Faculty of Technical ScienceElectrical and computer engineering SEMINAR Creativity and InnovationStudent: rofe!or:Mar"o Ma"!imovic #$%&'(ESlavica Savic1 CONTENTS&) A*STRACT +++++++++++++++++++++++ ',) INTR-./CTI-N ++++++++++++++++++++))) 0') 1ITERAT/RE RE2IE3 ++++++++++++++++++ #0) ANA14SIS AN. .ISC/SSI-N +++++++++++++++ ##) CREATI2IT4 ++++++++++++++++++++++)) ##)&) Creativity at 5or" ++++++++++++++++++++++)) 6#),) 7enerative re!earch on creativity ++++++++++++++++)) 6#)') The four !tage! of the creative proce!! ++++++++++++++)) 86) INN-2ATI-N ++++++++++++++++++++++) 96)&) Innovation in organi:ation! ++++++++++++++++++))) &$ 6),) Innovation and mar"et outcome +++++++++++++++++ &$ 6)') Source! of innovation +++++++++++++++++++++)&$ 6)0) 2alue of e;perimentation in innovation ++++++++++++++)&& 6)#) 7oal! of innovation ++++++++++++++++++++++&, 6)6) Failure of innovation +++++++++++++++++++++))&'8) CREATI2IT4 AN. INN-2ATI-N +++++++++++++ and to generate !olution!) 7enerating fre!h !olution!to pro=lem!> and the a=ility to create ne5 product!> proce!!e! or !ervice! for a changing mar"et> are part of the intellectual capital that give a company it! competitive edge) Creativity i! a crucial part of the innovation e@uation) In the organi:ational conte;t> innovation may =e lin"ed to performance and gro5th through improvement! in efficiency> productivity> @uality> competitive po!itioning> mar"et !hare> etc) All organi:ation! can innovate> including for e;ample ho!pital!> univer!itie!> and local government!) Innovation ha! =een !tudied in a variety of conte;t!> including in relation to technology> commerce> !ocial !y!tem!> economic development> and policy con!truction) There are> therefore> naturally a 5ide range of approache! to conceptuali:ing innovation in the !cholarly literature) 32.INTRODUCTIONAll innovation =egin! 5ith creative idea!) Innovation a! the !ucce!!ful implementation of creative idea! 5ithin an organi:ation) In thi! vie5> creativity =y individual! and team! i! a !tarting point for innovationA the fir!t i! nece!!ary =ut not !ufficient condition for the !econd) For innovation to occur> !omething more than the generation of a creative idea or in!ight i! re@uired> the in!ight mu!t =e put into action to ma"e a genuine difference> re!ulting for e;ample in ne5 or altered =u!ine!! proce!!e! 5ithin the organi:ation> or change! in the product! and !ervice! provided)Creativity i! the proce!! of =ringing !omething ne5 into =eing) Creativity re@uire! pa!!ion and commitment) -ut of the creative act i! =orn !ym=ol! and myth!) It =ring! to our a5arene!! 5hat 5a! previou!ly hidden and point! to ne5 life) The e;perience i! one of heightened con!ciou!ne!!(ec!ta!y) Creativity refer! to the phenomenon 5here=y !omething ne5 i! created 5hich ha! !ome "ind of value) 3hat count! a! Bne5B may =e in reference to the individual creator> or to the !ociety or domain 5ithin 5hich the novelty occur!) 3hat count! a! Bvalua=leB i! !imilarly defined in a variety of 5ay!) Creativity i! fo!tered in organi:ational culture! that value independent thin"ing> ri!" ta"ing> and learning) They are tolerant of failure and they value diver!ity) -pen communication> a high degree of tru!t and re!pect =et5een individual! are crucial) Creativity lead! in to innovation) The 5ord creativity and innovation are interrelated) Innovation i! a ne5 5ay of doing !omething or ne5 !tuff that i! made u!eful) It may refer to incremental and emergent or radical and revolutionary change! in thin"ing> product!> proce!!e!> or organi:ation!) Innovation i! an important topic in the !tudy of economic!> =u!ine!!> de!ign> technology> !ociology> and engineering) Collo@uially> the 5ord BinnovationB i! often !ynonymou! 5ith the output of the proce!!) Co5ever> economi!t! tend to focu! on the proce!! it!elf> from the origination of an idea to it! tran!formation into !omething u!eful> to it! implementationA and onthe !y!tem 5ithin 5hich the proce!! of innovation unfold!) Since innovation i! al!o con!idered a maDor driver of the economy> e!pecially 5hen it lead! to increa!ing productivity> the factor! that lead to innovation are al!o con!idered to =e critical to policy ma"er!) In particular> follo5er! of innovation economic! !tre!! u!ing pu=lic policy to !pur innovation and gro5th)1eader! 5ho 5ant to create an innovative =u!ine!! culture mu!t under!tand the !tep! of the creative proce!!> =ut that alone i! not enough) To promote =u!ine!! innovation> e;ecutive leader! !hould commit certain =u!ine!! practice!> and in!titutionali:e them in the culture ( =y training manager! in the!e practice! and then doling out promotion! and re5ard! to tho!e 5ho employ them !ucce!!fully) 1eader! 5ho 5ant to encourage =u!ine!! creativity mu!t =e !ure al!o to =uild talent driven> po!itive culture! that place a value on learning)

