creativity

CREATIVITY AND THE BUSINESS IDEA

What is creativity?From Human Motivation, 3rd ed., by Robert E. Franken: Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others. (page 396)

In order to be creative, you need to be able to view things in new ways or from a different perspective. Among other things, you need to be able to generate new possibilities or new alternatives.

Ways that "creativity" is commonly used:

Persons who express unusual thoughts, who are interesting and stimulating - in short, people who appear to unusually bright.

People who experience the world in novel and original ways. These are (personally creative) individuals whose perceptions are fresh, whose judgments are insightful, who may make important discoveries that only they know about.

Individuals who have changes our culture in some important way. Because their achievement are by definition public, it is easier to write about them. (e.g., Leonardo, Edison, Picasso, Einstein, etc.) (pages 25-26)

METHODS OF GENERATI NG NEW IDEA SEven with the wide variety of sources available, coming up with an idea to serve as the basis for the new venture can still be a difficult problem.

The entrepreneur can use several methods to help generate and test new ideas, including •focus groups, •brain storming and •problem inventory analysis.

Focus groupsGroup of individuals providing information in a structured format is called a focus group.

The group of 8 to 14 participants is simulated by comments from other group members in creatively conceptualizing and developing new product idea to fulfill a market need.

BrainstormingA group method of obtaining new ideas and solutions is called brainstorming.

The brainstorming method for generating new ideas is based on the fact that people can be stimulated to greater creativity by meeting with others and participating with organized group experiences.

Although most of the ideas generated from the group have no basis for further development, often a good idea emerges.

Problem inventory analysisProblem inventory analysis uses individuals in a manner that is similar to focus groups to generate new product ideas. However instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category. They are then asked to identify and discuss products in this category that have the particular problem. This method is often effective since it is easier to relate known products to suggested problems and arrive at a new product idea then to generate an entirely new idea by itself.

CREATIVE PROBLEM SOLVINGCreative problem solving is a method for obtaining new ideas focusing on the parameters.

Problem solving is a mental process which is the concluding part of the larger problem process that includes problem finding and problem shaping where problem is defined as a state of desire for the reaching of a definite goal from a present condition that either is not directly moving toward the goal, is far from it or needs more complex logic for finding a missing description of conditions or steps toward the goal.Problem solving has been defined as a higher-order cognitive process that requires the modulation and control of more routine or fundamental skills

Problem-solving techniquesThese techniques are usually called problem solving strategies. Some of these are:

Abstraction: solving the problem in a model of the system before applying it to the real system

Analogy: using a solution that solved an analogous problem

Brainstorming: (especially by using groups of people) suggesting a large number of solutions or ideas and combining and developing them until an optimum solution is found

BrainstormingThe first technique, brainstorming, is probably the most well known and widely used for both creative problem solving and idea generation. It is an unstructured process for generating all possible ideas about a problem within a limited time frame through the spontaneous contribution of participants. All ideas, no matter how illogical, must be recorded, with participants prohibited from criticizing or evaluating during the brainstorming session.

Problem-solving techniques .. Contd

Fractionalization / Divide and conquer: breaking down a large, complex problem into smaller, solvable problems

Hypothesis testing: assuming a possible explanation to the problem and trying to prove (or, in some contexts, disprove) the assumption

Means-ends analysis: choosing an action at each step to move closer to the goal

Root cause analysis: eliminating the cause of the problem

Trial-and-error: testing possible solutions until the right one is found

Proof: try to prove that the problem cannot be solved. The point where the proof fails will be the starting point for solving it

Convert problems into opportunities

What is Creative Problem Solving Approach

Categories of Creative Problem Solving Techniques

1. Creativity techniques designed to shift a person's mental state into one that fosters creativity….. Viz. One such popular technique is to take a break and relax or sleep after intensively trying to think of a solution.

2. Creativity techniques designed to reframe the problem. …. Viz, reconsidering one's goals by asking "What am I really trying to accomplish?" can lead to useful insights.


Categories of Creative Problem Solving Techniques

3. Creativity techniques designed to increase the quantity of fresh ideas. …..This approach is based on the belief that a larger number of ideas increase the chances that one of them has value.

4. Creative-problem-solving techniques designed to efficiently lead to a fresh perspective that causes a solution to become obvious….. This category is useful for solving especially challenging problems.


Some examples of the creative problem solving techniques / approaches are as under:

i. TRIZ, which is also known as Theory of Inventive Problem Solving (TIPS), was developed by Genrich Altshuller and his colleagues -This method is designed to foster the creation and development of patentable inventions, but is also useful for creating non-product solutions.

ii. Mind mapping is a creativity technique that both reframes the situation and fosters creativity.

iii. Brainstorming is a group activity designed to increase the quantity of fresh ideas..

iv. Edward De Bono’s concept of lateral thinking


Contd……Techniques/ approaches:• v) Dismantling or fractionalisation of problem into

parts – A big problem may be difficult to diagnose and deal. However its complexility can be reduced by dimantling / fractionalizing it into smaller parts. Focus on smaller parts may help in thinking up ideas for problem solving thus facilitating creativity.

• vi) Reversal of Problem (By turning it around viz. inside-out, upside-down or back to front) - This approach helps in thinking up ideas from opposite / different prespective and thus helps in finding new or different ideas for problem solving.

