Topic 3: Understanding The Innovative Mindset PDF

Psychology of Creativity and Innovation -Topic 3 11/17/24 1  We are all confronting a global innovation challenge.  The world is in the midst of a new wave of economic development with entrepreneurship and innovation as the cata...

Psychology of Creativity and Innovation -Topic 3 11/17/24 1  We are all confronting a global innovation challenge.  The world is in the midst of a new wave of economic development with entrepreneurship and innovation as the catalysts.  The managerial mindset must become an opportunity-driven mindset, where actions are never constrained by resources currently controlled. We call this the “innovative mindset.” Psychology of Creativity and Innovation -Topic 3 11/17/24 2  Developing a corporate innovative philosophy provides a number of advantages: 1. This type of atmosphere often leads to the development of new products and services. 2. It creates a workforce that can help the enterprise maintain its competitive posture. 3. It promotes a climate conducive to high achievers and helps the enterprise motivate and keep its best people. Psychology of Creativity and Innovation -Topic 3 11/17/24 3  This is a point in time when the gap between what can be imagined and what can be accomplished has never been smaller.  It is a time requiring innovative vision, courage, calculated risk-taking, and strong leadership.  It is simply answering “The Innovative Challenge of the 21st Century.” Psychology of Creativity and Innovation -Topic 3 11/17/24 4  Innovative thinking goes beyond the mere creation of business.  “Ideas come from people. Innovation is a capability of the many.”  Innovative thinking is an integrated mindset that permeates individuals and organizations. Psychology of Creativity and Innovation -Topic 3 11/17/24 5 Innovation, Creativity, and Entrepreneurship  Creativity is typically described as the process of generating new ideas.  Innovation takes creativity a step further by being a process that turns those ideas into reality.  Entrepreneurship is the process by which entrepreneurs convert opportunities (ideas) into marketable solutions. Psychology of Creativity and Innovation -Topic 3 11/17/24 6 Types:  Product innovation is about making beneficial changes to physical products.  Process innovation is about making beneficial changes to the processes that produce products or services.  Service innovation is about making beneficial changes to services that customers use. Psychology of Creativity and Innovation -Topic 3 11/17/24 7 Methods:  Invention: the creation of a new product, service, or process, often one that is novel or untried; revolutionary.  Extension: the expansion of a product, service, or process already in existence.  Duplication: the replication of an already existing product, service, or process adding the entrepreneur’s own creative touch to enhance or improve the concept to beat the competition.  Synthesis: the combination of existing concepts and factors into a new formulation. Psychology of Creativity and Innovation -Topic 3 11/17/24 8 Trajectories:  Radical innovation is the launching of inaugural (initial) breakthroughs such as personal computers and overnight mail delivery.  Incremental Innovation refers to the systematic evolution of a product or service into newer or larger markets. Examples include the typical improvements and advances in current products and services.  Disruptive Innovation goes beyond radical innovation and transforms business practice to rewrite the rules of an industry. In other words, the business practice of an entire industrial sector could be changed radically. Psychology of Creativity and Innovation -Topic 3 11/17/24 9 ➤ Innovation Is Planned and Predictable ➤ Technical Specifications Must Be Thoroughly Prepared ➤ Big Projects Will Develop Better Innovations than Smaller Ones ➤ Technology Is the Driving Force of Innovation Success. Psychology of Creativity and Innovation -Topic 3 11/17/24 10  Learning how to innovate effectively entails managing knowledge within the organization and offers the potential to enhance the way the organization innovates.  How an organization acquires, processes, and learns from the prior knowledge that it has gained is critical to the complete innovation process. Psychology of Creativity and Innovation -Topic 3 11/17/24 11  Entrepreneurship: a dynamic process of vision, change, and innovation.  It requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions.  Essential ingredients include the willingness to take calculated risks—in terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshal needed resources; the fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion. Psychology of Creativity and Innovation -Topic 3 11/17/24 12  Generation “E” Nearly 80% of would-be entrepreneurs in the United States are between the ages of 18 and 34. I = f (i) states that innovation is a function of the innovator. Psychology of Creativity and Innovation -Topic 3 11/17/24 13  Characteristics: ◦ Determination and Perseverance ◦ Goal Orientation ◦ Achievement Drive ◦ Tolerance for Failure ◦ Internal Locus of Control ◦ High Energy Level ◦ Tolerance for Ambiguity ◦ Creativity ◦ Calculated Risk Taking Vision Psychology of Creativity and Innovation -Topic 3 11/17/24 14  The quest for new venture (business enterprise) creation as well as the willingness to sustain that venture is directly related to an entrepreneur’s motivation. Psychology of Creativity and Innovation -Topic 3 11/17/24 15  PC = Personal Characteristics PE = Personal Environment PG = Personal Goals Expectati Intrinsic/ BE = Business Environment on/ Extrinsic Outcome Rewards P P P Comparis C E G on Decision to Entrepre Entrepren Firm Behave neurial eurial Outcom Entreprene Strategy Manageme es B IDEA urially nt E Implement ation/ Outcome Perception Psychology of Creativity and Innovation -Topic 3 11/17/24 16  Venture creation is a lived experience that, as it unfolds, forms the entrepreneur.  