Creativity and Innovation-an Introduction
Do the managers have the creative and innovative ability needed for their organizations to survive in an increasingly competitive environment? If intuition is an indication of creativity and innovation, we find that almost 25 per cent of all managers were primarily intuitive when solving problems and making decisions. Is intuition in managers an important asset to their organizations? What is called the “creative-innovative” decision-making style was found in almost 25 per cent of the managers. This article suggests that intuition as decision-making style appears to be related to organisational effectiveness. Several managers are intuitive. Whether the intuitive managers are more effective than others remains to be seen.
Creativity is a mental process involving the generation of new ideas or concepts, or new associations of the creative mind between existing ideas or concepts. From a scientific point of view, the products of creative thought (sometimes referred to as divergent thought) are usually considered to have both originality and appropriateness. An alternative, more everyday conception of creativity is that it is simply the act of making something new.
Creativity- Indian Examples:
Most of you are aware that India in the midst of mobile revolution. Mobile subscribers in India are growing at nearly 100% year on year and rural subscriber growth is taking lion’s share of it. Recently TRAI announced that India has reached 250 million subscriber targets much before scheduled time. This pace of growth is expected to remain for at least a few years from now.
Traditional advertising is now giving way to mobile advertising, which is more personal and better targeted. The conversion rate for mobile advertisement is expected to be much higher than print or TV advertising. This opens up a huge avenue for advertisers to market their product or get their message cross.
Take the recent example of Fair & Lovely scholarships ad campaign, promoted via Reliance Mobile, which got selected as a finalist for the US-based 2007 Mobile Marketing Association Awards
Reliance Mobile — which has an active subscriber base of over 35 million and 20 million Reliance World application enabled hand-sets — executed a pan India ad campaign from mid August to mid September, 2007, on Reliance Mobile phone network.
Clickable banner ads in various languages and a special Fair & Lovely Scholarship Zone was created for R World. The banner ads were linked to a micro site where interested students were supposed to provide their details like annual family income and the course they intend to pursue.
SMS marketing using Short Code (51234) and Instant Voice Response (IVR) system in some cities were also used to inform students about the scholarships.
Fair & Lovely scholarships mobile ad campaign generated around 50,000 leads out of which 60 per cent were from tier II and III cities and 40 per cent from urban cities.
On the other hand, the term innovation may refer to both radical and incremental changes in thinking, in things, in processes or in services. Invention that gets out in to the world is innovation. In many fields, something new must be substantially different to be innovative, not an insignificant change, e.g., in the arts, economics, business and government policy. In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.
INNOVATION-AN INDIAN EXAMPLE:
Innovation in the Indian Information Technology Industry: A Study of the Software Product Development Process
We examine the Indian context for software product development and build on the general literature on product development to develop an understanding of the software product development process in India. We do the latter by drawing from a detailed study of six specific software product development projects of six different Indian firms. The products were chosen to provide a variety of industrial contexts, types of firms, types of markets and levels of customization. Based on a cross-product analysis on parameters such as product definition and positioning, choice of product, technology, product architecture and customization, version management, marketing and product launch, reward and incentive systems, and quality systems, we draw implications for software product development by companies and for policy makers in the Indian context.
It is important to distinguish between creativity and innovation because the processes are different, the risks are different, the starting points are different, and the climates needed for achievement are different, and there are consequences of these differences. Why is it that American business is very much more comfortable with innovation than with creativity? It’s because innovation is a lot safer, it is incremental, it is building on an already established product or process, and it is far easier to achieve success than starting from scratch. Conceiving and making the first post-it-notes was the result of a creative process. Making them of different sizes, shapes, and colors was an innovation based on that original creative idea.
Creativity requires a different executive mindset than innovation, particularly in business applications. Creativity requires an acceptance of risk, commitment of time and resources and the acceptance of possible failure. Creativity must be thought of as an investment. You don’t start it and stop it. The organization must have a long term commitment to being creative. Taken together, these requirements affect the management culture of the organization that aspires to be creative.
Organizations that are totally creative will have their new products and services ready to launch, but often too few current products sufficiently up-to-date and competitive to generate the cash needed to fund their creativity. Every industry has its own examples of the costly consequences of this lack of differentiation between the two. Ones that come to mind for us are: automotive, aerospace, electronic, computer, pharmaceutical, photographic, apparel, and there are, no doubt, many others.