Innovation Management 733 v1

INNOVATION MANAGEMENT
Sub Code - 733
Developed by
Prof. P. M. Bendre
On behalf of
Prin. L.N. Welingkar Institute of Management Development & Research
Advisory Board
Chairman
Prof. Dr. V.S. Prasad
Former Director (NAAC)
Former Vice-Chancellor
(Dr. B.R. Ambedkar Open University)
Board Members
1. Prof. Dr. Uday Salunkhe 2. Dr. B.P. Sabale 3. Prof. Dr. Vijay Khole 4. Prof. Anuradha Deshmukh
Group Director Chancellor, D.Y. Patil University, Former Vice-Chancellor Former Director
Welingkar Institute of Navi Mumbai (Mumbai University) (YCMOU)
Management Ex Vice-Chancellor (YCMOU)
Program Design and Advisory Team
Prof. B.N. Chatterjee Mr. Manish Pitke

Dean – Marketing Faculty – Travel and Tourism
Welingkar Institute of Management, Mumbai Management Consultant
Prof. Kanu Doshi Mr. Smitesh Bhosale

Dean – Finance Faculty – Media and Advertising
Welingkar Institute of Management, Mumbai Founder of EVALUENZ
Prof. Dr. V.H. Iyer Prof. Vineel Bhurke

Dean – Management Development Programs Faculty – Rural Management
Welingkar Institute of Management, Mumbai Welingkar Institute of Management, Mumbai
Prof. Venkat lyer Dr. Pravin Kumar Agrawal

Director – Intraspect Development Faculty – Healthcare Management
Manager Medical – Air India Ltd.
Prof. Dr. Pradeep Pendse Mrs. Margaret Vas

Dean – IT/Business Design Faculty – Hospitality
Welingkar Institute of Management, Mumbai Former Manager-Catering Services – Air India Ltd.
Prof. Sandeep Kelkar Mr. Anuj Pandey

Faculty – IT Publisher
Welingkar Institute of Management, Mumbai Management Books Publishing, Mumbai
Prof. Dr. Swapna Pradhan Course Editor

Faculty – Retail Prof. Dr. P.S. Rao
Welingkar Institute of Management, Mumbai Dean – Quality Systems
Welingkar Institute of Management, Mumbai
Prof. Bijoy B. Bhattacharyya Prof. B.N. Chatterjee

Dean – Banking Dean – Marketing
Welingkar Institute of Management, Mumbai Welingkar Institute of Management, Mumbai
Mr. P.M. Bendre Course Coordinators

Faculty – Operations Prof. Dr. Rajesh Aparnath
Former Quality Chief – Bosch Ltd. Head – PGDM (HB)
Welingkar Institute of Management, Mumbai
Mr. Ajay Prabhu Ms. Kirti Sampat

Faculty – International Business Manager – PGDM (HB)
Corporate Consultant Welingkar Institute of Management, Mumbai
Mr. A.S. Pillai Mr. Kishor Tamhankar

Faculty – Services Excellence Manager (Diploma Division)
Ex Senior V.P. (Sify) Welingkar Institute of Management, Mumbai
COPYRIGHT © by Prin. L.N. Welingkar Institute of Management Development & Research.

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1st Edition, August 2021

CONTENTS
Contents
Chapter No. Chapter Name Page No.
1 The Need For Innovation 4-27

2 Flow Of Ideas 28-53
3 Everyone Is Creative 54-89
4 Creative Connections Power Tools 90-128
5 Innovation Process 129-136
6 Strategic Thinking 137-160
7 Look To The Future 161-187
8 Do The Extraordinary 188-211
9 Ignite Passion 212-227
10 Take Action 228-251
11 Different Thinking 252-283
12 It Is In Your Hands! 284-297
13 Top Innovative Companies 298-315
3
THE NEED FOR INNOVATION
Chapter 1
The Need For Innovation
Objectives:
While studying this chapter, you will be beginning the journey to Innovation
Management by developing a positive mindset, which is very much
necessary for the future of your organization.
Structure:
1.1 Hello, Friends!
1.2 Contribution of the great Management Guru, Peter F. Drucker
1.3 What is Innovation?
1.4 Innovation and Creativity
1.5 Types of Innovations
1.6 The need for Innovation
1.7 Being Innovative pays off
1.8 What should you do as an individual to become an Innovator?
1.9 Creative Connections
1.10 What Innovation is NOT
1.11 Innovation is hard work
1.12 This book is for you!
1.13 Activities for the students
1.14 Summary
1.15 Self-Assessment Questions
1.16 Multiple Choice Questions
4
1.1 HELLO, FRIENDS!
You are now entering the wonderful arena of Innovation Management,

which, we are sure, will help you to become an excellent leader as well as
an effective manager and you will be a valuable asset to your organization.
1.2 CONTRIBUTION OF THE GREAT MANAGEMENT GURU,

PETER F. DRUCKER
Figure 1.1
PETER F. DRUCKER
Peter Ferdinand Drucker, (November 19, 1909 - November 11, 2005)

was an Austrian-born American management consultant, educator, and
author, whose writings contributed to the philosophical and practical
foundations of the modern business corporations. He was also a leader in
the development of management education, and he invented the concept
known as Management By Objectives. He became Professor of
Management in New York University in 1950.
Drucker's books and scholarly and popular articles explored how humans
are organized across the business, government, and non-profit sectors of
society. He is one of the best-known and most widely influential thinkers
and writers on the subject of Management theory and practice.
In 1959, Drucker coined the term "knowledge worker" and later in his
life considered knowledge worker productivity to be the next frontier of
Management.
5
Peter Drucker was against Bureaucratic Management and emphasized

Management with creative and innovative characteristics. The basic
objective of Management is to lead towards Innovation. Innovation includes
development of new ideas, combination of old and new ideas, adaption of
ideas from other fields and even acting as a catalyst and encouraging
others to carry out Innovation. He treated Management as a discipline as
well as a profession.
According to Peter Drucker, "every organization, not just business, needs

one core competence and that is innovation".
1.3 WHAT IS INNOVATION?
Innovation is the application of better solutions that meet customer's new

and changed requirements, their implicit needs, or existing market needs.
This is accomplished through products, processes, services, technologies,
or ideas that are more effective. Another definition of the term Innovation
is "something original and, as a consequence, new and important, in
whatever field, that breaks into the market or society".
However, Innovation is not only associated with new products, new

technology, and R&D team, as some people feel. Their view is too limiting.
Please note that Innovation can be applied broadly across all elements of
the organization, such as existing products, services, programs, processes
and business models. Ideas that provide marginal improvements to
existing products, services, programs, processes and business models are
also a part of overall concept of Innovation.
Innovation differs from Invention. Innovation refers to the use of a better

and, as a result, novel idea or method, whereas Invention refers more
directly to the creation of the idea or method itself.
Further, Innovation differs also from Improvement. Innovation refers to the

notion of doing something different rather than doing the same thing
better.
6
Due to its widespread effect, Innovation is an important topic in the study

of economics, business, entrepreneurship, design, technology, sociology,
and engineering. In society, Technological Innovation aids in comfort,
convenience, and efficiency in everyday life.
Some of the areas that add to everyday quality of life are:

• The innovations to the light bulb from incandescent to compact
fluorescent (CFL) then LED technologies which offer greater efficiency,
durability and brightness;
• Smartphones which supply the public with internet access any time or
place;
• From Cathode ray tube to flat-screen LCD televisions.
Innovation is the development of new value through solutions that meet

new needs, or adding value to old customers by providing new ways of
maximizing their current level of productivity. It is the catalyst to growth.
Given the noticeable effects on efficiency, quality of life, and productive

growth, Innovation is a key factor in society and economy.
Look at the following design of USB's. If we have many pen drives, we
have a problem of keeping them properly somewhere so that they are not
misplaced or lost. Look how they are properly organized in this design.
Figure 1.2
Then, look at the following example of a method to carry six milk bottles
safely and easily. What fascinates us is the beautiful design of the bottles,
which are made light in weight.
7
Figure 1.3
Then, look at the following example of the service in a restaurant. Look

how beautifully the eggs are served. This is the service quality, which
enhances perception of the customer. Surely, the customer will love such
dishes, won't he?
Figure 1.4
Look at the following beautiful design of a bottlelike crate in which wine

bottles are stored. Customers certainly get fascinated and are ready to pay
more if they get such choicest designs in the market.
Video Link 1
Video Link 2
8
Figure 1.5
Given below are some examples of innovative furniture designs:
Figure 1.6 Figure 1.7 Figure 1.8
Some innovative crockery designs:
Figure 1.9 Figure 1.10
9
1.4 INNOVATION AND CREATIVITY:
Generally, people have an impression that Innovation is same as Creativity.

To some extent, they are right. Without Creativity, there is no Innovation.
However, Innovation being same as Creativity is a half-truth. Actually,
Creativity is discovery of a new idea. Many ideas already do exist
somewhere. Creative Thinking is about finding these ideas and connecting
them in a new way.
However, Innovation is much more than just finding these ideas and
connecting these creative ideas. It is about strategy and action. It is about
bringing value to the organization through the implementation of these
creative and strategic ideas so effectively that they are profitable also.
Therefore, Innovation is defined as "Profitable implementation of strategic

and creative ideas”.
Video Link 1
Video Link 2
1.5 TYPES OF INNOVATIONS:
There are three types of Innovations:
1. Efficiency Innovation:
Marginal improvements to what already exists. Look at the chair in the

following photograph as an example of it.
10
Figure 1.11
2. Evolutionary Innovation:
Distinctly new and better ideas
Figure 1.12
3. Revolutionary Innovation:
Radically new and better ideas
11
Figure 1.13
The wheelchair of a new concept shown above is powered by a strong

single cylinder 4-stroke engine. It contains adjustable footrest and
translucent compartments to put food and other handy materials. There
are armrests, backrests, and leg rests to ensure that the owner of the
wheel chair is comfortable. The rests also provide support for the body
parts making sure that they are in stable positions at the high speeds at
which they will be traveling.
The designers have used six different concepts to make sure, that it is a
very helpful product for all handicapped individuals in wheel chairs and that
it improves their safety, support, and caregiver access.
However, it is a challenge to balance the pursuit of these three types of

Innovations. If the organization pursues too much of the Efficiency
Innovation, it runs the risk of missing opportunities in the marketplace. If
the organization pursues too much of Revolutionary Innovation, the
organization might be thrown into a state of chaos and the employees
might get disturbed. Therefore, it is better to move from too much
Efficiency Revolution to a greater emphasis on Evolutionary Innovation.
Video Link 1
Video Link 2
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1.6 THE NEED FOR INNOVATION:
We are in the midst of a significant transition, largely because of three

main factors:
• Technology
• The World is becoming more accessible
• Customers are ever demanding more
These three factors are explained as follows:
• Technology: Even the most stable industries and the strongest brands
can be blown to bits by the new information technology. Technology is
forcing every organization to rethink its business models and
organizational designs as it contributes to the rebalancing of power in the
marketplace. First place is no longer guaranteed to those organizations
that have financial resources and size on their side. Smaller
Organizations that are fast and flexible can now outsmart the traditional
large cats by employing New Technology that enables them to deliver
goods and services to their customers at a faster pace and lower cost.
Machines can replace people. ATMs have replaced tellers. Internet sites
have replaced sales personnel. Photo radar has replaced police patrols.
Technology allows customers to do-it-themselves with little need for
service personnel. An organization must keep pace with new technology
in order to remain competitive.
• The World is becoming more accessible: The Internet, low cost long
distance telephone calls, etc. are just a couple of examples how the
entire world is becoming more accessible. Everyone has more buying
options. A company no longer has to hire a consultant who lives nearby.
With Online Learning, a student no longer has to choose the closest
university. Hence, the level of competition has gone up tremendously.
The world is flooded with products and services. It is becoming tougher
for the customers to choose the needed product by differentiating among
so many products.
13
Figure 1.14
• Customers are ever demanding more: Customers have more buying

power. They have more choice. They know exactly what they want.
Obviously, they are more demanding. They want it their way and they
want it now! They are not going to buy the old big desktop computer
now, however good in quality and reliability it might be! They are not
going to buy the old Fiat car now, however in good condition it might be.
One person had bought a good-looking mobile telephone just three

years back. It was Samsung made, touchscreen, having dual simcard
etc. However, within such a short time, as per his son, it has become an
old and almost ancient model.
Regarding motorbikes also, the older models are not liked by the
younger generation any more. If somebody now utters an old word
"floppy", people will look at him as if he is an illiterate person.
• Results of a Recent Survey:

Some seven hundred organizations worldwide were surveyed, in which
84% of business leaders agreed that Innovation is more a critical factor
than it was five years ago. However, only 25% of these business leaders
were pleased with their current performance in Innovation.
• Change:
Once upon a time, in business you could experience a change and then
return to a period of relative stability. That era was followed by one, in
which, as soon as you handle one change, you had to get ready for
another. Nowadays, the changes are occurring rapid fire: one on top of
another. There is no rest and there is no getting ready. In the heat of this
chaos, it is hard for people to maintain perspective.
14
In a constantly changing business environment, the ability to modify and

implement new strategies quickly is important. Economic pressures,
industry changes, regulatory pressures and changes in consumer
preference can affect ability of the business to sell its products or
services. Dealing with inevitable change in an organization typically
involves transitioning to a new way of working.
Once they were Champions, now they are forgotten

Example of Zundapp, the Bavarian motorcycle manufacturer
The Zundapp models never held the fascination of a BMW or a Harley

Davidson, but their mopeds were inexpensive and robust. Their
advertisements promised 'Motorcycles for everyman'. In 1977, the
company employed a workforce of 1,900 and produced 115,000 mopeds
and motor assisted bicycles. However, the management of the company
failed to recognize the changes taking place around them until it was too
late.
Rapidly increasing insurance premiums and changes in legislation, making

it compulsory for drivers of mopeds to take a driving test, sent sales
plummeting. In addition, competition from cheaper Japanese
manufacturers made life no easier for Zundapp either. Zundapp was forced
into liquidation in 1984. The list of companies that remained blind to the
changes taking place around them could be continued.
The American computer manufacturer Digital Equipment is another

example that comes to mind. This company was caught completely
unaware by the development of the Personal Computer. In the year 1977,
Ken Olson, the founder, president and managing director of Digital
Equipment, made a statement which has become legendary: 'There is no
reason for any individual to have a computer in his home.'
These examples illustrate that the 'Thomas Lawson Syndrome' is in fact an

insidious disease which strikes companies blind and deaf. It enchains
managers to the goose that laid the golden eggs yesterday, despite the
fact that the poor animal is obviously on its last legs.
15
Beware the "Thomas Lawson Syndrome"

The Thomas Lawson Syndrome strikes whenever managers have become
so accustomed to dealing with existing products and processes that they
are Complacent and literally blind to new ideas. Those who have
successfully established themselves in an existing market are particularly
susceptible. The danger is to become phlegmatic as the organization is
gradually lulled into a false sense of security and hence the status quo is
no longer questioned. It seems enough to merely keep improving one's
products rather than keeping one's eyes, ears and mind open for new,
radical and innovative ideas. And yet that is exactly what they should be
doing - and at the same time, this is one of the most challenging tasks
facing every industry. The lesson is clear.
Wherever managers are happy simply to maintain the status quo, believing
themselves immune to the fortes of change on the markets, we shall see
the typical symptoms of the Thomas Lawson Syndrome appearing. The
sales figures of today reflect decisions made yesterday. Markets do not
react immediately; there is always a delay. Decisions that may bring
success today will not necessarily do so tomorrow. Fighting tomorrow's
battles with the successful products of today is no recipe for business
success, no matter what the size or nature of the company. And so it is the
task of top management to think differently, to embody a readiness to
embrace change and dynamism.
In all fairness, it has to be admitted that this is not exactly easy. And the
reason that it is so difficult is that the path to change is paved with the
objections of the skeptics. The defenders of the status quo will doubtlessly
tell you that it is not possible or necessary to implement your idea. After
all, they are the people who established the status quo, and now they are
under attack from you! And so, if you want to bring about a revolution, you
must steadfastly ignore these arguments.
Video Link 1
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1.7 BEING INNOVATIVE PAYS OFF
As said earlier, Innovation is an essential ingredient for today's social and

economic growth. It improves our quality of life, raises our standard of
living, and enables our organizations to grow and prosper.
Gone are the days when one person or one department like R&D was
focusing on the future while everyone else was keeping their heads down
and focused on the present.
All of you should know now that you need to have every employee in every
area of the organization to be on the lookout for innovative ideas. You now
should know that you need an Innovation Roadmap and detailed action
plans in order to help your teams and organization to support Innovation
on a continuous basis.
Certain characteristics that seem to be linked to Creativity are:

• Flexibility
• Persistence
• Ability to recombine elements to achieve insights
• Ability to breakdown huge systems into smaller interrelated subsystems
and determine how they function together.
• Recombine these to form a comprehensible "whole picture" framework to
work with.
The mind is like a parachute. It functions only when it is open. One of the
most important elements is the organizational climate that is conducive
to free flow of ideas. Several human tendencies affect the creation,
development and implementation of the idea. The environment under
which people work can act as a stimulant to bring out their innovativeness.
Inhibitions and Misconceptions act as roadblocks. When people do not
worry about making mistakes, even the timid and the reticent may come
up with some good ideas. Aimless and undirected activity does not bring
about Innovation. Endeavors must be planned and organized.
17
Motivation is essential to successful Innovation, and Reward is single

most important motivator. People will go to great lengths to solve
problems, but only if they know that their efforts will be recognized and
rewarded.
It takes courage to be creative. When you first have a new idea, you are a
minority. Successful Innovators say that ideas that pay off have gone
through four steps of
development:
• The idea is conceived
• More people become involved as the idea is discussed and examined.
• The idea is publicized and everyone understands its nature and scope.
People investigate its potential, measure its range, and evaluate its
economic feasibility
• The Innovation represented by the idea is adopted and put into practice.
1.8 WHAT SHOULD YOU DO AS AN INDIVIDUAL TO

BECOME AN INNOVATOR?
• Believe that Everyone is Creative

• Believe in your own unique Creative Thinking talents
• We are all unique individuals. Each of us has different ways of expressing
our talents, knowledge, values and interests.
• We all have capacity to be Creative, but we express our potential
differently.
• There are four Innovation Styles:
❖ Visioning
❖ Exploring
❖ Experimenting
❖ Modifying
• Set clear Goals
• Develop new Rules
18
• Rely on current Standards

• Look to the Future
• Work with Details
• Combine different Talents for maximum results
• Eliminate obstacles to Creative Thinking
• Learn to unlearn and forget
• Accept Failures
1.9 CREATIVE CONNECTIONS
• Discover the ideas, which are already there. Find those old ideas.
Interview the people who have previously worked on some challenges,
and learn from their experiences. Excavate old research reports,
brainstorming session reports, old business plans. Uncover what is
already there and reconnect it in a new way to your current problem or
challenge. Ask the participants to submit their old ideas in the meeting.
Distribute your collection of ideas to them.
• Become obsessed with the challenge. Understand the market, the

client, the technology, and the perceived constraints. Observe real life
people and find out what confuses them, what they like and hate, and
where their implicit and explicit needs are not addressed. Interview the
experts. Observe actual customer behavior. Have courage to ask
customers to share their frustrations.
• In today's hyper-fast world, Conceptual, Innovative and Intuitive

Thinking have become increasingly important, especially in industries
where frenetic change represents the rule rather than the exception.
• Look into the future to see where the company needs to go and what it
will look like once they get there.
• Allow your subconscious mind to process all the facts and send you
signals in the form of your "sixth sense". Your "intuition" is valuable
for your organization!
19
• Think "out of the box" when you are alone in your study room,
particularly early in the morning, and ask yourself, "What can I do to
fulfil the new customer needs? How can I implement a distinctly new idea
so that the organization and the customer will get benefitted? How can I
come out of the daily rut, and think something different than all the
others who are busy in just the routine matters?”
1.10 WHAT INNOVATION IS NOT

• Innovation is not a flash of genius
• Innovation is not just a "new technology".
• Innovation is not sector specific.
• Innovation is not just for the R&D department.
• Innovation is not isolated to special teams.
• Innovation is not a creative playroom.
• Innovation is not a one-off event
• Innovation is not just creativity training
• Innovation is not just applicable to new products
1.11 INNOVATION IS HARD WORK

• It is hard work to move people away from their sacred traditions and
their tendency to conform to industry norms.
• It is hard work to get people to admit that what they are doing today
might not work anymore.
• It is hard work to get people to drop their emotional attachment to "the
way they did the things around there" and take the leap to a new way.
• It is hard work to stay the course and confront the natural tendency to
return to their old and comfortable way of doing this.
Video Link 1
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1.12 THIS BOOK IS FOR YOU!
This book has been written for all those who want to make a difference in
their own world as well as in their organization. It is a book for all those
who are crazy enough to dare to try something new. It is madness to keep
on following the same old routines yet expect to achieve different results.
Dare to be different. Never trust an expert who tells you that he has been
doing things that way for twenty years. It could be that he has been doing
it wrongly for all these years. This book is for anyone who is fed up of
endless debates where people only talk and talk but nothing ever changes.
It is a book for all those who deliberately set out to counteract the trend of
high level moaning and groaning and who are convinced of one thing: the
future is something we create, not something that happens to us.
This book is intended for those who are sick of always playing safe. It is for
those who are not prepared to sacrifice their dreams on the altar of
conventional wisdom.
If you are determined to be smarter, more successful and to really stand

out from the rest, this is the right book for you.
Finally, in the spirit of the famous innovator, Walt Disney, let us dream,
believe, dare and do!
Welcome to the Paradise of Innovation Management.
21
1.13 ACTIVITIES FOR THE STUDENTS:
Activity A:
Your father, on the way back home, always gets stuck up in the traffic jam.
He is tired, hungry, tensed. Think how you can use your smartphone to
help him automatically, without your intervention.
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Activity B:
Suggest a new way to use your I-pad to solve some household problems.
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1.14 SUMMARY
• Innovation is defined as "Profitable implementation of strategic and
creative ideas."
• There are three types of Innovations: Efficiency Innovation, Evolutionary
Innovation and Revolutionary Innovation.
• We are in the midst of a significant transition, largely because of three
main factors:
❖ Technology
❖ The World is becoming more accessible
❖ More demanding customers
• Change:
• Once upon a time, in business you could experience a change and then
return to a period of relative stability. That era was followed by one in
which, as soon as you handle one change, you had to get ready for
another. Nowadays, the changes are occurring rapid fire: one on top of
another. There is no rest and there is no getting ready. In the heat of this
chaos, it is hard for people to maintain perspective.
• In a constantly changing business environment, the ability to modify and
implement new strategies quickly is important.
• Believe that everyone is creative
• Believe in your own unique creative thinking talents
• There are four Innovation Styles:
❖ Visioning
❖ Exploring
❖ Experimenting
❖ Modifying
• Set clear goals
23
• The efforts must be invested in setting an Innovation culture throughout

the organization before investing efforts in innovative breakthrough
ideas.Gone are the days when one person or one department like R&D
was focusing on the future while everyone else was keeping their heads
down and focused on the present.
• Leaders and Team Members should know now that they need to have
every employee in every area of the organization to be on the lookout for
innovative ideas.
1.15 SELF-ASSESSMENT QUESTIONS

1. Define Innovation
2. Explain Evolutionary Innovation.
3. Write a short note on: The need and urgency of Innovation
1.16 MULTIPLE CHOICE QUESTIONS
1. 700 organizations worldwide were surveyed in which 84% of business

leaders agreed that Innovation is more a critical factor than it was five
years ago. However, how many of these business leaders were pleased
with their current performance in Innovation?
(a) 5%
(b) 10%
(c) 15%
(d) 25%
2. Innovation is -----------------------------specific.
(a) Sector specific
(b) Nation specific
(c) State specific
(d) Not sector specific
24
3. There are four Innovation styles:

Visioning, Exploring, -----------------, Modifying
(a) Experimenting
(b) Acting
(c) Planning
(d) Organizing
4. It is ---------------------- to move people away from their sacred

traditions
and their tendency to conform to industry norms.
(a) Easy
(b) Impossible
(c) Hard work
(d) Manageable
5. Efficiency Innovation means:

