Innovation and creativity 01 introduction and basic concepts

Introduction to:
Innovation and Creativity
BY KAMAL M. AL MASRI
Course code: ::::.BEAD4312..::::
Israa University Gaza
Faculty of Managerial and Financial Sciences
Departmentof Management
Chapter 01: Introduction and
basic concepts

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Introduction tothe concepts of Creativity & Innovation, by Kamal M. AL MASRI
Introduction
•Creativity and innovation are important
driving forces for:
• Personal development,
• Economic growth,
• And societal advancement. (Tang andWerner, ed., 2017)

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Why? Rationale behind innovation
•The “needs”, wants,tastes and expectations
of people are continuously changing!
•Things that satisfied customers in the past
may not satisfy them today (nor tomorrow?)!
•Functions, design,color, presentation, value, … of
products.

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To be or not to be!
•In order to survive, organizations should
have an advantage or, at least makea sort of
balance vis-à-viscompetitors.
•For nations and organizations, innovation is
not a “luxury”, but a necessity. It’s essential
for survival! For organizations: innovateordisappear!

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For organizations:
•Two decades ago, Total, GM, ExxonMobil were at the top
of the biggest industrialcompanies, now we rather talk
about Facebook, Google and Amazon(innovative
companies)…
• Innovation is crucial for companies (especially for-profit).
•In a complex and unstable world, organizationscontinually
face new challenges and new type of demand…
• They fightfor survival.
• They have to adapt in order to deal withnew changingmarkets and
technologies.

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Innovate or disappear…
Entered to top
500
Out

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Concretely …
• Create permanent competitive advantages.
• Satisfy customer’s needs (wants).
• Enhance productivity and efficiency, and thereby reduce costs and
increase profits.
• Enhance quality of products.
• Increase value for customers.
• Inspire and motivate employees and strengthen their loyalty.
• Quickly respond to needs, and solve non traditional problems.
For all theses raisons, innovation is one of the most important sources
of wealth and profits for organizations, especially those with limited
resources.

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For governments and nations:
• Economic growthmadesincethe18th centurycan largelybeattributedto innovation
(successfulimplementationof ideasintheindustry).
• Sincetheindustrialrevolution,theriseinStandardof Livingismainlyconnectedto
innovations.
• SmallcountrieslikeSingaporeare morecompetitivethancountrieswithhugeresources,
thankstoinnovation.
• Thesourceofpowerofnation(now) isinnovationnot militarypoweror resources(the past).
• Theinnovativeperformanceiscrucialfordeterminingthecompetitivepowerandthusthe
nationalpower.
• Innovationisimportant tofaceglobalchallenges(weather,environment,immigration,…).
• Innovationingovernmentsisnot a luxury, or apropaganda, butthesecretofsurvivaland
renaissanceofpeopleandcivilizations…

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The role of ICT in innovation:
•Progress in technology hascontributedto the roleof
innovation in development.
•Theimpact of ICT was neat becauseof theincreasing focus on
information and knowledge.Concretely:
• Augmenting the transparency of information.
• Accelerating the process ofdealing with information in “real time”.
• Facilitating knowledge transfer.
• Enhancing the process of creating, sharing of knowledge and information
giving birth to new concepts such as: collaborative, participative and
concurrent engineering.
• …

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Traditional “Waterfall” or Sequential Development
Method vs. Iterative Development Method in
concurrent engineering.

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What should organizations do?
•It’s important to explore, create, refine,
select, implement, develop, introduce, and
evaluate new ideas at the right time and the
right place!
•“Good” ideas can be “found” almost
“everywhere”, and in unexpected places!

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What? Definition of innovation.
•No singledefinition …
•The definition variesaccordingthe point of view
of the author:
•Area of specialization, discipline,interests, approach, …
•The most important: to distinguish and
understand the main different concepts related
to innovation.

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Discuss: do you agree?
•Invention is the "creation of a product or
introductionof a process for the first time." Thomas
Edisonwas an inventor.
•Innovation happenswhen someone"improves on
or makes a significant contribution" to something
that has already been invented. Steve Jobswas an
innovator.

