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ASSIGNMENT INNOVATION MANAGEMENT SUBMITTED BY: MUHAMMAD FAISAL IQBAL MBA INNOVATIVE MANAGEMENT GROUP: H I.

D 37876 SUBMITTED TO: PROF. DR ELENI TSITSIRIGOU BRITISH INSTITUTE OF TECHNOLOGY AND E-COMMERCE

INNOVATION and CREATIVITY INTRODUCTION If you say innovation and creativity are vital to growth, Innovation and creativit y are very important for the success and growth if u ask this from ten people, n ine will agree with this but if u ask that how you can implement creativity in y our daily routine life, nine people out of ten will reply in negative.[1] Kris M urrin, co-founder of !hatif!, newdesign, September 2001 Innovation and creativit y are commonly use words in daily business now days and these are highly linked with the success of an organization, most of the managers accept this that innov ation and creativity is very important for the success an organization... A comp any at the leading edge understands that the innovation is much more that R&D an d product. Now a days innovation is employed to increase the revenue and profit, and employed to increase the value and repute of a company this value is created for both i.e. firm and the consumer An invention is different from an innovatio n at any particular time in that it does not have commercial value but it may ha ve in future. There are many essential ingredients, or elements of an innovation ecosystem. They are rooted in national culture and take years to develop: Trust , Curiosity, tolerance of diversity, faith, confidence, Lack of fear, the will t o make the world better place, the will to take the risk and fail. Some other fa ctors include: A written innovation strategy, a filter, an innovation process, a rewards and recognition system, humility, respect for insignificant technologie s/competitors. We can minimize the environmental damage through innovation incre ases the productivity, profitability and innovation accelerate the growth .innov ation provides valuable products and services at lower price When we come to mea sure the innovation management performance of a company we have to count all the influencing factors as there are a lot of characters which should be keep in

mind to analyze the innovation management performance House of innovation demonstr ates all the indicators which effect the innovation management these indicators are innovation strategy, innovation procedures, originations and its culture all of these factors are independent the figure below describes the hierarchy of th ese factors fig1.1 Why is Innovation important? Effective innovation boosts the effectiveness and efficiency of organizations an d individuals. Innovation reduces waste and environmental damage. Innovation cre ates growth, increases productivity, and economic wealth. Innovation provides be tter goods and services at a cheaper price.

Typical Reason for Innovation Few reasons for innovation are: To gain the response of the customers To capt maximum market To lead the industry Explore new market Enhance the services and produce quality products To bring the variability in product type To offer the product at cheaper price To maximize the profit Difference between Innovation and Creativity: According to Theodore Levitts classic definition of creativity and innovation: Cre ativity is thinking up new things. Innovation is doing new things. As we know tha t both of these terms Innovation and Creativity are used interchangeably .Both a re too closely linked to be exclusive from one another. It is important to disti nguish between innovation and creativity because the processes are different, th e risks are different, the staring points are different and the climates needed for achievement are different. We can take innovation as to add something differ ent product and some effective change in the process. The emphasis is on adding and existing. It means that the product/process is already done from scratch and we have just changed it for the betterment or fulfill a different need. While c reate is define as the cause something to come into being. The product came into being because of this process and did not exist before. It is original and uniq ue. So we can say that creativity is basically the process which produces the ge nuine goods on other hand innovation is the alteration or the change in the exis ting product. Creativity can be taught and learned as it is a proceess.There are many methods and strategies for creative thinking and It is possible for compan ies to train their staff, teams and organization so they can improve their perfo rmance creatively. Innovation, on the other hand is very imformal.One cant learn how to be innovative because there is no specific knowledge that could be consid er as the basis of teaching innovation. Most of the innovative techniques are de rived from what we know about creativity.

In modern world we need both, innovation and creativity to compete the world. Mo st of the organizations need constant improvement in their existing products via innovating new changes, as well as require to create new products to meet the u nfulfilled needs. Barriers to Innovation and Creativity: There are many factor which effect the overall producer of innovation and creati vity like: Determination: It is the key requirement of the Innovation and creati vity Without time, patience and effort one could reach a point where he/she give up prematurely and does not improve the creative producer. Routine Life: Habits can be enemies of creativity .Most of the people acquire routines of movement w ork expression and thinking.. Excessive tension: Creativity often makes a person uncertain and confused. One dont aware of the results before starting and this s hort coming of a good basis can create tension. Muted Drive: Need for change evo lved before any significant development. This is the vital key for the creative thinking. Lack of Opportunity: In the history, most of the successful innovation was brought up by the people who had been giving up spending their lives in rou tine manures through illness or even time being disgrace. Lack of Effective Meth odology: The inappropriate methods of problem solving and decision-making slow d own the process of creativity. Even though creativity involves creative and inno vation ideas, there is feasibility to define different possibilities of organizi ng such work to maximize the chances of success. Innovation Strategies Merle C Crawford(1980) described four innovation strategies. Inventive Innovatio n Newly launched product. Adaptive Innovation Comes after inventive innovation. Economic Innovation Cost effective product production. Innovative Application Ef fective use of new technology. Each innovation strategy requires innovation... H owever, the innovation will occur in different areas. Each innovative strategy c an be risky in reality, even if the firm perceives it as being low risk. Attributes of Innovations Following are the attributes of innovation:

