Creativity

1. CREATIVITY AND THE BUSINESS IDEA

2. 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.

3. 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)

4. METHODS OF GENERATI NG NEW IDEA S
Even 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.

5. Focus groups
Group 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.

6. Brainstorming
A 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.

7. Problem inventory analysis
Problem 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 ofteneffective 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.

8. CREATIVE PROBLEM SOLVING
Creative 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

9. Problem-solving techniques
These 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

10. Brainstorming
The 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.

11. 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

12. 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

13. Convert problems into opportunities

14. 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.

15. What is Creative Problem Solving
Approach
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.

16. What is Creative Problem Solving
Approach
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

17. What is Creative Problem Solving
Approach
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.

18. 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.

19. What is Creative Problem Solving
Process

20. 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.

21. What is Creative Problem Solving
Process
• 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.

22. What is Creative Problem Solving
Process
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.

23. What is Creative Problem Solving
Process
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.
•

24. What is Creative Problem Solving
Process
• 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.

25. PRODUCT PLANNING AND DEVELOPMENT PROCESS
Once 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 stage
4. test marketing stage and
5. commercializing; it result in the product life cycle.

26. Establishing evaluation criteria
At 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.

27. Idea Stage
Promising 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

28. Concept Stage
In 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

29. Product Development Stage
In 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.

30. 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.

31. 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