Chapter 1

INTRODUCTION TO
INNOVATION
Subject: Innovation and Commercialization
Prepared by: Ms. Norfarzilah Binti Adna
 01. Identify problems and solutions to help innovate and improve
current practices, inventions and designs.

Learning 02. Use information and communication technology effectively

Outcome in oral presentation.

By the end of the chapter, students

should be able to: 03. Demostrate leadership and equal responsibility when
working in groups on an assigned task.
 1.1 Introduction

The world is changing rapidly and it is almost certain that most

people will have to adapt to several careers in the course of a
lifetime. Most employers want to recruit people who see
connections, have bright ideas, are innovative, communicate and
work well with others, and are able to solve problems. Confident,
creative individuals will always be in demand. Students who are
Introduction
creative will be prepared for a rapidly changing world, where they
may have to adapt to several careers in a lifetime. In other words,
industries need creative people.

Nowdays, people are facing a number of key challenges.

Globalizations, the technological and knowledge revolutions,
cultural debate and climate change are issues that face us all at
some level. Mean that as well as wanting to innovate in order to
improve a process or product and add value, we also have to
innovate because there is an overwhelming imperative to do so.
These issues pose challenges for the private sector, for public
services and for governments and policy makers.
 1.1.2 Benefit of Creativity

i. Creativity improves pupils' self-esteem, motivation and achievement

Pupils who are encouraged to think creatively and independently
become more interested in discovering things for themselves, more
open to new ideas, keen to work with others to explore ideas, willing
to work beyond lesson time when pursuing an idea or vision. As a
result, their pace of learning, levels of achievement and self-
esteem increase.

ii. An important aim of the national curriculum by providing rich and

varied contexts for people to acquire, develop and apply a broad
range of knowledge, understanding and skills, the curriculum should
enable people to think creatively and critically, to solve problems
and to make a difference for the better. It should give them the
opportunity to become creative, innovative, enterprising and
capable of leadership to equip them for their future lives as workers
and citizens.

“without creativity, there would be no progress, and we would be forever

repeating the same patterns"
Edward de Bono
1.2 Definition of Creativity

1.2.1 Famous Quote

Figure 1.1 Albert Eistein

"Imagination is more important than knowledge. For knowledge is limited to all we now know
and understand, while imagination embraces the entire world, and all there ever will be to
know and understand."
Albert Einstein
 Figure 1.2 Pablo Picasso

"I am always doing that which I cannot do, in order that I may learn how to do it."

Pablo Picasso
 Figure 1.3 Edward de Bono

"An idea that is developed and put into action is more important than an idea that exists
only as an idea."
Edward de Bono
 Figure 1.4 Raymond Loewy

"Between two products equal in price, function and quality, the one with the most attractive
exterior will win.".... "The most beautiful curve is a rising sales graph.

Father of Industrial Designer, Raymond Loewy

 Figure 1.5 J.K. Rowling

"Imagination is not only the uniquely human capacity to envision that which s not, and
therefore the fount of all invention and innovation. In its arguably most transformative and
revelatory capacity, it is the power that enables us to empathize with humans whose
experiences we have never shared."
J.K. Rowling, Author
LET US TAKE A BREAK
 1.2.2 Meanings

Creativity refers to anything someone does in a way that is original to the creator and that is appropriate to the
purpose or goal of the creator.
Create : to cause, to exist, to produce, to make
Creative: producing new and original ideas and things imaginative and inventive
Creativity happen in many fields or desciplines :
i. People
"Creativity is best described as the human capacity regularly to solve problems or to fashion products in a domain,
in a way that is initially novel but ultimately acceptable in a culture."
Gardner, 1989
ii. Products
"Creative products, be they poems, scientific theories, paintings or technological advances, are both novel and
acknowledged to be valuable or useful in some way."
Gilhooly, 1982
ii. Process
"Creativity is a process that can be observed only at the intersection where individuals, domains and fields
intersect."
Csikszentmihalyi, 1999
 1.2.3 Categories

The two main categories of definition of a criterion of creativity actually used in large bodies of research (Frank
Barron and David M. Harrington, 1981):
i. Creativity associally recognized achievement in which there are novel products to which one can point as
evidence, such as inventions, theories, buildings, published writings, paintings and sculptures and films; laws;
institutions; medical and surgical treatments, and so on;
and
ii. Creativity as an ability manifested by performance in critical trials, such as tests, contests, etc, in which one
individual can be compared with another on a precisely defined scale.
 1.2.5 Creative Thinking

The creation or generation of ideas, processes, experiences or objects.