(a) Marginal improvements to what already exists
(b) Distinctly new and better ideas.
(c) Radically new and better ideas
(d) Improvement of worker efficiency
25
TRANSITION FROM CHAPTER 1 TO 2
So, my dear students, by reading the chapter 1, you have made a

beginning of your journey in Innovation Management and we assure you
that this journey is going to be enjoyable and fruitful for you.
I hope that in this first chapter itself, you have already got an idea of what
the subject is like, and you have put forward your first step towards your
career in Innovative Thinking.
You have got acquainted with Management Guru Peter F. Drucker,

understood the meaning of Innovation, saw some examples of Innovation,
understood what is Creativity, types of Innovations, and the need for
Innovation in your career.
We sincerely insist upon you that you become a great Innovator, and get
benefitted in your career tremendously from all angles.
This book is written for all those who want to make a difference in their
own world as well as in their organization. It is a book for all those who are
crazy enough to dare to try something new. It is madness to keep on
following the same old routines yet expect to achieve different results.
Dare to be different. Let us now move to Chapter 2 which guides you how
to create ideas and innovate.
26
Reference Material
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture - Part 1
27
FLOW OF IDEAS
Chapter 2
Flow Of Ideas
Objectives:
At the end of this chapter, your mind will start working to get a Flow of lots
of Ideas, which will help to solve your problems and help you to innovate in
your designs and processes.
Structure:
2.1 Bolt from the blue
2.2 What makes a person Creative?
2.2.1 Problem Sensitivity
2.2.2 Idea Fluency
2.2.3 Originality
2.2.4 Creative Flexibility
2.2.5 Remove Mental Blocks:
2.2.6 Lateral Thinking
2.2.7 Affinity Diagram
2.3 Solve the problems on hand
2.4 Examples of amazing Innovative Ideas from young Indians
2.5 Twenty-five Ways to Keep Ideas Flowing in Your Workplaces
2.6 What helps Creativity flow?
2.7 What Blocks Creativity?
2.9 Summary
28
FLOW OF IDEAS
Figure 2.1
It's an umbrella that transforms into a Stylish handbag
2.1 BOLT FROM THE BLUE
It has long been considered practically an axiom that highly creative people
get their ideas not through ordinary rational processes like the rest of us,
but by some kind of mysterious bolt from the blue.
Take the case of John J. Moran, the one-time laboratory technician, who
made a fortune by inventing an automatic blood analyzer in 1965. He
worked for months on the problem, then gave up in frustration, and went
out on an excursion. On his first day out, as the Sun's rays filtered through
the hotel window onto his face, he saw in his mind's eye a detailed
program of finished machine. Recognizing it as the long sought solution to
the problem, he sprang from bed, hastily sketched it on hotel stationery
and flew home, where he spent the next few months building a prototype
from the sketch. As it happened, the prototype worked perfectly and Moran
built around it a Company called Hycel Inc., which he sold to a German
conglomerate for $ 40 million.
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Figure 2.2
It takes no genius to recognize that new ideas are the primary catalyst for
growth in any industrial organization, whether they involve coming up with
new products and marketing strategies or developing entirely new
technologies.
It is inaccurate to speak of creativity as a trait that some people have and

others do not have. Everyone is creative to some degree. The human mind
is taught from birth to accomplish certain tasks in specific ways. Creativity
is simply the degree to which one can think of different and more effective
approaches.
However, why some people have a knack for this while others do not have
is a mystery. Aristotle did not know the origin of his remarkable insight.
Archimedes who leaped from the bath with the Displacement Theory was
at loss to explain how he got there. Many great thinkers concluded that it
arose from something other than logical reasoning. They offered little
advice on how to achieve it.
Alex Osborn, a principal of New York Ad Agency, made some practical

progress in this area. He said, instead of one mode of thought, each person
actually had two modes of thought. One, freely associative, was the idea
generator; the other, which worked in a step-by-step logical fashion, acted
as a filter. For several reasons, most notably the fear of ridicule by others,
the filter had become so dominant in most people that it blocked the
release of novel ideas.
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Figure 2.3
Ideas are vital factors in business survival today. In any type of

organization, Creativity must come from the top. Top Management must
set the example. If the top executive is not an idea man, he must at least
have enough knowledge and understanding of the creative processes that
he does not inadvertently block or discourage fresh or different kinds of
thinking within his organization.
Video Link 1
2.2 WHAT MAKES A PERSON CREATIVE?
All studies to determine what makes a person creative, point to the

following main characteristics:
• Problem Sensitivity
• Idea Fluency
• Originality
• Creative Flexibility
• Remove Mental Blocks
• Lateral Thinking
• Brainstorming by Affinity Diagram
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Experiments have demonstrated that all of these can be acquired or

developed to some degree in any individual. The naturally creative person
can learn to raise his already high creative output even higher through
experience. A person who is rather low in using his imaginative faculties
can learn to do more with what he has through application.
2.2.1 Problem Sensitivity:
This is the ability to recognize that a problem exists, or be able to cut

through misunderstanding, misconception, lack of facts, obscuring
handicaps and recognize the real problem.
The easiest way to improve your Problem Sensitivity is simple to keep in

mind that every business operation, every human relation technique, every
man-made article can be improved further. In every situation you
encounter, an opportunity exists to find a better way. If you can once learn
to recognize these problems as challenges to your own creative effort, you
will be half way to finding creative solutions to such opportunities.
2.2.2 Idea Fluency:
A person can pile up a large number of alternative solutions to a given

problem in a given time. More the ideas you have, the greater are your
chances of finding a usable one, the more plentiful are your opportunities
to get out of the same old ways of doing things. Idea Fluency depends
upon personal mental habits. It is an attribute that can be developed or
improved by nearly every person who will consciously apply himself to it.
Remember that in the beginning, gathering of quantity of ideas is

important. Do not mix evaluation of the ideas with gathering the ideas. Get
your ideas first, and worry about whether they are good or not later on.
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Here are a few tools to help you for gathering ideas fluently.
• Making Notes:
• Always carry a notebook or notepad in your pocket. Use it extensively

and continuously. Once you get a stray idea, immediately write it down.
Do not depend on memory. You will forget the idea if you depend on
memory. If necessary, keep many notepads all over your house as well
as office so that you can write the idea on one of them without fail.
• Record your observations of circumstances. Record your conclusions or

opinions on problems you have been thinking about. Frequently, a person
spends hours, even days working on a problem. After reaching some
good conclusion, an idea or a decision, and acting on it, he puts the
problem out of his mind and starts working on another problem. Later
the first problem may occur in some different form. Hence, recording of
the earlier work is a must.
• You should certainly form the habit of noting anything that may have
possibilities for future use to you, however remote those possibilities may
seem now. Include clippings from newspapers, magazines, books etc.
• Along with the note making system, develop a note using system to
which you transfer your spur of the moment notations at the earliest
opportunity.
• When you have the problem, be sure to use the notes.
• Picking your time to be Creative:
• Every individual runs on a daily cycle. Each of us has a time during the
day or night when he is most capable of Creative or Imaginative
Thinking. Your personal cycle is something you will have to analyze for
yourself. Once you find it, use it extensively for idea formation. Use it for
thinking about problems with a view to getting ideas.
• You may find that you create best in some special location, may be your
balcony, or a garden. One of my friends believes that he is most capable
of creative thinking when he is in the toilet.
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Try to use your favorite location for creating the ideas.
• Set a Deadline:
• Do not procrastinate on problems. There is a real and practical deadline

to have the urge to push yourself mentally. Set a deadline for yourself.
• Give yourself a Quota:
• Create a target for yourself that you are going to come up with ten or
twenty new ideas. It brings up good individual spur.
2.2.3 Originality
Finding new ways to vary existing conditions, finding new ways to adapt
existing ideas to new conditions, or creating a new modification of
something that will fit in the existing condition are the needs of the day.
The Ability to produce these Original Variations is the attribute of a great
business executive. This creative attribute of Originality can also be
developed. The secret is in the systematic use of questions, for
"Systematically challenging the obvious":
• "Why is it made this way?"
• "Why do we follow this procedure?"
• "Is this object really necessary?"
• "How can we improve the way we do this?"
Figure 2.4
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Use of Idea Checklists is required for not forgetting to be Original. The Idea
Checklists consist of operational questions that challenge the obvious
aspects of a problem. Using such checklists to spur ideas can be the basis
for forming the Questioning habit in an executive. This Questioning must
be done in a positive frame of mind. The objective of Creative Questioning
is to uncover new possibilities for better ways of doing things. Idea
Checklists can often be improvised. A Sales Manager looking for new
customers might get real benefits out of just leafing through the yellow
pages of a telephone directory with an open mind, or through the list of
SMS messages given by concerns such as www.justdial.com. An Office
Manager trying to develop a more efficient utilization of office space might
get some ideas by paging through a trade publication devoted to a hotel or
kitchen planning. The Originality may consist in the fact that this has never
been used in your particular field before. If it solves your problem, settle
for that.
2.2.4 Creative Flexibility
The quality of Creative Flexibility is largely that of being willing to consider

a wide variety of approaches to a problem. This is, in turn, is largely a
matter of attitude. Rather than obstinately freezing into one particular
idea, or a single approach to a problem, the flexible person starts out by
remembering that if one solution will not work, he can always approach the
problem from another angle. This is also called as Creative Expectancy,
which means that the creative person expects to solve the problem, no
matter how many failures temporarily delay the solution.
2.2.5 Remove Mental Blocks:
Figure 2.5
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Blocks of any nature are a result of one thing: not being firmly in the
present. Through either anxiously living in an anticipated future or being
stuck in the habitual past, we cut ourselves off from the inspiration and
creativity that exists when we are fully present.
• Taking a shower is a simple and effective way to bring our attention

firmly back to the present moment, as it's difficult not to be present
when you have a stream of water hitting you in the face (for supersized
results, go for a cold shower).
• There is an added benefit here in that during a shower, we tend to relax,

further increasing the probability of having inspired ideas and producing
creative solutions.
• Does it make sense now why people have some of their best ideas in the
shower or bath?
• Sometimes, an effective way to get out of the neighborhood where

blocks like to hang out (e.g. our heads) is to engage in any high intensity
activity or exercise.
• Whether this involves a casual stroll in the park or running up mountains,

anything that gets you into a different environment, preferably one with
fresh air and nature. Any activity that will cause you to become present
and grounded in the now is great for jump-starting your creativity and
circumventing blocks (e.g. running, gym, yoga, or dancing).
• Change the channel: Blocks arise when we focus on what we do not

want, instead of on what we do want. When we take our attention off our
initial aim and allow it to drift to places it has no business being, we end
up going down a dead-end street and the next thing we know we have a
big hairy mental block.
• A great trick for removing it is to change the channel or input we are

putting our attention on. One way to do this is by doing something
completely unrelated to the problem you are working on.
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• Change the environment: This is a great trick for disarming mental

blocks that do not seem to go away. A great way to "reset" an unwanted
rut, which inevitably leads to the same dead-end destination, is to
change the environment.
This applies to both our outer and inner world, and can be as simple as
taking a holiday to a place we've never been before or taking a course
we would never normally go on, which has always seemed interesting.
Anything that disrupts the same old routine can be incredibly effective at
helping us broaden our perspective and ultimately see new solutions to
old problems.
2.2.6 Lateral Thinking:
Lateral Thinking is solving problems through an indirect and creative

approach, using reasoning that is not immediately obvious and involving
ideas that may not be obtainable by using only traditional step-by-step
logic. The term was coined in 1967 by Edward de Bono.
In the following example, six eggs are kept in a basket. Six people take
one egg each. Still one egg is left in the basket. One could say that it is
impossible. However, Lateral Thinking says it is possible.
This is because after five people take one egg each, one woman takes the
last egg that is still in the basket.
Figure 2.6
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While solving the problems we must think laterally, and think out of the
box.
In the following diagram, there are six points, which have to be joined by
using only four straight lines without lifting our hand. Once you try it, it will
look impossible for you. However, when you think out of the box, as shown
by the arrows, then only you can solve this problem.
Figure 2.7
2.2.7. Affinity Diagram

Figure 2.8
It is an activity of organizing large amounts of data in groups according to

some form of natural affinity.
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The Affinity Diagram is a business tool used to organize ideas and data.
The tool is commonly used within Project Management and allows large
numbers of ideas stemming from Brainstorming to be sorted into groups,
based on their natural relationships, for review and analysis. People have
been grouping data into groups based on natural relationships for
thousands of years; however, the term Affinity Diagram was devised by Jiro
Kawakita in the 1960s and is sometimes referred to as the KJ Method.
• Process
• Record each idea on cards or notes.
• Look for ideas that seem to be related.
• Sort cards into groups until all cards have been used.
• Once the cards have been sorted into groups, the team may sort large
clusters into subgroups for easier management and analysis. Once
completed, the Affinity Diagram may be used to create a Cause and
Effect Diagram.
In many cases, the best results tend to be achieved when the activity is
completed by a Cross-functional Team. The process requires becoming
deeply immersed in the data, which has benefits beyond the tangible
deliverables.
Video Link 1
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2.3 SOLVE THE PROBLEMS ON HAND
Consider the following method for solving the problems on hand:

• Define the problem. If it is large and complex, break it down.
• Get the facts.
• Go after ideas. Many ideas. Lots of them.
• If you have labored over a problem and have not found a solution, you
might get frustrated. The best thing to do then is to sleep on the
problem. Break away from your desk to walk to the water cooler or go to
lunch.
• Evaluate your ideas. Screen the ideas as "possibles", "probables",
"impossibles". Ask Creative Questions about bad ideas so that some of
them will develop into new ideas and approaches. Be objective.
• Plenty of cold-blooded judicial thinking has to be exercised and some
decisions should be made about implementation of the ideas.
Here are a few things that keep an average person from being Creative:
• Laziness
• Lack of Confidence
• Fear of Ridicule
You must overcome these hurdles.
The executive who wants more ideas from his organization has to first
create the atmosphere of encouragement and appreciation of creativity,
climate of safety and above all, freedom to fail.
The road to success, fame, and fortune for an aspiring executive is that he
has used his own imagination to analyze, develop and infuse his company
with the necessity and means of getting all-out, imaginative, creative
thinking from everyone.
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2.4 EXAMPLES OF AMAZING INNOVATIVE IDEAS FROM

YOUNG INDIANS:
The following examples will inspire you to think laterally and innovate:
1. Varsha Kumari, Class 10, Indra Prasad Singh Gangstahliya Balika

Gyanpith Patna, Bihar proposes a system where the driving license is
swiped, like a credit card machine. The vehicle starts only if a pre-
authorized license is swiped. This also protects the car against theft.
This will also ensure that the driver carries his license positively. The
idea came to her after a friend's car was stolen and never found.
2. Rajashree Choudhury, Class 5, Little Flower School, Jamshedpur,

Jharkhand wants to stop people from using a mobile when driving. She
proposes to use a device with a place for inserting a mobile, and it is
fixed on the car dashboard or handle of a two-wheeler. The vehicle
moves forward only if the mobile is inserted into this device. In other
words, the driver cannot talk on the phone while driving.
Figure 2.9
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3. Rajashree further proposes to have personalized doorbell ringtones so

you know who is at the door beforehand. The doorbell has unique codes
assigned to different individuals. Therefore, when a guest presses their
code, the doorbell rings with a specific sound.
4. Siddharth Pal of class 11, Sai Grace Academy, Dehradun,

Uttarakhand says that all of us observe that vehicular traffic load on
either side of the divider at different times during the day (especially
during peak hours) varies. He suggests that suggest having movable
road dividers, which can be shifted to the left or right depending upon
the incoming traffic from a particular side thereby easing congestion on
roads. Siddharth used to get annoyed when he would be delayed while
on the way to an important class. He put on his thinking cap and came
up with a simple but effective solution -- movable road dividers.
Figure 2.10
5. Shweta Verma, Class 9, Gyan Sthali Public School, Jhansi, Uttar

Pradesh suggests that we can design retractable toilet fitted with
sensors -- the pot can be pulled inside the wall after use and taken out
when needed. Shweta believes that it will help people who have small
homes with little space. It can also be used in other places where space
is a constraint.
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6. Jatin Kumar Bhoi, Class 9, KK High School, Sundergarh, Odisha,

found it difficult to remain awake while studying. It landed him in
problems, especially during exams. To overcome this tricky situation, he
suggests a special shirt with a mechanism for making sure that the
person wearing it remains awake. He also wants it to have buttons that
can tell time.
7. Vaibhav Tidke of Mumbai has designed a solar conduction dryer.

Dehydrating fruits and vegetables can increase their shelf life to almost
a year but most conventional methods use non-renewable energy. This
innovation's intellectual property involves a complex process through
which heat due to solar energy is transferred and dehydrates the
produce. A much needed innovation to prevent losses in agriculture due
to spoiling of produce.
8. Atul Kulkarni of Bangalore has designed an automated solar

irrigation system. It works without electricity thus solving the problem
of other systems that fail to work when electricity is absent and
endanger the health of crops. The unique design has a very efficient
solar energy converter module to run the motor and a micro controller
based automatic pumping circuitry that prevents water wastage. A
decisive solution for irrigation that tackles the electricity supply issues
and is also labour and water saving.
9. Harinarayan Prajapati, Location Jaipur has designed an auto kit to

improve efficiency. It is a grass-root invention by an innovative garage
mechanic. This kit for four stroke engines can be easily fitted in the inlet
manifold line, and increases the mileage without compromising on
power. The estimated savings in fuel consumption are about 10% or
more. The inventor's IP achieves the mileage benefits by an ingenious
approach to rectify the air-fuel mixture: it sucks in and stores an extra
air fuel mixture that can be released back to the engine when required.
This widely applicable innovation can go a long way in curbing the rising
fuel consumption.
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10.Arnab Chakraborty, Class 12, Future Foundation School, Kolkata,

West Bengal, who recently moved to Kolkata, was surprised seeing a
large number of cycle rickshaws plying on the city roads. It also
disturbed him to see thin, frail men pulling such weight. So, he thought
of a modified cycle rickshaw with extra pedals for passengers who may
wish to share the burden and co-pedal the rickshaw.
11.Ramdas M U, Ashfaq Muhammed T, Shahin T A, Sonu

Unnikrishnan K, Sreelakshmi, Suresh, Sruty A, Location Thrissur
have designed a device for comprehensive protection from
electrocution. It is a device to protect technicians on distribution power
lines where there is a high risk of accidents.
Realizing that the most common cause of the accidents is the crossing of
the minium safe distance from the high voltage lines, the developers
have created an instrument that alerts the technician with an alarm
when this distance is reached. It is based on the principle of detecting
the increased electromagnetic field that occurs through a sensor. The
device is small enough to be installed on the technician's security
helmets. It is a life-saving aid for front-line employees in the electricity
sector.
Video Link 1
2.5 TWENTY-FIVE WAYS TO KEEP IDEAS FLOWING IN

YOUR WORKPLACES:
1. Ask for ideas. Make sure everyone on your team knows that they are
supposed to think.
2. Ask the new employees immediately for their ideas. Do not let them
walk around thinking to themselves, "There must be a reason they do it
this way" and not telling anyone!
3. Create an idea or inspiration room specifically designed to encourage
people to brainstorm and debate ideas in a fun, relaxed atmosphere.
4. Put up a "What if…" board in your workplace, where employees can pose
outrageous "what if" kind of questions.
5. Have a "What if…" section in every meeting.
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6. Have an "Idea Challenge of the Month" that encourages employees and

customers to generate ideas on a specific problem or in a specific area.
7. Design your workplace to encourage spontaneous, random encounters
between employees.
8. Create Job Swap days where people experience each other's jobs and
become more aware of each other's challenges and perspectives.
Creativity thrives on connections, changed perspectives and
synchronicity.
9. Create Contests around idea challenges and include not only all the
employees, but also the families of employees.
10.Create Mentorship Programs that encourage newer employees to
develop their critical and Creative Thinking skills.
11.Create "mastermind" Brainstorming Teams that meet regularly to
brainstorm key issues and opportunities.
12.As some organizations do, give employees 10 - 20% of their work time
to work on their own Pet Projects and initiatives.
13.Start a Book Club that meets once a month to discuss current, hot
books.
14.Create Sabbatical Programs that allow employees to take an extended
leave every five years.
15.Take your team on an Inspiration Hunt. Walk around your downtown;
go to a museum or a zoo to look for ideas and inspiration related to a
specific challenge.
16.Facilitate employees taking colleagues to lunch with whom they
normally would not interact.
17.Create more space for thinking: a dedicated quiet, tech-free room or
lounge area with relaxing chairs.
18.Create more time for thinking, incubating, and more face-to-face
conversations by creating a technology-free day once a week or twice a
month.
19.Meet in unusual places. Hold the occasional meeting off site: at a park,
at the zoo, over breakfast, at a picnic site, on someone's farm house.
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20.Reward smart failure. If you are truly valuing Creative Ideas, then
people need to be given room to make smart mistakes without fear.
Creating a Reward Program that actually recognizes people's blunders in
the face of trying something new sends a powerful message.
21.Create a straightforward and transparent system for assessing ideas.
Ensure that anyone can submit an idea and have it properly heard by
whoever needs to hear it, and a system for acknowledging and getting
back in a timely manner to the person who submitted the idea.
22.Listen to ideas and immediately, when possible, put them into practice.
One of the most motivating things you can do at work is to show people
that their ideas can actually shape their business or workplace.
23.Offer training on Creative Thinking, Creative Leadership, and
Brainstorming skills.
24.Create an Idea Repository on your internal website.
25.Inject more fun and humor into your meetings, hiring practices, and
workplace culture. Humor is one of the biggest catalysts for Creative
Thinking!
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2.6 WHAT HELPS CREATIVITY FLOW?

• Giving people more autonomy
• Open and honest communication
• A fun, inspiring meeting room
• Simplified rules and processes
• Recognizing that not changing, not trying anything new is often the
biggest risk
• Simple, plain, everyday language
• Accessible and open leaders
• Teams that interconnect with other teams
• Bold, audacious goals and targets
• Idea championing language
• High levels of trust
• Leaders recognizing innovators
• Brainstorming on a regular basis
• Embracing healthy conflict and debate focused on ideas, not personalities
• A clear and bold vision of the future
• Recognizing that "90% good" is sometimes all you can ask for to move
forward on an idea
• Hiring people with varying perspectives and backgrounds
• Confident egos
• A healthy sense of humor
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2.7 WHAT BLOCKS CREATIVITY?

• Micromanaging projects and people
• A lack of open and honest communication
• A stuffy, stifling meeting room
• Too much red tape
• A risk-adverse attitude and culture
• Buzzword jargon
• Inaccessible leaders
• Teams working in isolation
• Small, unexciting goals and targets
• Idea-killing language ("We tried it in 1957")
• A lack of trust
• Leaders who take credit for others' ideas
• "Blame-storming"
• A conflict-adverse culture
• A vague or confusing vision
• Analysis paralysis & waiting for perfection
• Hiring similar personalities and profiles
• Big egos
• Seriousness
• Too much criticism of certain people in their absence
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2.8 ACTIVITIES FOR THE STUDENTS
Activity A:
One morning, when you were in your bathroom, you got a funny idea.
Describe it. If implemented, what kind of problem will it solve?
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
Activity B:
While travelling, we have either to carry a water bottle from home or buy a
mineral water bottle. Both the options are not acceptable to you. Any other
roadside water may not be potable. Suggest an idea to solve this problem.
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
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2.9 SUMMARY
New Ideas are the primary catalyst for growth in any industrial
organization, whether they involve coming up with new products and
marketing strategies or developing entirely new technologies.
It is inaccurate to speak of Creativity as a trait that some people have and

others do not have. Everyone is Creative to some degree. The human mind
is taught from birth to accomplish certain tasks in specific ways. Creativity
is simply the degree to which one can think of different and more effective
approaches.
However, why some people have a knack for this while others do not have
is a mystery. Many great thinkers concluded that it arose from something
other than logical reasoning. They offered little advice on how to achieve it.
Instead of one mode of thought, each person actually has two modes of
thought. One, freely associative, is the idea generator; the other, which
worked in a step-by-step logical fashion, acted as a filter. For several
reasons, most notably the fear of ridicule by others, the filter has become
so dominant in most people that it blocked the release of novel ideas.
Ideas are vital factors in business survival today. In any type of

organization, Creativity must come from the top. Top Management must
set the example. If the top executive is not an idea man, he must at least
have enough knowledge and understanding of the creative processes that
he does not inadvertently block or discourage fresh or different kinds of
thinking within his organization.

1. What is Problem Sensitivity?
2. How should one deal with Mental Blocks?
3. Describe an Affinity Diagram.
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1. Who invented an Automatic Blood Analyzer?

(a) Jiro Kawakita
(b) John J. Moran
(c) Alex Osborn
(d) Edward de Bono
2. Who leaped from the bath with the Displacement Theory?

(a) Aristotle
(b) Newton
(c) Tolstoy
(d) Archimedes
3. This is the ability to recognize that a problem exists, or be able to cut

through misunderstanding, misconception, lack of facts, obscuring
handicaps and recognize the real problem.
(a) Problem Sensitivity
(b) Idea Fluency
(c) Originality
(d) Creative Flexibility
4. One of the tools to help you for gathering ideas fluently

(a) Engage in any high intensity activity or exercise
(b) Keep eggs in a basket
(c) Taking a shower
(d) Making notes
5. A way to remove Mental Blocks

(a) Lateral Thinking
(b) Change the environment
(c) Change the bathroom
(d) Set a deadline
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So, my dear students, the second chapter has given you enough insights to
understand your creative abilities, and guided you to the path of
Innovation. It is interesting how small children also think creatively. By
Lateral Thinking, you can surely be a great Innovator. Remove your Mental
Blocks, use Idea Checklists, and think calmly and quietly every day in your
favorite place. Solve problems on your hand in time without postponing
them.
The next chaper insists upon the fact that everyone of you is Creative in
your own way. You are a God's creation and so you are a unique individual.
You should eliminate obstacles to Creative Thinking. Have an open mind,
build observation skills, and ask probing questions.
We are sure you will enjoy reading this upcoming third chapter.
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Reference Material
chapter
Summary
PPT
MCQ
53
EVERYONE IS CREATIVE
Chapter 3
Everyone Is Creative
Objectives:
After studying this chapter, you will get an insight into your ability as a
creative human being.
Structure:
3.1 Introduction
3.2 Believe That Everyone Is Creative
3.3 Believe in Your Own Unique Creative Thinking Talents
3.4 Assessment Tools
3.5 Combine Different Talents for Maximum Results
3.6 Eliminate Obstacles to Creative Thinking
3.7 Learn to Unlearn and Forget
3.8 Accepting Failure
3.9 Be Curious
3.9.1 Do You Have an Open Mind?
3.9.2 Acknowledge that Alternative Ideas can exist
3.9.3 Make a List and Challenge Your Sacred Traditions
3.9.4 Hold Your Criticism Until You Hear the Idea's Potential
3.9.5 Gain a Broader Perspective
3.9.6 Let Outsiders Bring in Ideas
3.9.7 Dig a Little Deeper to Understand These Perspectives
3.9.8 Build Your Observation Skills
3.9.9 Ask Probing Questions
3.9.10 Enjoy asking questions
3.9.11 The Creative-Thinking Mantra: "Why? What If? What Else?"
3.9.12 The YY (Double Why) Question
3.11 Summary
54
Figure 3.1
3.1 INTRODUCTION
Friends,
We should feel lucky to be born as human beings. Just because of the fact
that we are humans, we have automatically become creative, genius and
intelligent. Many of you will not believe me. However, after studying my
book, I am sure you will get fully convinced about this fact. Many of us are
not aware of this fact for a long time in their life. If we had a well-read
mother, an understanding father, a kindhearted experienced teacher, and
great surroundings containing good friends' circle and citizens with
educated and well- to- do background, we could become aware of the fact
earlier in our life. Trust me; every one of you is Creative. Therefore, you
can become Innovative. Without Creativity, there is no Innovation.
One of the fundamental principles of Innovation Management is

"Believe in Creativity."
As every good gardener knows, you cannot rely on the same old flowers
season after season. They die. New seeds are needed to rejuvenate the
garden and stimulate growth. We must do this activity regularly. Creative
Thinking involves leaving the known and entering the unknown. It is about
burning new neutral connections in the brain so that creative ideas have
the opportunity to surface. Many people stop themselves from experiencing
new things and only want to stay in their comfort zones. Many people stop
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themselves from being creative because they do not believe in their ability
to be creative.
The second principle is "Be curious". Great creative thinkers have an

insatiable appetite for understanding how things work and for connecting
new thoughts with old ones. They feel free to challenge their own
assumptions and those of others. They make room for new ideas by
unlearning or forgetting some of what they thought to be true. They know
that Creativity requires a new mindset. They ask probing questions and
listen to the answers they receive with open minds.
The third principle of Creative Thinking is "Discover new

connections". Many ideas already exist in some form somewhere in the
universe-in some other department, organization, industry sector, or
country. Finding these ideas and then experimenting to mix and match or
cut and paste them into new ideas is the essence of Creative Thinking.
Learning how to connect or cross-fertilize ideas into new ones will greatly
increase a person's Creative Thinking skills.
3.2 BELIEVE THAT EVERYONE IS CREATIVE
Some individuals have a greater ability to discover new and often amazing
ideas than others do. Some are able to make connections between things
so well that make people think, "Why didn't I think of that?"
Are these people born with this creative ability? Is it gained through
supportive parents, mentors, or other environmental factors? Is Creativity
a mystery, an untouchable skill with which only a few are blessed?
Many view Creativity as an integral part of the DNA with which everyone is
born. Others view Creativity as a "lucky break," for the special ones, the
gifted ones, the crazy ones.
Why is it that an advertising person who discovers a new idea to

communicate with potential customers is called "creative," but a
Purchasing Manager who discovers a new idea to source raw materials at a
cheaper rate, or a Human Resources Manager who discovers a new idea to
recruit students via the Internet, is not? Is Creative Thinking the domain of
only a few?
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The answer is "No". If the definition of Creativity is "the discovery of a new

connection," then everyone has the ability to be Creative. Everyone has the
ability to connect one idea with another, to find an idea in another
department, organization, or industry, and connect it with another to solve
the challenge at hand. Artistic Creativity is only one form of creativity.
There are many other forms or avenues of creative expression, such as
finding a new idea to better serve a customer, discovering a new recipe
using only the ingredients in the refrigerator, or trying a new route to and
from work.
Figure 3.2 Figure 3.3 Figure 3.4
Video Link 1
3.3 BELIEVE IN YOUR OWN UNIQUE CREATIVE THINKING