Innovation i! generally under!tood a! the !ucce!!ful introduction of a ne5 thing or method) Innovation i! the em=odiment> com=ination> or !ynthe!i! of "no5ledge in original> relevant> valued ne5 product!> proce!!e!> or !ervice!) Innovation typically involve! creativity> =ut i! not identical to it: innovation involve! acting on the creative idea! to ma"e !ome !pecific and tangi=le difference in the domain in 5hich the innovation occur!)43. LITERATURE REVIEW 7enerative re!earch !ho5! that everyone ha! creative a=ilitie!) The more training youhave and the more diver!e the training> the greater potential for creative output) Creativityi! a core competency for leader! and manager! and one of the =e!t 5ay! to !et your company apart from the competition) Corporate Creativity i! characteri:ed =y the a=ility to perceive the 5orld in ne5 5ay!> to find hidden pattern!> to ma"e connection! =et5een !eemingly unrelated phenomena> and to generate !olution!) 7enerating fre!h !olution! to pro=lem!> and the a=ility to create ne5 product!> proce!!e! or !ervice! for a changing mar"et> are part of the intellectual capital that give a company it! competitive edge) Creativity i! a crucial part of the innovation e@uation) All innovation =egin! 5ith creative idea! )creativity i! typically !een a! the =a!i! for innovation> and innovation a! the !ucce!!ful implementation of creative idea! 5ithin an organi:ation)Innovation i! a ne5 element introduced in the net5or" 5hich change!> even if momentarily> the co!t! of tran!action! =et5een at lea!t t5o actor!> element! or node!> in the net5or") Innovation i! an important topic in the !tudy of economic!> =u!ine!!> de!ign>technology> !ociology> and engineering) Since innovation i! al!o con!idered a maDor driver of the economy> e!pecially 5hen it lead! to increa!ing productivity> the factor! that lead to innovation are al!o con!idered to =e critical to policy ma"er!) Tho!e 5ho are directly re!pon!i=le for application of the innovation are often called pioneer! in their field> 5hether they are individual! or organi:ation!) 4. ANALYSIS AND DISCUSSION Innovation typically involve! creativity> =ut i! not identical to it: innovation involve! acting on the creative idea! to ma"e !ome !pecific and tangi=le difference in the domain in 5hich the innovation occur!) Innovation i! generally under!tood a! the !ucce!!ful introduction of a ne5 thing or method) Innovation i! the em=odiment> com=ination> or !ynthe!i! of "no5ledge in original> relevant> valued ne5 product!> proce!!e!> or !ervice!) All innovation =egin! 5ith creative idea!) Innovation can =e defined a! the !ucce!!ful implementation of creative idea! 5ithin an organi:ation) In thi! vie5> creativity =y individual! and team! i! a !tarting point for innovation) 5. CREATIVITY Creativity can =e defined a! the act of turning ne5 and imaginative idea! into reality) Creativity involve! t5o proce!!e!: thin"ing> then producing) Innovation i! the production or implementation of an idea) If 5e have idea!> =ut don?t act on them> 5e are imaginative =ut not creative)5Creativity i! the proce!! of =ringing !omething ne5 into =eing) Creativity re@uire! pa!!ion and commitment) -ut of the creative act i! =orn !ym=ol! and myth!) It =ring! to our a5arene!! 5hat 5a! previou!ly hidden and point! to ne5 life) The e;perience i! one of heightened con!ciou!ne!!(ec!ta!y) A product i! creative 5hen it i! EaF novel and E=F appropriate) A novel product i! original not predicta=le) The =igger the concept and the more the product !timulate further 5or" and idea!> the more the product i! creative) Creativity i! the Mo!t Crucial Factor for Future Succe!!)5.1. Creativity at wr!Creativity i! a core competency for leader! and manager! and one of the =e!t 5ay! to !et your company apart from the competition) Corporate Creativity i! characteri:ed =y the a=ility to perceive the 5orld in ne5 5ay!> to find hidden pattern!> to ma"e connection! =et5een !eemingly unrelated phenomena> and to generate !olution!) 7enerating fre!h !olution! to pro=lem!> and the a=ility to create ne5 product!