1. Comparative Benefit How the new product is better than the previous one and what are the comparative benefits of the product is as compare to previous one ? Com patibility Does the innovation is able to influence existing infrastructure?: Its a measure of the degree to which an innovation is perceived as being compatible with existing values, past experience and the needs of potential adopters. Comp lexity is the innovation easily understandable to the consumer? Its to measure th at how much difficult the innovation is taken to understand and employ. One shou ld try to make the innovation process easy to understand and adtoptable.It seems that the complex innovative ideas are not successfully completed. Trialability : Its the attribute in which we test a new product or idea before bringing it int o the market. So that the effectiveness of the innovative idea can be tested on the basis of experiments. Observability Will the customer can identify the effec tiveness of the innovation? It is the calibration through which other people can see the innovation to Innovations visibility can be describe as the peer discuss ion ,as peers working on adoption of a new procedure to develop a product and of ten require information about it. 2. 3. 4. 5. Innovation-Decision Process Model: Innovative way to solve a problem needs unique ideas and expertise and this proc ess is dived into different stages.

Fig. 1.1 Identifying problem/Knowledge: Problems should be identified and critically analyzed to produced an effective s olutions. It requires complete understanding to solve the problem all the facts and figures must be clear first someone should avoid to find out the results wit hout completely identifying the questions there are various benefits to identify a problem. three of them are discuss below : Calibration of problem can be real istically estimated . The main objectives and success methods can be known. A su itable planning of human organization and work process . Collecting ideas/Persuasion: The producer for creating ideas is called Brainstorming and this process is explained as . Give a paper to every one to note down the important things. Allo cate a topic. Advise everyone to write every brilliant ideas quietly on the give n piece of paper. Collect the informations in the form of groups. Critically anal yze the ideas for innovation. Select an issue or a topic. Note the issues .

Create the definite to end the session. Now right down all the ideas during the brainstorming regardless how weird or creepy or looking to be known relevant and not to be evaluated When the session is ended Organize the ideas in an appropri ate order and then critically analyze these ideas. Screening Ideas for Application/Decision: Once you have done with the brainstorming period every idea must be reconsidered by keeping in mind the five points: i) Value added potential to the internal or external customers. ii) How effective it can be? iii) Is it practical in daily life? iv) Is it one of the good option among the various obtained options? v) Do we wish to make it work? Benefits of Innovation Innovation and creativity create significant differential and market space betwe en you and your competitors. Innovation and creativity is the key to motivation, inspiration.It lead your company; to think to the future and drive innovation wi thin the organization. Creative ideas and innovative strategies brought by a com panys Think Tanks influence the business in all the aspects.. Innovative problem s olving methods are very much cost effective for organizations. Innovative ideas evolved from the customer demand Open up new markets. Utilize partnerships, acqu isitions, licensing options and Intellectual property assets. As a micro, small or medium company, operate in and dominate markets way beyond your size and fina ncial weight. Innovative ideas enable an organization/business to get new opport unities to grow and increase profit margins

How to Improve Innovation? There are thousands of ways to strengthen the team, department or organizations i nnovative muscle. During the establishment of team of innovators it should assure that the team in cludes representatives from customer service, operations management, and other i nterdependent departments. So the group openly explores problems with respect to all the prospective which brings the solutions. Make arrangement to train indiv iduals different brilliant ideas and issue solving methods. This will improve th e Innovative-decision making process. Arrange contests, open office areas for br ainstorming. It will help in development of innovation and creativity in your em ployees. Also pay some reward to innovation and creativity. Regular meetings sho uld schedule to discuss issues and up coming ideas. These meetings should open t o all employees at all level. Advertise the domestic shows where employs discuss their innovative stories on recent work accomplishments. The Edison factor shou ld be encouraged within an organization to improve the innovation. People should know that failure is also the part of game. Edison developed working bulb after 9000 experiments. Its OK to fail but the important thing one should practice i s learn your lesson from a failure. Engage peoples to develop creative ideas by their own. Try to provide special area equipped with creative videos, interestin g mind games and books Try to interact with your customer to get their views and information collects them to analyze your goods and services to bring the value to their goods and products. Assign different situations, problems and issues t o your peoples and ask them to come up with creative solution to the assigned ta sk. Evaluate all the submitted ideas and reward the best one. Keep in touch with the short coming in the ideas. Identify the group or the person thats has come u p with most creative and innovative ideas and contributed to resolve issues. Thi s should be done on regular basis after a defined time period. Finally, try to m anage a learning, calm, composed peaceful at workplace for your emplooyes.It wil l defiantly rewards "out of the box" thinking and acting. In other words always encourage innovation, risk taking and false start. Try to be mistakes tolerant Examples of Innovation Few examples of innovation and creativity are as following: GOOGLE Google is generating plenty of buzz in multiple areas with new products. Once up on a time, it was all about Web search. No more. In 2009, Google introduced its first device, the Nexus One phone, a new collaborative tool called Wave, and a n ew music service.