TALENTS
Were you once creative, but now suppress your Creativity in an effort to
conform? Alternatively, have you lost faith in your Creative ability because
someone, somewhere in your past, planted the seeds of self-doubt about
your Creative ability?
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Figure 3.5
The most important factor in Creative Thinking is a person's own belief in

his Creative ability. A leader cannot just ask people to be creative. They
must first believe that they are.
Traits of the Creative Thinker Table 3.1
Willing to challenge the status quo Enjoys complexity

Curious Has many interests
Adventurous Enjoys a challenge
Imaginative Intuitive
Able to make connections Able to see new possibilities
Observant Motivated
Flexible Collaborative
Reflective Analytical
Playful Patient
Tolerates being in the unknown Persistent
Continuously learning
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Not everyone is creative in the same way. Everyone has different

preferences and talents for Creativity in different areas of their life.
• For example, Bill Gates may be a Creative Thinker in the Computer field
but might not be as creatively inclined with Gardening.
• Wayne Gretsky might be a Creative Thinker when it comes to Hockey
and reading the relationships between players on the ice, but he might
not be as creative when it comes to composing short stories.
• Albert Einstein might have been a great Creative Thinker when it came
to mathematics, but he might not have been as creative as an Athlete
might.
• You might be very creative in one area of your life and less so in another.
There are many situations in everyday life in which an individual's Creative-

Thinking talent is needed.
Creative Ideas are needed:

• when faced with the challenge of finding a birthday gift,
• figuring out a new route to work when the regular route is under
construction,
• while locating a long-lost classmate
The fundamental skills of Creative Thinking in these situations can be

transferred to Creative problem solving in a work setting. If you have
shown your creative-thinking abilities in one area of your life, what is
stopping you from transferring these same skills to other areas of your life,
including your work?
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3.4 ASSESSMENT TOOLS
When discussing Creative-Thinking skills, there is usually a reference to the

"right brain" versus "left brain" model of thinking. Each side, or
hemisphere, of the brain possesses specialized and differentiated functions.
The left side of the brain is thought to dominate language, logic, and
scientific and analytical tasks, while the right side of the brain is thought to
dominate visual, spatial, and artistic tasks. In essence, the left side deals
with more details while the right side deals with more abstract processes.
Over time, the right brain has become associated with creativity. Some
Assessment Tools purport to measure the subject's tendency for "left brain"
versus "right brain" thinking. You may find the value of these types of
Assessment Tools limited. As you will soon discover, you need both sides of
the brain, the "whole brain," for innovation work.
William Miller developed the best Assessment Tool. He was a

researcher and lecturer at Stanford University and the author of
the book "Flash of Brilliance".
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Miller believes that everyone has the capacity to be innovative. His

approach chooses not to measure whether a person is innovative, but
instead seeks to understand or discover the unique way in which a person
is innovative. His work encompasses the following concepts:
• We are all unique individuals. Each of us has different ways of expressing
our talents, knowledge, values, and interests.
• We all have the capacity to be creative, but we express this potential
differently.
• We approach Innovation and Change with our own unique blend of the
four Innovation Styles. These four Innovation Styles are Visioning,
Exploring, Experimenting, and Modifying. The styles tap into unique
preferences for things such as setting clear goals, developing new rules,
relying on current standards, looking to the future, working with details,
and so on.
• Visioning:
• "Let's develop a clear sense of purpose and goals to focus and drive the
creative energy."
• Some people like to focus on the end result. They have a vision of what
they want to create. They are comfortable letting their goals be their
guide. They can provide a team with direction, inspiration and
momentum. They emphasize Visioning.
• People who favor the Visioning Style trust their instincts and like to make
decisions. They seek solutions that focus on maximizing
potential rather than focusing on what has gone on in the past. Driven
by their long-term goals and their organization's mission, they solve
problems by relying on their vision of the future to guide them.
• This style is characterized by people who are persistent, determined,
hardworking, and visionary.
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• Exploring:
• "Let's explore in new directions and see where we end up."
• Some people like to explore uncharted territory. They thrive on the
unknown and unpredictable. Often they come up with new ideas from out
of nowhere. They tend to add a sense of adventure to any project and
open up the potential for dramatic breakthroughs. They emphasize
Exploring.
• People who favor the Exploring Style like using their insights to guide
them. They tend to question assumptions and often will try to implement
their ideas despite resistance from others. They are adventurous, dislike
routine, and like to be challenged.
• Experimenting:
• "Let's see what happens if we take existing elements and combine them
in new ways. And let's get people involved to ensure an implementable
plan of action."
• Some people like to experiment. Once they agree on a common process
or way of thinking, they can troubleshoot anything. They contribute to
the team by adding careful testing and getting input from all concerned
in order to confirm ideas. They emphasize Experimenting.
• When people use the Experimenting Style, they emphasize fact finding
and information gathering. They seek solutions by applying pre-
established processes and trial and error. As problem solvers, they like to
collect as many facts and opinions as possible before they make their
decision. They are curious, practical, and good team players.
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• Modifying:
• "Let's build on what we already have and make improvements where
necessary."
• Some people feel comfortable moving forward one step at a time; they
like to build on what they already know is true and proven. They provide
a team with the stability and thoroughness it needs to do a quality job.
They emphasize Modifying.
• People who take a modifying approach to innovation are most
comfortable working with facts and making decisions. They like to solve
problems. They seek solutions by applying methods that have worked in
the past. These people tend to be precise, reliable, efficient, and
disciplined.
3.5 COMBINE DIFFERENT TALENTS FOR MAXIMUM

RESULTS
If we can be aware of the ways in which an individual is innovative, we will

be able to leverage this capacity most effectively and efficiently for both
individual and collective gain. Everyone is Creative but that everyone
approaches Creativity in different ways. By recognizing each person's
unique talents as well as their unique Innovation Styles, we can greatly
enhance both the quality of interaction within the group and the output of
the group.
Many organizations have found that Collaborative Innovation works best

when a combination of diverse thinking styles exists.
• An example of applying this philosophy to teamwork can be found at

Nissan Design International. In an attempt to get a wider variety of
problem-solving approaches, Jerry Hirschberg hires designers in pairs-a
free-form thinker alongside someone with a more analytical approach-to
ensure greater intellectual diversity.
• Other examples of leveraging diverse thinking styles can be found in the

world of basketball, where Phil Jackson the former coach of the Chicago
Bulls, was able to combine the unique approaches of Michael Jordan,
Dennis Rodman, and Scotty Pippin into a championship team. He
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repeated this winning approach with the Los Angeles Lakers, combining
the diverse thinking styles of Shag O'Neil and Kobe Bryant, among
others.
• Another leading contributor to the Creative-Thinking field is Professor
Howard Gardner, who contributed his insightful theory of "Multiple
Intelligences."' Gardner recognized that there are different types of
human intelligences, including those that go beyond the traditional
linguistic and mathematical intelligences that are most commonly
recognized and rewarded. Gardner also offers the following different
types of Intelligences:
❖ Musical Intelligence (sound, rhythm, composition)
❖ Spatial Intelligence (visual aesthetics, drawing, painting)
❖ Kinesthetic Intelligence (dance, movement, building, drama)
❖ Intrapersonal Intelligence (research, reflection, personal projects)
❖ Interpersonal Intelligence (interactive expression, cooperative)
Your creative spirit does not have to be applied only to the linguistic and
mathematical areas. Look beyond these traditional types of intelligences to
see how you can bring out your unique creative talents in the other
important, yet often overlooked, "multiple intelligences." Despite traditional
views, many people now realize that Creative Thinking in the musical,
spatial, kinesthetic, intrapersonal, and interpersonal areas is just as
valuable as Creative Thinking in the traditional linguistic and mathematical
areas.
3.6 ELIMINATE OBSTACLES TO CREATIVE THINKING
It is basic human nature to be curious, to try new things, and to learn by

discovering new connections. Somehow, along the way, this natural
creative talent has been blocked. Through self-judgment and the
conditioning of others, people stop looking for new ideas, stop trying new
approaches, and stop discovering new connections. Over time, their
creative "muscles" weaken and in some cases, may even atrophy to the
point that, when called upon, the creative muscles are so weak they are
not able to jump into action.
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Most barriers to Creative Thinking are self-imposed. You cannot expect to

"think outside the box" if you constantly put yourself back in the box!
There are three common obstacles to Creative Thinking:
Figure 3.7
Obstacle 1: Hesitancy to Try New Things

"We tried that a few years ago and it didn't work."
"We've never tried that so it won't work."
"We've always done it this way."
"We don't want any mistakes so do it the way it's always been done."
• Why is it that people try many new experiences in their younger years
but somehow, once they are a bit older, the number of new adventures
they are willing to experience starts to dwindle?
• Why do they stop trying new things and want every step of the journey
mapped out for them, even before they start? Perhaps people get a little
too comfortable in their everyday routines. Perhaps they convince
themselves that there is already too much change in the world, so in
order to cope, it is best to do what they have
The fear of making a mistake and the fear of what others may think can
lock a person in their own Creative Thinking prison. Children try new
things, but many adults only try new things if they think they can do them
right.
• "I can't ski because I tried skiing once and I fell."
• "My job doesn't allow me to be creative."
• "I can't give a speech because I gave one in high school and my class
didn't like it."
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Are these constraints real or imagined? Are these constraints still valid
after all these years?
Everyone is naturally full of creativity but our "voice of judgment" takes

over.
• "You can't do that.
• That will never work.
• You will fail.
• It will not be good enough.
• That's the dumbest idea I've ever heard."
Everyone has become very good at judging others as well as themselves.

The voice of judgment creates fear and destroys confidence in people's
creative talents and in their abilities to excel. They stop dreaming of what
could be and see only what reality is today. These insecurities hold them
back from asking new questions and taking action. What is really stopping
people from being creative is not a lack of new ideas but their voice of
judgement.
Creative Thinkers try new things and move with the changing world. Albert
Einstein determined that energy is a function of mass and velocity
(E=MC2), so in order to develop new creative energy, mass must be
moved in some new direction!
People need to move out of their comfort zones, open themselves up to

new experiences and let more Creativity flow into their lives.
Try one thing new each week. Start with baby steps:
• Listen to a new radio station.
• Rearrange your office furniture.
• Try exotic food.
• Speak to new people. Even strangers can help people improve their
creative abilities.
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Also, challenge yourself to really understand why you stop yourself from
trying new things. Write down ten things you have always wanted to do but
have not done. What is stopping you from doing these ten things? Are your
obstacles real or imagined? Alternatively, when faced with challenges from
others, ask yourself if the constraints others are trying to place on you are
real or imagined. How can you overcome these constraints so that you can
move forward and experience new things?
Obstacle 2: "The Right Way"

"That's not the way it's done in our industry."
"Don't rock the boat."
"The board won't go for that idea It's too radical."
So much time is spent attempting to recommend the "right" answer that

there is no time left to find new and better ways.
Many people have a tendency to stop looking for alternative right answers
after the first answer has been found. Stopping at the first "right" answer
prevents further exploration of possible solutions. If this pattern of
stopping at the first answer is repeated, the ability to forge new pathways
or thinking patterns in the brain is damaged. One right answer results in
little room to move and too few degrees of creative freedom. Nothing is
more dangerous than an idea when it is the only one you have.
It's tough to be Creative when surrounded by "one-answer" people. It is

hard to work with people who are hanging on so tightly to their "right way."
There are many people who presumably have the "right answer" and try to
manipulate the situation so that their answer appears to be the only
option. There are many people who just have to have an answer for
everything, whether they are an expert in the subject area or not. Perhaps
these people are so uncomfortable with not knowing that they just cannot
say those three little words, "I don't know." Perhaps it is hard for these
people to enter the state of the unknown and leave the more comfortable
state of "yes" and "no" or "right" and "wrong".
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It is true that, in some situations, routine answers or the right answer may
be the best. For example, at a red light, the decision to stop is commonly
considered the right answer. However, in other situations, ideas that are
different from everyone else's, or that are different from the answers that
were used in the past, are needed. The marketplace may have changed.
There may be new competitors. The problems may have escalated. The
budgets may be smaller. In these cases, creative answers are needed.
Strong Innovation Leadership is about encouraging people to look for new

ways, to work outside the parameters of what has been done before to
seek out new possibilities. Instead of criticizing ideas, people need to ask
themselves if the idea is wrong or if the idea is just different from what
they are used to.
• If the Wright Brothers had not been encouraged to go beyond the

conventional wisdom that declared, "humans can't fly," we might not be
flying in jet aircraft today.
• If the Kellogg's team had not challenged the conventional wisdom that
declared, "Cereal should be served hot," we might not be enjoying cold
cereal today.
Circumstances change. Conventional Wisdom evolves. The right way might

not be the best approach for solving today's challenges. The right way
might be based on old standards, old information, old biases, and even old
wives' tales. New approaches are needed. People need to be encouraged to
fly out of formation every once in a while.
If Creativity is about discovering new connections, you need to evolve from

allowing only "one right connection" to supporting "multiple connections."
To do so:
• Increase your awareness of how you might be criticizing ideas that do
not mirror your own.
• Increase your awareness of the number of different approaches you will
tolerate.
• Help others increase their awareness of how they might be limiting the
number of new ideas by their heavy criticism.
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• Have your team adopt a phrase such as "There is more than one right
way!" to be used whenever someone starts to hear too much criticism of
new ideas and approaches.
Obstacle 3: We Want Control

"We never had to do that before."
"We've just finished writing the vision and mission statements. We don't
want to have to change them."
"We know the old way will work."
Many people feel their lives are too chaotic and "out of control". They want
the world to slow down and stop changing so much. They crave predictable
routines and want answers that fit the proven patterns of the world. In
reality, though, the world has never been and will never be a stable place.
All things in the world, all things in life, are constantly moving and
changing. The world is naturally chaotic because it is alive-it is a complex,
living system that is constantly reshaping itself.
So is the corporate world. Gone are the days when "what you see today
will be what you see tomorrow." Gone are the days when organizations can
guarantee they will exist in fifty years and that everyone who is employed
today will have a job forever. Gone are the days when the competitive set
can be predicted or the distribution channel can be controlled. The political
landscape is also constantly reshaping itself.
Organizations attempt to achieve Stability in the midst of this chaotic

change. However, once an organization stabilizes or achieves the
perception of Stability, most people do everything in their power to keep it
that way. They spend their time and effort pursuing efficiency by perfecting
current processes and approaches. Unfortunately, by the time they have
perfected the process, the world has already changed and the revamped
processes are already out of date.
A better strategy might be to dedicate the team's energy and skill toward
finding new and more effective processes as well as building the Creative-
Thinking skills that will be needed for coping with future challenges. While
some organizations are spending their time pursuing a strategy of doing
things better, others are spending their time pursuing the strategy of doing
things differently.
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• Nokia, a world leader in mobile phone technology, leapfrogged the

competition by finding new and different ways to launch innovative
products and services faster than the competition. In the meantime,
other companies were busy reducing the number of errors in their old
processes.
Creative Thinking rarely emerges from organizations where order and

control are valued. Organizations that are trying to control too much of
their internal environment will miss out on the creative energy of their
employees. If a manager tries to control all aspects of the process as well
as the end result, the team will just stop searching for and finding new
answers. If the ideas that receive the most support are the ones that
reinforce the past, the flow of new creative ideas will certainly slow down
to just a trickle. If creative ideas are constantly being shot down, people
will stop launching them. The overwhelming need for control leads to less
exploration, less experimentation, and, in general, less Creative Thinking.
Non-creative Thinkers are typically unwilling to let go of their opinions.

They attempt to control others' viewpoints and behaviors. They do not
invite others to participate in their Innovative-Thinking exercises.
• "You're new here so you probably shouldn't be involved."
• "You're not in our department so we don't need your input."
They effectively shut off the oxygen flow to their creative vessels!
On one end of the continuum is Control and on the other end of the
continuum is Freedom.
Control______________________________________ Freedom
Determine where the majority of your behavior falls: closer to the control
end, where you may be stiffing your own creative spirit as well as the
creative spirit of those around you, or closer to the freedom end, where
you may be nurturing the creative spirit and encouraging the creative
juices to flow. Being aware of your behavior is a critical first step. Try to
eliminate some of your controlling behavior by allowing yourself to offer
new ideas as well as encouraging others to bring forward their new ideas.
Realize that you could become a role model for letting go and accepting
new ideas proposed by others. By doing so, you can encourage others to
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be a little more lenient when reviewing your new ideas in return! Learning
to free your own creative spirit is an important step in building your
capacity in Creative Thinking.
3.7 LEARN TO UNLEARN AND FORGET
One of the reasons people shut down Creativity is because they know that,
once they have identified new ideas or new ways of doing things, they
might actually have to accept and implement them. This means that they
might have to change their current position. They might actually have to
try new things. They might actually have to let go of "the right way" and
release their grip on order and control.
As Peter Drucker once said, "If you want to do something new, you have to
stop doing something old."
Old Thinking may be covering up true creative potential. Old Thinking has
to be removed in order to make room for new thinking. Just as the
gardener clears out old plants and weeds to make room for the sunlight to
shine on the new plants, you must clear out old thinking in order to make
room for new thinking. The ability to unlearn and the ability to forget some
of what has been taught are fundamental skills for Creative Thinking. Some
of the "rules" and "ways of doing things" will have to be unlearned in order
to make way for new ideas.
3.8 ACCEPTING FAILURE
Remember that Creative Thinking also involves failure. A person should not
stop trying just because perfect results are not produced on the first
attempt. The game of baseball is a good of example of this. Ty Cobb's
batting average was .367, which means he hit a fair ball almost four out of
every ten times he was at bat. It also means he did not hit a fair ball six
out of every ten times he was at bat. Babe Ruth's batting average was
.342.
Tom Kelley of the design firm IDEO says his company's approach to
Experimentation is summed up in its advice to "fail often to
succeed sooner." Anyone in the Oil Exploration field can tell you that
their chances of finding oil at the very first drill site are extremely low.
Learning to be comfortable with a little failure in life is difficult given the
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social conditioning that encourages everyone to showcase achievement but

certainly not the failure that might have occurred on the way to this
success.
Interestingly, there was a civil engineering lab course at Penn State

University that recognized and confronted the risks associated with creative
behavior. The course, subtitled "Failure 101" required students to take risks
and experiment in order to get a better grade; in fact, the more they
"failed," the greater their chance of receiving an "A" grade in the course.
3.9 BE CURIOUS
The primary basis for Creativity is a curious mind. GSD&M, a U.S.-based

Advertising Agency, believes so strongly in the value of Curiosity that it
has engraved the word in the floor of its lobby. The agency believes that
Curiosity (i.e., there must be a better way) is paramount for developing
creative insights and ideas.
Without Curiosity, a person has great difficulty discovering new ideas.

Being Curious involves:
A. Having an Open Mind,
B. Gaining a Broader Perspective, and
C. Asking Probing Questions
3.9.1 Do You Have an Open Mind?
There are many examples of people throughout history who found it

difficult to have an Open Mind and break their existing thinking patterns.
• Christopher Columbus was surrounded by many such people: they
believed that the earth was flat and that if he were to sail off into the
distance, his convoy of ships would fall off the edge of the earth.
• Not too many years ago, people doubted the need for telephones. Now
we have voice mail, call-waiting, call-forwarding, call-blocking, e-mail,
conference calling, and mobile commerce (m-commerce).
• Ted Turner faced many skeptics when he introduced a twenty-four-
hour news channel, CNN. Would people shift their viewing habits from
the traditional six-o'clock news?
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It is difficult to discover innovative solutions with a closed mind. When the

mind holds onto or sets fast on one idea, it is no longer free to create. In
effect, the creative mind starts to shut down. It tunes out and closes off
the possibility of new discoveries.
3.9.2 Acknowledge that Alternative Ideas can exist
In order to see new ideas, we must first acknowledge that Alternative

Ideas can exist. Why is it that we can acknowledge the presence of
Alternative Products and Services in the marketplace but block our own
Team's Suggestions for such products and services? Why is it that we can
acknowledge the appeal of new inventions in the marketplace but find it so
easy to criticize new ideas that are presented within our own
organizations? We need to open our minds to new possibilities, to the field
of dreams. All Innovations started out as simple ideas. The light bulb
lighting the room you are in, the chair you are sitting on, and the shoes
you are wearing were once only ideas. It took a creative thinker to bring
these ideas to the world.
Being Open-Minded means being willing to change perceptions or "mental

models" when new information surfaces.
3.9.3 Make a List and Challenge Your Sacred Traditions
Often, Progress is blocked by our Sacred Traditions: our opinions,

assumptions, or rules of "the way it's done." While some Sacred Traditions
may be valuable to maintain, others may be hindering the Innovation
process by preventing new ideas from surfacing.
What if Howard Schultz (of Starbucks) had never challenged the Sacred
Tradition that people will only pay a dollar for a cup of coffee?
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Figure 3.8
Sacred Traditions may no longer be relevant for today's thinking or

marketplace. "New opportunities rarely fit the way an industry has always
approached the market, defined it or organized to serve it." Do not let the
way things have been done in the past dictate, and therefore
predetermine, the way things will be done in the future. Open your mind
by challenging your Sacred Traditions.
Robert Kriegel first referred to this concept as "sacred cows" which

he defines as outmoded beliefs, assumptions, practices, policies, systems,
strategies that inhibit change and prevent responsiveness to new
opportunities.
Industries are often disrupted by new players who see the potential in new
business models where the traditional players do not. Here are some
examples of ways in which Creative Thinkers challenged Sacred Traditions:
• Japanese car manufacturers made cars smaller when American car
manufacturers believed they should be larger.
• Linux encouraged programmers to improve its free, open-source
operating system while other software developers held on tightly to their
proprietary systems.
• Southwest Airlines encourages "sit where you want" open seating,
challenging the conventional idea of pre-assigned seating.
• Fast Company magazine challenged the traditional dull tone of
business magazines by presenting business articles in a short, exciting,
and visually appealing manner.
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Many Sacred Traditions are activities that no one has ever stopped to
question. Many of them may be Non-value-added things that your team
spends time doing time that could be reallocated to more productive
activities! Here are some of the Sacred Traditions I have heard over the
years:
• "Everyone needs a copy of everything."
• "We only fund new ideas once a year, at budget time."
• "We're a food company so we only look at opportunities inside the food
industry."
• "If it doesn't work in the United States, it probably won't work
elsewhere."
• "If we can't show a financial return in two years, we won't receive the
funding."
• "We define the industry the same way everyone else does."
A good Innovation Leader creates an environment where these Sacred

Traditions can be challenged and addressed. In order to challenge these
Sacred Traditions, you must first be aware of them. Begin by making a list
of the industry's Sacred Traditions. Decide which ones are helpful and
which ones are blocking Innovations. Then make a list of your own
organization's Sacred Traditions. Challenge the fundamental thinking that
drives your business.
3.9.4 Hold Your Criticism Until You Hear the Idea's Potential
It seems that the more a person perceives himself to be an expert in a

certain field, the more resistant he is to listening to alternative ideas.
Whatever the idea, if it does not fit with his preselected solution, it is
discarded without consideration. Perhaps he perceives a loss of power if
the current system is disrupted by the acceptance of the new idea.
Progress is impossible if you keep doing what you have always done. Show
you have an open mind by slowing down long enough to hear the potential
of the idea before you jump all over it.
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3.9.5 Gain a Broader Perspective
Ideas and Solutions are everywhere. How broad is the idea-gathering

process in your organization? Are you actively scouting out different
perspectives from a variety of sources, from people outside your company,
from people in other industries or government agencies, from people from
other countries? Are you casting the net wide enough?
3.9.6 Let Outsiders Bring in Ideas

• Widen the search for ideas to the far corners of the organization where
great ideas may be hidden.
• Why not ask the "experts" for their perspective?
❖ If the problem has to do with suitcases, ask the airline baggage
handlers.
❖ If the problem has to do with food, ask restaurant chefs.
❖ If the problem has to do with education, ask teachers, students, and
parents.
They have a lot of fresh insight that could help you quickly identify new
ideas.
• Why not look at international companies?
• An organization that profited immensely by gaining a different
perspective on its world is Loblaws Companies Limited, a leading
supermarket chain in Canada. Faced with the challenge of improving
its program, the Loblaws team embarked on a journey to discover the
best products and marketing techniques from around the world. One of
their first stops was England, where they analyzed Tesco, Sainsbury, and
Marks & Spencer, who were already ahead of the game in selling upscale
grocery products. They also visited many restaurants around the world
and requested the great chefs to share their secret recipes.
• Upon their return to Canada, they developed what would become one of
the strongest private-label programs in the world, branded under the
President's Choice label.
• Gaining a different perspective by asking experts for their insights
certainly did wonders for the Loblaws team.
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• Why not ask people unrelated to the problem for their perspective?
Teams often suffer from "industry think," where everyone in the industry
is following the same rules, looking at the market the same way, and, in
general, thinking and acting along the same lines. Everyone is assuming
the industry works a certain way, and they may, therefore, be blind to
new opportunities. Individuals and groups alike can benefit from knowing
and tapping into a rich diversity of thought. Creativity needs people of all
shapes and sizes.
Conversations with diverse people spark Creative Thinking. Expand your

contact to include zookeepers, architects, martial artists, pilots,
auctioneers, teachers, and neighborhood children. Ask someone who
does not know your challenges for fresh advice. Expand your bandwidth
to receive ideas from wherever, whenever, they choose to appear! You
never know if that random act of searching the Web or sitting beside
someone on the airplane or standing in line at the bank will result in a
conversation that leads to a great idea.
3.9.7 Dig a Little Deeper to Understand These Perspectives
Everyone views the same situation from his or her own perspective. How
one sees things is determined by one's own unique personality, past
experiences, and prejudices.
• The jury system relies on twelve jurors instead of only one so that the
issue of guilt or innocence can be viewed from different perspectives.
• Most sports use more than one referee so that the odds of seeing the
"full picture" increase. No one person can see the entire situation. There
are always blind spots. Sometimes being too close to a situation or being
tied to one solution can prevent new solutions from being seen.
There are often hundreds of ways to look at a problem. Sort through the
range of facts, memories, emotions, observations, perceptions, and
impressions. Turn the problem around and look at it from new angles.
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For example, a Marketing Team was challenged to identify a revised brand-

positioning and marketing strategy for a prominent pharmaceutical
product. Using the Broader-Perspectives Approach, they first made a list of
the different customer groups for the brand and then determined what
their respective needs were.
The needs of:

• the patients (reliability, comfort),
• their families (information),
• their pharmacists (information, ease of dispensing, and profit),
• their physicians (up-to-date information on both the drug itself and other
products that might be reliable substitutes),
• the nurses and intensive care unit staff (information on dispensing and
recommended patient care),
• and the payer, such as the insurance company or government agency
(cost, comparative products, risk of complications from taking the
particular drug)
were all considered. By taking a Broader-Perspective Approach in

determining the various customer-group needs, the team was able to
identify different areas that could represent exciting new strategies and
new programs that, in turn, could differentiate its business from the
competition. This approach also helped the team assess what percentage
of the Marketing Budget should be allocated to communicating with each
customer group.
3.9.8 Build Your Observation Skills
When the noted Marathi writer, P.L.Deshpande was in London, he saw

a crow sitting on the tree near the window. A common person would have
only "seen" the crow and thought that there were crows even in London.
However, P.L. observed "Oh! The crow here also does "Kav, Kaav" like in
India. Whereas he should do "crow crow" because here the English
language is spoken!"
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Seeing the world from different angles is like shining a flashlight beam on
different areas in the room. The more one moves around, the more parts
of the room one can see.
• Observing an aircraft-landing from a cockpit is a lot different from
watching the landing from the ground.
• Observing a school of fish while scuba diving is a lot different from
looking at the surface of the water from a boat.
• Seeing North America from an Asian perspective is a lot different from
seeing it from an American perspective.
Too often, one falls in love with one's own view of the world. Innovators
can benefit from seeing the world from beyond the usual boundaries-
beyond departments, organizations, industries, and countries.
There is a difference between looking at something and actually seeing

what is there! The mind automatically filters information. A person can look
at something and not really see it. It is like driving down a country road on
a dark night with the headlights on. People can see what is in their path in
front of them, but they miss a lot of interesting scenery around them. In
order to see more, people need to override the mind's filter and force
themselves to be more observant.
• Sam Walton, the founder of Wal-Mart, made it a habit when visiting

his competitor's stores to look at the details and find at least one idea or
example to take back to his organization.
Developing a curious mind requires better Observation Skills. Practice

trying to "see more." For example, when you are sitting in a restaurant,
waiting in an airport lounge, or standing in line at the bank, observe more.
• How is the restaurant organized?
• How are the tables and chairs arranged?
• Where is the kitchen and where are the busing stations?
• Why did they organize the seating the way they did?
• How do the waiters serve other customers?
• How could the serving process be improved?
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• At the airport, how are the check-in counters organized?