> proce!!e! or !ervice! for a changing mar"et> are part of the intellectual capital that give a company it! competitive edge) Creativity i! a crucial part of the innovation e@uation) Creativity re@uire! 5hole(=rain thin"ing: right(=rain imagination> arti!try and intuition> plu! left(=rain logic and planning) Creativity i! fo!tered in organi:ational culture! that value independent thin"ing> ri!" ta"ing> and learning) They are tolerant of failure and they value diver!ity) -pen communication> a high degree of tru!t and re!pect =et5een individual! are crucial)Strategie! for developing creativity:- S"ill! Training for leader!> manager! and !taff -Coaching innovation champion! and team! -Culture Change initiative!)5.2. "e#erative Re$ear%& # Creativity'7enerative re!earch !ho5! that everyone ha! creative a=ilitie!) The more training you have and the more diver!e the training> the greater potential for creative output) The average adult thin"! of '(6 alternative! for any given !ituation) The average child thin"! of 6$) Re!earch ha! !ho5n that in creativity @uantity e@ual! @uality) The longer the li!t of idea!> the higher the @uality the final !olution) The highe!t @uality idea! appear at the end of the li!t)65.3. T&e ()r Sta*e$ + t&e Creative ,r%e$$ In order to =uild an innovative culture> leader! fir!t have to under!tand the four "ey! !tage! of the creative proce!!) They are:1. ,re-arati#: thi! i! the !tage 5here the creative per!on or team =ecome! immer!ed in the pro=lem) ItG! an information gathering !tage> and 5hen the effort i! a collective one> itinvolve! the forming of role!> area! of !pecial individual intere!t and the coordination of ta!"!)2. I#%).ati#: in thi! !tage> the original pro=lem may appear to =e on the =ac" =urner> even forgotten or neglected> =ut the mind i! !till at 5or") Not the logical> linear mind> the part 5e u!e mo!t 5hen a5a"e> =ut the part that dream!> !ynthe!i:e!> and ma"e! ne5> 5eird> original connection!) For a team effort> thi! can mean that the group may not meet for a 5hile> appearing to let the proDect fall =y the 5ay!ide) *ut people 5ill !till =e thin"ing> or have idea! occurred to them in the !ho5er> or 5rite do5n thought! on coc"tail nap"in!> etc.3. I//)0i#ati#: 3ithout 5arning> idea! or innovation! can come any time ( the HahaI orHeure"aI e;perience) More commonly> there i! no immediate H"iller in!ight> =ut !ome ne5 angle that may occur> or !ome !udden> =urning> une;plaina=le need to return to 5or"on the pro=lem ( often a !ign of creative Hla=or pain!) 3hen the creative proDect ha! =een a team effort> !ometime! the only thing needed i! to get the original group mem=er! together again after a period of time> and then Hpo5I ( The !pontaneou! e;change among them can =ring forth an idea that no one mem=er could articulate alone) 4. E1e%)ti#: Thi! i! the !tage that !eparate! mere creativity from !ucce!!ful innovation) Ne5 idea! re@uire action> !tu==orn determination> and a=ility to =uild change coalition! 5hile mar"eting the idea to critical !"eptic!) erhap! more than anything el!e> it ta"e! courage and per!i!tence) Since the e;ecution !tage i! more a=out !ocial !"ill than it i! a=out the technical !"ill that produce! the innovative idea> thi! i! the !tage 5here organi:ational management can =e mo!t actively helpful in promoting =u!ine!! creativity)1eader! 5ho 5ant to create an innovative =u!ine!! culture mu!t under!tand the !tep! ofthe creative proce!!> =ut that alone i! not enough) To promote =u!ine!! innovation> e;ecutive leader! !hould commit to the follo5ing =u!ine!! practice!> and in!titutionali:e them in the culture ( =y training manager! in the!e practice! and then doling out promotion! and re5ard! to tho!e 5ho employ them !ucce!!fully)&) Select the mo!t promi!ing innovator!> =ut encourage une;pected !urpri!e!: To =uild innovative in an organi:ation> e;ecutive! may 5ant to cull out the mo!t promi!ing idea(generator! and provide them 5ith e;tra re!ource!) Tho!e are the people 5ho can =enefit mo!t from the H=uffer :one! in !tep t5o) *ut the other practice! li!ted in thi! !ection !hould =e generali:ed throughout the organi:ation> if po!!i=le> !o that innovator! in 7une;pected place! 5ill have the room to produce idea! and re!ult!) 1eader! !hould train other manager! to under!tand the !tage! of the creative proce!!