subprime Lending Market

5 15//09/10 The CEO as a Critical Thinker of “Wicked” Strategic Chapter 06

Problems: Part I

The Wicked Problem of the Global Financial Crisis of 2008

Part I: The Theory of Wicked Problems
A Simple Classification of Problems
General Nature of Wicked Problems
Rittel and Webber’s Characterizing of Wicked Problems
Assessing the Wickedness of the Strategic Problem
Wicked Problems as Social Messes
On Type I, Type II, Type III and Type IV Errors

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 Perrow’s Characterization of Problems
A synthesis of Problems
Business Transformation Exercises

6 22/09/10 The CEO as a Critical Thinker of “Wicked” Strategic Chapter 06

Problems: Part II
Part II: Managerial Challenges and Implications of Wicked Problems
What makes a Problem wicked?
How to Recognize a Wicked Problem?
Are Wicked Problems really Unsolvable?
Understanding the Origins of Wicked Problems
A Systems Understanding of the Origins of Problems
Systems Thinking to Resolve Some Wicked Problems
Design Thinking to Resolve Wicked Problems
A Practical Illustration: The Wicked Problem of Human Tissue Markets.
Managing Non-Profits as a Wicked Problem
How can CEOs Resolve Wicked Problems?
What CEOs should avoid in resolving Wicked Problems
Analysis versus Synthesis in Taming Wicked Problems
Concluding Remarks
References
Business Transformation Exercises.

Creativity and Innovation Mgmt: Part II

7 29/09/10 The CEO as a Strategic Leader of Creativity Management: Chapter 07
Part I
What is Creativity?
Information, Knowledge and Creativity
Logic, Emotions and Creativity
Logic, Asymmetry, Humor and Creativity
Lateral Thinking and Creativity
Parallel Thinking and Creativity
Concepts and Creativity
Critical Thinking and Creativity
Judgment, Design and Creativity
The Realm of Possibilities and Creativity
Provocation and Creativity
Serendipity, Curiosity and Creativity
Incubation, Idle Time, and Creativity
Enhancing Personal Creativity

8 06/10/10 The CEO as a Strategic Leader of Creativity Management: Chapter 07

Part II
Thinking and Creativity
Divergent Thinking and Creativity
The Dynamic System Model of Creativity
Mimesis and the Evolution of Creative Culture
Co-creativity and Co-Innovation
Who are Creative People?
What Do Creative People Do?
The Social Context and Environment of Creativity
Design Reasoning and Creativity
Ideation, Creativity and Beauty
The Design Incubation Factory

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 Design Thinking, Creativity and Innovation
Unpacking Creativity

9 13/10/10 The CEO as a Strategic Leader of Creativity Management: Chapter 07

Part III

Application of Creativity Principles

Twentieth versus Twenty-First Century Business Designs
The Culture of Creativity, Design and Innovation
Factors Affecting Creativity in Marketing Programs
Individual Factors Affecting Creativity:
Situational Factors Affecting Creativity:
Creativity in Resurrecting America from its
Recession and Financial Crisis
The Economic Recovery Plan
Possible Impact of the Economic Recovery Plan
Concluding Remarks
References

Business Turnaround and Transformation Exercises

10 20/10/10 The CEO as a Strategic Leader of Innovation Chapter 08

Management: Part I
What Is Innovation?
Importance of Creative Innovations as Business Growth Opportunities
Hurdles to Corporate Innovation
Innovation as New Inputs, New Processes and New Outputs
The Socio-Technological Process of Innovation, Culture and Civilization
Types of Creativity and Innovations
Incremental versus Radical Innovation
Function versus Design Driven Innovations
Consumers, Consumption and Innovation
The Dynamic of Creativity and Innovation
Creation, Invention, Discovery, Innovation and Venture
Invention versus Innovation
Innovation versus Imitation
Innovation and Inclusive Growth
Waves of Innovations
Negative Chain Effects of Lack of Innovation
On Incremental Innovations
The Six-Component Wheel of Innovating Consumer Products/Services

11 27/10/10 The CEO as a Strategic Leader of Innovation Chapter 08

Management: Part II
Sustaining, Low-end Disruptive and New Market Disruptive Innovations
Strategic Innovations
Catalytic Innovations
Operational Innovation
Platform versus Component versus Design Innovations
Open Innovation
Management Innovation.
The Institutionalization of Innovation.
Emerging Technologies and Emerging Innovations
Who Innovates?
Architectural Innovation and Modular Corporate Forms
New Charter for Opportunities within Omni Divisions

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 How Operational Innovations Transformed Progressive
Innovations and Market Ecosystems
Concluding Remarks
References

Appendix 8.1: Major Underlying Processes Renovating the World of

Humanity and History, Cultures and Civilizations
Business Transformation Exercises.