• How could the process of checking-in and boarding the airplane be
improved?
• How could the process be more enjoyable and more exciting?
• At the bank, how could the deposit and withdrawal processes be
improved?
Play with your observations and ideas.
Another way to gain a different perspective is to use a video camera to

record, with permission of course, customers' actions with particular
products or services. By "walking a mile in their shoes," an observer can
find out how the product or service is perceived by the customer and
where improvements might be needed. Record the team's actions on the
factory floor or selling floor to find new ideas. Pay attention to the details.
The more you observe, the more you see. The more you listen, the more
you hear.
Write down new insights. There is a constant flow of insights and ideas in
the brain. If you do not capture these thoughts, they might be lost forever
somewhere in the cerebral cortex. Keep a small pad of paper in the car, in
the bathroom, in the kitchen, beside the bed-or carry a Palm-Pilot. You
never know when and where that brilliant insight will surface!
Focused Observation can help build creative thinking skills. Try these
Observation Exercises:
• List five things you noticed on your way to work today.
• Describe the floor plan of the entrance or lobby in your building.
• With your eyes closed, name three objects close to you that are blue.
• Next time you watch a commercial on television, wait two minutes and
then try to recall the commercial and remember the name of the product
being advertised in the commercial.
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3.9.9 Ask Probing Questions
"Judge a man by his questions rather than his answers.":-VOLTAIRE You

cannot be a curious thinker if you are afraid to ask questions. Ask Probing
Questions and do not be afraid to ask again if the person avoided
answering the Original Question. Some people have been taught not to ask
questions, especially of their elders or of people in positions of power for
fear of embarrassing them. This is a hurdle that needs to be overcome if
the creative spirit is to flourish.
3.9.10 Enjoy Asking Questions

• "Why don't we have soft drink dispensers in our homes?"
• "When did human beings first wear watches?"
• "How does a Palm Pilot work? Who invented it?"
• "Where does my garbage go after the truck picks it up at my residence?"
• "Why don't psychics ever win lotteries?"
• "Why is the slowest time of the day for traffic called rush-hour?"
• "Why can't we file our income taxes every two years instead of every
year?"
Columbo, the brilliant detective played on television by Peter Falk, would

say in every episode, "Excuse me ma'am. Just one more question." The
more questions he asked, the more information he had to solve the case.
Become a Creative-Thinking detective! Ask Probing Questions. There is no

such thing as a wasted question. You will always learn something. Take the
time to question the "facts" in any situation by asking more questions.
Write down what is known about the problem, what information is
available, and what information is not available. Ask Tougher Questions.
• Who could put us out of business?
• If we were on the Executive Team, what would we do in this situation?
• What would really shake up this industry?
• Why aren't we doing anything about this?
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3.9.11 The Creative-Thinking Mantra: "Why? What If? What Else?"
The three Curiosity Questions that push individuals the farthest into new
territory are the following simple questions: "Why? What if? What else?"
"Why?" is the best of these three questions. By asking "Why," you are
exploring the rationale behind a given approach and opening up the
possibility that there might be an alternative approach. Ask questions such
as "Why?" "Why are we doing this?" "Why are we doing this like this?"
For example,
• "Why do we have Sales Contests?"
• "Why do we need to prepare this Report if no one is reading it?"
• "Why do we need to spend so much on Packaging Materials?"
3.9.12 The YY (Double Why) Question
• As Socrates demonstrated over 2000 years ago, great insights come

from asking Good Questions.
A good Leader does not need to know all the answers. She needs to know
the questions to ask. Creative Thinking begins with great questions, not
answers. Great Creative Thinkers stay with the question instead of rushing
to find an immediate solution. They ask more questions than the average
person asks and are comfortable in the often-uncomfortable situation of
not immediately having the answer. This is the test of a true Creative
Thinker.
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Many breakthroughs have come after much contemplation and

investigation. For example, Thomas Edison said, "I haven't failed. I've
just come up with 1,000 ways not to make a light bulb." He constantly
questioned his assumptions to look for deeper insights.
Barbara Walters, the famous journalist, rarely hits the jackpot on the
first question. Her success stems from her aptitude for relentless
questioning, repeating questions from various angles, digging deeper and
deeper until magic insights reveal themselves.
Do not be satisfied with surface answers. Jumping to the solution too

quickly results in mediocre ideas or ideas that do not fit the needs of the
real problem. Keep asking the "Why?" questions and dig for more details.
In order to unpeel the layers of Packaging to get to the real heart of the
matter, it is necessary to repeat the question. For example, ask "Why?"
and then ask "Why?" repeatedly until you uncover new insights.
• "Why do we do it like this?" "Because we've always done it like this."
• "Why do we always do it like this?" "Because that's the way it's done in
our industry."
• "Why do we want to do it like all our competition?" "Because, well, I
don't know. You've got a good point!"
In another example, the problem may appear to be poor sales revenue.

• When asked why the revenue was so low, someone might answer that
there is new competition or that the price is too high or that there aren't
enough sales people.
• Choose one of these answers-the price is too high-and ask why the price
is too high. The answer may be because the prices were raised by 12
percent each year.
• The next step would be to investigate the strategy behind the annual
increase and to challenge the 12-percent increase.
• Why not 3 percent or 5 percent or 10 percent?
• Asking "Why?" questions helps everyone look at the problem from
different angles and encourages a deeper dialogue as to what the real
issue may be. If this investigation stage was missed, the team might
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have jumped to the conclusion that the problem was caused by lack of
sales people and gone off looking for more resources to hire more
people, instead of investigating the other angles of the issue.
You may prepare your own list of "Why? What If? What Else?" and the YY
questions. Of course, there are always two parts of asking any question:
the
asking and the listening. Make sure that you also hear the answers!
Activity A:
While playing sports, let us say cricket or football, (specify your game if
different)
Discuss how many times you failed. For example, out of 10 balls, how
many could you hit on an average? After the failures, who were the people
to support you?
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
Activity B:
Ask Probing Questions for solving the Water Sollution problem in case of
rivers.
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
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3.11 SUMMARY
• Every one of you is Creative. Therefore, you can become Innovative.
Without Creativity, there is no Innovation. One of the fundamental
principles of Innovation Management is "Believe in Creativity."
• Many people stop themselves from experiencing new things and only
want to stay in their comfort zones. Many people stop themselves from
being creative because they do not believe in their ability to be creative.
• The second principle is "Be curious".
• The third principle of Creative Thinking is "Discover New Connections".
• We approach Innovation and Change with our own unique blend of the
four Innovation Styles. These four Innovation Styles are Visioning,
Exploring, Experimenting, and Modifying.
• We must eliminate the following obstacles to Creative Thinking:
- Hesitancy to Try New Things
- So much time is spent attempting to recommend the "right" answer
that there is no time left to find new and better ways.
- "We never had to do that before."
- "We've just finished writing the vision and mission statements. We
don't want to have to change them."
- "We know the old way will work."
- We want control
• Non-creative Thinkers are typically unwilling to let go of their opinions.
• Learn to Unlearn and Forget
• Accepting Failure
• Be Curious
• Build your Observation Skills
• The three Curiosity Questions that push individuals the farthest into new
territory are the following simple questions: "Why? What if? What else?"
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1. Explain: Everyone is naturally full of Creativity but our "voice of
judgment" takes over
2. Explain: Challenge Your Sacred Traditions
3. Describe the four Innovation Styles
1. Traits of a Creative Thinker (Find out the wrong one)

(a) Willing to challenge the status quo
(b) Curious
(c) Adventurous
(d) Wealthy
2. One of the obstacles to Creative Thinking

(a) Learn to Unlearn and Forget
(b) Accepting Failure
(c) Be curious
(d) Hesitancy to Try New Things
3. "Judge a man by his questions rather than his answers.": Who said it?"
(a) Montesquieu
(b) Rousseau
(c) Voltaire
(d) Mirabo
4. Who challenged the Sacred Tradition that people will only pay a dollar
for a cup of coffee?
(a) Professor Howard Gardner
(b) Tom Kelley
(c) Peter Falk
(d) Howard Schultz
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5. Many organizations have found that ------------works best when a

combination of diverse thinking styles exists.
(a) Collaborative Innovation
(b) Individual Innovation
(c) Corporate Innovation
(d) Top Management Innovation
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My dear students, the third chapter has convinced you that you are a
creative and unique individual, and guided you how to travel further on the
Innovation Path. Do you agree with me?
The next chapter has interesting content as follows:
Creative Thinking is really about discovering new connections through the

use of:
(1) The Imagination,
(2) Diverse Stimuli, and
(3) Creative-Connections Power Tools
Read and study this chapter early in the morning when your mind is very
fresh, calm and quiet. Read it twice. I assure you that you will understand
this subject of Creativity in Innovation Management almost fully just by
mastering this chapter.
All the best! Begin your career as a creative masterblaster!
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Reference Material
chapter
Summary
PPT
MCQ
89
CREATIVE CONNECTIONS POWER TOOLS
Chapter 4
Creative Connections Power Tools
Objectives:
After studying this chapter, you will be able to do Creative Connections.
Structure:
4.1 Introduction
4.2 Using Your Imagination
4.3 Use Diverse Stimuli
4.4 Using the Ten Creative Connections Power Tools
4.4.1 Creative-Connections Power Tool 10: Rummaging in the Attic
4.4.2 Creative-Connections Power Tool 9: Cultivating Obsession
4.4.3 Creative-Connections Power Tool 8: Analyzing Frustrations
4.4.4 Creative-Connections Power Tool 7: Identifying the Gold Standard
4.4.5 Creative-Connections Power Tool 6: Adopting and Adapting
4.4.6 Creative-Connections Power Tool 5: Combining Ideas
4.4.7 Creative-Connections Power Tool 4: Finding Similarities
4.4.8 Creative-Connections Power Tool 3: Breaking Down the DNA
4.4.9 Creative-Connections Power Tool 2: Listing and Twisting
4.4.10 Creative-Connections Power Tool 1: Becoming a Visual thinker
4.5 Evolving from Brainstorming to Innovation Groups
4.6 Innovation Groups
4.8 Summary
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4.1 INTRODUCTION
Figure 4.2
Try this simple exercise. Take a piece of paper. For the next two minutes,
write down the names of all the people you know. Start listing them. Now
stop. Look at your list of names. Explain how your list flowed from the first
name to the last name. See the jumps and connections your mind made as
you thought of more and more names.
Here is my list: Mavin, Prakash, Raman, Venkat, Vijay, Amit, Nilesh, Arun
Kumar, Shah Rukh Khan, Man Mohan Singh, and Jayalalithaa. How did my
mind get from Mavin to Jayalalithaa? My mind hopped, jumped, and made
new connections!
This exercise illustrates the technique used in many Creative-Thinking

exercises: Pursue a large quantity of ideas and make connections between
these ideas. The great connection could arrive at the second, eighth or
thirtieth idea. One never knows when a great idea will arrive.
You need to force yourself past your first or second association to find
more ideas.
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• A football coach rarely asks his team to run the same play time after
time. Instead, the coach finds new ways to connect the players on the
field to outwit the opposing team. By combining and recombining
different player movements, the coach is able to devise creative ways to
out-maneuver their opponents.
• As Dhoni sends a first timer new bowler in the last over, when the
opponent team has only one wicket in hand and needs just 3 runs to win,
many people criticize. However, to their awe, this new bowler takes the
wicket in the first ball itself! Here lies the special skill of the captain.
• Just as the photographer who takes many pictures before she finds the
best one.
• Or the cartoonist who draws many cartoons until he sees the one he
likes, Creative Thinkers need to identify many ideas and uncover as
many connections as they can.
Creative Thinkers tap into their imaginations by combining and

recombining different ideas or concepts to make new connections.
Creative Thinking is really about discovering new connections
through the use of:
(1) The Imagination,
(3) Creative-Connections Power Tools
4.2 USING YOUR IMAGINATION
Albert Einstein once said, 'Imagination is more important than

knowledge." Imagination means "the creative faculty of the mind."
Without Imagination, there would not be Airplanes, spaghetti, e-mail, The
Lion King, or Microwave ovens!
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Figure 4.3
Boundaries between countries, industries, and market segments crumble,

everyone is facing competition. In order to stand out from the crowd, you
must be able to see something distinctly new and better than what others
are seeing and then, of course, you must put this new insight into action.
Mental ruts can form over time. The same thought patterns get "wired"
into the mind through repetition. When new information is introduced, it is
either slotted into the existing pattern or massaged and twisted until it fits.
Often, the new information is rejected outright because it does not seem to
fit. Creative Thinkers override these set patterns by burning new pathways
in their brains.
Here are several ways to burn new pathways and strengthen your
Imagination:
• Imagine more than one use for your product or service.
Children are great at transforming objects into new ideas. Watch them
transform a soft drink can into a microphone or pasta into a necklace. They
play with ideas to see the possibilities that lie within.
• A common warm-up exercise for strengthening Creative-Thinking skills is

"Name five uses for a rubber band or a paperclip".
Why not try a more imaginative exercise such as naming ten alternative
uses for your
• soup product or
• your delivery service or
• manufacturing waste?
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• We can all take a page from the Starbucks Manual and admire the
number of alternative coffee drinks they can make from a shot of
espresso!
• The other day, when undergoing a training session for first aid, I was
astonished the way the Newspapers were used as cushion or packing
material while giving first aid! Further, Newspapers are ideal for wiping
the glass after cleaning by water.
• Do you know that the Colgate toothpowder is very effective for cleaning
and shining the silver utensils?
• Here are some uses for a very famous soft drink:

1. Removes grease stains from the clothing and fabric
2. Removes rust; methods include using fabric dipped in the soft drink,
a sponge or
even aluminum foil. Also loosens rusty bolts.
3. Removes bloodstains from the clothing and fabric.
4. Cleans oil stains from a garage floor; let the stain soak, hose off.
5. Kills slugs and snails; the acids kills them.
6. Cleans burnt pans; let the pan soak in it, then rinse.
7. Descales a kettle (same method as with burnt pans)
8. Cleans car battery terminals by pouring a small amount of it over
each one.
9. Cleans your engine;
10.Cleans tile grout; pour onto the kitchen floor, leave it for a few
minutes, wipe up.
11.Dissolves a tooth; Use a sealed container…takes a while but it does
work.
12.Removes gum from hair; dip into a small bowl of it, leave it for a few
minutes. The Gum will wipe off.
13.Removes stains from vitreous china.
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14.Do you have a dirty pool? Adding two 2-liter bottles of soft drink
clears up rust.
15.You can remove (or fade) dye from hair by pouring diet soft drink
over it.
16.Remove marker stains from the carpet. Applying the soft drink,
scrubbing and then clean with soapy water will remove the marker
stains.
17.Cleans a toilet; pour around the bowl, leave it for a while, the flush is
clean.
• When we were kids, we used a toothbrush with a sieve, to spray
watercolor onto our drawing paper. You can think of five more uses of a
toothbrush.
• The used water from bathroom, basins, sinks etc. can be collected and
circulated for toilet flushes, gardening etc. You can imagine new
innovative ideas about collecting the rainwater which flows all over and
disappears.
• Use your imagination to do the opposite of what is expected.
• Until 1968, most high jumpers used the scissor-kick or front-roll

techniques for clearing the high-jump bar. Then along came Dick
Fosbury, who cleared the bar the opposite way, using the back flop. His
radical backward style, nicknamed the Fosbury Flop, won him the gold
medal at the Olympics and redefined the sport of high jumping forever.
• One more example: Why can we not make a kurta from the cloth used
for jeans trousers, and a salwar from the usual cloth used for a kurta?
• Generally, people sell a Maruti 800 car to buy an Xcent or a Corolla. Why
don't they sell a car and buy a bicycle?
• Generally, the doctor advises the patient about a surgical operation.

However, when my son was admitted in a hospital, and the doctor
advised to perform a surgical operation, my best friend -who is not a
doctor-convinced the doctor how an operation is not necessary and some
medicines can do the job.
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• Look to other industries or areas for inspiration.

Fosbury's idea of flipping backward in the air, was not new-it was just
new to high jumping. Divers throw their bodies backward through the air,
so why can't high jumpers? Connecting an idea from one sport to
another sport can result in a breakthrough. Look beyond your particular
company or industry to find new ideas.
• Imagine the wildest idea you can and then tame this wild idea.
If, for example, your challenge were to redesign a car so that people
could eat fast food in it more comfortably, you might want to begin by
stretching your imagination to find your wildest idea.
• Your wildest idea might be to put a picnic table in the car. From here, you
could tame this idea and identify several more useful ideas such as a fold
down mini table or a small table or food caddy between the front two
seats.
Some people have a hard time suspending judgment and playing with new
ideas. "What's the purpose in playing? We don't have time to play" are the
comments most often heard from uptight people. Learning how to "play"
with ideas relaxes the mind long enough to allow new pathways to be built.
Play is a critical component of strengthening the imagination for

Creative Thinking.
• My wife had an idea that a deep ditch should be dug all around a big hill,
so that the rainwater from the hill will go into that ditch by gravity, the
ditch being covered with a protective mesh, and this accumulated water
can be supplied to areas having shortage of water during summer.
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4.2.1 Encourage all Team Members to use their Imaginations.
Every other year in the fall, Honda of Japan holds a contest where
employees use company money to develop ideas for new vehicles and
transportation concepts. Practicality is not necessarily a criterion for
success. Prizes awarded include the Mechanical Prize, the Dream Prize, the
Nice Idea Prize, and the Unique Prize. The spectators also award the
Golden Icon Prize for the most popular idea.
One last note on Imagination: Imagination is not constrained by a lack of

resources. People often use the lack of resources as an excuse for not
having new ideas or taking action.
The movie Jai Santoshi Maa was a good example of Imagination on a

low budget. In an industry characterized by big budgets and Bollywood
stars, this low budget film went on to gross over Rs.25 crores and was a
blockbuster same as Deewar and Sholay. This example shows that
Imagination can go a long way in overcoming a lack of resources.
4.3 USE DIVERSE STIMULI (SOMETHING THAT

ENCOURAGES ACTIVITY IN PEOPLE)
Stimuli are a key ingredient for making New Connections. Many people try
to come up with new ideas from a blank slate. They stare at a blank piece
of paper or flipchart and hope that Eureka! a bolt of lightning will strike
them, and a breakthrough idea will magically appear on the page.
While that might work for some people some of the time, most people
need to jumpstart the process with the raw ingredient of Creativity-other
ideas. If 98 percent of ideas already exist in one form or another, the
answers must already exist somewhere. All one needs to do is find them
and then combine and recombine them in a unique way that makes them
work in solving a new challenge. In the "cycle of ideas," all or at least most
ideas are reincarnated from a previous life in some other company, agency,
industry, or country.
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4.3.1 Decide what type of Stimuli (Inspirations) you need-related

or unrelated.
Bring back fresh insights (accurate and deep understanding) that can be
used as Stimuli for growing new ideas. The type of Stimuli needed depends
on the particular problem and the team's unique approach to solving
problems. For some problems or situations, the team might want to seek
out related stimuli.
For example, if the team is looking for ideas to improve the school's
fundraising efforts, they might want to look at other schools' fundraising
efforts as well as at examples from other non-profit organizations. The
team might want to bring in examples of previous programs and
advertisements from other Fundraising Campaigns as Stimuli for fresh
connections.
Alternatively, the team might want to seek out Unrelated Stimuli. For
example, they might want to look at how banks attract new customers,
how lotteries are conducted, or how the Army recruits new soldiers, in
order to find new insights that could help them design a better Fundraising
Program. The team can list the attributes of these programs and then use
their Imagination to connect these attributes with the specific challenges of
their own Fundraising Program.
For some people, using related stimuli is preferable because it represents a

direct approach to creative thinking and is perhaps more concrete. Such
people are able to see the links between the stimuli and their particular
challenge more easily, and therefore can make easier connections to what
they feel will be useful ideas.
However, for some, using Related stimuli is too limiting. They want to
stretch themselves into new territory and enjoy the Creative-Thinking
exercise of linking Unrelated Stimuli to the Challenge at hand. These
people may have an easier time with Abstract Thinking and are therefore
better able to see New Connections easily. Others may not be able to make
these connections with Unrelated Stimuli as easily and end up frustrated.
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If you are working alone, chose the type of Stimuli that works best for you.
If you are working in a team, vary the mixture of Creative-Thinking
exercises using related and unrelated stimuli so that you tap into
everyone's unique preferences. Either way, experience has shown that all
teams benefit from using some type of Stimuli, whether related or
unrelated, rather than using none.
4.3.2 Look internally as well as externally for Diverse Stimuli.
The largest source of fresh ideas is employees and other internal

stakeholders. Pay attention to front-line staff and new employees, whose
fresh insights are extremely valuable. Listen to employees in other
departments. Many people have a lot of information to share but do not
share it because "no one asked." Try talking to other Departments or
Business Units or holding Cross-functional Innovation Groups to see if they
can offer a fresh perspective. Also, review previous programs to find old
ideas that can be reused in a new way. Ideas that might not have worked
in the past due to underfunding, competitive conditions, or poor
implementation might work now. Why not hold industry seminars once a
month to update everyone on what is happening in the industry, what is
working, and what is not working?
Creative Thinkers also capture ideas from a variety of external sources.