> and evaluate manager! =a!ed on their a=ility to promote and !hepherd through to completion ne5 idea! that they encounter),) Create H=uffer :one! for the mo!t innovative people: Creating H=uffer :one! mean! =uilding a "ind of protective cocoon around creative people or around the innovative team! 5ithin an organi:ation) That mean! eliminating the 5ay! that policie! or other 5or" pre!!ure! get in the 5ay or di!courage the information gathering involved in the preparation !tage) It al!o mean! =eing !ure that the tool! and re!ource! are availa=le 5hencreative people go loo"ing around for data or an!5er! to @ue!tion!) The e;ecutive leader for !uch a group !hould do the advance 5or" and run the interference nece!!ary to let creative people go through the preparation !tage 5ithout interference or hara!!ment)') 7ive innovator! room to Hplay: For innovator!> anything they can do to me!! around 5ith the "ind! of data or proDect! that they !ee a! helpful ( 5ill =e helpful) That can =e hard to remem=er 5hen they !eem to have lo!t their mind!> or to have lo!t their focu!I *ut during the incu=ation !tage> activitie! that may loo" li"e u!ele!! diver!ion! ( that maynot even loo" li"e 5or" ( are all nece!!ary to allo5 the deeper part! of the =rain to !olve apro=lem and ma"e ne5 connection!) For typical re!ult!(oriented e;ecutive!> thi! can =e hard to do ( e!pecially 5hen the creative team happen! to =e a team of e;ecutive! 5or"ing to create a ne5 =u!ine!! proce!!) The !enior e;ecutive 5ho may have a!!igned the ta!" may =e hard pre!!ed to let hi! innovative team have the time and !pace to produce truly tran!formative !olution!) The "ey to letting people have room to Hplay i! to refrain from Dudgment of their activitie! or method!.0) Re!i!t the temptation to loo" for immediate re!ult!: Any team can develop incremental !olution! or recommendation!) There i! no =u!ine!! or technological proce!! that cannot =e improved through !tudy and modification) *ut to =uild a culture that truly encourage! innovation> the pre!!ure to get immediate re!ult! 5ill yield only incremental improvement!> and the need to meet deadline! can !ometime! "ill the creative proce!! =efore the illumination !tage) 3hile it i! true that deadline! can focu! creative team! and encourage timely ultimate illumination> !etting deadline! !hould not =e overu!ed =ecau!e they often 5ill interfere 5ith the creative proce!!) Clo!e communication 5ith creative people 5or"ing on a proDect can help leader! develop a feel for 5hen !etting a deadline 5ill help> rather than hinder the proce!!)#) Commit to driving the =e!t idea! through to implementation: Innovator! are !eldom the=e!t !ale!people for their idea!) They are> =y nature> more li"ely to 5or" in i!olation> play5ith their idea!> or generally ru= other! 5ho are le!! creative the 5rong 5ay) The =u!ine!! leader 5ho 5ant! to encourage innovation mu!t act a! the fir!t(line filter to te!t the =e!t idea! and !olution!> choo!ing 5hich one! are the right one! to !ee through to fruition) Then the e;ecutive advocate mu!t commit to the internal !ale! and mar"eting proDect to =uild coalition! that 5ill =ring the ne5 idea into a reality) Thi! ta"e! courage and per!i!tence> and an a=ility to 5or" the political and !ocial proce!! involved in getting other! to adapt to innovation) Thi! i! important> not only to reap the re5ard! of 8innovation in practice> =ut to encourage other innovator! =y !ho5ing them that their =e!t effort! 5ill actually =e adopted and !ee the light of day ( in your organi:ation> and not your competitorG!I 1eader! 5ho 5ant to encourage =u!ine!! creativity mu!t =e !ure al!o to =uild talent driven> po!itive culture! that place a value on learning) To !ee if your organi:ation fit! the=ill> hereG! one @uic" te!t: can any employee at lea!t t5o !tep! removed in the organi:ational chart openly a!" a @ue!tion that challenge! a firmly held opinion of the CE-J If the an!5er i! Hno> then your organi:ation i! pro=a=ly not a! open a! you thin" iti!> and youGll need to rea!!e!! your culture if you genuinely 5ant to promote innovation ( and reap innovationG! re5ard!) 2. INNOVATION Innovation i! a ne5 5ay of doing !omething or ne5 !tuff that i! made u!eful) It may refer to incremental and emergent or radical and revolutionary change! in thin"ing> product!> proce!!e!> or organi:ation!) The goal of innovation i! po!itive change> to ma"e !omeone or !omething =etter) Innovation leading to increa!ed productivity i! the fundamental !ource of increa!ing 5ealth in an economy) Innovation i! an important topic in the !tudy of economic!> =u!ine!!> de!ign> technology> !ociology> and engineering) In the organi:ational conte;t> innovation may =e lin"ed to performance and gro5th through improvement! in efficiency> productivity> @uality> competitive po!itioning> mar"et !hare> etc) All organi:ation! can innovate> including for e;ample ho!pital!