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Six Sigma. Many companies are attempting to encourage innovation in their businesses, however they are finding that to do this they must continually increase the skills of their managers of creativity and innovation in order to maintain a market edge.
In order to answer these questions in industry a first step is to realise that creativity and innovation are not just about developing great new ideas, they are about turning those great ideas into great new products or services that people really need. It is also important to understand that the management of creativity and innovation are two different skills and successfully linking these two areas requires not only a process but an understanding of the areas.
To do this it is essential that marketing, product development, technology foresight, knowledge exchange, project execution, and talent management are all managed in a coherent way. It looks at the environment within a business and how this can either enhance or constrain creativity.
It also explores the role of research in a business and how this, if well managed, can drive both creativity and innovation. Creativity is often said to be 'thinking outside the box'. This assumes breaking out of a traditional way of thinking and taking a completely different view, a process termed 'lateral thinking'.
But creativity is more than this; it often involves quite a radical approach supported by prior thought and experience, although depth of experience is not always necessary and too much legacy thinking can constrain really new thinking. Really creative thinkers are often those who ignore criticism and the comment of their peers and forge on regardless, following their idea to its conclusion.
The environment surrounding and supporting the creative person or team can have a major impact on the effectiveness of this. We can best understand the mechanism of creative thought by dividing it into two types: Visual thinking: the intellectual ability to visualise a totally new situation. Problem Solving: when solving a problem, we are striving for a goal but have no ready means of obtaining it.
We must break the goal down into sub-goals and perhaps divide these sub-goals further into smaller sub-goals, until we reach a level that we have the means to obtain Anderson, The key difference between this and creativity is that in Innovation there is no clear new intellectual leap or step change in thinking, it is essentially an incremental change which harnesses existing ideas in a different way.
This is often referred to as 'taking the helicopter view' or 'standing back from a problem', coupled with the ability to mentally manipulate the problem, view it from a number of 'angles' and to 'zoom in' on various areas Kosslyn, S.
There has been a great deal of writing over the last 15 years about the 'innovation pipeline' or 'innovation funnel', all of which advocates a system linking the creative or ideas stage to the innovation stage and then onto new product or service development. These all include some kind of filter that assesses the ideas or research coming from the initial stage and only passes a proportion, which are deemed to be of value, onto the innovation stage.
Industry has a notional target of 1 in 10 for this process, that is of every ten research activities undertaken at least one of them becomes a new product or service. This target is, in practice, rarely achieved and if used as a target can have a negative effect. However this is not the only problem - management of the research or ideas which do not make it through the process is poor, and often some years later when the market place has moved on it is difficult, if not impossible, to resurrect the idea.
This barrier results in lost opportunities and inefficient use of business resources. We might assume that on investigation we could expose a single factor to resolve this problem but, as is shown later in this paper, there are many factors and most are 'sector specific'.
Management of the pipeline is key to the success of an industry. It is often useful to have a third decision point where the research is not fully funded but where sufficient time and support is made available to allow it to continue at a low level, which removes the need to 'skunk' research.
Many researchers believe that a measure of the importance of a piece of new research can be determined by how often it is initially turned down by funding bodies but somehow continues anyway! It is vitally important to manage and monitor this low-level work, so as to maintain continuity while assessing future market needs.
While not advocating a reduction in the control of research effort, management must understand the need to embrace 'risk' and to take thought-through 'gambles'. The Environment and Creativity There is a belief that to stimulate creativity and innovation a particular type of environment is required.
We would argue that the environment is important but that there is not just one solution. Many highly creative environments exist which, when compared to one another, are completely different. This is because they tend to be specific to the industry or sector in which they exist.
If individuals and teams believe they have these, then the basic framework of support exists, but this is a belief based on trust. The key elements of 'management' are expanded below. It should not be assumed that a business is easily able to adopt these.
Too often a company will give nodding approval to the ideas but will not ensure that the culture really reflects this way of working. In the last two years many organisations, both academic and industrial, have experimented with wireless networks to enable a more flexible way of working.
Individuals are able to gather in an ad-hoc manner with their laptops and this can encourage creativity as it reduces barriers both in time and in location. There is good evidence to show that this can be very effective, however this assumes that we have already selected the 'right' people who will flourish in this type of environment. There are clear benefits both in terms of collaboration and efficiency. However it must be remembered that always on-line means never off-line and some find it very difficult to switch off; this in turn is a management issue which must be considered.
Recruitment and selection Recruitment into 'Research' is often from Universities at either graduate or postgraduate level, with most industries having processes which combine interviewing and tests.
We have found that graduates who have spent time in industry as part of some kind of internship programme are often the best recruits, mainly because they have a real experience of the working environment and the company has a good understanding of them and how they perform.
But it is essential that we understand that the recruitment of 'creative' people is not the same process as for the business as a whole. The competences and skills we need in our best research people are very specialised and the selection of these people is therefore also very specialised.
This will create tension in a business as the numbers of people brought into research will generally be low in comparison with the rest of the company and therefore a special process for these small numbers will often be at odds with 'corporate policy'.
It is essential that a company understands the role of new young research people, that is as the 'life blood' of the company. Mistakes made in selecting these people will have major implications for the future of the business in the years ahead. Our experience has shown us that new very bright young graduates can both add value and bring new thinking remarkably quickly if the ecosystem is right.