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From an economic point of view …
•According to Joseph Schumpeter “carrying out
innovations is the only function which is fundamental in
history”.
•For Schumpeter, innovation is “an invention that has
some market success”.
• Supporting Schumpeter's characterization of technological innovation as a
process of creative destruction, research supports the idea that technologies
evolve over time through cycles of long periods of incremental change, which
enhance and institutionalize an existing technology, punctuated by technological
discontinuities in which new, radically superior technologies displace old, inferior
ones, making possible order-of-magnitude or more improvements in
organizational performance…

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Our definition (operational/ detailed):
•Innovation is an organized process implying the
collaboration of a group f individuals from
different origins in order to creating new ideas
to be transformed in “products” that give
“customers” more satisfaction and help them
“enhance” their lives.

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From the definition:
•Innovation:
•Is a collaborative process.
•Involves a group of people from diverse origins (skills, levels of
intelligence, abilities, qualifications, roles, cultures, …).
•Meansproposing (or creating) new ideas.
•Theses ideas must be transformed in “products”.
•These products “must” give “customers” more satisfaction
help humansto “enhance”their lives (subjective?).

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Disciplines dealing with innovation:
• The term “innovation”has been studied and used in a variety of disciplines
such as economics, business, engineering,and sociology and is often poorly
understood andconfused withterms such as change,invention,design, and
creativity(O’Sullivan& Dooley,2008).
• To gaina better understanding of the concepts of creativity and innovation,
it is necessary to compare these two concepts withtheir other “siblings”,
words that people usuallyuse as synonyms of creativityandinnovation.
• In the fieldsof psychology, sociology, business, and engineering,discovery,
invention,andentrepreneurship aremost frequentlyused.
• First, let’s concentrateon some “siblings”of creativity and innovation,like
discovery, design, invention,andentrepreneurship.

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Innovation vs. creativity
•An individual definition “Creativity is a new mental
combination that is expressed in the world”(Sawyer).
• Features of this definition:
• (1) Creativity must be something new, novel, or original;
• (2) Creativity involves a combination of two or more thoughtsor
concepts that have never been combined before by the individual;
•(3) Creativity must be expressed in a certain way in the world.

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“Sociocultural definition” of creativity (2017,6)
•This definitionreflectsthefocus and approach of thethird wave
creativitystudy and definescreativityas “thegeneration of a
product thatis judged to benovel andalso to be appropriate,
useful, or valuableby a suitably knowledgeablesocial group”.
• Featuresof this definition:
• (1) Creativity must refer toa concrete product;
• (2) This product must be judged as novel, appropriate, useful or valuable;
• (3) Persons who make the judgment must be from a suitably knowledgeable
social group.

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Three differences between creativity and
innovation: Anderson and colleagues (2004)
• (1) Creativity can only involve the generation of creative ideas but not
necessarily involve the application or implementation of the ideas to
applied settings.
• Innovation, in contrast, mustinvolve “intentional introduction and application” of newand
improved ways of doing things.
• Therefore, application or implementation is an inherentcomponent ofinnovation;
• (2) Innovation must refer to benefit at one ormore levels of analysis, but
this is not necessarily the case for creativity;
• (3) Innovation is not necessarily absolutely novel to the organization,
rather it isusually a mixture of emergent processes, adopted or adapted
procedures, andcreative reactions to restrictions imposed by the
organization.

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Innovation vs. creativity from motivational
perspective:
•From themotivational perspective creativity is
driven byintrinsic motives, whereas
innovation is driven by extrinsic incentives
and the“need tosurpass previous standards”.

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To summarize:
•Creativity and innovation are related constructs and
are very often used interchangeably by laypersons.
•However, they are by no means identical and differ
from each other in terms of the different weight they
lay on certain individual, social, motivational, and
assessment criterion aspects .
Therefore, it is necessary, particularly for researchers,
to distinguish creativity and innovation for research
purposes.

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We can say that:
•Creativity focuses on idea
generation and innovation
stressesideaimplementation. (Rank, Pace,
& Frese, 2004).
Creativity and creative thinking are
crucial in complex situations.