Meanwhile, in response to Hulu and other sites, YouTube struck deals with studio s and networks to add premium content to the worlds top online destination for video. At Google, the search for new opportunities and markets is never-ending. APPLE It is very difficult to grasp that Apple opened its Applications store about two years ago. The no. of application its offering before opening store was Its ha rd to fathom that140, 000.They generated about $1 billion yearly revenue. Their customers have downloaded about three billion applications. These were all due t o the successful launch of the brilliant innovative iPad.In the mean time apples to cover the music streaming company named Lala which generated a lot of revenu e and profit. Revenue-wise, it was another fruitful year for Apple -- $36.5 bill ion, a 12% increase from 2008. FACEBOOK Facebook took the top spot, having recently announced that it has 400 million me mbers worldwide, with almost a quarter of this audience accessing its pages via their mobile phones. The Palo Alto-based platform added a range of fresh options for brands and advertisers over the last 12 months, and also strengthened its p osition relative to Twitter, the micro logging service. Mark Zuckerberg, Face bo oks chief executive, said "what 2009 was about for us was making the site better and growing users."Facebook took the top spot, having recently announced that it has 400 million members worldwide, with almost a quarter of this audience acces sing its pages via their mobile phones.The Palo Alto-based platform added a rang e of fresh options for brands and advertisers over the last 12 months, and also strengthened its position relative to Twitter, the micro logging service. Mark Z uckerberg, Facebooks chief executive, said "what 2009 was about for us was maki ng the site better and growing users." Lat year they have revenue of $15 billion valuation to boot, thanks to Microsofts $240 million investment.

AMAZON: In year 2009 Amazon generated appx. $24 billion in revenue. Its 26% more from ye ar 2008.All the revenue is not through books but also though its new and innovat ive plans i.e. the data storage and computing services. These two innovative ide as are becoming popular online utility for ESPN,eHarmon and others. They are als o expanding their music video and electronic check out services. Which were gene rally consider as Apple and Google strength. they also written a book on diversi fy with ingenuity. Conclusion Businesses, now days are encountering with raped transition that could never see n before facing rapid change like never before. There are various factors which are generating these changes; includes globalization, enchasing competition, con sumers variability of new form of technology. In such situation creativity and i nnovation is the only key to success regardless of any formalities, restrictions or requirements. Though both of these terms are different but interlinked. If a n organization totally rely on innovation will prosper until their products and services run out of gas and become obsoeteand non competitive. On the other hand , organizations that depend upon the creativity will have their new products and s ervices ready to launch but their all ready existing products remain uncared ,no t up-to-dated and competitive to generate revenue to help their creativity. In f uture, the successful leader will be the one who understand that both creativity and innovation are essential and able to make booth of them happen in the right way at the right time in the organization/business. Many policy instruments wil l be required from the State to encourage innovation.As shown in the figure belo w:

New innovations and inventions can only be successful if they are developed acco rding to the need of the recent age. Lack of innovation will simply a disaster f or business/organization as it cause failure against competitors, low revenue,mo reexpansive, instability , panic within the staff. The companies with lack of in novation and creativity will no more survive and vanished from the face of the e arth.

REFERENCES 1. Managing Innovation, Design and Creativity Von Stamm by Bettina 2. https://www.improveinnovation.eu/opencms/opencms/en/01_IMP/01_IMP_03_ATK 3. http://lateralaction.com/articles/creativity-innovation 4. http://www.prm.nau.edu/prm426/creativity_innovation_arti cle.html 5. The new unblocked manager: a practical guide to selfdevelopment By Dave Franc is, Mike Woodcock 6. An integrative approach to managing innovation By Judith Brown Kamm 7. http://www.mja.com.au/public/issues/180_06_150304/san10 748_fm.pdf

8. Managing Innovation, Design and Creativity By Bettina Von Stamm 9. http://www.macven.com/Innovation_Services/How_Innovati on_Makes_Money/how_innovation_makes_money.html 10. http://ideaflow.corante.com/archives/2003/06/09/thediffere nce_between_creativity_and_innovation.php 11. http://www.jpb.com/creative/innovation_plan.php