They know others may have faced similar challenges in some other
company, in some other industry, in some other government agency, or in
some other country. They know the ingredients for their solutions are out
there somewhere.
So get out of the office! Visit interesting places. Try searching for insights
at Cross-Industry Conferences and Tradeshows. The Internet also
represents a deep and rich pool of ideas. Table 4.1 is a list of alternative
sources of Diverse Stimuli.
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Sources of Diverse Stimuli Table 4.1
Historical review Television The mail

Children Old files Paint Colors
List of trends Travel Other companies
Photos Complaints Ads
Opinions Catalogs Children’s books
Intuition Factory Competition
Nursing homes Construction site Retail
Greeting cards Atlas International
News articles On the bus At the beach
Airport Thesaurus Flyers
Your desk Trade shows Toy store
Junk mail Video Store At the zoo
Magazines Other departments On campus
Grocery store Videos New people
Cookbook Dictionary bar drink guide
Internet Flea market Library
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4.3.3 Start today to develop a more systemized approach to

collecting and sharing Diverse Stimuli.
Figure 4.3
Idea
The simplest way to collect new ideas generated from Stimuli is, obviously,
to write them down. Carry a small idea notebook or use a Palm Pilot to
capture these fleeting thoughts, or they might disappear forever. Many
great ideas surface during meetings. Where do they go?
Make sure the team develops an Idea-Capture System such an Innovation

Bank or Idea Bank so that these ideas can be referenced at a later date.
Make it easy for people to access the rich data hidden in company files,
including all those ideas generated in previous brainstorming sessions or
findings from Market Research Reports. Don't let ideas get lost simply
because of employee turnover.
Figure 4.4
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A significant challenge facing many organizations is the loss of institutional

memory with turnovers, retirement, and yes, downsizing. Employees are
leaving with rich data. In the North American public service sector, close to
one in five employees will be retiring over the next few years. That
incredible knowledge and experience base will soon be walking out the
door. While organizations are often focused on creating new knowledge,
they might be overlooking old knowledge that needs to be collected and
shared.
Many companies excel at using their Intranet or Informal Channels to let

others know who's who so that everyone knows how best to access
Information. It is still amazing, however, how fragmented many
organizations continue to be-there are places where people do not know
their fellow employees. All members of an organization have experience,
knowledge, and unique perspectives that need to be brought together and
leveraged for collective benefit. The largest source of new ideas might be
the employees, so the communication channels between departments
should be opened. Cross-train employees in other departments so that
they understand the organization from many angles and can help co-
workers with additional insights.
Consider accessing electronic tools, such as e-mail, groupware idea-

generation and decision-making programs, the organization's Intranet, the
Internet and Extranet (a network designed to connect your broader
enterprise, including suppliers and customers) as well as setting up a call
center to process new ideas. Hallmark Cards is an example of a company
that is using advanced groupware tools such as Communispace to foster
collaboration with employees and customers.
To avoid "reinventing the wheel," identify common or repetitive aspects of

your team's projects and develop a process and idea bank to help
jumpstart these projects. For example, if your team is constantly looking
for new ideas to promote your product or service, you might want to start
collecting examples of promotions-contests, coupons, sampling methods,
special events, etc.-to be used to jumpstart Creative Thinking for the new
project.
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A team might want to consider implementing a more formal approach to

sharing and showcasing new ideas within the organization.
• Nortel Networks recently established a Share and Discover Day
where, for twenty-four hours, it used its Web technology to share its
latest programs and highlight guest speakers.
• Hewlett-Packard Printer Division recently put together a Traveling
Trailer Museum that highlighted the evolution of the Inkjet Technology.
The museum was shipped to many places so that people could benefit
from learning the history of, as well as the potential for, Inkjet
Technology.
• Sodexho Marriott also conducted a Traveling Innovation Forum in which
it showcased Innovation that was relevant to furthering its business
strategy in addition to providing training in Innovation Management. The
best ideas for Customer Retention, Customer Service, and Human-
Resource Development are highlighted at this forum.
4.4 USING THE TEN CREATIVE CONNECTIONS POWER

TOOLS
The mind is full of ideas from past experiences and from Observations
gained through Television or Conversations. Some people rely on their
subconscious mind to access these ideas. However, unfortunately, they
never know when these ideas might surface-it could be early in the
morning; late at night, on a walk, or in the shower. Other people prefer to
take a more structured approach to finding new ideas, using specific tools
and techniques. Here are the Top Ten Creative-Connections Powertools.
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4.4.1 Creative-Connections Power Tool 10: Rummaging in the Attic
Figure 4.6
There are many great ideas simply sitting in the "attics of our minds" as
well as in the "attics of our organizations". We have a tendency to trash the
past and hold the perception that an idea from five years ago will be of
little use in helping to solve our current challenge. However, elements of
previous solutions or ideas can prove to be very valuable fuel for
jumpstarting our idea engines. Look at ideas such as bell-bottom jeans,
disco music, scooters, pogo sticks, and roller skates, all of which have
resurfaced.
How to Implement This Creative-Connections Power Tool. The first step is

to discover what is in the attic. Find those old ideas and dust them off.
Interview others who have previously worked on the same challenges, and
learn from their experiences. Excavate Old Research Reports, previous
Brainstorming-Session Reports, and Old Business Plans. Unearth the rich
reservoir of idea starters. Ask the Knowledge-Management folks to
establish a link to the database of information relating to the challenge.
Access the team's idea bank on the Intranet, if they have one. Uncover
what is already there and reconnect it in a new way to your current
problem or challenge. Attic Ideas are also great idea starters for any
meeting. Ask the participants to submit their top attic ideas before the
meeting and then begin the meeting by distributing a list of these ideas.
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4.4.2 Creative-Connections Power Tool 9: Cultivating Obsession
The best way to find new ideas for a certain product, service, or process is
to become obsessed with the challenge. At the beginning of all projects,
the members of the Design Team take the time to understand the market,
the client, the technology, and the perceived constraints of the problem.
They observe real people in real-life situations to find out what makes
them tick-what confuses them, what they like, what they hate, and where
they have latent needs not addressed by the current products and services.
For example, if they were faced with the challenge of inventing a better
shopping cart, they would immerse themselves in the state of grocery
shopping, shopping carts, and all possible relevant technologies. They
observe and understand how people shop and the challenges they face
with shopping and shopping carts.
How to Implement This Creative-Connections Power tool. Being obsessed

with the challenge requires one to "live and breathe the challenge." It
means interviewing the "experts" and observing actual customer behavior.
It means learning about the origins of the challenge and investigating it
from all angles. Seek out all the information-all the facts, opinions,
samples, and reviews you can find on the subject. For example, if you were
faced with designing a new beer brand, you could obsess with the
following:
• Understanding the current state of the market to discover which brands
sell the most, in which regions, in which months, to which customer
groups.
• Understanding the bigger picture of the global beer market by conducting
an Internet search of all the beer Web sites in order to understand the
appeal of unique segments and unique brands in other countries.
• Interviewing brew masters to understand the history of beer, beer
recipes, and the source of beer ingredients.
• Interviewing other "beer experts," such as Sales Managers, Bartenders,
and Customers to understand their needs and their desires for current
and new beer brands.
• Reviewing Consumer Research Studies and observing customers in bars
and restaurants.
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• Investigating other beverage categories to understand the trends in

these categories,
• In addition, of course, personally sampling a wide variety of beer so that
you have first-hand knowledge of the category!
In another example, if a team were faced with the challenge of buying new
equipment for a production line, they should not limit themselves to
reviewing one or two sales brochures. They should ask others for their
opinions and search the Internet for other opinions. They might find that
one of the suppliers is working on a new model that could lead the team to
postpone its decision for a while until the new technology is introduced.
Obsession will definitely lead to better insights.
4.4.3 Creative-Connections Power Tool 8: Analyzing Frustrations
Figure 4.6
"Solving customer problems sparks Innovation." One of the most fertile

areas for identifying new ideas is discovering what frustrates others about
the current product, service, or process. While it is always great to focus
on what is wonderful, the team might want to take a quick look at what is
not so wonderful. In the field of Innovative Thinking, sometimes these very
deficiencies are the origin of a breakthrough idea.
• A great example of a company that benefited from understanding its

customers' frustrations is Black & Decker. People were frustrated at
needing to have a partner hold the flashlight or needing a prop on which
to place the flashlight while they worked on a specific task. The
frustration grew if the person or the flashlight moved so that the light no
longer shone on the area where the customer was working. Black &
Decker focused on this customer frustration and invented the Snake
light, a flashlight that could be twisted around a ladder or another
object to stay in position until the task was done.
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• FedEx solved many of the frustrations customers had with Courier

Services. Not only did it address the frustration of late packages with it's
"absolutely positively has to get there overnight" service, it also
addressed the frustration a customer felt when they did not know the
location of their package. FedEx responded with its revolutionary
Online Tracking System. Now all customers can track their package's
journey so that both the sender and the recipient know the package's
location at any time and its expected time of arrival.
• Here is a frustration that is yet to be solved: In any large city,

there is an increasing incidence of Road Rage and Red-light
Runners. A high percentage of accidents occur at intersections during
the time when the traffic lights are changing. Why haven't car
manufacturers discovered that their consumers need brake lights at the
front as well as the back of their car? Front Brake Lights would help lower
the number of accidents at intersections because a driver would no
longer have to guess whether the oncoming car would stop or proceed
into the intersection. This kind of frustration or complaint can be a rich
source for creating breakthrough ideas for redesigning cars.
How to Implement This Creative-Connections Power tool. Have the courage

to ask customers to share their frustrations. Ask them what frustrates
them about your products, services, or processes as well as those of the
competitors. Discover what features are missing. Discover what other
products or services they need to combine with yours in order to get the
job done. In essence, find out everything about their frustrations.
4.4.4 Creative-Connections Power Tool 7: Identifying the Gold

Standard
How to Implement This Creative-Connections Power Tool. Identify

Organizations that have achieved Excellence in your particular challenge
area.
• For example, if you are looking for new ideas for "organizing customer
flow," you might want to investigate what Disney has done to organize
their customer flow so everything runs smoothly at their theme parks or
what McDonald's has done in order to serve their customers quickly.
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• If you are looking for ideas for Advertising, you might want to look at
examples of recent award-winning advertisements.
• If you are looking for ideas for recruiting new employees, you might want
to see how many of the Top Organizations recruit students or how NBA
Teams recruit star basketball players. A literature search and Internet
key word search are very valuable resources, as are Direct Interviews.
Once you have identified the Gold-standard Organization, make a list of the
elements of the process or program that made this organization into your
Gold Standard. Relate these elements back to your particular situation and
discuss which elements would be useful. Determine what action steps
would be needed to implement these elements in your Organization.
4.4.5 Creative-Connections Power Tool 6: Adopting and Adapting
Great Ideas already exist somewhere else in the universe. All you need to
do is find them and adopt them as your own. Find out what others are
doing well. Do not limit the Stimuli to your own company and only "fast
adapt" ideas from within the four walls of your own Organization.
How to Implement This Creative-Connections Power Tool. There are several

sources for Adopted Ideas. First, look within your own Organization-in
other departments, regions, or business units. Many companies spend so
much time reinventing the wheel in separate parts of the organization
when all they need to do is ask another department how they solved a
similar challenge. What better place to find ideas to adopt than from your
own relatives?
Second, Study the competitors' products or services or, in the case of a

government agency, other agency services and programs. Keep an eye out
for emerging competitors, those small but growing entities that are on the
move.
• Companies like Coca-Cola and Pepsi can benefit from keeping their
eyes on the new beverage players as valuable sources of new ideas.
• Organizations like the United States Forest Service can benefit from
keeping their eyes on environmental lobbying groups and logging
companies to better understand the upcoming challenges as well as
potential new solutions.
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Investigate your competitors' products in other countries that might soon

be imported to your country. Check the Trademark Applications being
submitted by the competitors. One of the first indications of their plans to
bring a new product or service into the market is a Trademark Application.
While adopting ideas from within the category might be beneficial,

adopting ideas from outside the category and bringing these ideas to the
category before others do, would definitely put you ahead of the game. It
is best to venture outside the category, "do a little off-road thinking."
Look to neighboring categories to adopt new ideas.
For example, for a challenge in the beer market, look at the neighboring
categories of substitute products such as wine, liquor, and soft drinks. Find
out what new ideas are working in these categories. Find out what it would
take to switch consumers of these substitute products to your product or
product category. Or better yet, develop a new category that bridges both
your category and this neighboring category, such as wine/soft-drink
combinations or beer/soft drink combinations.
Other ideas can be found in organizations that have faced similar

challenges. These organizations do not have to be in the same category, in
the same country, or even in the neighboring categories.
• A Cafeteria Manager for Sodexho Marriott developed an Easy Pass

system where customers could easily deposit $5 in the jar to pay for
their meals and bypass the cashier line. He got the idea while driving on
the highway and realizing that cars with the E-Z Pass or the correct
change could sail through the tollbooth, while others had to wait to get
change from the cashier.
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Here are some other examples of possible Creative Cross-Industry

learning Ideas:
• Banks could adopt the Numbering System many bakeries and
government offices use to serve customers so that their banking
customers could sit and relax while waiting their turn.
• Theater designers could adopt the Nike Shoe Air-Pump Technology in
their seat design so customers could pump up their seats to make
themselves more comfortable during a performance.
• Restaurants could adopt the technique used by Wait Disney World to fully
integrate a theme into all elements of a chosen design, including menu
items, decor, cutlery, pricing, staff uniforms, and advertising.
Most companies look head-to-head only with competitors in their own

category. Innovators, however, look beyond the borders of their category
to find new ideas to adopt and adapt.
4.4.6 Creative-Connections Power Tool 5: Combining Ideas
Creative Thinking is a bit like cooking: a little of this and a little of that.
Creative Thinkers are aware of the objects or ideas around them and look
for new connections through combining diverse objects or ideas.
• Children playing house use whatever blankets, boxes, toys, cushions,
newspapers, or other objects are around and combine them into a great
Playhouse.
• Creative executives at Advertising Agencies are good at this as well. They
look for combinations and links using such things as current movies or
fashion trends as the basis for new ad proposals.
• Artists use mixed media to create new works of wonder.
• Software Programmers mix and match different technologies to find new
ways to program our lives.
• McDonald's was one of the first fast-food restaurants to introduce value
combos: A combination of sandwich, fries, and drink.
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How to Implement This Creative-Connections Power Tool. Practice

combining objects in everyday life.
Figure 4.8
• How could a computer keyboard be combined with a printer?

• How could a doctor's office be combined with a school?
• How could the concept of a "book-of-the-month club" be combined with
wine?
What else could be combined with your product, service, or program?

Seemingly unrelated stimuli can be forced back into a combination with the
product or service. Open your mind to the possibilities. Experiment.
• The other day, we visited Pizza Hut, where there was a new variety
called Birizza, which we ordered. It was so delicious and we enjoyed the
taste. It was a combination of pizza and vegetable biryani.
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4.4.7 Creative-Connections Power Tool 4: Finding Similarities
When you are faced with a Creative Challenge, a good Technique is to think
of other challenges that might be similar.
For example, find similarities in nature: How is the organization like a tree,
or how is the process like a tornado?
• The Velcro Hook and Loop design was invented by someone who
studied the way the burrs stuck to clothing.
• Another technique designed to uncover similarities is the Excursion

Technique. This technique, designed by George Prince, the
creator of the Synectics Creative Problem-Solving Process, relies
heavily on analogies, metaphors, and mental excursions. Excursions take
a person temporarily away from the problem so that she can change her
perspective and then relate what she finds on her excursion back to her
original problem or situation. According to Prince, the important steps of
the Excursion Technique are as follows:
1. Participants must put the problem out of their minds.
2. The Facilitators lead them in the use of some right-brain functions
(imaging, connection making, and pattern recognition) that are
apparently unconnected to the problem.
3. Participants relate the seemingly irrelevant material back to the problem
at hand. The Excursions might be real (a visit to an airport, a grocery
store, or a museum) or they might be imagined (playing on a beach,
visiting the future, or starring in a movie). Excursions help the
subconscious mind to work on the problem to find solutions grounded in
seemingly unrelated events or locations.
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How to Implement This Creative-Connections Power Tool. Spend some time

thinking about how the problem, product, process, or program is similar to
other situations. Draw analogies to similar situations.
• For example, What similarities can you find between fast-food
restaurants and your organization?
• What similarities can you find between a baseball team and your team?
• What similarities can you find between your sales process and eBay's?
• Relax your mind and try the Excursion Technique. You might discover a
new connection through a much unrelated source!
4.4.8 Creative-Connections Power Tool 3: Breaking Down the DNA
Sometimes the problem or situation is overwhelming in its complexity. A

good technique in this case is to break the problem down bit by bit so that
the focus is on the "bits" instead of on the whole problem all at once. It is
then easier to understand what is driving the problem and identify unique
ideas to solve part, if not all, of the problem. Pulling apart a product or
service to find the underlying "DNA" elements is easy. Simply list the
characteristics or attributes of the product or service and then ask
questions or play with each of the elements.
Doing the DNA breakdown is similar to a technique called "Reverse

Engineering." The process of working backward from the finished product
to discover how the object was constructed is called "Reverse
Engineering."
Many Computer Software Companies use this technique. They purchase

their competitor's product and then pull it apart to see how it was put
together. This technique could be used in many other product and service
categories as a means of discovering new ideas, or the elements of new
ideas.
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Pulling apart a process is a little more difficult. For this technique, the team
needs to outline the process step by step. At Walt Disney World, for
instance, they have done the DNA exercise for their customer service
processes and have thought of everything. From the time a customer hears
about Disney World, through requesting information, arriving and entering
the parking lot, purchasing the tickets, reviewing the maps, lining up for
the attractions, boarding the rides, disembarking from the rides, and so on,
the staff at Walt Disney World have analyzed every step to ensure that the
process flows smoothly.
How to Implement This Creative-Connections Power Tool. First, outline all

the component parts of the product or all the steps in the process. By
looking at the DNA, the team can highlight where the issues and
opportunities are and see how to the elements could be changed. For
example, they might want to:
1. Rearrange steps in the process, such as putting the quality checks at

the beginning of the process instead of at the end, so that no faulty
parts are used throughout the process. This Creative Idea would reduce
downtime and waste.
2. Consider skipping a step.

Michael Dell shipped computers right from the manufacturer to the
customer. In doing so, he simplified the process of purchasing a
computer, which led to the meteoric rise of the Dell Computer
Corporation.
3. Add a step.
• For example, Consumers used to just wash their hair. But then the
shampoo manufacturers decided that consumers needed to not only
wash their hair, but also condition it, as well as add styling gel and
hairspray.
• The same happened with the laundry industry when fabric softener
was added.
Adding steps to the process might represent creative ways to market

new products or services.
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4.4.9 Creative-Connections Power Tool 2: Listing and Twisting
Once the steps in the process or attributes of the product or service have
been "listed," they can be "twisted" to find new ideas.
How to Implement This Creative-Connections Power Tool. Use your

imagination and the following chart as stimuli for "twisting" ideas:
The List and Twist Checklist. Table 4.2

Add a step Find other uses Slow down
Eliminate a step Find other customers Add sound
Rearrange the steps Improve the quality Add motion
Outsource a step Decrease the quality Add texture
Add an ingredient Make it easier Change packaging
Eliminate an ingredient Make it more complicated Automate parts
Change an ingredient De-automate parts
Combine ingredients Align with another Standardize
product
Make it bigger Align with another Accessorize
Make it smaller service Make it more extreme
Make it more expensive License Make it less extreme
Find new distribution Separate
Make it less expensive Substitute materials Make it self service

Change the shape Combine other processes Make it more reliable
Change the state Bundle with others
Put some fun in it Make it educational Change color
Divide it Speed up Automate parts
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4.4.10 Creative-Connections Power Tool 1: Becoming a Visual

Thinker
• It is believed that Leonardo da Vinci created an early version of the

Storyboard Technique. Walt Disney perfected this technique to
organize his animation projects. By visually displaying the scenes
involved in the plot, Disney was able to add, delete, or rearrange them to
produce the most entertaining program.
• Michael Vance built on this technique of Displayed Thinking by

encouraging people to work in color, not black and white, and to work in
images, not lists.
• Advertising Agencies use the Storyboard Technique to visually

display the flow of their proposed Television Advertisements.
• Mind Mapping, created by Tony Buzan, is another Visual Creative

Connections Technique.(see figure 4.8)
Figure 4.8
In brief, it is a visual depiction of the links and connections between

thoughts. This particular non-linear technique helps to generate ideas in a
way that, especially when presented in group settings, is less prone to
produce biased reactions than are traditional "lists" of ideas. Mind Mapping
also makes transparent the relationships between ideas and concepts.
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How to Implement This Creative-Connections Power Tool.
Essentially, the Mind Mapping Technique includes beginning with the key
issue or challenge in the center of the page, then quickly creating large
branches from the key issue that represent ideas pertaining to the issue.
From there, more branches are created either from the main issue or from
branches that already exist. It is important to branch out freely and quickly
so that as many connections as possible are made as quickly as possible.
Do not be afraid to be messy! Mind Mapping is a valuable tool for showing
relationships between elements, demonstrating multiple perspectives, and
showing the breadth and depth of a complex issue.
There are also many Creative-Thinking and Mind Mapping Software

Programs, such as IdeaFisher, Innovation Toolbox, Inspiration, Mind
Manager, Personal Brain, The Brain, and Visual Mind. Information and, in
some cases, demonstration versions of these programs, can be obtained on
the Internet.
Figure 4.10
Other Visual Techniques include drawing Relationship Maps or

Interrelationship Diagrams, which serve to show the relationships between
various causes of the problem as well as enabling one to see the problem
in its totality.
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4.5 EVOLVING FROM BRAINSTORMING TO INNOVATION

GROUPS
A chapter on discovering New Connections would not be complete without

a discussion of Brainstorming. Outlined on the following pages is a brief
discussion of Brainstorming and a recommendation to try an Innovation
Group as an alternative.
4.5.1 The Creation of Brainstorming
Advertising executive Alex Osborn created Brainstorming in 1938

as a group method for Idea Generation. It has grown to be one of the
most popular methods used by groups all over the world to tap into
different participants' perspectives and experiences in order to generate
many Alternative Ideas. Osborn was influential in the design of
Brainstorming as a process in that he recognized that Creativity could be
increased by banning evaluation during the idea-generation phase. If the
participants were to offer their ideas rapidly, there would not be time to
evaluate or debate the ideas. Accordingly, Osborn developed four
guidelines for Brainstorming: 1) Defer judgment, 2) Strive for quantity, 3)
Seek unusual ideas, and 4) Combine or build on others' ideas.
4.5.2 The Challenges with Brainstorming
Unfortunately, the application of the original concept and process of

Brainstorming has been modified over time, resulting in a loss of its
effectiveness. The typical Brainstorming session now involves a leader who
shares some adaptation of the rules of Brainstorming, reads the problem
statement, asks participants for ideas, organizes the ideas, and then
requests that the participants select the best one. The appeal of the
original concept of Brainstorming has been restrained by the addition of the
selection step. The original concept did not include this selection step as it
focused strictly on Divergent or Exploratory Thinking.
Although the participants start out with good intentions, there are
numerous problems that are usually encountered, in some form or the
other, with Brainstorming as it is now practiced:
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1. Lack of Process: Most people view Brainstorming as an "event" that is

not part of a larger Innovation Process. The event is often unstructured,
no tools are provided, and participants are unsure of what will happen
during and after the event. In most instances, the leader reads the
problem statement, and then the participants proceed to drain the ideas
from their minds. As the event is unplanned, many of the exercises do
not relate to the specific challenge at hand. Often the flow of the event
is disjointed as participants mix the discussion of the problem with
action steps offered at random.
2. Lack of a skilled Facilitator: The Facilitator may not understand the
overall process or that the Facilitator's role should be focused on guiding
the process rather than offering ideas. Some Facilitators redirect the
meeting to fit their personal agendas and sometimes acknowledge only
certain ideas, screening out others. These actions have a demotivating
effect on the participants and do not fulfill the intent of authentic
Brainstorming.
3. Lack of skilled Participants: Brainstorming sessions can be disrupted
by a few participants who dominate the meeting while the quieter
participants withdraw. Some participants view Brainstorming sessions as
a chance to flaunt their technical knowledge. Other conflicts can surface
when Managers try to influence the flow of the meeting and
Subordinates try to offer only ideas they believe their Manager wants to
hear.
4. Listing of Rules: Often the Brainstorming session begins with the
leader reading a List of Rules of Conduct. Unfortunately, reading a List
of Rules does not guarantee that the participants understand the
philosophy behind the rules nor that they will follow them.
5. No Agreement on the Problem: Often the focus of the Brainstorming
session is on identifying solutions for a given problem, when what is
really needed is a Dialogue Session to clarify and reach a common
understanding of the problem or issue. Not enough time is spent on
exploring and analyzing the Real Problem. The problem may also be too
complex to be dealt with in one group meeting
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6. Lack of Stimuli: The most common approach to Brainstorming is to

gather a group of participants in a room and ask for ideas. The Leader is
usually positioned beside a blank sheet of Flipchart paper, and the
participants have blank pieces of paper in front of them. No External
Stimuli-- samples, examples, products, etc.-are available in the meeting
room to stimulate Idea Generation.
7. Pressure to be Creative on Queue: Not everyone is Creative at the
same time of day or in the same style. Not everyone can find Creative
Ideas in an office setting. By scheduling a two-hour Brainstorming
Meeting, the leader is expecting everyone to produce Creative Ideas
within that specific two-hour period.
8. Pressure to Converge quickly: Following the listing of new ideas,
participants are asked to quickly choose their "best ideas." This step is
difficult to do since the criteria for selection are often unknown or
misunderstood. Participants are asked to select the best idea without
having time to investigate and reflect on the ideas. Some participants
want to avoid a conflictual situation, so they choose the most popular
idea, or they revert back to the safest idea or the one closest to what
has already been implemented. Others spend more time supporting
their own idea and convincing others to accept it, so that the focus on
solving the problem most effectively is lost. A major complaint with
Brainstorming is that ideas that are not immediately perfect are
discarded.
9. Lack of Follow-up: Teams can spend many hours and lots of money on
Brainstorming but they often find that the excitement for ideas
generated during the session soon fizzles and the ideas are never
implemented.
A common criticism of Brainstorming is that, of twenty great ideas

generated during a meeting, one might get accepted and nineteen are
forgotten and never referenced again. Then the team holds another
Brainstorming Meeting a few months later and repeats a similar process,
resulting in another "new set" of ideas, of which one is used and the rest
are discarded. The team, in effect, constantly reinvents the wheel, and
potentially great ideas are lost in the process.
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4.6 INNOVATION GROUPS
A preferred method for Idea Generation is holding an "Innovation Group,"

which, because of its comprehensive and rigorous design, goes beyond the
more common Brainstorming method. The Innovation Group method
addresses the previous list of problems by recommending the following:
1. A more Complete Process. One must first determine if the goal of the
Innovation Group is exploration (Exploratory Thinking) or the resolution
of a specific problem (both Exploratory and Concentration Thinking). If
it is only exploratory, then one group meeting may suffice. If it is to
solve a specific problem, then a series of group meetings spread over
time may be warranted.
Consider the following process steps:

a. Pre-work to establish the goals of the process and ask participants to
explore the subject area;
b. The first group meeting to explore and clarify the problem definition;
c. Time away to reflect on the chosen problem area and conduct more
research;
d. A second group meeting to explore the subject area and generate
ideas;
e. Time away to reflect on the ideas and add more ideas; and
f. A third group meeting to discuss the ideas and select the "best" ones.
This final step can include the group or be done solely by the Leader. The
tactical details are planned from here. The Two- or Three-Stage Group
Meeting Approach helps address the issue of Premature Closure.
Participants have time to reflect on the output and research the ideas
that interest them. Individuals can contribute additional ideas they
identified outside the limited time frame of the Group Meetings.
Convergence is easier if participants have this time and the opportunity
to discuss the selection criteria in the early stages of the process.
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2. Reducing the pressure to be Creative in one meeting: Using a

Two- or Three-Meeting Process helps alleviate the pressure to be
Creative in one meeting and allows more time for Research and
Reflection. Participants can generate ideas according to their personal
style. Ideas generated outside the meetings can also be considered.
3. Choosing a Skilled Leader: The Leader may be the person in charge

of the project or he may be the person who is best at inspiring and
focusing a team of participants. If the leader is also assuming the
responsibility of being the Facilitator, he must focus on leading the
overall process and inspiring the team, and not on directing the content
to his preconceived solutions. The role of the eader is to guide the
process from start to finish, engage all participants, seek equal
participation, challenge the Participants to dig deeper for more insights
and ideas, and in general, bring a high level of enthusiasm to the
project.
4. Choosing the best participants. Participants are responsible for

researching the project area, developing insights and innovative ideas to
contribute to the team, bringing a high level of enthusiasm to the
project, being open-minded, and encouraging others to identify and
accept Innovative Ideas. The Leader may wish to add diversity to the
group by inviting a few outsiders-suppliers, customers, and experts-to
the group to add perspective.
5. Providing Guidelines. The nine guidelines for an effective Innovation