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Complex vs. hard or “complicated”
•Hard, difficult … can mean many things:
•But complex doesn’t mean hard or “complicated”!
•Difficult: not easy. Needs considerable mental effort or physical
skill. But it has one final, specific answer, outcome, solution
(correct or incorrect).
• Complicated: high level of difficulty.
•Complex: not simple. May have more than one possible solution.
+ Contradictions.
• 7 Differences between complex and complicated. (see link)

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Controversy?
• Thereseems to be controversy if creativityor innovationis the umbrellaconcept in
this “family” of concepts.
• Some regard creativity as the umbrella concept and other related concepts as particular
forms or manifestationsof creativity. (developmental psychologicalperspective).
• Others, in contrary, believe thatinnovationis the umbrellaconcept and creativityis
one subset of the innovation system. Particularly, the basic process model of
innovationwhich is composed of three major process steps assigns creativity to thefirst
step in thatprocess, namely, ideagenerationandselection. (management
perspective)
It all depends on which perspective the researchers take when they approach these two
concepts…

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Inventions or innovations?
• Invention is aboutcreatingsomethingnew, whileinnovation introduces theconcept
of“use”ofan ideaor method.
• Aninvention is usually a“thing”,whilean innovation is usually aninventionthat
causeschange in behavior or interactions.
• Companiesoftenclaimtobea “leader in innovation”,and show a largepileof
patentsas evidence.Patentsare evidenceofinventions, ofhaving thoughtof
somethingfirst,and documentingthe newinvention througha legal process.
• Theusefulnessofthose inventions isnot proven, so“inventions”do not always
equateto“innovations.”
• Thereare manypatentswhich really do nothavea useor haveinfluenced no
productsor industries.
Patents without a “use” are not innovation.

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Examples
•If innovations infer the “use” of a new idea or
method, then an invention that leads to innovation
is really qualifiedby how much it changes the
behaviorsof the users, the businesses, and the
processes around it.
• Now perhaps the “Nose Pick” patent was avictim of bad marketing,
poor manufacturing, or just a “right idea at the wrong time”, but
obviously it has not changed behavior and become a commonplace
item in the 14years since the patent was granted.

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Very few inventions are, by themselves,
successful innovations.
•Most innovations are evolutionary changesto
existing processes,uses, or functions, whichare
madebetter by one (or several)contributing
inventions.
•The tablet is an evolution of smart phones, portable
computers, touch-screeninterfaces, and content/media
aggregation.

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Driving Innovation While Protecting Invention.
• Documenting, protecting, andleveraging inventionsis a cornerstoneof
innovation.
• Innovationis difficult, as it is in most cases a combination of
invention, along with use, behavior, and business models.
•Findinga singleperson withtechnical skillsto invent,an
understanding of userbehavior and consumption, and the
business background to understand theeconomics and
dependencies of gettingtheinnovationto marketina
sustainableandprofitable manneris very rare.

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Technology
•“thepractical application of knowledge especially in a particular
area.”(Merriam Webster)
•“thesumof techniques,skills, methods,andprocesses usedin the
production of goods or services or in the accomplishment of
objectives, such as scientific investigation.”(Wikipedia)
•“theapplication ofscientific knowledgetothe practical aims of
humanlife or, as it is sometimes phrased,to the changeand
manipulation of the humanenvironment.”(Britannica)
•To summarize: it’s “the waythings are done”.

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Invention, innovation and technology:
•An innovation may lead to a technological change.
•An invention can be transformed in an innovation,
but it can remain just an idea!
•The point is: innovations are not necessarily linked
to technology!
•Did the old QMS needany technological change?
•Did the organizational innovations in managementneed
technological changes?

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QMS, now and before …

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Innovation vs. discovery 2017 9
•Discovery is defined as the finding of something
unexpected that yields an “effective surprise” and it links
observations, ideas, or theories not only in new but in
previously unexpected ways.
•What can be discovered is not necessarily something new
and original.
• In geography, it isusually about discovering something that already
exists but nobody else has ever seen (e.g., the discovery of the New
World by Christopher Columbus).

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Discovery in science:
• In science, requires not only finding something unexpected but also
adding meaning to it.
• “Discovery is seeing what everyone else has seen and thinking what no
one else has thought”.
• Millionsof people have seen apples dropping from a tree and maybe hundredsof
them have beenhit by the dropping apples, but only Sir Isaac Newton thought of
the Universal Law of Gravitation.
• Chance favors the prepared mind.To achieve this unexpected or
unanticipated effect, a complex process is usually entailed, which involves
philosophical, empirical, theoretical, aesthetic, and social elements.