"Playing with imagination and possibilities. Making new and meaningful connections with ideas, people and the
environment"
Lumsdaine and
Lumsdaine, 1995:29
Imagination
+
Posibilities

Ideas People

Environment
LET US TAKE A BREAK
 1.3 Innovation

1.3.1 Definition

Innovation can be defined as the application of new ideas to the products, processes, or other aspects of the
activities of a firm that lead to increased
"value." This "value" is defined in a broad way to include higher value added for the firm and also benefits to
consumers or other firms.

"Innovation is fostered by information gathered from new connections; from insights gained by journeys into other
disciplines or places; from active, collegial network and fluid, open boundaries. Innovation arises from ongoing
circles of exchange, where information is not just accumulated or stored, but created. Knowledge is generated
anew from connecion that weren't there before"
Margaret Wheatley
 1.3 Innovation

1.3.1 Definition

"Innovation is anything that somebody thinks is a great idea"

Franklin, 2003
"An innovation is an idea, practice or other that is perceived as new by an individual or other unit of
adoption"
Roger, 1995
“Innovation are new things applied in the business of producing, distributing and consuming
products or services".
Betja, 1998
"Innovation, is a new or technologically improved product or significantly improved process, based
on the results of new technological developments, new combination of existing technology or
utilization of other knowledge"
CREATIVITY + CHANGE = INNOVATION
Grace McGartland
 1.3 Innovation

1.3.1 Definition

Two important definitions are:

i. Product innovation: the introduction of a new product, or a significant qualitative change in an
existing product.
ii. Process innovation: the introduction of a new process for making or delivering
goods and services.

Innovations

Inventions

Figure 1.7 Inventions and Innovations

LET US TAKE A BREAK
 1.3 Innovation

1.3.1 Definition

 From the definition of innovation it become clear that innovation is closely linked to invention.
Invention forms part of the process of innovation.
 Invention involves new ideas, new discoveries and new breakthroughs.
 These are developed vi a process of experimentation to arrive at a workable invention. A key
feature of invention is their "newness,", which means that they incorporate some "inventive step".
Inventions are not normally ready for market at this stage.

 Innovation includes not only invention, but also activities that facilitate the introduction of new or
improved products or services onto the market.
 These activities from part of the exploitation/ commercialization phase which is such an essential
part of innovation.

INVENTION + COMMERCIALISATION + DIFFUSION = INNOVATION

 1.3 Innovation

1.3.1 Definition

 Diffusion is the process by which innovations are adopted and used by consumer, or in the case
of process innovations, bay other organizations.

 Diffusion describes the way in which innovations catch on and become popular. An innovation
that becomes very popular and widely used very quickly can be said to exhibit a slower rate of
diffusion, while one that catches on more slowly will exhibit a slower rate of diffusion. Hence
diffusion is the rate at which innovations are adopted.
 1.3.2 Type of Innovation

The notion that innovation is essentially about the commercialization of ideas and inventions suggests that it is
relatively straightforward and simple.
Innovation can categorize in a number of different ways
i. Form of innovation/application of innovation
a. Product Innovation.
Product innovations loom large in the public imagination. From commercial perspective the attraction of
product innovations is that the novelty of a new product will often persuade consumer to make a purchase.
The introduction of a new technology into an existing product may similarly attract much consume interest.

b. Service Innovation.
A service innovation involves the provision of a new or significantly improved services to consumer.. A new
service may be the result of new technology which makes it possible to offer the consumer a service that
has not previously been available.

c. Process innovation.
Process innovation often has an even bigger on society than product/service innovation. Process innovation
in fact extends beyond both spheres to include innovation in administrative and office system.
 1.3.2 Type of Innovation

Table 1.1 Form of Innovation

Form Innovation Innovator Country

Product iPod Steven Jobs/Apple UK
Ballpoint Laszlo Biro Hungary
Computer mouses Douglas Engelbart US
Service Telephone Insurance Peter Wood UK
Social Networking Website
Mark Zuckerberg US
Process Moving assembly line Hendry Ford US
Float glass
Alistair Pilkington UK
 1.3.2 Type of Innovation

ii. Degree of novelty associated with innovation

a.Radical innovation
Radical innovation is normally the result of a major technological breakthrough or the application of a new
technology. It is non-linear discontinuous involving a step change from what has gone before and improving
an existing design.