Group are:
• Make sure everyone contributes.
• Clarify the real problem.
• Focus on what is wanted.
• Accept partial ideas enthusiastically.
• Accept unique ideas enthusiastically.
• Seek connections using Stimuli and other ideas.
• Be open to others' new ideas.
• Challenge others' ideas.
• Allow Passion to rule.
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6. Clarifying the Real Problem. It is important to spend time exploring

the various aspects of the problems before selecting one particular
problem to solve. The team should be focused on the problems that, if
solved, can deliver the greatest impact to the customer and-to the
organization.
7. Introducing Stimuli. The more Stimuli, the better. Stimuli should be

included in the pre-work stages as well as during the meetings. Stimuli
could include previously generated ideas, samples, examples, idea
worksheets, and output from previous meetings.
8. Using the Creative-Connections Power Tools. Use any or all of

these tools to stimulate Creative Thinking.
9. Ensuring Follow-up. The multi-step Innovation Group ensures that

some Follow-up will occur. Participants are more inspired to contribute
to the process because they understand the process and have faith that
their ideas will be heard and reviewed authentically. The capturing of all
ideas in an "Idea Bank" for later consideration helps develop the
Innovation capacity of the group.
Activity A:
Every day you commute from your house to the college/office, and come
back home in the evening. Use Creative-Connections Power Tool 3 and 2 to
make the process more capable.
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Activity B:
The Velcro hook and loop design was invented by someone who studied the
way the burrs stuck to clothing. Observe a Tulip flower and think what you
can invent.
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4.8 SUMMARY
• Pursue a large quantity of Ideas and make connections between these

Ideas. The great connection could arrive at the second or eighth or
thirtieth idea. One never knows when a great idea will arrive.
• Creative Thinking is really about discovering new connections through

the use of
(1) the Imagination,
(3) Creative-Connections Power Tools.
• Although the participants start out with good intentions, there are
numerous problems that are usually encountered, in some form or the
other, with Brainstorming.
• A preferred method for Idea Generation is holding an "Innovation

Group," which, because of its comprehensive and rigorous design, goes
beyond the more common Brainstorming method. The Innovation Group
method addresses the previous list of problems by recommending the
following:
• A more Complete Process
• Addressing the pressure to be Creative
• Choosing a Skilled Leader
• Choosing the best Participants
• Providing Guidelines
• Clarifying the real Problem
• Introducing Stimuli
• Using the Creative-Connections Power Tools.
• Ensuring Follow-up.
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Write short notes on:
1. The Challenges with Brainstorming
2. Creative-Connections Power Tool 1
3. Using your Imagination to do the opposite of what is expected.
1. Something that encourages activity in people

(a) Medicine
(b) Drug
(c) Achievement
(d) Stimuli
2. Rummaging in the Attic is

(a) Creative-Connections Power tool 1
(b) Creative-Connections Power tool 10
(c) Creative-Connections Power tool 7
(d) Creative-Connections Power tool 9
3. The problems with Brainstorming (Find the wrong one)

(a) Lack of Follow-up
(b) Using the Creative-Connections Power tools
(c) Pressure to converge quickly
(d) Lack of Stimuli
4. Historical review, Children, List of trends, Photos are sources of:

(a) Affection
(b) Confusion
(c) Diverse Stimuli
(d) Travelling
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5. The List and Twist Checklist. (Find the wrong one)

(a) Add a step
(b) Eliminate a step
(c) Rearrange the steps
(d) Climb the steps
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TRANSITION FROM CHAPTER 4 TO 5, 6, 7 AND 8
My dear students, you have now understood fully how to use your
Imagination, Diverse Stimuli and above all, Creative Connections Power
Tools. These are very important part of our subject, so master them. Form
your Innovation Groups. Start Innovative Thinking in your day to day life.
Internalize this subject as an inherent part of your career.
The next chapters from 5 to 8 are giving you insights about Strategic
Thinking. The nine step Innovation Process will take you further on your
journey of Innovation Management.
The most interesting topics are:

1. The Big Picture Criteria
2. Innovation Goalposts
3. Trend Watching and Analysis
4. Extraordinary Strategies
Go through the Extraordinary Strategies at least 2 or 3 times when you are

in a calm and quiet state of mind. We assure you that you will get the
insight into the subject to the maximum extent.
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Reference Material
chapter
Summary
PPT
MCQ
128
INNOVATION PROCESS
Chapter 5
Innovation Process
Objectives:
In this chapter, you will come to know the steps in the Innovation Process.
Structure:
5.1 Introduction
5.2 Process Flow Chart:
5.3 The Nine-Step Innovation Process in tabular form
5.5 Summary
5.6 Self-assessment questions
5.7 Multiple choice questions
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INNOVATION PROCESS
5.1 INTRODUCTION:
The Process Approach is one of the eight quality management principles

upon which the entire ISO 9000 series of quality management standards is
based. This principle says a desired result is achieved more efficiently when
activities and related resources are managed as a process.
The word "process" is defined in ISO 9000:2000 clause 3.4.1 as "a set of
interrelated or interacting activities that transforms inputs into outputs."
Inputs to a process are generally outputs of other processes. Processes in
an organization are generally planned and carried out under controlled
conditions to add value.
From the principle and process definition, you can see the process
approach is a powerful way of organizing and managing how work activities
create value. While a more traditional structure organizes and manages
work activities vertically by function, with quality problems frequently
occurring at the boundaries of the functional departments, the process
approach organizes and manages work horizontally the way work activities
create customer value.
The Process Approach directly links process inputs that come from
suppliers to the outputs of the process that go to customers. This
Horizontal Linkage between suppliers and customers is an excellent way to
manage and continually improve both the effectiveness (the amount of
value created for the customers) and the efficiency of the process.
We shall follow the Process Approach in case of Innovation Management

too. The Process Approach essentially starts with making a:
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INNOVATION PROCESS
5.2 PROCESS FLOW CHART
Figure 5.1
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INNOVATION PROCESS
5.3 THE NINE-STEP INNOVATION PROCESS IN TABULAR

FORM
The Process Flow Chart is explained further as follows:
The Nine-Step Innovation Process

Step Exploration Concentration
Part 1: Understanding ( Explained in detail in Chapter 6)
Step1 1-A 1-B
Gathering information Choose the team that will Analyze the problem.
address the problem. Understand the problem
Gather facts, opinions, better.
details. Apply “who,
what, where, why, how,
when” to the problem.
Get information from
external market.
Step2 2-A 2-B
Clarify the real problem Identify and list the likely Separate the concern.
causes of the problem.
List “problem
statements” or concerns.
Do problem analysis.
Step3 3-A 3-B
Setting innovation Explore the range of Set the innovation
goalposts acceptability for options goalposts
and solutions. Do
decision analysis.
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INNOVATION PROCESS
Part 2: Imagination ( Explained in detail in Chapter 7)

Step4 4-A 4-B
Seeking stimuli Explore the environment Analyze and narrow down
for signals and other the stimuli.
information. Research
past, present, and future.
Explore multiple
perspectives. Explore the
marketplace.
Step5 5-A 5-B
Uncovering insights Use your chosen stimuli Choose the high priority
and imagination to insights for further
identify potential insights reflection.
and discoveries. Suspend
judgment while you are
uncovering these
insights. Use the creative
connections power tools.
Step6 6-A 6-B
Identifying ideas Explore these high Compare and select the
priority insights for best ideas based on the
potential ideas to solve previously discussed
your real problem. innovation goalposts.
Build these ideas into
fuller concepts.
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INNOVATION PROCESS
Part 3: Action ( Explained in detail in Chapter 11)

Step7 7-A 7-B
Developing the Take these concepts and Choose the optimal plan
innovation roadmap build them into fuller based on the innovation
plans. Investigate goalposts and
resource needs, timing, predetermined criteria.
and responsibilities. Consider the impact this
Identify alternative plans. plan will have on the rest
of the organization.
Step8 8-A 8-B
Gaining commitment Explore commitment to Present the plan.
the optimal plan. Identify Readjust the plan. Test
who will support the plan. elements of the plan if
Prepare the plan for desired. Readjust the
presentation. plan. Finalize
commitment to the final
plan.
Step9 9-A 9-B
Implementing the Release the final plan into Review the entire process
innovation roadmap action. and results and share
Adjust the plan when this learning.
needed.
Activity A:
Select a problem. Choose the team that will address the problem. Gather
facts, opinions, and details. Apply "who, what, where, why, how, when" to
the problem. Get information from the external market.
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INNOVATION PROCESS
5.5 SUMMARY
The Process Approach directly links process inputs that come from
suppliers to the outputs of the process that go to customers. This
horizontal linkage between suppliers and customers is an excellent way to
manage and continually improve both the effectiveness (the amount of
value created for the customers) and the efficiency of the process. We have
followed the Process Approach in case of Innovation Management too.
o you understand by Innovation Goalposts?
1. Gathering Information
(a) Step 1
(b) Step 2
(c) Step 3
(d) Step 4
2. Gaining Commitment
(a) Step 5
(b) Step 6
(c) Step 7
(d) Step 8
3. Setting Innovation Goalposts

(a) Step 2
(b) Step 3
(c) Step 4
(d) Step 5
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INNOVATION PROCESS
Reference Material
chapter
Summary
PPT
MCQ
Video Lecture
136
STRATEGIC THINKING
Chapter 6
Strategic Thinking
Objectives:
After the Creative Thinking part, now you will get acquainted to the
Strategic part of Innovation Management.
Structure:
6.1 Introduction
6.2 See the BIG Picture
6.3 Systems Thinking
6.4 Clarifying the Real Problem
6.5 Set Innovation Goalposts
6.5.1 How to Set Innovation Goalposts
6.6 The BIG-Picture Criteria
6.6.1 The Big Idea Must Be Simple
6.6.2 The Idea Must Support the Overall Business Strategy
6.6.3 The Idea Must Be "Distinctly New and Better"
6.6.4 The Idea Must Be Proven
6.6.5 The Idea Must Be Profitable
6.6.6 The Idea Must Be Quickly and Easily Implemented
6.7 Applying the Six BIG-Picture Criteria
6.9 Summary
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STRATEGIC THINKING
6.1 INTRODUCTION
Strategy is about connecting Creativity with Value.
Strategic Decisions are based on:
• An understanding of the customers' current and emerging needs
• An understanding of the organization's current and emerging needs
- Anticipated future core competencies-special skills and knowledge
- Anticipated future resources and culture
• Future view of the industry and marketplace
A Creative Mind is the foundation of Innovation. It is always exciting to

discover new ideas-as witnessed by the recent flood of dot-com
enterprises. However, the dot-com experience also illustrates that
Creativity is only one piece of the puzzle. An idea can be Creative, but it
must also add Value.
A Strategic Idea is the best or most valuable idea for solving the
challenge at hand. While we might have many Creative Ideas, we must still
decide which is the best idea among the many options. Should we go this
way or that way? Should we allocate the entire budget to support one
program or should we save some for a "rainy day"? Should we merge with
the other organization or should we pass on the chance to collaborate?
Some people find the task of choosing one option over another easier than
others. Of course, the pressure to choose the "right" option increases as
the implications of the choice intensify and as resources become tighter.
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STRATEGIC THINKING
Strategic Thinking is an important component of Innovation

Management for several reasons:
• It can be used to strengthen the fundamentals of the business or
organization. If the base concept of the program, product, service, or
overall organization is weak, layering creative ideas on top of a weak
foundation is pointless. This would be analogous to icing a stale cake or
painting a car whose engine does not run.
• It can be used to deepen the understanding of what is really causing the
problem at hand. Understanding the context in which the problem occurs
and analyzing the possible causes of the problem are critical first steps in
the Innovation process.
• It can be used to strengthen communications with teams within the
organization as well as with suppliers, partners, and customers. If the
team can clearly articulate its strategic goals, the probability of
identifying creative and useful ideas that fit these goals is enhanced.
As Sun Tzu so wisely stated, "A General who wins a battle makes many
calculations in his temple before the battle is fought."However, who should
be involved in Strategic Thinking-the General alone or the General plus his
troops?
The old model of Strategic Thinking involved only the Executive Team and
those people who were believed to possess superior planning skills. This
approach elevated Strategic Thinking to the province of the elite and, in
doing so, disregarded the contribution of all others in the organization. The
new model involves everyone. Frontline employees are closer to the actual
day-to-day challenges and have tremendous knowledge and insights
regarding where the opportunities for improvement and redirection may
lie. If all employees, suppliers, and partners can understand the overall
goals of the organization and be on the lookout for new creative and
strategic ideas, the power of the organization can be magnified.
All employees can participate in Strategic Thinking by:

(a) Seeing the BIG Picture,
(b) Looking to the future, and
(c) Doing the extraordinary!
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STRATEGIC THINKING
6.2 SEE THE BIG PICTURE
(Refer Nine Step Innovation Process: Part 1: Understanding)
Figure 6.1
One of the tools for seeing the BIG picture is the Nine-Step Innovation
Process introduced in the Chapter 5. To begin this process, it is important
to take some time to truly understand the challenge at hand. This includes
gathering information about the challenge from as many different angles as
possible. The Creative Thinking tools and techniques, such as building
observation skills, asking probing questions, and seeking diverse stimuli,
already introduced in previous chapters, will help in completing this first
step of the process: Gathering Information.
It may also be helpful to gather information by looking beyond the specific

task and seeing the bigger picture. Often we are so focused on our little
tasks, on our piece of the world, that we forget about how our actions will
ultimately affect others involved in the same project. We sometimes hear
people saying, "I only work in the Accounting Department. I don't have
anything to do with the product." "Why can't the Marketing Department
realize that this is a Breakthrough Invention?" or "I really don't know what
the company is planning for the next year." This lack of understanding of
how the pieces of the puzzle all fit together results in growing frustrations
as well as lost opportunities for Innovation.
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STRATEGIC THINKING
Seeing the BIG Picture enables you to see why your task is
important to achieving the overall goals of the organization, how
the whole process flows from 'start to finish, how other
organizations are doing extraordinary things, and above all, how
the future marketplace is evolving in order to anticipate your own
future challenges and opportunities.
In addition to understanding how everything is related, seeing the BIG

picture also involves analyzing the many different angles of your problem.
Instead of rushing off to solve what might not be the real problem, it is
wise to take time to step back and gather as much information as you can
about the various dimensions of the problem. Doing this will ensure that
you are directing your Innovation efforts towards solving the most
important problem, or the root causes of the problem, versus wasting
effort trying to solve superficial or less pertinent aspects of your problem.
Seeing the BIG Picture also involves setting Innovation Goalposts

so that your innovation efforts are focused on finding the most
strategic ideas to solve your problem. It also involves predetermining
the criteria that will be used to 'select the best strategic idea among your
many options.
Let us look at the various elements of seeing the BIG Picture.
Figure 6.2
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STRATEGIC THINKING
6.3 SYSTEMS THINKING
• A mechanic could focus on one part of the engine, or he could focus on

the interrelationship between all parts of the engine.
• A doctor could focus on one part of the body such as the heart, or she
could look at the bigger picture of what is actually causing the weak
heart.
• A politician could recommend lowering the federal tax rate, but he could
also see the bigger picture of how a decrease in the amount of tax
collected at the federal level could send rippling effects through all
agencies and other jurisdictions.
These are examples of how things are interrelated and how a change in
one area can affect the rest of the system.
All Innovative Thinkers should understand the concept of Systems

Thinking. Systems' Thinking has its roots in the natural world with
many of its principles grounded in the fields of Biology and Ecology.
In its simplest form, Systems' Thinking is about looking at the
whole entity, not just the parts. Importantly, it is about looking at the
relationship between the parts and the whole and understanding the effect
that a change on one part will have on the other parts.
"A System is a set of components that work together for the overall
objective of the whole. Systems' Thinking is a new way to view and
mentally frame what we see in the world, whereby we see the entity first
as a whole with its fit and relationship to its environment as primary
concerns; the parts secondary."
Unfortunately, most people have been taught to focus only on the parts of
a project or organization that are relevant for the completion of a particular
task and, consequently, they only see a small percentage of what is really
going on. However, in breaking things down into these small parts, they
often lose the ability to see how things fit together and cannot identify
ideas that could benefit the whole organization.
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STRATEGIC THINKING
Systems Thinking is important to Innovation Management because

it can help everyone:
• To see themselves as part of a larger enterprise with a common purpose.
It is helpful to see how the parts of the whole organization (departments,
functions, groups) can work together to set project priorities and allocate
resources to achieve a common goal.
• To see how one change can affect many other parts of the system. Being
a Systems Thinker means understanding how decisions are being made,
how all decisions are interrelated and how, if an organization is to be
successful, all decisions link with and support the organization's overall
strategic direction.
• To see the world and its opportunities. The world is becoming more
connected with the advent of the Internet, enterprise systems, and
greater collaboration between suppliers, partners, and even competitors.
The more connections one can see and experience through Systems
Thinking, the higher the probability that one can find creative and useful
ideas.
Systems Thinking does not have to be complicated. Everyone has the

capacity to strengthen their Systems-Thinking abilities. Here is how:
1. Look at how your task is related to part of a bigger process. For

example, list who else is involved in your project from beginning to end,
and identify what they are contributing to the completion of the
task.And what you are contributing. Understand what comes before
your part and what comes after your part. This may help eliminate some
of the challenges resulting from "just throwing the work over the wall to
the next person in the process." Understanding the total process is
useful for Innovation Planning, either to see where process steps can be
eliminated or shortened, or to see how new ideas could affect "the way
things are done around here."
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STRATEGIC THINKING
2. Look at how your work is related to the bigger organization in

which you operate. Take time to look at how your work relates to that
of the rest of your department. Do you know what everyone else in your
department does and what projects they are currently working on? Find
out what your department's priorities are and how resources are being
allocated to meet these priorities. This is an example of seeing the BIG
Picture by looking "one level up" from where you are. Take time to also
look at how your work and that of your department relates to the rest of
the organization. Do you know people in other departments and are you
familiar with their work? Find out what your organization's overall
business strategy is and how resources are being allocated. Everyone,
including Research and Development personnel, can benefit from
understanding the BIG-Picture goals of the organization as well as the
steps involved in commercializing a new idea.
3. Look at how your work is related to the bigger marketplace. How

does your new idea fit with the existing structure of the marketplace? If
your idea is for a new product, how will the introduction of the new
product affect sales of other products in the company? How will other
competitors react to the introduction of your new idea? Expand your
viewpoint. See how your product is related to others in the same
product category and in other product categories. See what your
competitors are doing locally, nationally, and internationally. See who
else could be your competitor on a local, national, and international
level. If your idea is for a new government program, how will the new
program fit with the existing programs in the marketplace? How will
other agencies in other jurisdictions react to what you are proposing?
Find new perspectives and new ideas by moving from the close-in view
to the farther out, bigger-picture point of view.
4. Look at how your work is related to the future view of the

marketplace. Look at the bigger picture and ask, "How does what I am
working on, fit with where the marketplace is heading?"
Determine how your current projects or proposed new idea fits with the
current and emerging customer trends.
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STRATEGIC THINKING
5. Ask others for their perspective and ideas. The world is

interrelated, but often people try to solve their challenges by
themselves instead of asking for assistance from others who may have
faced the same challenge. Is there only one physician who is facing
changes in the hospital workplace? Is there only one food manufacturer
who is facing the issues of genetically modified foods? Is there only one
public servant who is facing budget cutbacks? Although everyone likes
to think their situation is unique to them, their team, their organization,
or their industry, there are many others in the bigger world who have
faced similar challenges. Step 1 of the Innovation Process is Gathering
Information about the problem or task at hand. Use the concept of
systems thinking to look more broadly at this problem or task. Gather
Information by asking more probing questions and exploring different
perspectives.
6.4 CLARIFYING THE REAL PROBLEM
"Sales are down 30 percent. We should implement a price discount."
"The competition just launched a cherry-flavored version of their product.

How soon can we get a cherry-flavored version of our product out?"
A team may slash its prices when, in actuality, the product's price is not
the real cause of the current slump in sales. A team may spend time
developing a new cherry-flavored product when the category is already
flooded with cherry-flavored products.
Facing pressure to "get a solution out the door," many teams gloss
over the problem-clarification step, Step 2 of the Innovation
Process, and move quickly into the idea-generation and
implementation phases. Often teams spend their time solving
insignificant problems that may not even be addressing the Real Problem
and which, in fact, add little to the innovative capacity of the organization.
The Real Problem may remain and may grow to cause even more problems
in the future.
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STRATEGIC THINKING
In the previous example, sales may have been down by 30 percent not due
to pricing but to a multitude of factors. The problem might have been a low
level of service, the poor quality of the product, inadequate distribution, or
simply low sales in one particular region. Quickly taking a price discount
may lead to a short jump in sales, but it may also just lead to lower profits.
The Real Problem of poor service, poor quality, or inadequate distribution
would still remain.
If the team believes the problem is pricing, it will work on pricing solutions.
If the team believes the problem is service, it will work on service
solutions. If the team believes the problem is poor quality of the product, it
will work on improving the product. How a team defines a problem
determines how it will spend its time solving the problem. A mistake
in defining the problem will send the team down the wrong path.
The philosopher John Dewey once said, "A problem well defined is half
solved." Spend significantly more time clarifying the Real Problem before
you jump to generating ideas or solutions. Here are some Down-to-
earth Tools to help you and your team develop a list of potential
problem statements:
1. Rewrite the original problem statement in ten different ways. This will
force the team to see more than one angle of the problem.
2. Draw a diagram of the problem. Often the visual depiction of the
problem can illustrate the various factors involved in it. For example, if
the original problem, in the case of student registrations at a university,
was a high incidence of late registrants, an illustration of the
communications and registration process might highlight areas where
the Real Problem is occurring.
3. List the various causes of the problem, not just the symptoms or
characteristics of the problem.
4. Look at the problem from a Systems-Thinking point of view. Look at
what might be influencing the problem (the activities before the
problem occurs and after the problem has occurred).
5. Again look at the problem from a Systems point of view and list all the
elements of the problem from the minor details all the way up to the
BIG-Picture perspective.
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STRATEGIC THINKING
6. Ask others for their input in order to gain different perspectives. Have
everyone on the team contribute their opinions as to the causes of the
problem. You may find many divergent points of view or you may find
many similar points of view.
7. Use the "YY" Creative-Thinking Questioning Technique discussed earlier
to probe deeper into the problem. Keep asking why until you discover
more interesting causes for the problem. One of the most important
questions a Strategic Thinker can ask is the question "why?"
8. Change the assumptions associated with the problem. For example, if
the problem is originally stated as "the sales representatives are too
slow" or "the sales representatives have inadequate training," change
the perspective and explore the problem from the other side, stating it
as "the customers are too demanding" or "the customers are too
confused." Redefining the problem in this way could lead to a different
question, such as "How can the customers serve themselves?" or "How
can we educate the customers so they know what to ask for?"
9. Clarify the problem by asking Challenging Questions, such as the
following:
• Who is involved in this problem?
• Who should be involved in this problem?
• What is the level of interest in solving this problem? Why haven't we
solved the problem before?
• What has been tried before?
• What were the results?
• What has not been tried?
• What barriers do we face?
• What do we want to change?
• What would be the ideal solution?
• What rules can be changed?
• Will this problem grow to be a larger problem in the future?
• What would happen if we ignored this problem?
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STRATEGIC THINKING
Once you have had a chance to use these questions for listing Alternative
Problem statements, take time with your team to discuss and choose the
most significant ones-the ones that, if solved, would have the greatest
impact on the immediate situation as well as on the long-term health of the
organization.
Take the time to diagnose the problem before rushing off to find
solutions.
6.5 SET INNOVATION GOALPOSTS
Organizational life is full of wasted Idea-Generation effort. Many such

efforts are too random, leading to too many obscure ideas that are not
valuable for solving the problem at hand. This makes the challenge of
selecting the best idea very difficult, and is one of the reasons why so
many Brainstorming efforts produce a lot of ideas that are never
implemented. In today's fast-paced world where resources are often
limited, most teams do not have time to waste on ineffective Idea-
Generation and Development processes. What is needed is a more focused
and direct approach.
Step 3 of the Innovation Process is setting Innovation Goalposts.
Just as Hockey players and Soccer players need a target area in which to
direct their effort, Innovators also need a target area in which to direct
their Idea-Generation and Development activities. These goalposts
effectively guide the development of new ideas by setting limits on the
range of ideas that would satisfy the needs of the particular situation.
It is important to note that a goalpost is not one endpoint that players

target; instead there are two goalposts between which there is a range of
endpoints. How far should the Innovation Goalposts be from each other?
The distance between them should not be so great as to confuse the
participants by encouraging them to go in too many different directions.
Likewise, the distance between the Innovation Goalposts should not be so
narrow as to limit new ideas and approaches. There is a balance between
being granted too much freedom, which may lead to too many random
ideas, and too little freedom or over-direction, which could stifle Innovative
Thinking. The goal of the Innovation Goalposts is Focused Creativity.
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Innovation Goalposts can help the Innovation Process by:

• Directing the Innovation effort. Goalposts give structure and focus to
creative work.
• Setting Expectations. Setting Innovation Goalposts helps participants
understand the range of acceptable ideas so that they can direct their
efforts toward higher-impact solutions. (This does not mean, of course,
that any idea that does not fit within the range should be rejected.
Participants should still present a strategic idea that might fall outside
the goal-posts if it merits review.)
The Innovation Goalposts are designed to help participants
understand the strategic direction for the project, the availability
of resources, the risk tolerance of their decision makers, and how
willing the organization is to accept change. This discussion also
helps set more realistic expectations.
• Facilitating faster Decision-Making. Just as one would narrow down the
choice of vacation locations to one or two viable locations based on
preselected vacation criteria, an Innovator could narrow her list of
solutions based on the preselected Innovation Goalposts.
6.5.1 How to Set Innovation Goalposts
Here is how to set the Innovation Goalposts:

1. Take time to understand the situation by gathering information about
the various angles of the problem. Review background information and
the context within which the problem is occurring. This may include a
review of the business plan, the marketplace, partners' plans, customer
needs, technology trends, resource availability, and other important
facts.
2. Discuss the various angles of the problem and agree to the Real
Problem statement to avoid heading off in too many different directions.
3. Discuss what the ideal solution would look like.
4. Discuss how radical an idea can be and still be acceptable. Discuss
whether the team is looking for ideas for Efficiency, Evolutionary, or
Revolutionary Innovation.
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5. Predetermine the strategic criteria against which the ideas would be

judged. This step helps to set expectations of the type of ideas that are
wanted and also helps avoid the situation where each member of the
team just chooses their "favorite" idea. The criteria will be determined
based on the particular challenge, but could include the six BIG-Picture
Criteria outlined in the following section. These criteria are, in essence,
the working principles for developing creative ideas into useful,
strategically relevant, ideas.
6.6 THE BIG-PICTURE CRITERIA
In order to turn a Creative Idea into a Strategic one, the idea must solve
the Real Problem, and the idea must fit between the Innovation Goalposts.
In addition to these requirements, you will want to address the following
six BIG Picture-criteria:
1. The big idea must be simple.
2. The idea must support the overall business strategy.
3. The idea must be "distinctly new and better."
4. The idea must be proven.
5. The idea must be profitable.
6. The idea must be quickly and easily implemented.
Instead of waiting to discuss these criteria at the end of your idea-

generation and development process, why not use these six BIG-Picture
criteria early on in the process to develop your creative ideas into strategic
ones and to choose the best ideas among your many options?
6.6.1 The Big Idea Must Be Simple
We can all relate to the many television advertisements whose messages

get lost in the clutter because there is no big idea or, if there is, it is
overpowered by complicated humor or entertainment tricks.
Great ideas are simple and easy to understand. The more complicated you
make the idea, the harder it is for others to understand its greatness.
Unfortunately, being simple is not always that simple. Many people have
spent their whole careers complicating things, so moving back to the basics
is difficult for them. Some people are even put off by simplicity. They feel
that if an idea is simple, it is not worthwhile. This is not the case.
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So simplify your idea. Ignore the details until the essence of the idea has
been communicated and discussed. Try answering the following statement
in one sentence:
My simple big idea is----------------
If you cannot explain your idea in simple terms, how do you expect your
manager or your customer to understand what you are offering?
6.6.2 The Idea Must Support the Overall Business Strategy
Determine how your idea fits the overall purpose and direction of your
immediate project work or the work of your division, business unit, or
organization. Show how the idea is compatible with the current and
emerging needs of your customers in recognition of the potential trends in
your industry. Explain how your idea helps to achieve the overall business
strategy.
6.6.3 The Idea Must Be "Distinctly New and Better"
Innovation is about introducing something "distinctly new and better" to

the marketplace or organization and succeeding in getting the customer to
switch from what they are currently using to your new idea. Given the
overload of products, services, and programs in the marketplace as well as
within organizations, it is necessary to differentiate your offering from
those of others. Many new products and services fail because they are not
unique and are therefore not needed.
The customer has many options. Managers also have many choices. Why
should the manager choose your idea? What is the one thing that
makes your idea distinctly new and better than the other options
that are available? If you cannot answer the last question, how can you
expect your customers or managers to understand what makes your idea
better?
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Choose one selling point that is relevant and preferred by your

target customer. Here are a few examples of organizations that offered
distinctly new and better ideas:
• The Forum Shopping Mall in Singapore offers only children's stores and
activities in order to differentiate it from the many other malls in
Singapore.
• A tropical island provides the most interesting bicycle tours.
• A beer is unique because it is triple chilled during the brewing process.
If a unique and better element is difficult to identify in your base

product or service, try these other approaches:
• The Body Shop markets its unique attitude toward the environment by
highlighting its refillable bottles.
• In Mexico, Cemex, the world's third largest cement company promises to
provide cement where you want it and when you want it on two hours'
notice. Cemex sells promises--not just cement-and uses them as
compelling marketplace differentiators.
• Cott Beverages offered retailers low-priced soft drinks and then added
value through its consulting advice on how to run a private-label retail
program.
• Dell Computer Corporation identified a distinctly new and better process
for purchasing personal computers instead of focusing solely on
developing unique product features.
Some people believe their industry, category, or program is exempt from

this concept. They are mistaken. Almost every decision is made by
comparing the virtues or benefits of one option to another. Lack of
differentiation is the root cause of most strategic challenges. This
can lead to commoditization and price discounting. The Sales Team
has to work harder. And it becomes more difficult for the Advertising Team
to develop ads if no one has taken the time to determine what gives the
product, service, program, process, agency, organization, or country
special status.
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Answer the following questions:

• What makes your idea distinctly new and better?
• What is your secret recipe for making your idea unique and able to stand
out in the marketplace?
• What do you want your organization to be the expert in or be famous
for?
List and then choose one feature or benefit that will differentiate
your product, service, or program.
Some strategists suggest that you differentiate your product based on

benefits.
• "Tide gives you the whitest clothes", instead of "Tide has added bleach".
• However, in today's crowded marketplace, it is best to choose the
strongest selling point for the customer, whether that is a feature or a
benefit. Choose something that is big enough to be important to the
customer, not something insignificant like
"Our product has blue packaging" or "our product is available in three
sizes."
Choose something that the customer will understand to be distinctly new

and better.
A recent television advertisement for Honda communicated the big idea

that the car had a Honda engine, which leaves the viewer still wondering
"So what? How is the Honda engine distinctly new and better than a Toyota
or Nissan engine?"
There is no such thing as a sustainable competitive advantage in today's

marketplace. You have to keep moving or you will get run over. Continually
re-evaluate your choice of the distinctly new and better feature to ensure
that it is still relevant as the marketplace changes.
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6.6.4 The Idea Must Be Proven
Unfortunately, people tend not to believe in the potential of a new idea

unless someone else, especially someone whom they admire, has already
experienced it. Every Manager wants to balance the risks associated with
new ideas. So show them that your idea has proven potential in the
marketplace.
Find another organization, either in your industry sector or in

another sector that has succeeded with a similar idea.
Alternatively, find examples where parts of your idea have been
successful. Even if you feel your idea is new, it will have existed in some
other form, in some other market, at some other time. Providing proof that
your idea will work, and has worked, will lower the perception of risk. It is
also important to be able to prove your new idea to your potential
customers. Many ideas fail in the marketplace, not because they were not
"distinctly new and better," but because the organizations failed to provide
proof of their claims.
Answer the following:

• What is the most important benefit or feature of your simple big idea?
• Why is your simple big idea distinctly new and better than what is
already available?
• Prove to me that your simple big idea is distinctly new and better than
what is already available.
6.6.5 The Idea Must Be Profitable
Many inventors of new ideas fail to understand the BIG Picture in terms of
the whole process of Commercialization. They lack the knowledge of how
the idea would actually be developed, launched, and maintained in the
marketplace, and by doing so, put the acceptance of their ideas at risk.
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Obviously, any Organization has a range of ideas in which they can invest
their scarce resources. The decision must be made as to which ideas will be
the most profitable for the organization. In order to gain acceptance of
your idea, you must be able to show that the investment required
to launch and maintain the idea will result in greater returns to the
organization than will an investment in another idea.
"Show me the money!"
• Your idea may be a great idea, but can it make enough to cover the
investment costs?
• How will the organization make money on your idea?
• What is the revenue model for your idea?
• How high could the revenue grow?
• How broad is the customer base? Remember that many large
organizations need to attract a big customer base in order to pay for not
only the costs of the new idea but also for the organization's overhead
costs.
• Ask yourself how your idea could be expanded to attract more revenue
(e.g., other new products, new customers, regional expansion)?
Remember that many organizations make more revenue by selling "add-
ons" or auxiliary products such as car dealers selling car-repair services
in addition to cars, photocopier companies selling toner in addition to the
copying machine, and razor companies, such as Gillette, selling
replaceable blades in addition to the razor.
6.6.6 The Idea Must Be Quickly and Easily Implemented
Resources are tight. People are busy. As a result, despite requesting

Innovative Ideas, they really want as little disruption to the existing system
as possible. They want the adjustment to the new idea to be as easy and
quick as possible.
Show how easy the implementation will be by highlighting the
Development and Implementation Teams, the steps involved, the
timing of each of these steps and resource needs for each of the
steps.
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Show how the idea can fit with the organization's core competencies
(knowledge and skills) and current processes. Highlight what needs to be
changed in order to implement the new idea.
Video Link 1
6.7 APPLYING THE SIX BIG-PICTURE CRITERIA
What if, for example, a manager at Starbucks decided to introduce Pizza as

a menu item for a new source of revenue?
Hopefully, the Manager would not just present the idea but would consider
the six BIG-Picture criteria such as:
• The simple idea is selling pizza slices in addition to coffee.
• Selling pizza slices supports the overall business strategy because...
• Our pizza slices will be "distinctly new and better" in the marketplace
because...
• Customers will believe we have better pizza slices because...
• Selling pizza slices will be profitable. Here are the revenue and cost
projections...
• Here is how the idea can be quickly and easily implemented...
In this example, we may find that the manager of the Starbucks store will
reconsider the value of her creative idea because:
a. It does not fit the strategic direction of the organization,
b. There is no apparent advantage for the customer in buying their pizza
slices at Starbucks versus other fast-food establishments such as Pizza
Hut, and
c. The idea is not easily implemented given the space requirement for
additional equipment and the additional labor involved.
This is an example of BIG-Picture Strategic Thinking in action!
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Activity A:
Now, let us say you are performing some important task. Looking at it,
explain how your task is related to part of a bigger process.
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
Activity B:
You have an Innovative Idea. Explain how your idea is "Distinctly New and
Better".
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
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6.9 SUMMARY
A Creative Mind is the foundation of Innovation. It is always exciting to

discover new ideas-as witnessed by the recent flood of dot-com
enterprises. However, an idea can be Creative, but it must also add Value.
All employees can participate in Strategic Thinking by:

(a) Seeing the BIG Picture,
(b) Looking to the future, and
(c) Doing the extraordinary!

Explain:
1. Nine step innovation process part 1.
2. The Big picture criteria
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1. First step of the Nine-Step Innovation Process:

(a) Set Innovation Goalposts
(b) Brainstorming
(c) Clarifying the Real Problem
(d) Gathering Information
2. One of the most important questions a Strategic Thinker can ask is:
(a) Where?
(b) Who?
(c) Which?
(d) Why?
3. Step 3 of the Innovation Process is:

(a) Setting Innovation Goalposts
(b) Estimation of Time
(c) Budget Allocation
(d) Weekly Follow up
4. The Six BIG Picture-criteria (Find out the wrong one)

(a) The big idea must be simple.
(b) The idea must support the overall business strategy.
(c) The idea must be "distinctly new and better."
(d) The idea must satisfy seniors.
(e) The idea must be profitable.
(f) The idea must be quickly and easily implemented.
5. All Innovative Thinkers should understand the concept of ------thinking.

(a) Systems
(b) Today's
(c) Crazy
(d) Past
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Reference Material
chapter
Summary
PPT
MCQ
Video Lecture
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Chapter 7
Look To The Future
Figure 7.1
Objectives:
At the end of this chapter, you will come to know the details of the
Innovation Process, and the next step of Strategic Thinking.
Structure:
7.1 Introduction
7.2 The Nine-Step Innovation Process Part 2: Imagination
7.3 Trend Watching and Analysis
7.4 Uncovering Insights
7.5 Identifying Ideas
7.6 Choose a Vision or Future Destination
7.7 Choose the Best Path to Reach Your Future Destination
7.8 Ideas for Future Expansion
7.8.1 Expand the Current portfolio of products and services
7.8.2 Expand to offer New products and services
7.8.3 Expand to target new customers
7.8.4 Expand beyond your current business
7.10 Summary
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7.1 INTRODUCTION
The phenomenon, which appears in many organizations, is:

While a few are looking up and planning for the future health of the
organization, many are looking down, cutting costs and managing the day-
to-day business. This short-term focus intensifies when people face what
they perceive to be "tough times".
Now is the time to invest in building a stronger future, full of hope and
exciting new ideas. Looking to the future and identifying strategic new
ideas is particularly essential for those countries and organizations that are
not blessed with rich resources or low cost structures.
Everyone can benefit from looking beyond what they are doing
today to anticipate the future and to develop ideas that will bring
stronger results. Some people, of course do not believe that the future
can be anticipated. They feel the world is much too random for the making
of accurate predictions about the future and that one cannot simply
extrapolate the current situation to project an image of the future.
We should not ignore the signs on the radar screen that could indicate
what the future might hold. For example,
• There are clear signs that the aging population will require more health
care
• The fresh water resources are running low
• The mobile phone Internet (m-commerce) era is upon us,
• The global economy will flourish,
• There will be computer chips in everything,
• Organizations will employ more and more technology in the pursuit of
efficiency and strength in the marketplace,
• There will be more diverse work styles in the future.
We should not ignore these signs. The general direction of the marketplace
can be predicted based on what is happening today.
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In order to master "looking to the future", one must develop strong

imaginative skills. Imagination is indeed an important component of
Strategic Thinking. When combined with a strong Innovation-
Planning Process like the Nine-Step Innovation Process,
Imagination can make the difference between mediocrity and
success.
7.2 THE NINE-STEP INNOVATION PROCESS : PART 2:

IMAGINATION
Unlike other Innovation-Planning Processes that begin with an Idea-

Generation phase, this process is different because it recognizes the need
to fully understand the challenge early on in the process. As such, it begins
by recommending a thorough understanding of the current situation or
challenge, and a discussion of the Innovation Goalposts and BIG-Picture
criteria before any Idea Generation takes place. These steps, which have
been covered in previous chapters, comprise the first stage of the process,
Understanding.
This chapter focuses on the second stage of the process. This stage,
Imagination, involves gathering as many stimuli as possible, in order to
maximize the probability of making new connections. With these Stimuli
and an active Imagination, participants are able to uncover new insights.
From these insights, new ideas can be identified. The three specific steps in
this Imagination Stage are:
1. Seeking Stimuli,
2. Uncovering Insights and
3. Identifying Ideas.
The third stage, Action, involves building the ideas into full business
concepts and then into Business Plans. This stage is covered in Chapter 11.
7.2.1 Focusing on the Imagination Stage
Let us focus on the steps in the Imagination Stage: seeking stimuli,

uncovering insights, and identifying ideas.
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7.2.2 Seeking Stimuli
"Innovation can be systematically managed if one knows where and how to

look". Innovators are those people who can zoom out to see a broader
view of the world and see new ideas registering on their Innovation Radar
Screens before others even know they exist. They stay aware of what is
happening behind, in front of, and beside them, knowing that insights can
come from any source. Their research antennae are at full mast, looking
for signs in the global world of what may be useful in the future.
Relying on only one source of information is like going fishing in a large

pond and sitting in only one spot all day, hoping the fish will come to you.
What is needed is a bigger hook and movement around the pond. Fish in a
larger area than you are accustomed to so that you can see emerging
customer needs, technological developments, and trends in the
marketplace that could represent new possibilities. Once you have had a
look at the information that is available inside your organization, go farther
out into the marketplace to discover deeper insights, using techniques such
as direct interviews with customers, observation, lead-user research, and
benchmarking excellence in other organizations.
Consider the following sources for "seeking stimuli to plan for future
events":
• Analyzing the current state of your business. In order to have a
strong knowledge base on which to make future decisions, it is important
to research the current state of your business. Consider looking at
trended sales information:
❖ by geographic region to see which regions are strong or weak,
❖ by distribution channel to see which channel is most or least beneficial
to the business,
❖ by month of the year to see when the business is strong or weak,
❖ by customer group to see which groups are most and least important,
and
❖ by product line to see which line is strong or weak.
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Compare this information with that of the overall market or industry to see
where your particular business is leading or following the market. Look at
your revenue, cost, and profit numbers for the last few years to see what
activities were or were not effective.
Once you have analyzed this information, you can decide whether to build
on the business' strengths or allocate resources to address the
weaknesses. This decision, of course, must be made in view of the overall
trends in the marketplace and emerging customer needs.
• Analyzing current customer needs using the Focus-Group

Research Method. A common approach to gaining insight into customer
needs is the Focus-Group Research Method. Six to ten people are asked
to participate in a round-table discussion in a specially designed room,
which is outfitted with a two-way mirror.
❖ The client or those interested in hearing the customer feedback sit

behind the two-way mirror in a separate room while the participants
and moderators are in the main room.
❖ The Focus-Group session usually lasts for two hours, during which the
moderator leads the participants through a series of preplanned
questions that are designed to tap into their attitudes regarding the
chosen subject, product, or service.
Many people use the Focus-Group Research Method because they have
relied on its use for many years.
However, there are several flaws with this method:

a. the artificial setting,
b. the presence of strangers,
c. the lack of time to really probe in-depth attitudes,
d. the lack of real stimuli (opinions are given without the benefit of stimuli
such as competitive products and service examples),
e. the assumption that the participants' comments reflect their actual
behavior, and
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f. the lack of follow-up (any comments or insights the participants may

have following the session are lost)
Be wary of some Focus-Group Moderators who maintain that their groups

are unique because they restrict the number of participants or include
Creative-Thinking exercises. In my opinion, the only difference is that the
invoice is higher; the flaws of this technique remain.
Because of these flaws, the Focus-Group Research Method should be

restricted to gaining quick insight into what already exists in today's world.
Also be aware that you are relying on a group of only six to ten participants
to tell you whether your ideas are strong or weak!
• Analyzing current and future customer needs using Direct-

Observation Methods. Direct Observation is a more powerful method of
researching customer needs than are Focus Groups. By going to the
source-observing customers--researchers can gain a deeper
understanding of customers' true attitudes and behaviors. For example,
by watching how customers complete their banking forms, how
consumers wash their cars, or how people prepare home-cooked meals,
researchers are able to truly see what works, what doesn't work, and
what might work in the future.
Direct Observation is a powerful method of gaining insight that can then

be used to design future products and services. Some organizations have
encouraged their customers to join specific online chat rooms.
Researchers then observe their conversations to watch for new insights.
Other Organizations choose to observe the old-fashioned way--by
watching how consumers actually behave.
• Analyzing current and future customer needs using In-depth

Interviews.
Consider interviewing your customers one-on-one to gain deeper insight.

In order to research a customer's current and future needs, it is
important to listen for what the customer says is a problem, hassle, or
unmet need.
In this regard, ask your customers to complete the following sentence: "I
hate it when your product or service…………………..
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Alternatively, ask them to complete this sentence: "I wish I had a

product or service that could solve my need for---------------------.
How can you or your team use Direct Observation and In-Depth
Interviewing to find new insights for the future?
• Anticipating future customer needs using the Lead-User Research

Method. The concept is a fairly simple one-gain insight into future needs
and potential new products and services by learning from users who have
already solved the problem in a unique way. Often these lead users have
already developed prototypes or working models of their ideas that could
be beneficial in future development work.
A simple example of a lead user involves a dog owner who designed a

washable cover for the back seat of the car, using Velcro strips to hold it
in place. Since no cover was commercially available, the dog owner
created her unique solution to address this unmet need. If car
manufacturers were able to see this lead user in action, they could
design a removable pet cover as an extra feature in their next car or SUV
model.
Another example of a lead-user group is young computer

programmers who have already created new video games, who can be
of benefit to software development companies who are looking for ideas
for the next wave of video games.
Unfortunately, these lead users rarely show up in Focus-Group sessions.

In order to locate such people, one must dedicate the energy and related
resources to go out and find them.
The lead-user concept has been applied successfully at 3M

through its partnership with MIT. Other Organizations have invited
lead users who were experts in certain applications or who had
knowledge of specific aspects of a project to assist them on Development
Projects. Still other organizations have asked lead users to help them
review their operations in anticipation of discovering new solutions that
might have been missed. The cost of compensating lead users for their
ideas is often small compared with the benefit of gaining quick access to
unique ideas.
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In our fast-paced world, it is beneficial to get in front of the development

line by tapping into the expertise of lead users instead of asking for
insights from mainstream customers.
• Researching existing solutions within your category. Expanding

your research net a little wider to look at similar categories of products
or services will provide additional food for thought. Somewhere, the
seeds of the future have already been planted and may be starting to
sprout.
Find ideas that have already been introduced in one country and bring
them to another country before anyone else thinks of doing so. A team
of scientists and physicians might be doing research on a cure for a
certain disease, while another team halfway around the world has
already found the cure. A product that is enjoying great sales in South
America might just be entering the Chinese market but have yet to be
introduced to the Australian market. This approach is not "stealing" since
the ideas are already in the marketplace and are no longer "company
secrets." Be careful, of course, to respect other organizations'
trademarks, copyrights, and patents.
The future may have already happened in another organization, in

another location, in another industry sector, somewhere on the planet.
Find out what is hot in your category around the world. Find out how
your category is changing. Find out what the latest innovations have
been and try to understand why they have been successful in
other markets. A quick route to Innovation is identifying solutions
others have already found and then "Reverse Engineering" or dissecting
them to use the parts that would be most helpful to your specific
situation.
• Researching existing solutions outside your category. As more and

more categories are merging or overlapping, the pressure to understand
the dynamics of surrounding categories is mounting.
For example, financial institutions can research customer needs for

insurance, estate planning, and prepaid funeral services in order to
identify new categories in which they might be able to offer new products
and services.
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Food manufacturers can research the vitamin and herbal product

categories to anticipate future needs and develop products that overlap
these categories.
Universities can research the Training and Development market to

anticipate future needs in terms of adult education and online learning.
Look at the future for the category next to yours. Do research to find out
whether new market segments or new customer segments are emerging.
Innovators have also succeeded by bringing ideas which were "on the
fringe" into the mainstream. Blue jeans, athletic shoes, computers and
yoga, are all examples of products that started out on the fringe and
have been accepted or are in the process of being accepted into the
mainstream market.
• Researching and Benchmarking Excellence. Some people disagree

with the concept of Benchmarking-looking to other organizations to learn
from their successes or failures. In today's world, the ability to learn and
the ability to quickly apply this learning are the staples for developing
strong, competitive organizations.
Why not learn from the experts, both inside and outside of an industry?
For example,
• Why not learn about e-commerce from FedEx?
• Why not learn about customer service from Four Seasons Hotels and
Resorts?
• Why not learn about retail systems from Circuit City or the Future
Group?
Identify the experts in the particular challenge you are facing and
find out how they addressed their similar challenges.
Ensure that the learning is adapted to suit the needs of your particular
challenge. You cannot put a car wheel on a bicycle. Different
circumstances, different markets, and different times require unique
solutions. Attempting to imitate another organization's solutions without
careful consideration of the particulars of your own situation is unwise.
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• Watching Technology. Many people are unaware of emerging

Technology because they are too focused on completing their current
project work and have neither the time nor the budget to pay attention
to new developments. It is wise to institute a more Formal Technology
watch to find out what Technology is emerging, who is producing the
Technology, and what applications could be derived from this new
Technology. You will also want to take into consideration technology as it
is applied to services, processes, and business models, not just new
products.
All Innovation is not led directly by customer needs. Often, Technology

can lead the customer. Did customers ask for a fax 'machine? Most
people did not even know the Technology existed until the fax machine
was introduced into their lives. Yes, the basic need to communicate was
always present, but the desire to communicate in such a manner was
driven by the availability of the new fax technology, not by explicit
customer demands.
Video Link 1
Video Link 2
7.3 TREND WATCHING AND ANALYSIS
Trend Watching can help you anticipate how the landscape will change and
how you can prepare for these changes. Trend Watching can help you
anticipate what customers might want in the future. For example, car
manufacturers could anticipate that as urban centers become more dense,
customers might want cars that offer more safety and control. Accordingly,
they could begin to design plastic cars that have airbags all around the
interior, and of course, brake lights at the front of the car as well as at the
back!
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Health Care Providers and Hospitals can also predict future demands
based on trends. They are facing or will face tremendous changes brought
on by new technologies, more demanding patients, budget constraints, the
aging population, and regulatory changes. They can anticipate a higher
demand for heart operations and artificial organs as the population ages.
Education Programs for physicians and nurses will need to attract an
increasing number of applicants in order to keep up with the service
demands as the population ages and consumers continue to demand
quality service. Pharmaceutical Companies can anticipate that their
consumers, the patients, will become more and more demanding regarding
access to information on their particular diseases and available treatment
options.
Trend Watching can also help an organization anticipate what employees

might want in the future. For example, younger workers might demand
more involvement in decision-making and might rebel against what they
see as the bureaucratic nature of some organizations. These employees will
be quite vocal with their concerns since they have been conditioned, in
most cultures, to voice their opinions since they were young children.
Other employees might want more entertainment and excitement in their
jobs, expect to have access to the latest technology, and demand more
flexible hours and benefits, including childcare.
Here are a few of those Trends for you to consider:
Trends Explanation
Health There is an increased interest in the impact food has on health.

consciousness Consumers want to know "What is in this?" They desire more
information on toxins in their food, air, water, and homes. Patients are
asking for new drugs, alternative natural cures, and artificial organs.
There is also a growing anti-aging therapy movement.
Higher Unemployment is increasing due to technology and dependence on
unemployment the global market. Machines are replacing the need for employees in
some job positions.
Immigration There is a more global movement, leading to a wider mix of ethnicity
and increasing diversity in most regions.
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Powerful aging "Boomers" will demand more products and services for their
"boomer" specialized use. The aging population will splinter into several groups
population ranging from the young seniors (age 50-65) to mid seniors (65-75)
and older seniors (75-100) instead of being addressed as one
cohesive "seniors" group.
Trends Explanation
Rebellion There is a loss of respect for traditional authority figures. There is a

movement toward less formality, protocol, and respect for "the rules."
There is more evidence of personal expressions of aggression (road
rage, parking lot rage, air rage). There is a growing militant anti-
globalization movement. Employees are also rebelling against
traditional bureaucratic systems and demanding more participation in
decision making at all levels of the organization.
Safety Fear leads to greater demand for security-gated communities, car
alarms, and martial arts instruction. People want more safety in their
homes, offices, schools, malls, and airplanes.
Crisis of People are busy, but not happy. People are wealthy, but not happy.
purpose People are retired, but not happy. They feel empty and lack
fulfillment. There is a desire for more fulfillment. This is especially
acute for those people struggling with early retirement (age 55) and
ways to be productive and fulfilled for the next 25 years of their lives.
Collaboration There are more alliances and networks where teams from competing
organizations collaborate for mutual benefit. The move toward
collaboration is shifting the traditional organizational structure.
Speed Everything must be built for speed. Everyone is impatient and wants
immediate service. They demand real-time responses. Speed is not
just a competitive advantage; it is a price of entry.
Technology Computer technology is everywhere. There is growing interest in
nanotechnology, the science of the small. Inventors look to put
computer chips in everything. Cheap bandwidth leads to greater
access and more and more instant information. Long-distance calls
via the Internet are becoming more prevalent. The mobile Internet
(m-commerce) era is evolving. Distance learning and remote surgery
are evolving. The Internet, Intranet, Extranet rule!
In addition to looking at Trends in the marketplace yourself, ask others

what Trends they believe are shaping your industry and why they think
these Trends are important.
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Analyzing Trends takes imagination-to see the threats as well as the

opportunities that are emerging as a result of the Trends. When you see a
Trend, ask yourself the following five questions:
1. What is causing this Trend?
2. How will this Trend affect my team and my organization?
3. What problems will this Trend cause?
4. What opportunities does this Trend offer?
5. How can we turn this Trend into a practical application?
7.4 UNCOVERING INSIGHTS
Noticing small changes early helps you adapt to the bigger changes that
are to come. Failing to see the changing marketplace, can lead to serious
challenges. Failing to see emerging competition and changing consumer
habits can seriously impede the future success of any organization.
• Are Universities ready for the new competition from Corporate
Universities and Online or Distance Education providers?
• Is Hallmark Cards ready for the proliferation of free electronic cards
from Internet providers such as Blue Mountain.com?
• Are Department Stores ready to combat the increased competition
from Online Retailers?
Translating new Information into Insights, is both an Art and a

