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Chapter 1 Creativity and its Importance in Business
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Chapter 1 Creativity and its Importance in Business

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  1. Chapter 1Creativity and its Importance in Business

  2. American Spelling!

  3. Creativity is an ability to come up with new and different viewpoints on a subject. It involves breaking down and restructuring our knowledge about a subject in order to gain new insights into its nature. DEFINITIONS OF CREATIVITY Defining creativity is complicated because the concept has many dimensions. Creativity to harness, exploit and market applications of new ideas/technology

  4. Wertheimer…’restructuring our knowledge’ Kelly and Rogers…’understanding how we think’ Cognitive model of reality DEFINITIONS OF CREATIVITY … Organize our thoughts in such a way that readily leads to a different and even better understanding of the subject or situation

  5. Maslow- ’primary versus secondary’ 2 levels of creativity new discovery, real novelty, or ideas which depart from what exists working alongside other people, extending the work of previous researchers, and exercising prudence and caution in their claims about new insights or ideas. DEFINITIONS OF CREATIVITY … Inherent in a child Lost in Adults - stimulating creativity

  6. Rickards the personal discovery process, partially unconscious, which leads to new and relevant insights. Escape from mental stuckness Gilliam…’considering/making new connections’ Amabile…’novel and useful ideas’ Cave- ‘Being creative is seeing the same thing as everyone else, but thinking of something different’ DEFINITIONS OF CREATIVITY …

  7. Creativity involves an in-depth thought of a subject and an ability to come up with new and different viewpoints • Managers need to possess the ability to gain creative insights to be successful • particularly during paradigm shift • Creativity is very much concerned with how we imagine things. • All of us must be creative to some degree because we have to find new solutions to newly presented problems.

  8. Invention is an act of creativity that results in a device, process or technique that is novel enough to produce a significant change in the application of technology. INVENTION AND CREATIVITY The application is fundamental to invention new device/process/material or a combination of existing knowledge in a manner not previously considered.

  9. INVENTION THEORY- DETERMINISTIC VS. INDIVIDUALISTIC. • The deterministic theory holds that when economic, technical and cultural conditions are ripe an invention will be made by one inventor or another; who does it is just historical • numerous instances of simultaneous and independent invention. • steamboat, the electric telegraph, the incandescent lamp and the aeroplane. • The theory is also plausible because timing is unquestionably important in invention. • Also, inventors are likely to focus on projects that are reasonably attainable and for which there is a recognizable need or demand.

  10. Innovation- the IBM PC • However, it may not surprise you that the IBM PC at that time did not contain any new inventions. What may surprise you is that the IBM team – under pressure to complete the project in less than 18 months – was under explicit instructions not to invent anything new. • The goal of this code-named “Project Chess” was to take off-the-shelf components and bring them together in a way that was user friendly (at least by the standards of those days), inexpensive and powerful enough for “home use”. • IBM innovated around its own processes by creating a small team composed of people from multiple disciplines.

  11. INVENTIONS, INNOVATIONS OR JUST CREATIVE RESEARCH? Gene research • In 1988, Rudolf Jaenisch and co-workers succeeded in implanting in mice the gene for a hereditary disease of humans. Superconductors • In 1911, Heike Onnes discovered that electrical resistance in mercury disappears when the mercury is cooled to absolute zero. Other metals and alloys also become superconducting at very low temperatures. Today superconductors are used in large and powerful magnets.

  12. ‘the sentences of thought’. By chance drifts into the mind, wander through and often vanish into obscurity, never to be recalled again. Making notes on ideas as they arise is extremely important. Generating ideas is NOT a chance process. Ideas appear to arise when people are actually looking for them. It happens to people who are Curious or inquiring. Engaged in a search for opportunities, possibilities, answers or inventions. IDEAS AND HOW THEY ARISE My Business Ideas different solution, more acceptable solutions, … perfect solution! insights restructure

  13. Some great ideas • Fleming discovered the effects of penicillin • Laennec found his answer when he noticed two boys playing in an unusual way with a see-saw. • Westinghouse discovered the idea of the air-brake when he casually read in a journal that compressed air power • Kekule gained his clue to the nature of the benzene ring from his dream of a snake swallowing its own tail

  14. The paradox • Creative insights appear to be easiest to gain in fields where we have considerable prior knowledge and experience. Nevertheless, there is a paradox here, for we tend not to think about what we think we know already. Existing ideas tend to make us myopic about new possibilities. The paradox reveals itself in that it appears that creative ideas do not come to us unless we spend much effort engaged in just the activity which makes their emergence most difficult.