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Discoveries are important for science…
•All active discoveries assumea kind of search, either
it is the searchfor solutions to problemsorthe
search for problemsthemselves!
• A discovery may sometimesbe basedon earlier
discoveries, collaborations,or ideas.
• Somediscoveries representa radical
breakthroughin knowledge or technology.(Wikipedia)

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Design
• Design has always been closelyassociated with creativity because a designer’s profession is all
about planning for the making of something new (graphic design, fashion design, product design,
industrial design, etc. (tangible or non-tangible constructs, such as social design).
• Invention involves design, but ismore than design. Invention does notonly plan but also brings
thenew artifacts into lifeto meeta need or solve a problem.
• Design is also quite often used in describing innovation and related processes.
• Continuing innovation inindustries can beseen as a frequent redesign ofoffered products as
well as oftheproduction processes required.
• Design, invention, creativity, and innovation are entwined closelyin product design and new
product development (NPD),which isone essential part of the innovation process.
Continuing innovation in industries can be seen as a frequent redesign of
offered products as well as of the production processes required.

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A frightening RMI for kids? Redesign?

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Entrepreneurship:
• Whenever we talk about innovation, we cannot avoid talking about
entrepreneurship.
• Entrepreneurship is defined as “the visualization and realization of new
ideas by insightful individuals, who were able to use information and
mobilize resources to implement their visions”.
• An entrepreneur is not necessarily highly creative, but he/she must be good
at promoting or implementing radical changes.
• Entrepreneurship as“the process of recognizing and pursuing
opportunities … with a view to value creation”.
• Innovation is essential for value creation.

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Technological innovations and
entrepreneurship:
•Technological innovations create opportunities for
entrepreneurs to found new organizations and
establish competitive positions as incumbents' sources
of advantage decay.
•Technological innovations also create uncertainty
and risk for incumbents because its outcomes can be
only imperfectly anticipated.

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General conclusion (2017, 22)
• Design stresses the planning of making some concrete artifacts.
• Invention has a close relation to technology and engineering. It is acomplex
innovative process around design and problem solving.
• Discovery andinvention are integrally entwined — new discoveries can lead
to new inventions and new inventions can result in new discoveries.
• Entrepreneurship is exclusively used in business to describe insightful
individuals who are able to use information and resources to implement
innovations and create values.

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Is innovation a science?
•Innovation is systematic,
•Innovation has rules, authors and theories.
•But still, its difficult to talk about “science of
innovation”.

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Science, art and engineering
• Many points of view, but we can say:
• Science is a systematic enterprise that builds and organizes knowledge in the form
of testable explanations and predictions about the universe.
• It’s about studding how things work.
• Observing, analyzing, explaining, trying to control, ….
• Art means achieving objectives using general principles and rules based on
personal skills and experiences.
• Engineering is about making things work,i.e. using available knowledge (sciences,
…) to make things that work.
• Engineering is the use of scientific principles to design and build
machines, structures, and other items, including bridges, tunnels, roads,
vehicles, and buildings.
• Engineers use their knowledge of science, mathematics, logic, economics,
and appropriate experience or tacit knowledge to find suitable solutions
to a problem.

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So, what is the place of innovation?
•Innovation is a process.
•Using all branches of knowledge and
“useful” practices to achieve organization’s
goals.
•Innovation can be considered as a part of the
process ofmanagement whereas it uses all …

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False ideas about innovation:
False. It’s an organized process with specific methods
and practices.
Innovation is just a talent
False. It begins by an idea. But this idea must be
implemented till having results (value).
Innovation is an idea
False. Not necessarily, it is often based on existing
technologies.
Innovation needs an
invention
False. Its not centralized. Everyone should participate.Management is the
responsible of innovation
False. It often comes from non experts!Innovation only comes
from experts

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The true and the false in innovation:
•Innovation needs to involve technology
•False. Whilst many of the innovative products we see
coming to the market today do involve technology, it is
not the be all and end all.
•At the root of innovation is problem solving, and many
problemscannot be solved through technology
alone.
•Solutions and value can come in many forms.

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Only creative people can be Innovative.
•False.Innovationis not the same as creativity.
•Whilstbeing creativehas its benefits, Innovationis
driven byprocess, so even people who aren’t
innately creative can create a powerfulInnovation,
providedthey follow the rightprocess.
•Onceyou've learnt the processandharnessed
your innovation skills,you'llhave them forever.