What is Creative Problem Solving Process• The Creative Problem Solving Process (CPS), also known as

the Osborn-Parnes CPS process, was developed by Alex Osborn and Dr. Sidney J. Parnes in the 1950s.

• Osborn-Parnes CPS process is different from other "creative problem solving" methods that it uses both divergent and convergent thinking during each process step, and not just when generating ideas to solve the problem. Each step begins with divergent thinking, a broad search for many alternatives. This is followed by convergent thinking, the process of evaluating and selecting.

• Thus CPS is a structured method for generating novel and useful solutions to problems. It is flexible process as well.

• CPS follows three process stages, which match a person's natural creative process, and six explicit steps.

What is Creative Problem Solving Process


1. Explore the Challenge –

a). OF - Objective Finding - Identify Goal, Wish or Challenge. It might be the initial dissatisfaction or a desire that opens the door to using the CPS process.

b). FF -Fact Finding - Gather Data • Assess and review all the data that pertains to the

situation at hand. Who’s involved, what’s involved, when, where, and why it’s important. Make a list of the facts and information, as well as the more visceral hunches, feelings, perceptions, assumptions and gossips around the situation. In this step, all the relevant data is collected & taken into consideration to review the objective and begin to innovate.


• c). PF - Problem Finding - Clarify the Problem • In this step, we explore the facts and data to find all the

problems and challenges inherent in the situation, and all the opportunities they represent. This is about making sure that we are focusing on the right problem. It is possible to come up with the right answer to the wrong problem. Re-define what we want or what’s stopping us.


2. Generate Ideas • d. ) IF - Idea Finding -• Generating ideas is much more than brainstorming.

During this step, be attentive about deferring judgment and coming up with wild, outrageous, out-of-the-box ideas. This is where you explore ideas that are possible solutions. It’s also where you need to stretch to make connections, take risks, and try new combinations to find potentially innovative solutions.


3. Prepare for Action• e). SF - Solution Finding – Select and Strengthen

Solutions • First, try to strengthen and improve the best ideas

generated. Next, generate the criteria that needs to be considered to evaluate the ideas for success. Apply that criteria to the good ideas and decide which are most likely to solve the redefined problem. The best idea needs to meet criteria that makes it actionable before it becomes the solution. A creative idea is not really useful if it could not be implemented.

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• f). AF - Acceptance Finding • In this step, look at who’s responsible, what has to be

done by when, and what resources are available in order to realize this idea as a full-fledged, activated solution.

PRODUCT PLANNING AND DEVELOPMENT PROCESSOnce idea emerges from idea sources or creative problem solving, they need further development and refinement in to final product or service to be offered. This refining process-the product planning and development process – is divided in to five major stages.

1. Idea stage 2. concept stage 3. product development stage4. test marketing stage and 5. commercializing; it result in the product life cycle.

Establishing evaluation criteriaAt each stage of product planning and development process, criteria for evaluation need to be established. These criteria should be broad, yet quantitative enough to screen the product carefully in the particular stage of development.

Criteria should be developed to evaluate the new product in terms of market opportunity, competition the marketing system, financial factors and production factors.

A market opportunity and adequate market demand must exist. Current competing producers, prices, and policies should be evaluated in their impact on market share. The new product should be compatible with existing management capabilities.

The product should be able to be supported by and contribute to the company’s financial structure. The compatibility of new product’s production requirements with existing plant, machinery, and personnel should be determined. Entrepreneurs should formally evaluate an idea throughout its evolution.

Idea StagePromising new product ideas should be identified and impractical ones eliminated in the idea stage allowing maximum use of company’s resources.

In the systematic market evaluation checklist method, each new product idea is expressed in terms of its chief values, merits, and benefits.

This technique can be used to determine which new products should be pursued. The company should also determine the need for the new product and its value to the company. Need determination should focus on the type of need, its timing, the users involved, the importance of marketing variables, and the overall market structure and characteristics. In determining the product’s value to the firm, financial scheduling should be evaluated

Concept StageIn the concept stage the refined idea is tested to determine consumer acceptance without manufacturing it.

One method of testing is the conversational interview in which respondents are exposed to statements that reflect attributes of the product.

Features, price, and promotion should be evaluated in comparison to major competitors to indicate deficiencies or benefits. The relative advantages of the new product versus competitors should be determined

Product Development StageIn this stage, consumer reaction is determined, often through a consumer panel. The panel can be given samples of the product and competitors’ products to determine consumer preference.

Participants keep the record of their use of product and comment on its virtues and deficiencies. The panel of consumers is also given a sample of product and one or more competitive product simultaneously. One test product may already be on the market, whereas the other test product is new.

Test Marketing StageAlthough the results of product development stage provide the basis of the final marketing plan, the market test can be done to increase the certainty of successful commercialization. The last step in the evaluation process, the test marketing stage, provides actual sales results which indicate the acceptance level of consumers. Positive test results indicate the degree of probability of a successful product launch and company formation.

Test Marketing Stage

Although the results of product development stage provide the basis of the final marketing plan, the market test can be done to increase the certainty of successful commercialization.

The last step in the evaluation process, the test marketing stage, provides actual sales results which indicate the acceptance level of consumers.

Positive test results indicate the degree of probability of a successful product launch and company formation

creativity

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