> univer!itie!> and local government!)3hile innovation typically add! value> innovation may al!o have a negative or de!tructive effect a! ne5 development! clear a5ay or change old organi:ational form! and practice!) -rgani:ation! that do not innovate effectively may =e de!troyed =y tho!e that do) Cence innovation typically involve! ri!") A "ey challenge in innovation i! maintaining a =alance =et5een proce!! and product innovation! 5here proce!! innovation! tend to involve a =u!ine!! model 5hich may develop !hareholder !ati!factionthrough improved efficiencie! 5hile product innovation! develop cu!tomer !upport ho5ever at the ri!" of co!tly RK. that can erode !hareholder return) In !ummary> innovation can =e de!cri=ed a! the re!ult of !ome amount of time and effort into re!earching ERF an idea> plu! !ome larger amount of time and effort into developing E.F thi! idea> plu! !ome very large amount of time and effort into commerciali:ing ECF thi! idea into a mar"et place 5ith cu!tomer!)Innovation ha! =een !tudied in a variety of conte;t!> including in relation to technology> commerce> !ocial !y!tem!> economic development> and policy con!truction) There are> therefore> naturally a 5ide range of approache! to conceptuali:ing innovation in the !cholarly literature) Fortunately> ho5ever> a con!i!tent theme may =e identified: innovation i! typically under!tood a! the !ucce!!ful introduction of !omething ne5 and u!eful> for e;ample introducing ne5 method!> techni@ue!> or practice! or ne5 or altered product! and !ervice!)92.1. I##vati# i# r*a#i3ati#$Innovation i! generally under!tood a! the !ucce!!ful introduction of a ne5 thing or method) Innovation i! the em=odiment> com=ination> or !ynthe!i! of "no5ledge in original> relevant> valued ne5 product!> proce!!e!> or !ervice!) Innovation> li"e many =u!ine!! function!> i! a management proce!! that re@uire! !pecific tool!> rule!> and di!cipline)2.2. I##vati# a#4 0ar!et )t%0eMar"et outcome from innovation can =e !tudied from different len!e!) The indu!trial organi:ational approach of mar"et characteri:ation according to the degree of competitive pre!!ure and the con!e@uent modeling of firm =ehavior often u!ing !ophi!ticated game theoretic tool!> 5hile permitting mathematical modeling> ha! !hifted the ground a5ay from an intuitive under!tanding of mar"et!) The earlier vi!ual frame5or" in economic!> of mar"et demand and !upply along price and @uantity dimen!ion!> ha! given 5ay to po5erful mathematical model! 5hich though intellectually !ati!fying ha! led policy ma"er! and manager! groping for more intuitive and le!! theoretical analy!e! to 5hich they can relate to at a practical level)In the management E!trategyF literature on the other hand> there i! a va!t array of relatively !imple and intuitive model! for =oth manager! and con!ultant! to choo!e from) Mo!t of the!e model! provide in!ight! to the manager 5hich help in crafting a !trategic plan con!i!tent 5ith the de!ired aim!) Indeed mo!t !trategy model! are generally !imple> 5herein lie their virtue) In the proce!! ho5ever> the!e model! often fail to offer in!ight! into !ituation! =eyond that for 5hich they are de!igned> often due to the adoption of frame5or"! !eldom analytical> !eldom rigorou!) The !ituational analy!e! of the!e model! often tend to =e de!criptive and !eldom ro=u!t and rarely pre!ent =ehavioral relation!hip =et5een varia=le! under !tudy)2.3. S)r%e$ + i##vati# There are !everal !ource! of innovation) In the linear model of innovation the traditionally recogni:ed !ource i! manufacturer innovation) Thi! i! 5here an agent Eper!on or =u!ine!!F innovate! in order to !ell the innovation) Another !ource of innovation> only no5 =ecoming 5idely recogni:ed> i! end(u!er innovation) Thi! i! 5here an agent Eper!on or companyF develop! an innovation for their o5n Eper!onal or in(hou!eF u!e =ecau!e e;i!ting product! do not meet their need!) Innovation =y =u!ine!!e! i! achieved in many 5ay!> 5ith much attention no5 given to formal re!earch and development for B=rea"through innovation!)B *ut innovation! may =e developed =y le!! formal on(the(Do= modification! of practice> through e;change and com=ination of profe!!ional e;perience and =y many other route!) The more radical and revolutionary innovation! tend to emerge from RK.