b.Incremental innovation
Incremental innovation involves modest changes to existing products/services (or processes) to exploit the
potential of an existing design. The changes are typically improvements to components, possibility the
introduction of new components, but always within the confines of an existing design.

c. Modular innovation
Modular innovation uses the architecture and configuration associated with the existing system of an
established product, but employs new component with different design concept.

d. Architectural innovation
The components and associated design concepts remain unchanged but the configuration of the system
changes as new linkages are instituted.
 1.3.3 Innovation Cycle

Let’s us watch the video of innovation cycle

https://www.youtube.com/watch?v=TgDRAqiMP5Q
LET US TAKE A BREAK
 1.4 Stimulants to Creativity

i. Freedom - freedom in deciding what to do or how to accomplish the task, a sense of control over's own work
and ideas.
ii. Good Project Management - a manager who serves as a good role model, is enthusiastic, has good
communications skills, protects the project team from outside distractions and interference, matches tasks to
workers' skills and interests, and sets a clear direction without managing too tightly.
iii. Sufficient Resources - access to necessary resources, including facilities, equipment, information, funds and
people.
iv. Encouragement - management enthusiasm for new ideas, creating an atmosphere free of threatening
evaluation.
v. Various Organizational Characteristics.
vi. Recognition - a general sense that creative work will receive appropriate feedback, recognition and reward.
vii. Sufficient Time - time to think creatively about the problem, to explore different perspectives rather than
having to impose an already-determined approach.
viii. Challenge - a sense of challenge arising from the intriguing nature of the problem itself or its importance to the
organization (internalized by the individual as a personal sense of challenge).
ix. Pressure - a sense of urgency that is internally generated from competition with.
x. Outside organizations, or from a general desire to accomplish something important.
 1.5 Obstacles to Creativity

1.5.1 Obstacles to Creativity in Organization

i. Various organizational characteristics - inappropriate reward systems in the organization, excessive red tape,
a corporate climate marked bv a lack of cooperation across divisions and levels, little regard for innovation in
general.
ii. Constraint - lack of freedom in deciding what to do or how to accomplish the task, a lack of a sense of control
over one's own work and ideas.
iii. Organizational disinterest - a lack of organizational support, interest, or faith in a project, a perceived apathy
toward any accomplishments coming from the proiect.
iv. Poor project management - a manager who is unable to set clear direction, who has poor technical or
communication skills, who controls too tightly, or who allows distractions and fragmentation of the team's
efforts.
v. Evaluation - inappropriate or inequitable evaluation and systems, unrealistic expectations, an environment
focused on criticism and external evaluation.
vi. Insufficient resources - a lack of appropriate facilities, equipment, materials, funds or people.
vii. Time pressure - insufficient time to think creatively about the problem, too great a workload within a realistic
time-frame, high frequency of "fire-fighting".
viii. Overemphasis on the status quo - reluctance of managers or coworkers to change their way of doing things,
an unwillingness to take
ix. risks.
x. Competition - interpersonal or intergroup competition within the organization, fostering a self-
 1.5.2 Obstacles to Creativity Comes from The Human Activities

i. A general belief that they are simply not creative.

ii. Willingness to go along with the status quo and along the path of least resistance (i.e. don't rock the boat, if it
aim's broke don't fix it, etc.)
iii. Failure to focus on a clear object needing creative attention
iv. Not knowing HOW to get new ideas- tools and techniques
v. Lack of boldness to 'go where no one has gone before'.
vi. Fear of the unknown and looking stupid on the part of oneself or one's colleagues.
vii. Lack of structural underpinnings to facilitate and maintain the creative flow once it is started

• Other Factors that Limit Creative Behavior include:

i. Being too busy and getting too involved with a problem
ii. Having conflicting goals and objectives
iii. Not allowing yourself enough time to relax
iv. Competition in the present environment can hamper motives for creative output.
v. Most of the obstacles to creativity can be found within you.
vi. Fear of criticism
vii. Lack of confidence
viii. State of mind/body (for example experiencing negative stress)
ix. The main thing that hinders creative thinking is our belief that we are not creative.
Thank you for your
attention
End of the chapter