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Ideas are the most important stage of
Innovation.
•False. Ideas are fantastic, but they are worthless until
proven.
•For this reason, every step of the Innovation process
is extremely important.
•For example, we find that a focus on good stimulus
(such as trade magazines, industry blogs & expos) and
insight (such as market and customer research) drives
an abundance of ideas.

50
Having a lot of money to spend makes
innovating much easier.
•False. Even if you have a multi-million dollar innovation
budget, you're unlikely to be successful unless you have
the right innovation strategy and processto follow,
and a culture that encourages creativity and
experimentation.
•Many of the 21st centuries greatest innovators started in
a garage or spare bedroom with very limited budgets:
thinkApple, Facebook, Twitter, Uber...

51
Disruptive Innovation occurs when the inventor
really understands the consumers needs.
•True. To radically changea product orservice, you
need togo back and study the consumer,and
understand thereal need.
•Today'sgreat examples of disruptive innovators are
companies like Uber, Air bnband Dyson because they get to
the nuts and bolts of what the consumer needs and provide
brand new solutions.

52
Disruptive innovation is what counts.
•False. Innovation does not have to disrupt a market in
order to be successful.
•Innovation can also, for example, be incremental
changes to an existing product or service, or taking an
existing product or service into a new market.
•Disruptive innovation has the potential to make a lot of
money, but other forms of innovation can also be
lucrative.

53
Innovation happens only at the most senior
level of a business.
•False. Just as every business regardless of its
kindor size can innovate, so too can every
employeecreate somethingnew that adds value
to the business and/or its customers.

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Main issues about innovation:
Mainobjectives ofthe studyTopics to study
how to leadinnovation, whatarethe characteristics of innovation leaders?Leadershipof innovation
The best waysand strategies of innovative organizations.Strategies of innovation
The managerial,legal,technical andcultural environment neededto stimulate
innovation.
Innovation environment
The relationship betweenculture and innovation.Innovation culture
The methods, models andpractices ofinnovation.Core innovation processes
Measuringthe levels of innovation(quantityandquality)in order to understand it and
study the relationswith other phenomenasuch as growth, leadership, etc.
Measuringinnovation
Evaluatingthe impactand the feasibilityof innovation.The impactsof innovation

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Risks and disadvantages of innovation:
•Innovationsare not always easy or beneficial.
•We need a risk-reward tradeoff.
•1- Very costly and time consuming.
•2- Wasting resources by developing something that doesn't
sell.
•3- Businesses risk ruining reputation if poor quality (new
products).

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Risks and disadvantages of innovation: (cont.)
•4- Product Proliferation.
•5- Ethical, social, and environmental issues.
• Health problems, Genetically Modified crops (GMO), …
• Many rituals may get lost.
• People have to change their lifestyle in order to get compatible with it.
• People's way of thinking changes.
• A machine for “Euthanasia”???
•6- Legal issues.

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Cannibalization
•In marketing strategy, cannibalization refers to
a reduction in sales volume, sales revenue, or
market share of one product as a result of the
introduction of a new product by the same
producer.
•Think ofdigitalcameras thateliminatedthe need
for the most lucrative part of the business –
the film roll.

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Product Proliferation
A lot of choices (too many), but, …
Can consumers ever be satisfied?

59
Is this (suicide) machine useful or ethical?
A “suicide machine”, developed by Dr Philip Nitschke for
“peacefully ending your life without assistance”, in a way
that is, according to Dr Nitschke, ”effective and dignified.”

60
Drunk People Are Better at Creative Problem
Solving (study!!!)
•Do you believe that?
•What are the implications of this study?
•“I couldn’t comment on that. But studies have
shown that peoplewith specific typesof brain
damage do better on certain creative tests, as do
people who’vebeen woken up in the middle of
REM (rapid eye movement) sleep”.
• Source(HBR,Seethe article).

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Retro innovation?
•Trying to deal with the negativeconsequences
of technological progress.
•Return to the past? Nostalgia,simplicity?
•Old products with new style?
•See Google’s“Paper Phone” (here).
•“can help youtry a digital detoxfromtechnology and help
youfocus on the things that matter the most.”

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chapter 01

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