> 5hile more incremental innovation! may emerge from practice =ut there are many e;ception! to each of the!e trend!)10Regarding u!er innovation> a great deal of innovation i! done =y tho!e actually implementing and u!ing technologie! and product! a! part of their normal activitie!) Sometime! u!er(innovator! may =ecome entrepreneur!> !elling their product> they may choo!e to trade their innovation in e;change for other innovation!> or they may =e adopted =y their !upplier!) No5aday!> they may al!o choo!e to freely reveal their innovation!> u!ing method! li"e open !ource) In !uch net5or"! of innovation the u!er! or communitie! of u!er! can further develop technologie! and reinvent their !ocial meaning)3hether innovation i! mainly !upply(pu!hed E=a!ed on ne5 technological po!!i=ilitie!F or demand(led E=a!ed on !ocial need! and mar"et re@uirement!F ha! =een a hotly de=ated topic) Similarly> 5hat e;actly drive! innovation in organi:ation! and economie! remain! an open @ue!tion) More recent theoretical 5or" move! =eyond thi! !imple duali!tic pro=lem> and through empirical 5or" !ho5! that innovation doe! not Du!t happen 5ithin the indu!trial !upply(!ide> or a! a re!ult of the articulation of u!er demand> =ut through a comple; !et of proce!!e! that lin"! many different player! together L not only developer! and u!er!> =ut a5ide variety of intermediary organi:ation! !uch a! con!ultancie!> !tandard! =odie! etc) 3or" on !ocial net5or"! !ugge!t! that much of the mo!t !ucce!!ful innovation occur! at the =oundarie! of organi:ation! and indu!trie! 5here the pro=lem! and need! of u!er! andthe potential of technologie! can =e lin"ed together in a creative proce!! that challenge! =oth)2.4. Va/)e + e1-eri0e#tati# i# i##vati# 3hen an innovative idea re@uire! a ne5 =u!ine!! model> or radically rede!ign! the delivery of value to focu! on the cu!tomer> a real 5orld e;perimentation approach increa!e! the chance! of mar"et !ucce!!) Ne5 =u!ine!! model! and cu!tomer e;perience! can?t =e te!ted through traditional mar"et re!earch method!) ilot program! for ne5 innovation! !et the path in !tone too early thu! increa!ing the co!t! of failure) -n the other hand> the good ne5! i! that recent year! have !een con!idera=le progre!! in identifying important "ey factor!%principle! or varia=le! that affect the pro=a=ility of !ucce!! in innovation) -f cour!e> =uilding !ucce!!ful =u!ine!!e! i! !uch a complicated proce!!> involving !u=tle interdependencie! among !o many varia=le! in dynamic !y!tem!> that it i! unli"ely to ever =e made perfectly predicta=le) *ut the more =u!ine!! can ma!ter the varia=le! and e;periment> the more they 5ill =e a=le to create ne5 companie!> product!> proce!!e! and !ervice! that achieve 5hat they hope to achieve)11 Di++)$i# + i##vati#$ -nce innovation occur!> innovation! may =e !pread from the innovator to other individual! and group!) Thi! proce!! ha! =een propo!ed that the life cycle of innovation! can =e de!cri=ed u!ing theG!(curve? or diffu!ion curve) The !(curve map! gro5th of revenue or productivity again!t time) In the early !tage of a particular innovation> gro5th i! relatively !lo5 a! the ne5 product e!ta=li!he! it!elf) At !ome point cu!tomer! =egin to demand and the product gro5th increa!e! more rapidly) Ne5 incremental innovation! or change! to the product allo5 gro5th to continue) To5ard! the end of it! life cycle gro5th !lo5! and may even =egin to decline) In the later !tage!> no amount of ne5 inve!tment in that product 5ill yield a normal rate of return) The !(curve derive! from an a!!umption that ne5 product! are li"ely to have Bproduct 1ifeB) i)e) a !tart(up pha!e> a rapid increa!e in revenue and eventual decline) In fact the great maDoritie! of innovation! never get off the =ottom of the curve> and never produce normal return!) Innovative companie! 5ill typically =e 5or"ing on ne5 innovation! that 5ill eventually replace older one!) Succe!!ive !(curve! 5ill come along to replace older one! and continue to drive gro5th up5ard!) In the figure a=ove the fir!t curve !ho5! a current technology) The !econd !ho5! an emerging technology that current yield! lo5er gro5th =ut 5ill eventually overta"e current technology and lead to even greater level! of gro5th)The length of life 5ill depend on many factor!) 2.5. "a/$ + i##vati#rogram! of organi:ational innovation are typically tightly lin"ed to organi:ational goal! and o=Dective!> to the =u!ine!! plan> and to mar"et competitive po!itioning) Companie! cannot gro5 through co!t reduction and reengineering alone )Innovation i! the "ey element in providing aggre!!ive top(line gro5th> and for increa!ing =ottom(line re!ult! In general> =u!ine!! organi:ation! !pend a !ignificant amount of their turnover on innovation i)e) ma"ing change! to their e!ta=li!hed product!