Creativity INNOVATION & Entrepreneurship

Innovation is the creation of the new or the re-arranging of the old in a new way.
- Michael Vance

Why Creative & Innovative Entrepreneurship?

Effectiveness of any organization in 21st century increasingly depends on creative & Innovative Entrepreneurship. 1990s have seen the emergence of Creative & Innovative Entrepreneurship due to new Paradigm in business world.

Changing Paradigm
Old Paradigm
Vertical Organizations

New Paradigm
Innovative Organizations

Forces on Organizations
Markets Workforce Technology Values Local, Domestic Homogeneous Mechanical Stability, Efficiency Global Diverse Electronic Change, Chaos

Management Competencies
Focus Leadership Doing Work Relationship Profits Autocratic By Individual Conflict, Compete Customer Empowering By Teams Collaboration

Management Innovations Overtime

Innovative Organizations Learning Organizations Total Quality Management

Contingency Views

Systems Theory
Management Science Perspective Humanistic Perspective Classical Perspective
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Creativity is thinking up new things. Innovation is doing new things.

- Theodore Levitt

QREATIVITY
Revolutionary ideas come from ridiculous questions. QREATIVITY is creating something out of nothing by asking BIG questions. Says an Ancient Chinese proverb - One who asks a question is a fool for five minutes; one who does not ask a question remains a fool forever,

An Entrepreneur
Any person who exploits Creative ideas for commercial gains. A Person realizing that creativity, innovation & even incremental value additions are imperative ingredients to survive the ever rising competition. A person identifies new opportunities in the market which creates disequilibrium in the economy.

Entrepreneurship
Entrepreneur Uniqueness

Growth

Creativity

Defining Entrepreneurship

Innovation

Organization Culture

Process

Creating Values

The Entrepreneurial Process

Creativity & INNOVATION

Exploring the Entrepreneurial Context

Identifying Opportunities/Possible Competitive Advantage

Starting The Venture:

Researching Feasibility Planning the Venture Organizing the Venture Launching the Venture

Managing the Venture

Managing Processes Managing People Managing Growth Special Issues

The Practice of Innovation

Managing Business Innovation Managing Product Innovation

Managing Process Innovation

Managing Business Innovation

INNOVATION

CONTEXT

WHO

WHAT

HOW

SUSTAINABILITY

SUPERIOR SHAREHOLDER VALUE

Managing Business Innovation

Context External factors & internal capabilities that can be exploited. Innovation Dimension Redefine the basic dimensions of business Who, What & How to offer. Sustainability How to create a winning business model that is hard to intimate.

WHO
Leverageable Business Content Specific Customer Focus

WHAT
Precise Customer Offering

HOW
Unique Business Capabilities Sustainable Factors Superior Shareholder Value

DELL

PC Industry Focused on Build-tostock

Experienced PC Buyers

Self-Service PC Solutions

Build-toOrder, Direct Channel

Incumbent Channel Constraints & Build-to -order Expertise Business Model Built around Rebel brand

TSR: 52% MV. $70B

HARLEY

Japanese Lead in Motorcycle Technology

Rebel Image Executives

Branded Motorcycle Rebel Lifestyle

Brand, Harley Owner Groups

TSR: 35% MV. $16B

MV Market Value TSR Total Shareholder Return

Managing Product Innovations

Product innovation is the best way of supporting customer satisfaction & long-term growth in company value. Its all about:
Finding out what customer might need or want;
Generating ideas & technology to meet such needs;

Developing, realizing, & launching a product;

Providing supportive services.

Product Creation Process

Idea Management Intelligence Development Technology & Resource Development Product/Technology Strategy Development Project & Program Management Product Support

Product Innovation at Gillette

Gillette Sensor Excel - 1994 Gillette Sensor Excel for Women - 1996 Gillette Mach3 - 1998 Gillette Mach3 Turbo - 2001 Gillette for Women Venus - 2001 Gillette Sensor 3 - 2002

Managing Process Innovations

A process orientation implies an emphasis on HOW work is done rather than on WHAT work is done. By correctly viewing a process as a group of activities that create value for customer, there is a significant potential for innovation. Innovation involves creating something new, so process innovation ideally implies creating a significant improvement in one or more of the existing processes employed.

Process Innovation
TOYOTA Production System (TPS) aims at eliminating waste, reduce costs & respond quickly to the changing customer needs. The introduction of Kanban & Heijunka emphasize on Just-in-time & Even Distribution of work on shop floors. Gujrat Ambuja Cements focuses on improving productivity and reducing energy consumption which as given it an invincible cost leadership position. The use of variety of unconventional raw material for energy generation helps them to achieve the missionary Zeal for Total Cost Management.

Building an Innovative Organization

Great organizations make innovation happen, instead of leaving it to chance.
Does organization encourage product champions? Does organization provide incentives for innovations? Does leaders adopt a shared approach to decision-making? Does Senior Management actively encourage new ideas? Does leaders provide adequate resources for new projects? Is involvement of leaders in new projects visible? Do leaders come down heavily on failures?

Building an Innovative Organization

Promoting Learning Organization.
Leadership Open Information Learning Organizations Empowered Employees Strong, Adaptive Culture Team-Based Structure Participative Strategy

Building an Innovative Organization

Fostering an innovative environment;

Promoting a failure tolerant Culture;

Motivating Employees; Understanding the importance of Leadership; The need for Self-Appraisal.