12 03/11/10 The CEO as a Strategic Leader of Corporate-wide Chapter 09

Innovation Management: Part I
Managing Corporate Innovation.
Centralization and Decentralization for Effective Innovation.
Human Brain Hemispheres and Innovation
Why do some Firms Engage in Ongoing Transformation
The Afuah-Bahram’s (1995) - Value-Added Chain Model of Innovation
Gatignon and Xuereb’s (1997) Model of Determinants of Radical Product
Innovation
Chandy and Tellis’ (1998) Model of Determinants of Radical Innovations
Willingness to Cannibalize and Radical Product Innovation
Incumbent Role in Adopting Radical Innovations
Technological Opportunism and The Adoption of Radical Innovation
Marketing Orientation and Product Innovation
Corporate Culture for Innovation
The CEO’s Challenges in Managing Innovations

13 10/11/10 The CEO as a Strategic Leader of Corporate-wide Chapter 09

Innovation Management: Part II
Innovation Management and New-Product Development Value Chains
What Innovators look like
How do you Groom Breakthrough Innovators
Ten Characteristics of Strategic Experiments that generate Breakthrough
Innovations
Popular Types of Innovations.
Innovation Margins
Study the Margins of the firm
External Sourcing of Innovations.
Aggressive Marketing
The Innovation Value Chain
The Role of Information Diffusion on Innovation.
Management Innovation for Marketing Innovations
The Process of Management Innovation
Product-Centric Versus Consumer’s Experience-Centric Innovation
Concluding Remarks
On Innovating Innovation
References..

Business Transformation Exercises

14 174/11/10 The CEO as a Strategic Leader of Innovative Sustainable Chapter 10

Competitive Advantage: Part I

Theoretical Context of Strategic Resources.

What is Competitive Advantage?
Major Substantive Assertions of RBV
Problems regarding RBV of SCA
What Makes a Resource Valuable?

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 The Industrial Organization (IO) Theory and CA
Market Implications of a Competitive Strategy
Exhibit 10.1: A Five-stage schema for building Sustaining competitive
advantage
Other Sources and Concepts of Sustainable Competitive Advantage
More Perspectives on Competitive Advantage
Competitive Advantage Comes from Strategy that is Local
Competitive Advantage via Market-Based Intangible Assets

15 24/12/10 The CEO as a Strategic Leader of Innovative Sustainable Chapter 10

Competitive Advantage: Part II
Relational Equity as SCA
Sustainable New Product Advantage and Strategic Architecture
The Concept of Strategic Intent and SCA
Some Global Opportunities for Building SCA and Core Competencies
SRCA versus SMCA
Sustainable Quality-based Competitive Advantage (SQCA)
Benchmarking Marketing Capabilities for Sustainable Competitive
Advantage
Benchmarking SCA using Standard Accounting and Profitability Ratios
The Significance of Tobin’s Q
Your Interface System as a Source of SCA in Services
Concluding Remarks
Is USA Losing Its Competitive Edge?
Honing Your Competitive Advantage
SCA and Corporate Social Responsibility
References

Appendix 9.1: Standard Accounting Measures of Competitive Corporate

Performance

16 01/12/10 The CEO as a Strategic Leader of Innovative Management Chapter 11

of Corporate Growth: Part I
Differential Growth and Differentiated Leadership
Organic Growth: Grooming the Next Generation
Major Corporate Growth Options
Some Critical Observations on Corporate Growth Strategies
International Champions of Profitable Growth

Recent Champions of Corporate Growth

Kevin Sharer, CEO Amgen
Kenneth W. Freeman, Chairman: Quest Diagnostics
Google.com.
International Champions of Bad Growth
Starbucks Inc.
Wachovia Corporation

17 08/12/10 The CEO as a Strategic Leader of Innovative Management Chapter 11

of Corporate Growth: Part II
Asking the Right Growth-related Questions.
Should we go Global in order to Grow?
Growth Strategy Principles.
Corporate Growth through Incremental Innovations
Company Growth through Mergers and Acquisitions
Types of Mergers

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 Why do Companies Seek Mergers, Acquisitions or Alliances?
Why do Most Mergers and Acquisitions Fail?
How can you save Mergers and Acquisitions?
Choosing an Acquisition versus Alliance Growth Strategy
A Permanent Opportunity to Grow: Product to Customer Orientation.
Growth by Creating New Businesses.
The way Industries Evolve
Which trajectory are you on?
Concluding Remarks
References

18 10/12/10 Final Exam: Student Presentations Chapters 4-11

19 11/12/10 Final Exam: Student Presentations Chapters 4-11

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