But this is in itself a form of disruption and if an organisation is not able to embrace this then there will no gain for it or the individual. Unfortunately, although the initial recruitment is of major importance, it is not the only critical time, this often occurs around two years after recruitment when the person begins to become part of the business.
At this point there is a danger of losing the creative spark they had when they joined the company. Large companies can easily 'mould' people into corporate drones without intending to do so. It is essential to monitor young graduates as they develop and to maintain their academic interests via suitable challenges. Generally there are two ways of identifying creative and innovative people. The first is to look at their past performance. It is assumed that those with a proven history will have the right approach and therefore will be able to deliver in any situation.
This is clearly flawed. As a test it is a good starting point but takes no account of 'potential'. The second approach is to monitor teams and give those displaying the desired attributes the freedom to develop their ideas. This method relies on good 'screening' and monitoring and can be hit and miss. However its efficiency can be improved by considering the issues raised in "The Environment and Creativity", above. Our experience has shown that there is no substitute for experience and that schemes such as internships can provide real insight into the suitability of a candidate.
Measuring Creativity Both Industry and Academia have long struggled with metrics for creativity. The recording of patents and ideas gives some measure but this can provide a false impression. Measurement of outcomes can be far better but the time between idea and successful outcome can be protracted. Alternatively the licensing of patents or ideas can give a more accurate view of the value of the creative process but will never tell the entire story.
The essential lesson is to measure outcomes. Business Value In order to measure the revenue impact of research on a business, it is essential to record all research output in detail and to archive this in a system which has a very high quality search and retrieval mechanism.
When a new product or service is successful it will then be possible to trace it back to any original contriubuting research. However it is important to note that there may be a considerable time lapse between research and business impact; in the area of ICT this can be between four and six years, this is relatively short in comparison to other sectors but the challeges are the same.
It should also be recognised that a culture shift may be needed for the marketing department of a company to 'recognise' in revenue terms the value of any original research which has contributed to a new product or service. In our business this is known as the 'innovation dividend' and this represents the 'value' of the research in new revenue and profit. New software tools have become available in the last five years that allow ideas to be visualised quickly. This visualisation of concepts and ideas is key to moving them forward.
In the past, ideas would be 'story boarded' for a client or customer, but these were by their very nature fixed and there was little possibility for interaction. At best the client for a new product or service would comment on the ideas and these comments would be added to a new draft. With modern visualisation tools the client and end customer can interact with the model and changes can be made very quickly.
This is especially so in the case of new technology products and services, where a model containing new ideas and concepts can be 'mocked-up' and then tried by the customer or client in a way which is very close to using a full prototype but without the costs or development time. This type of rapid prototyping allows many areas of the business and its customers to become involved in the early stages of the development of new products and services.
It eliminates errors which occurred in the traditional requirement-capture processes, where it was found that early prototypes rarely reflected the product team's original vision. Clearly identifying a model for a new product or service quickly allows the development team time to use creative and innovative solutions within the confines of the model framework.
This seems to place story-boarding as the poor relation of rapid prototyping - that is, of course, an over simplification. Prototyping can be used to demonstrate technical feasibility, whereas storyboarding can be used to postulate a wide range of scenarios. Rapid iterative prototyping allows rapid convergence on the intersection of customer desires and technical realities. Collaboration In the ICT sector it is almost impossible for any one company to do all of the research it needs and hence the need for collaborations with both Academia and industry.
But this is not the whole story. In the US we have worked for many years within 'consortia' where a number of companies jointly sponsor areas of pre-competitive research. However, this model will only be successful if the sponsors are open to collaboration with one another as well as the research teams, and the best results tend to be when an open innovation policy is adopted.
There are examples of the success of this model in a closed environment that is when the information is not shared outside of the sponsor. However, in an academic collaboration this can be a difficult model to maintain as the researchers generally need to publish their work and, unless the sponsors meet all of the costs of the work, the academic institution will generally own the output.
If the research is kept at the 'pre-competitive' stage of development then collaboration around a single or group of Universities has been shown to be very successful and this model is now being used much more widely.
Networks The area of information and communications technology ICT is now so broad that no one person can be a domain expert.
Therefore in order to develop new business solutions in this highly complex area it is essential to work as part of a network of experts. This model of 'pooling' creativity is not new and has been one of the 'tools' academics have used for some time to solve complex problems. Web 2. Using the crooked fitness of organizations in managing the change. It is emphasized, that change managers can influence on depth and time of endure … Expand.
Different forms of innovations: meta-analysis of the organizational innovation surveys. Exploratory versus exploitative innovation: SME performance implications of managerial ties and empowering leadership in China. While exploration and exploitation represent two fundamentally different approaches to organisational innovation, recent literature has increasingly indicated the need for small and medium-size ent Gender differences in performance-driven managerial innovation: evidence from US nursing homes.
International Public Management Journal. The paper organizes the scientific contributions to rigorously define Exponential Organizations ExOs. A systematic literature review allowed highlighting some fundamental relationships and to … Expand. Put Innovation in the Organization Structure. The proposed capability is designed to overcome the barriers … Expand. The New Institutionalism in Organizational Analysis. Powell and Paul J. Innovation in services. The purpose of this article is to lay the foundations of a theory that can be used to interpret innovation processes in the service sector.
The hypothesis underpinning this article is based on … Expand. View 1 excerpt, references background. Organizational innovation: the influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations.
Individual, organizational, and contextual variables were found to be much better predictors of hospital adoption of technological innovations than of administrative innovations. The two different
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