> proce!!e! and !ervice!) The 12amount of inve!tment can vary from a! lo5 a! a half a percent of turnover for organi:ation! 5ith a lo5 rate of change to anything over t5enty percent of turnover for organi:ation! 5ith a high rate of change) The average inve!tment acro!! all type! of organi:ation! i! four percent) For an organi:ation 5ith a turnover of !ay one =illion currency unit!> thi! repre!ent! an inve!tment of forty million unit!) Thi! =udget 5ill typically =e !pread acro!! variou! function! including mar"eting> product de!ign> information !y!tem!> manufacturing !y!tem! and @uality a!!urance) The inve!tment may vary =y indu!try and =y mar"et po!itioning) -ne !urvey acro!! a large num=er of manufacturing and !ervice! organi:ation! found> ran"ed in decrea!ing order of popularity that !y!tematic program! of organi:ational innovation are mo!t fre@uently driven =y:&) Improved @uality ,) Creation of ne5 mar"et! ') E;ten!ion of the product range 0) Reduced la=our co!t! #) Improved production proce!!e! 6) Reduced material! 8) Reduced environmental damage proce!!e! and !ervice! and di!pel a popular myth that innovation deal! mainly 5ith ne5 product development) Mo!t of the goal! could apply to any organi:ation =e it a manufacturing facility> mar"eting firm> ho!pital or local government)2.2. (ai/)re + i##vati# Re!earch finding! vary> ranging from fifty to ninety percent of innovation proDect! Dudged to have made little or no contri=ution to organi:ational goal!) -ne !urvey regarding product innovation @uote! that out of three thou!and idea! for ne5 product!A only one =ecome! a !ucce!! in the mar"etplace) Failure i! an inevita=le part of the innovation proce!!> and mo!t !ucce!!ful organi:ation! factor in an appropriate level of ri!") erhap! it i! =ecau!e all organi:ation! e;perience failure that many choo!e not to monitor the level of failure very clo!ely) The impact of failure goe! =eyond the !imple lo!! of inve!tment) Failure can al!o lead to lo!! of morale among employee!> an increa!e in cynici!m and even higher re!i!tance to change in the future) Innovation! that fail are often potentially good idea! =ut have =een reDected or po!tponed due to =udgetary con!traint!> lac" of !"ill! or poor fit 5ith current goal!) Failure! !hould =e identified and !creened out a! early in the proce!! a! po!!i=le) Early !creening avoid! un!uita=le idea! devouring !carce re!ource! that are needed to progre!! more =eneficial one!) -rgani:ation! can learn ho5 to avoid failure 5hen it i! openly 13di!cu!!ed and de=ated) The le!!on! learned from failure often re!ide longer in the organi:ational con!ciou!ne!! than le!!on! learned from !ucce!!) 3hile learning i! important> high failure rate! throughout the innovation proce!! are 5a!teful and a threat to the organi:ationG! future) The cau!e! of failure have =een 5idely re!earched and can vary con!idera=ly) Some cau!e! 5ill =e e;ternal to the organi:ation and out!ide it! influence of control) -ther! 5ill=e internal and ultimately 5ithin the control of the organi:ation) Internal cau!e! of failurecan =e divided into cau!e! a!!ociated 5ith the cultural infra!tructure and cau!e! a!!ociated 5ith the innovation proce!! it!elf) Failure in the cultural infra!tructure varie! =et5een organi:ation! =ut the follo5ing are common acro!! all organi:ation! at !ome !tage in their life cycle : &) oor 1eader!hip ,) oor -rgani:ation ') oor Communication 0) oor Empo5erment #) oor Mno5ledge Management Common cau!e! of failure 5ithin the innovation proce!! in mo!t organi:ation! can =e di!tilled into five type!:&) oor goal definition ,) oor alignment of action! to goal! ') oor participation in team! 0) oor monitoring of re!ult! #) oor communication and acce!! to information Effective goal definition re@uire! that organi:ation! !tate e;plicitly 5hat their goal! are in term! under!tanda=le to everyone involved in the innovation proce!!) Thi! often involve! !tating goal! in a num=er of 5ay!) Effective alignment of action! to goal! !houldlin" e;plicit action! !uch a! idea! and proDect! to !pecific goal!) It al!o implie! effective management of action portfolio!) articipation in team! refer! to the =ehavior of individual! in and of team!> and each individual !hould have an e;plicitly allocated re!pon!i=ility regarding their role in goal! and action! and the payment and re5ard! !y!tem! that lin" them to goal attainment) Finally> effective monitoring of re!ult! re@uire!the monitoring of all goal!