  15. Logical thinking is a series of steps that extend what we know already, rather than being truly new. The need for creative thinking arises from the inadequacies of logical thinking. Creative Thinking is a method for producing insights that might not be obtained through conventional or traditional methods of logical thinking. IMPORTANCE OF CREATIVE THINKING

  16. Problems may exist in both the external and internal environments • The former poses problems such as how to cope with slow economic growth, how to deal with new entrants to an industry, how to grow sales at the pace of competition in high-growth markets, how to deal with new technological developments and how to cope with shorter product life-cycles. The latter poses problems to do with poor internal communications, financial problems, alienated or poorly motivated staff and inadequate planning. Changes

  17. Increasing number of problems have few or no precedents Fewer tried and tested ways of approaching them Creativity is a vital asset for leadership Business problems are usually open-ended Planning, organising, leading, controlling CREATIVE THINKING IN BUSINESS Unless a company is progressing all the time, it is in fact moving backwards. It is quite impossible to maintain the status quo ~ Sir John Harvey Jones

  18. ILLUSTRATIONS OF HOW CREATIVITY MAY BE USED IN MANAGEMENT • To make more effective use of a manager’s time • To improve a product’s appeal to customers • To improve motivation amongst staff • To appeal to customers’ wants and needs • To cut costs through more efficient/effective production methods • To identify new and profitable product-market opportunities

  19. Executives have to make decisions Planning • Determining the mission of the organization • Determining the organizational objectives • Identifying strengths, weaknesses, opportunities and threats • Adjusting the organization behaviour and strategies to competitors’ strategies • Deciding how to implement competitive strategies Organizing • Deciding what jobs need to be done within an organizational unit • Deciding how various jobs within an organizational unit can be grouped together, etc. • Deciding how much authority should be delegated to various organizational positions • Determining how best to train people for their jobs

  20. Executives have to make decisions … Leading • Finding ways of increasing productivity in the workplace Controlling • Deciding what systems of control are needed • Setting standards • Identifying why standards/objectives have not been achieved CREATIVITY IN ACTION … Airline Industry

  21. A paradigm is a set of rules and regulations that guide our actions when solving problems. Paradigm shifts have made it possible to send complex, accurate messages over great distances: they have facilitated moving from primitive methods such as shouting,smoke, fire, drum, flag signals to highly sophisticated mechanisms such as telegraph, telephone, fax, live video by wire, optical fibre, and communications satellite Transport – train, airplane, spaceship PARADIGM SHIFTS The need for creative thinking often becomes paramount when a paradigm shift occurs or is likely to occur.

  22. Towards the end of the life-cycle, problem solving becomes more costly, more time-consuming and less satisfactory. Solutions no longer fit the larger context because of changes that have occurred elsewhere. PARADIGM SHIFTS Electric Rickshaw

  23. Intelligence measures do not explain creativity It is not about how smart you are! Creative thinkers form novel combinations Making juxtapositions between dissimilar subjects. Thinking productively rather than reproductively. Restructuring Vs. on the basis of similar problems encountered in the past (More on Ch2) CHARACTERISTICS OF CREATIVE THINKING Einstein, Edison, Leonardo da Vinci and Mozart It is a facility to see things to which others are blind.

  24. Samuel Morse was trying to work out how to produce a telegraphic signal strong enough to be received coast to coast. One day he saw tied horses being exchanged at a relay station and forced a connection between relay stations for horses and strong signals. The solution involved giving the travelling signal periodic boosts of power. CHARACTERISTICS OF CREATIVE THINKING

  25. Challenge the status quo Confront assumptions Exhibit curiosity Like to investigate new possibilities Take the initiative Are highly imaginative Are future oriented PEOPLE WHO EXHIBIT CREATIVE BEHAVIOUR MGT 321

  26. Tend to think visually See possibilities Are not afraid to take risks Are prepared to make mistakes Are adaptable to different environments Are adaptable to changing circumstances See relationships between seemingly disconnected elements PEOPLE WHO EXHIBIT CREATIVE BEHAVIOUR …

  27. Distil unusual ideas down to their underlying principles Synthesise diverse elements Are able to spot underlying patterns in events Are able to cope with paradoxes Look beyond the first ‘right idea’ PEOPLE WHO EXHIBIT CREATIVE BEHAVIOUR …

  28. Fluency - ability to produce many ideas Flexibility - ability to produce a varied mix of ideas Elaboration - ability to add detail, depth, mixtures of viewpoints or perspectives Originality - uniqueness, novelty, newness ACQUIRING CREATIVE SKILLS that people can be taught, encouraged and coached or counseled to be more creative

  29. Some Creativity skills … • Imagination (visual, auditory and kinesthetic creativity allows you to express ideas and feelings by applying your imagination to produce unique creations) • Literary (writing a poem, a short story or a play) • Social (imagining a new way to have a group process go better or improve a program that provides services to others) • Innovation (using information from a variety of different sources to create unique solutions to a problem) • Aesthetics (using sense of beauty to judge something) • Visualizing (creating a mental image of an object or idea) • Designing (creating plans for a new project or product) • Judgment (using discrimination skills in sound, colour and shape to determine differences) • Energetic, persistent work-style • Orientation towards risk-taking and independence

  30. Class Exercise • Think of a hundred uses, new uses or types of uses for the following • Obsolete desktop computers • Worn-out carpets • Dead lightbulbs • Sweatshirts • Scrubbing brush • Empty jam-jar • Waste-paper basket • Disused railway-track sleepers • Blunderbuss • Bottle-tops off empties • Wooden pencil • Old hats (male and female)

  31. HW-1 Page 19- No.3 Page 19- No.4 Page 19- No.6 Page 19- No.10

  32. GW-1 Page 20- Keeping prices competitivePage 20- Price and innovationPage 20- Anti-bacterium gel

  33. What we learned • Definitions of creativity, How ideas arise, Importance of creative thinking in business, Paradigm shifts, Characteristics of creative thinking, Acquiring creative skills