In fact, the creation of a sustainable enterprise involves three parallel, interactive phenomena: emergence of the opportunity, emergence of the venture, and emergence of the entrepreneur.  None are predetermined or fixed, they define and are defined by one another. Psychology of Creativity and Innovation -Topic 3 11/17/24 17  Trends  Unexpected Occurrences  Incompatibilities  Process Needs  Industry and Market Changes  Demographic Changes  Perceptual Changes  Knowledge-Based Concepts Psychology of Creativity and Innovation -Topic 3 11/17/24 18  Individuals are Born to Innovate  Innovators Must be Inventors  Fitting the Innovator’s Profile  Innovation is Being Lucky  Innovators are Gamblers Psychology of Creativity and Innovation -Topic 3 11/17/24 19  Sources of Stress Insulation Addiction to the Innovation Perfectionist Syndrome Achievement Orientation  Managing the Stress Network Refresh Yourself The Personal Touch Gain New Perspectives Delegate Exercise Psychology of Creativity and Innovation -Topic 3 11/17/24 20 M anagers must assume certain ongoing responsibilities:  Frame the Challenge  Absorb the Uncertainty  Define Gravity Psychology of Creativity and Innovation -Topic 3 11/17/24 21  Defined as the production of novel and useful ideas  Creative thinking enables leaders to contribute novel insights that can open up new opportunities or alternatives for the group or the organization.  It involves 5 steps Psychology of Creativity and Innovation -Topic 3 11/17/24 22  Step 1 Step 2 Step 3 Opportunity Immersion Incubation or problem recognition Step 5 Step 4 Verification Insight and application Psychology of Creativity and Innovation -Topic 3 11/17/24 23  Knowledge- “provides the building blocks for generating and combining ideas.”  Cognitive Abilities- “general intelligence and abstract reasoning.”  “enthusiastic about puzzling problems”  Personality- “positive self image without being blindly self confident.”  Can deal with criticism well  Passion for the task and the experience of flow-  The Componential Theory of individual creativity- “creativity takes place when three components join together: expertise, creative-thinking skill, and task motivation.” Psychology of Creativity and Innovation -Topic 3 11/17/24 24  Traditional thinking prevents innovating thinking from happening.  Traditional thinking imposes on the subordinates that there is no other way of accomplishing a goal. Psychology of Creativity and Innovation -Topic 3 11/17/24 25  It is the job of the leader in the organization to break down ridged thinking  It is also the role of the leader to allow his subordinates to break out of their own personal boundaries Psychology of Creativity and Innovation -Topic 3 11/17/24 26  Systematically collecting fresh ideas  Brainstorming  “Pet-Peeve” method  “Kitchen for the Mind” technique Psychology of Creativity and Innovation -Topic 3 11/17/24 27  Establishing a climate for creative thinking is a requirement for effective leadership.  A climate for creativity can be divided into two ways 1). Leadership and managerial practices for enhancing creativity 2). Methods for managing creative workers Psychology of Creativity and Innovation -Topic 3 11/17/24 28  Practicing creativity-enhancing exercises  Staying alert to opportunities  Maintaining an enthusiastic attitude Psychology of Creativity and Innovation -Topic 3 11/17/24 29  Maintaining and using a systematic place for recording your ideas  Playing the roles of explorer, artist, judge, and lawyer  Engaging in appropriate physical exercise Psychology of Creativity and Innovation -Topic 3 11/17/24 30  Hire creative people from the outside and identify creative people from within  Intellectual challenge  Freedom to choose the method  Ample supply of the right resources  Effective design of work groups  Supervisory encouragement  Organizational support Psychology of Creativity and Innovation -Topic 3 11/17/24 31  Give creative people tools and resources that allow their work to stand out  Give creative people flexibility and a minimum amount of structure  Give gentle feedback when turning down an idea  Employ creative people to manage and evaluate creative workers Psychology of Creativity and Innovation -Topic 3 11/17/24 32  All leadership and management practices that enhance creative problem solving also enhance innovation  There are eight leadership initiatives that enhance innovation Psychology of Creativity and Innovation -Topic 3 11/17/24 33 1. Continually Pursue Innovation  Company leaders should stay alert to innovative possibilities  Important because new technology can make an industry obsolete or endanger it 2. Take Risks and encourage risk taking  It is necessary to gamble intelligently and selectively even in times of hardship 3. Emphasize Collaboration among employees  Most innovations originate from groups of people working together 4. Acquire Innovative Companies  In order to shorten the innovation process, companies must acquire smaller companies that have the innovation they need Psychology of Creativity and Innovation -Topic 3 11/17/24 34 5. Avoid Innovation For Its Own Sake  Leaders need to exercise good judgment  Innovation just for innovation is not always valuable 6. Loose-tight Leadership Enhances Creativity And Innovation  Leaders need to allow enough space for new ideas to surface  the tightness should be applied when choosing the new idea 7. Integrate Development and Production  Innovation may suffer when product development and production people are separated  More communication and input is emphasized when integrated 8. Recognize The Hidden Opportunities When Products And Ideas Flop  The key is to recognize the new possibilities that emerge from the failure Psychology of Creativity and Innovation -Topic 3 11/17/24 35