> action! and team! involved in the innovation proce!!)Innovation can fail if !een a! an organi:ational proce!! 5ho!e !ucce!! !tem! from a mechani!tic approach i)e) ?pull lever o=tain re!ult?) 3hile ?driving? change ha! an empha!i! on control> enforcement and !tructure! it i! only a partial truth in achieving innovation) -rgani:ational gate"eeper! frame the organi:ational environment that BEna=le!B innovationA ho5ever innovation i! BEnactedB L recogni:ed> developed> applied and adopted L through individual!)14 Individual! are the ?atom? of the organi:ation clo!e to the minutiae of daily activitie!) 3ithin individual! gritty appreciation of the !mall detail com=ine! 5ith a !en!e of de!iredorgani:ational o=Dective! to deliver Eand innovate forF a product%!ervice offer) From thi! per!pective innovation !ucceed! from !trategic !tructure! that engage the individual to the organi:ationG! =enefit) Innovation pivot! on intrin!ically motivated individual!> 5ithin a !upportive culture> informed =y a =road !en!e of the future) Innovation> implie! change> and can =e counter to an organi:ationG! orthodo;y) Space for fair hearing of innovative idea! i! re@uired to =alance the potential autoimmune e;clu!ionthat @uell! an infant innovative culture),r%e$$ + I##vati# The Innovation proce!! can =e depicted a! a !erie! of funnel! each getting progre!!ively!maller) Typically !i;ty idea! into the top funnel only produce! Du!t one innovation) The funnel! are la=eled a! the four pha!e! in the proce!! ( idea generation> idea !creening>fea!i=ility and implementation) 5. CREATIVITY AND INNOVATION It i! often u!eful to e;plicitly di!tingui!h =et5een creativity and innovation) Creativity i! typically u!ed to refer to the act of producing ne5 idea!> approache! or action!> 5hile innovation i! the proce!! of =oth generating and applying !uch creative idea! in !ome !pecific conte;t)In the conte;t of an organi:ation> therefore> the term innovation i! often u!ed to refer tothe entire proce!! =y 5hich an organi:ation generate! creative ne5 idea! and convert! them into novel> u!eful and via=le commercial product!> !ervice!> and =u!ine!! practice!> 5hile the term creativity i! re!erved to apply !pecifically to the generation of novel idea! =y individual! or group!> a! a nece!!ary !tep 5ithin the innovation proce!!) 15Innovation =egin! 5ith creative idea!) Creativity =y individual! and team! i! a !tarting point for innovationA the fir!t i! a nece!!ary =ut not !ufficient condition for the !econd) Although the t5o 5ord! are novel> they go hand in hand) In order to =e innovative> employee! have to =e creative to !tay competitive)166.CONCLUSION A company can increa!e efficiency through num=er of !tep!: e;ploring economie! of !cale and learning effect!> adopting fle;i=le manufacturing technologie!> reducing cu!tomer defection rate!> implementing Du!t in time !y!tem!> getting the RK. function tode!ign product! that are ea!y to manufacture> upgrading the !"ill! of employee! through training> introducing !elf( managing team!> lin"ing pay to performance> =uilding a company5ide commitment to efficiency through !trong leader!hip> and de!igning !tructure! that facilitate cooperation among different function! in pur!uit of efficient goal!) Creativity and innovation i! the 5ay to achieve the goal! of the organi:ation) 3e can 5ay out different proce!!e! and techni@ue! to introduce innovation and creativity in to an organi:ation) It can =ring a num=er of =enefit! to an organi:ation 5hich can =e:&) Improved @uality ,) Creation of ne5 mar"et! ') E;ten!ion of the product range 0) Reduced la=our co!t! #) Improved production proce!!e! 6) Reduced material! 8) Reduced environmental damage the companie! not only !hould =e good at e;ploring todayG! certaintie! =ut> at the !ame time> they need po!!e!G a=ilitie! to e;plore ne5 opportunitie!( they have to =e am=ide;trou!) Effective management of creativity and innovation play! a critical role in developing thi! trait) Co5ever> 5ith many theorie! emerging =oth from academic and the corporate 5orld!> the 5orld of innovation it!elf undergoing tran!formation)177. RE(ERENCES &) Charle! 3) 1) Cill> 7areth R) None! HStrategic management An Integrate Approach =i:tanatra pu=lication! L !i;th edition ,$$# Ne5 .elhi ,) http:%%555)cforc)org%ne5! ') rof) Su!hil Mumar and rof) A=hi!he" NirDar L Indian In!titute of Management 1uc"no5 H creativity and innovation for !u!tained =u!ine!! development 18