Science.
• The Science part includes the ability to analyze market conditions,

consumer needs, and internal circumstances, and then, through
experience and judgment, convert this information into Insights.
• The Art part includes the ability to be more aware of the opportunities
in the marketplace and, through Imagination, mold this Information into
further Insights.
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The ability to see new opportunities-emerging customer needs, new

products, services, segments, and markets-as well as the ability to see
before others do where superior value can be offered, is critical to
building an Organization's Innovation advantage.
Organize your information and then hold Innovation Groups to turn your
Stimuli into Insights. You will want to combine Insights in four key areas:
customer needs, emerging technology, the marketplace, and your
organization's needs:
1. Customer Needs. Preselect the customer group you are interested in

serving. You may wish to target the most profitable customers, or
customers who may be underserved at the moment, or customers who
are early adopters of breakthrough products and services.
Make a list of their top needs or problems and select those needs or
problems you want to solve. Discuss what they are currently using to fill
these needs and why they might want to switch to a new method,
product, or service. Discuss what is and is not working with their current
approach.
For example, IDEO, the design firm, is famous for identifying key
customer needs and then directing its collective imagination toward
creating new product designs to meet three or four top needs.
Note that these needs can be rational or emotional. As the world

becomes more overloaded with products and services, the customers'
basic needs, such as low price, good quality, and fast service, will
become the price of entry in any category. Any product or service that
does not meet these basic needs will not even be considered. The arena
of Competition will shift to meeting customers' more advanced needs in
a distinctly new and better way.
2. Emerging Technology. Next, identify the impact that existing and

emerging technology could have on these customer needs. Discuss the
various applications of this Emerging Technology, and then marry these
technology insights with your list of customer needs.
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3. The Marketplace. Then, discuss the dynamics of your industry sector

or category. Identify how your category is changing. What is the size of
the market? How fast and in what direction is it growing?
4. Your Organizational Needs. Finally, discuss at a BIG-Picture level

what would be needed, from an organizational design point of view, to
meet these customer needs with the Emerging Technology and the
changing Marketplace.
Your Insights will come from combining your perceptions of the outside
world-your customers' needs, the changing marketplace, and emerging
technology--with your inside world-your view of how your organization
can change to meet the needs of the outside world.
7.5 IDENTIFYING IDEAS
We have looked at two of the Imagination steps in the Innovation Process:

• Seeking Stimuli and
• Uncovering Insights.
Now let us look at turning these Insights into Ideas that can bring value to
the organization. In order to select the Strategic Ideas, an Organization
must first choose a vision or future destination upon which to focus its
innovation efforts. Without an understanding of where the organization
wants to be in the future, it is very difficult to direct the Innovation efforts
of everyone in the organization. Once the vision or future destination has
been determined, it is necessary to choose the optimal direction or path to
reach this vision. If the members of an organization understand the future
destination as well as the path they will take to reach this future
destination, it is much easier for them to identify and select Innovative
Ideas that fit.
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7.6 CHOOSE A VISION OR FUTURE DESTINATION
In its simplest form, a Vision is an image of the future you want to create.
• Microsoft's Business Vision has been to be the leading provider of
software for Personal Computers.
• Lance Armstrong's Vision is to be the first to cross the finish line in
the Tour de France.
• Singapore has a vision of building a knowledge-based economy and
becoming an important hub in the e-world.
• Your Personal Vision might be to reach the top of Mount Everest, live
in your dream home, or retire in Tahiti.
By discussing and agreeing upon the answers to the simple questions such
as :
• "What do we want to do in the future?"
• "Who do we want to become?" and
• "What do we want to be famous for?"
A team is choosing its Vision or Future Destination. This destination

provides a goal upon which to focus the team's Innovation efforts.
It is important to stretch the boundaries and overcome preconceived

notions of what is possible and what is not. This often leads to new goals
that enable the organization to reach far beyond where it is today. As Walt
Disney observed, "If you can dream it, you can do it!"
1. Identify what your organization wants to be number one in, and what
you want to be famous for. What will your unique core competencies
(skills, knowledge, and talents) be?
2. Define the Vision or Future Destination in words that have meaning.
(Many Vision Statements are vague and, as such, are not inspiring.)
3. Share this Vision widely so that all employees, partners, suppliers; and
customers can understand this chosen direction.
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7.7 CHOOSE THE BEST PATH TO REACH YOUR FUTURE

DESTINATION
Once the destination has been selected, the team must discuss and then
choose the best path for reaching this destination. Many organizations take
a very superficial view of planning. Instead of looking at multiple directions
or paths to reach the Vision or Future Destination, they choose only one, If
any options are considered, they are usually limited to "low, medium, and
high volume and revenue" scenarios based on this one path. How deep is
your team's Planning Process?
In the future, other organizations will be expanding into your territory to

tap into your revenue source. Customers' needs will be evolving.
Technology will advance. No Organization can be prepared for battle
overnight. It is wise to spend some time preparing for the future by
discussing how each direction or path might play out. -"Using alternative
scenarios, the future literally becomes a matter of choice, not chance.”
Take time to look at the steps needed to make your Vision a reality. There
are, of course, a multitude of paths that can work in any one environment.
Here are five paths for you and your team to consider:
1. The Cost Leadership Path: Differentiating the organization by
providing the lowest cost option in the marketplace. Of course, Cost
Leadership is difficult to achieve in the world market because many
other countries and organizations can provide low-cost options.
2. The Product or Service Differentiation Path: Differentiating the
organization by providing the most unique products or services available
in the marketplace. This uniqueness can be achieved by marketing
unique products, branding these products, or holding a specialized
patent.
3. The Customer Segmentation Path: Catering to a unique segment of
the market, preferably being the only organization targeting this unique
customer segment.
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4. The Superior Process Path: Offering the fastest, highest-quality or

most desired customer service in the marketplace. Superior Processes
can rely on unique technology, superior customer information
databases, or offer customers more "power" over the Decision-Making
and Purchasing process.
5. The Superior Distribution Path: Offering the customer a preferred
Distribution and Delivery option such as Factory Warehouse Shopping or
Global Purchasing via the Internet.
Consider using the following chart to discuss the paths your team can take
to reach your Vision. Discuss and then choose your optimal path based on
your own team's criteria, or use the six Big Picture criteria highlighted in
Chapter 6:
(a) Simple and easy to understand,
(b) Supporting the overall vision or destination,
(c) "Distinctly new and better" in the marketplace,
(d) Low risk and can be proven
(e) Profitable, and
(f) Quickly and easily implemented.
Our Vision is:_____________________________
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To achieve our Vision, here are our different paths and how they rate
against the criteria:
Simple Supports Distinctly Low Risk Profitable Easy to

Easy to the Vision New and can be implement
understand Better Proven
Path
Option A
Path
Option B
Path
Option C
Path
Option C
7.8 IDEAS FOR FUTURE EXPANSION
Once the team has chosen its destination and the most strategic path to
reach this destination, it can look for ideas that support this future
direction. Here is a list of twenty-four ideas that you and your team can
consider for Future Expansion.
7.8.1 Expand the Current Portfolio of Products and Services by:

• Reminding current customers by advertising your products and
services, or by advertising specific benefits or aspects of the product or
services of which the customer may be unaware.
• Selling more to your current customers by offering Promotions or
Volume discounts for a limited time, such as a "buy 2, get 1 free" offer.
• Selling more often to your current customers by promoting frequent
purchases via a Loyalty-Card Campaign. For example, Second Cup
Coffee offers a free cup of coffee after ten purchases.
• Finding other uses for your product or service. Arm and Hammer
encouraged consumers to place an open box of baking soda in their
refrigerator to mask food odors. The use of Ziploc bags has expanded to
include uses other than food storage. Absorbine, once only a remedy for
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sore muscles in animals, is now available in a less potent formula,

Absorbine Junior, for relieving sore muscles in humans.
• Finding a new distribution channel such as eBay.
• Creating a new occasion. Hallmark Cards is famous for promoting
new holidays in order to encourage higher sales. Cereal manufacturers
encourage consumers to eat cereal as a snack in addition to having it for
breakfast.
• Decreasing the price with special events such as Back-to-school sales.
• Offering various Price Points as hotels do with standard and deluxe
suites.
• Adding a service to the product such as offering free ski wax with the
purchase of a new set of skis.
• Bundling with other Products or Services such as airfare, hotel, and
car rental packages.
7.8.2 Expand to offer New Products and Services by:

• Developing line extensions. Disney is a master at expanding the use
of its movie properties. The Lion King property, for example, included the
original movie, video, soundtrack, clothing, books, toys, and even fast-
food merchandise.
• Introducing new levels of service as American Express does with
its card programs or as Dry Cleaning stores do with rush or regular
service.
• Expanding by offering new services. Restaurants are expanding
into the rental market where they are offering their premises for rent for
cooking lessons, cooking parties, and even Executive Team Training
Courses where team members can learn to break down their
communications barriers by learning to cook together.
• Developing new products within the same category.
- Nike, in this regard, recognized the consumers' need for running shoes
that were designed for everyday use rather than only for sports and,
accordingly, created many fashionable new shoe products.
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- Financial Services Managers introduce new products and services in

order to attract a larger share of each customer's financial
expenditures. They refer to this as expanding the "share of wallet."
- Food Manufacturers introduce new products as a means of expanding
the "share of stomach".
• Developing new products in a new category. For Products and
Services operating in so-called "mature categories," it is wise to
expand the definition of the category by combining one category with
another or by creating a new category.
For example, a new category was created in the alcoholic beverage

market with the introduction of Wine coolers, a Wine-and Fruit-based
beverage. This category can be seen to bridge several other categories-
wine, beer, fruit juice, and soft drinks--since the new product could be a
substitute for any of these drinks and could draw sales away from any of
these traditional categories.
7.8.3 Expand to target New Customers by:

• Finding New Customers for your current products or services. Find
out what the barriers to using your product or service have been among
potential new customers. Decide if these barriers warrant Corrective
Action in order to attract these new customers.
• Finding new customers via a new distribution channel as Avon and
Tupperware did successfully. Vending Machines represent a viable
distribution channel to target new customers with many products. For
example, Vending Machines in Japan sell candy, soda, computer
software, pantyhose, whiskey, audio CD's, batteries, magazines, rice, and
videocassettes, to name but a few items.
• Finding New Customers in new Geographic Zones. Expand your
distribution globally.
• Redefining the Target Market. Attract new customer groups, such as
teens or families. Or do as Tilley, the Canadian hat manufacturer, did
when it supplied hats for soldiers who were serving in the United States
Army's Desert Storm mission.
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• Repositioning the product from a niche product to a mainstream

product to attract a larger customer base. Fish where the fish are. For
example, Yoga exercise classes have moved into the mainstream, as
have products such as Sushi and Tofu.
• Cross selling your products to New Customers who are already
your customers! Financial Institutions are learning to sell their loan
services to those customers who are holding savings accounts at the
same branch.
7.8.4 Expand beyond your Current Business by:
• Selling your knowledge to others. Second City, well known for SCTV
and Comedy Shows, has expanded to offer their knowledge through
Improvisation Training Courses targeted to business people who want to
improve their Presentation and Communication Skills.
• Identifying new business concepts. Nokia began operations in 1865

as a wood pulp mill. Over time, it changed its focus to chemicals, rubber,
and most recently, telecommunications.
• Creating new categories and industries. Go where no one has gone

before.
1. In case of FMCG products, explain what are the future customer needs
using Direct-Observation Methods
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2. A simple example of a lead user involves a dog owner who designed a

washable cover for the back seat of the car, using Velcro strips to hold it
in place. Explain how you will use the Velcro strips to solve one of your
car problems.
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What are your future needs about your car?

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7.10 SUMMARY
Everyone can benefit from looking beyond what they are doing today to
anticipate the future and to develop ideas that will bring stronger
results.We should not ignore the signs on the radar screen that could
indicate what the future might hold.
This chapter focuses on the second stage of the process. This stage,
Imagination, involves gathering as many stimuli as possible, in order to
maximize the probability of making new connections. With these Stimuli
and an active Imagination, participants are able to uncover new Insights.
From these Insights, new Ideas can be identified. The three specific steps
in this Imagination stage are:
• Seeking Stimuli,
• Uncovering Insights and
• Identifying Ideas.
1. What is the meaning of Stimuli: explain.
2. Refer 7.3 and list some Trends, which you have observed.
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1. Relying on only one source of Information is like:

(a) Going to a Tamil movie
(b) Going to Delhi from Mumbai by a bullock cart
(c) Going to a fun fair
(d) Going fishing in a large pond and sitting in only one spot all day
2. We should not ignore the signs on the Radar screen that could indicate
what the future might hold. For example,
(a) There are clear signs that the working population will require more
bread and butter
(b) There are clear signs that the children will require more milk
(c) There are clear signs that the aging population will require more
health care
(d) There are clear signs that the women will require more saris
3. The -------------- concept has been applied successfully at 3M through

its partnership with MIT.
(a) Strategic thinking
(b) Futuristic thinking
(c) Copper user
(d) Lead user
4. The ----------population will splinter into several groups ranging from

the young seniors to mid seniors and older seniors.
(a) Younger
(b) Aging
(c) Female
(d) Indian
5. Analyzing current and future customer needs using In-depth Interviews.

Consider interviewing your customers one-on-one to gain deeper
insight. In order to research a customer's current and future needs, it is
important to listen for what the customer says is a problem, hassle, or
an unmet need. In this regard, ask your customers to complete the
following sentence: "I hate it when your product or service………………….."
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6. What is the probable answer?

(a) Works very well
(b) Fails
(c) Is costly
(d) Is looking bad
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Reference Material
chapter
Summary
PPT
MCQ
Video Lecture
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DO THE EXTRAORDINARY
Chapter 8
Do The Extraordinary
Objectives:
At the end of this chapter, you get acquainted with Extraordinary
Strategies.
Structure:
8.1 Introduction
8.2 Extraordinary Strategy 1: Target the Most Profitable Customer
8.3 Extraordinary Strategy 2: Offer Something Distinctly New and Better
8.4 Extraordinary Strategy 3: Set Your Innovation Priorities
8.5 Extraordinary Strategy 4: Make Sure It's Easy
8.6 Extraordinary Strategy 5: Pick Up the Pace
8.7 Extraordinary Strategy 6: Systemize with Modules
8.8 Extraordinary Strategy 7: Profit from the Power of Branding
8.9 Extraordinary Strategy 8: Add Credibility
8.10 Extraordinary Strategy 9: Create Magnetworks
8.12 Summary
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8.1 INTRODUCTION
In today's world, with more demanding customers, citizens, and

employees, "ordinary" is no longer good enough. Once consumers have
tasted a better coffee, used a fancier toothbrush, or been served in less
than a minute, it is difficult for them to accept what they perceive to be
lower-quality products and services. Instead, they are looking for the
extraordinary, which means "the exceptional, surprising, and unusually
great".
In order to help you shift from the Ordinary into the Extraordinary,
consider the following Nine Strategies used by many Successful and
Innovative Organizations. These strategies were intentionally developed to
be generic so that they could be applied to organizations of all kinds and to
workers at all levels-from new recruits to seasoned executives, from free
agents to corporate veterans.
8.2 EXTRAORDINARY STRATEGY 1: TARGET THE MOST

PROFITABLE CUSTOMER
Should an organization offer products for sale and see which customer
groups appear or, conversely, should it preselect a certain customer group
and develop only those products that appeal to this group? Classic
Business Strategy suggests that the best route is to target a customer
group and develop products to suit the needs of this particular target
group, as Gap Kids stores did in developing casual, trendy clothing for
children. In reality though, most organizations go back and forth by
adjusting their product offering and their target customer groups as the
competitive set changes and customer needs and preferences evolve.
However, if you are going to choose one customer group upon

which to focus, target the most Profitable Group. In terms of an
existing business, target the top 30 percent most profitable customers, and
develop innovative products, services, programs, and processes to suit the
needs of this important group. Discuss how vulnerable your company is to
losing your customers to your competitor's products or services, and
determine the best strategy to continually keep these most profitable
customers in your camp. Also, discuss why the other 70 percent of your
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customers are not as profitable. Are there specific activities your team
could do to quickly increase the profitability of these other customers
without jeopardizing your top 30 percent of customers?
Be on the lookout for new customer groups who could represent

significant profit potential. These may be customers who currently use
your competitor's products or services, or customers who could be new to
the category. For example, mobile phone companies originally targeted
affluent and progressive adults but soon expanded their marketing
strategies to target a new and very profitable group-teenagers.
The challenge of identifying the most profitable target group for Inventors
of new products, especially technology products, is a little more difficult.
Many Inventors dismiss the need to understand the total business picture
and prefer instead to just launch the new product and see what happens.
This is not the wisest approach since the identification of this target
customer group, the size of this group, and the rate of marketplace
acceptance are all-important factors in determining the resources needed
to launch and maintain the new product. Take the time to identify whom
you are targeting.
Everett Rogers categorized the adoption of Innovation into five

main adopter categories (with the approximate percentage of users
in each category):
• Innovators (2.5 percent);
• Early Adopters (13.5 percent);
• Early Majority (34.0 percent);
• Late Majority (34.0 percent); and
• Laggards (16.0 percent).
It is interesting to note that Rogers's categorization includes only 16

percent of the population as Innovators and Early Adopters. The remaining
84 percent of the population is waiting for the tried and true. This
categorization is important for planning elements such as product design,
pricing, distribution channel, and communications strategies to attract the
right target group at the right time in the Product Life Cycle.
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To target your most profitable customers, ask yourself the

following questions:
• Who are the most profitable customers?
• Who will be the most profitable customers in the future?
• What specific needs do they have now and will they have in the future?
8.3 EXTRAORDINARY STRATEGY 2: OFFER SOMETHING

DISTINCTLY NEW AND BETTER
Innovation is about introducing something "distinctly new and better" to

the marketplace and succeeding in getting the customer to switch from
what they are currently using to the new idea.
Remember the fundamental law of Decision-Making: Almost every

decision is made by comparing the virtues or benefits of one option
over another.
• For example, a person has a choice of over thirty Caribbean Islands

to visit. What makes one island more appealing than another as a
vacation spot? Conversely, What could the tourism agency for a specific
island do to enhance the appeal of their island? What is this specific
island famous for? Does the island offer award-winning scuba diving or
special landmarks or specialty food or drinks not available elsewhere?
What profitable customer group does it want to attract, and how will it
meet the needs of this particular group?
• For example, in the U.S., the Tourism Bureaus of Hollywood (home

of the movie stars), New Orleans (home of the Mardi Gras) and South
Beach, Florida (the home of Latin music) all understand the need to offer
something distinctly new and better, so they market the unique aspects
of these places.
• In another example, how could a Hospital Fund-raising Committee

attract more donors? What could they do to communicate that their
hospital is the best choice among the many choices donors have?
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Become Extraordinary by offering something distinctly new and different.

Ask yourself the following questions:
• How is this idea distinctly new and better for the customer?
• How does this idea stand out in the marketplace?
• How is this idea distinctly new and better for our organization?
8.4 EXTRAORDINARY STRATEGY 3:SET YOUR INNOVATION

PRIORITIES
Resources are stretched too thin. Everyone has too much to do. However,
something is wrong when an organization lists number of priorities for the
coming year. Select a few important priorities and focus everyone's efforts
and resources toward the achievement of these important priorities.
Selecting Priorities is a tough challenge. The Team or Organization

needs to decide:
1. Which products and services to grow, hold or eliminate
2. Which customer groups to support, hold, or ignore
3. Which regions to grow, hold, or eliminate
4. Which projects to support, maintain, or discontinue
In order to do this, they need:

• To acquire information on each product, service, region, customer group,
and project;
• To identify the current role that each of these elements plays in terms of
its contribution to the competitive strength of the organization;
• To identify the current role that each element plays in terms of its
contribution to the overall financial health of the organization;
• To identify the current role that each element plays in terms of the
achievement of the future vision.
Resources should then be allocated to support those activities that

represent the fastest, most effective route to reaching the future vision.
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Depending on how much risk your organization wants to

undertake, you should have a mix of Priorities, such as:
1. A mix of Customer Groups. Depending on the strategy for growth,

extraordinary companies might target different customer groups with
different products, services, and programs.
Credit-Card Issuers profile their customers into different groups such

as Revolvers (customers who carry a balance each month and
accordingly represent interest revenue for the card issuer) and
Convenience users (customers who pay their balances each month and
accordingly represent little profit for the card issuer).
Find out who your most profitable customers are and treat them well.
2. A mix of High and Low levels of Service. Many organizations offer

different service levels and price these service levels accordingly.
The U.S. Passport Office offers faster processing of passport renewals

for an extra fee.
Other organizations such as Restaurants, Investment advisors, and

Airlines offer higher levels of service to their frequent buying
customers.
3. A mix of Current and New Distribution Channels. Experiment with

new distribution channels such as the Internet or a new alliance as a
means to reach new customers or improve services to current
customers.
4. A Mix of Short-term and Long-term Projects. Everyone in the

organization should be asked to manage their day-to-day projects
alongside several Long-term projects.
Nokia categorizes its projects into three strategic time perspectives:

Short-term, Medium-term, and Long-term.
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5. A mix of Efficiency, Evolutionary, and Revolutionary Projects. You

do not want your team focused entirely on Efficiency-based initiatives,
ones that focus on improving the overall productivity of your current
business practices.
Make sure your team has a mixture of Efficiency Projects and projects
that represent either Evolutionary or Revolutionary change in order to
position the organization well for the future.
6. A mix of Duplicated Projects. Although this strategy might seem

inefficient at first glance, extraordinary organizations like Procter &
Gamble and Hewlett-Packard believe in funding seemingly Duplicate
Projects with the belief that the strongest project will survive in the
marketplace.
"Rather than place its bet exclusively with ink-jet printers or with laser-
jet printers, Hewlett-Packard created a completely autonomous
organizational unit. It then let the two businesses compete against each
other."
As Gary Hamel advised, "Somewhere there is a competitor with a bullet

with your name on it," so you might as well challenge your own business
to find the most innovative way.
Also, identify any products or services that are currently seen as low
potential but that could represent significant upside potential. Should these
"sleepers" receive a little more attention within the strategic mix?
One of the toughest challenges in setting priorities is identifying

the "losers" in the portfolio-products, services, or projects that no
longer add significant value and are not needed in order to reach the
strategic goals of the organization. Extraordinary organizations have the
ability to discontinue these losing projects so that they can allocate
resources to finding more open doors.
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To become Extraordinary by setting Priorities, ask yourself the

• Have we identified our product, customer, region, and project-innovation
priorities?
• Do we have a mix of priorities in our portfolio in order to manage risk?
• Have we identified a strong innovation pipeline of new product, service,
and project ideas for the future?
• Have we identified and discontinued any losing products, services, or
projects?
8.5 EXTRAORDINARY STRATEGY 4:MAKE SURE IT'S EASY
People ideally want life to be easy. Many people have profited from
providing easy services that others do not like to do, such as a simple
service like barbeque cleaning, super scoopers for cleaning up after dogs,
an errand service, or a tele-tutor service for school-age children who need
assistance with their homework.
Here are several ways to make sure it is easy for your customers as
well as your teammates:
1. Make it easy to understand. A focused message has more impact. As

President John F. Kennedy so eloquently stated, "Ask not what your
country can do for you, ask what you can do for your country." Citizens
understood the message because it was simple. Make it easier for
customers or managers to understand what you are offering.
• Pharmaceutical Companies still have a way to go in simplifying their

message (brand names, packaging, and information) so that their
ultimate customers, the patients, not just the physicians, can
understand their messages.
• Computer Software Manuals are still written for customers who

have a strong understanding of technology and the jargon associated
with it.
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2. Make it easy to buy. Offer multiple access points. Offer customers

access to the products or services via the Internet, SMS, phone, mail,
fax, and in-person options. Simplify the selling or communications
process so that the product or service can be easily accessed. Bundle
your products and services. Learn from the fast-food industry,
which simplified the menu selection by offering "combos" or
combinations of menu items.
3. Make it easy to use.

• In some subway cars in Japan, the direction the train is moving in
and the name of the next station are highlighted on a map as the train
is moving. This is helpful on crowded cars when the view out the
window is blocked.
• Immigration Departments in some countries are offering easy-pass
services to simplify the border crossing process for frequent travelers.
• Some are even experimenting with eye-recognition technology to
facilitate international travel.
• Ericsson in Sweden and Nokia in Finland are offering wireless
mobile phones that can provide the latest information about movies
as well as allowing customers to easily make a wide variety of
purchases. The mobile phone will eventually replace the need for a
wallet as it can serve as a credit card and identification in addition to
providing various communication services.
Try eliminating steps for the customer.
• AOL simplifies Internet access for new computer users by providing
an easy-to-use program.
Become Extraordinary by making it easy. Ask yourself the following

questions:
• How is your idea (product, service, program, or process) easy to
understand?
• How is your idea (product, service, program, or process) easy to buy?
• How is your idea (product, service, program, or process) easy to use?
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8.6 EXTRAORDINARY STRATEGY 5:PICK UP THE PACE
Speed is a Competitive Advantage.

• Domino's Pizza knows this, so it promises fast delivery-delivery in thirty
minutes or the pizza is free.
• Software Companies know this, so they offer technical support on
Sundays rather than expecting customers to wait until Monday.
• The Saturn Corporation knows this, so it offers predetermined prices
on its cars so the customers do not have to waste their valuable time
negotiating with car salespeople.
"The early bird catches the worm." Unfortunately, for many organizations,
the way they operate does not match the speed of the new, chaotic
technological world. Much time is wasted waiting-waiting for parts, waiting
for information, waiting for approvals, or waiting for others to complete
their tasks.
Your process could represent your point of difference in the marketplace; it

could be the "distinctly new and better" idea you are looking for. Here are
some ideas:
1. Eliminate Unnecessary Steps in your Processes.

• Wal-Mart has been investigating the shipment of products directly
from the manufacturer to their stores so they can bypass their costly
warehouses.
• Internet Companies offer direct manufacturer-to-buyer purchasing
for cars, appliances, computers, clothing, and much more.
• Other Organizations eliminate process steps by asking their
customers to perform the steps themselves. Customers now
access their own money at Automatic Teller Machines, pour their own
drinks at fast-food restaurants, and scan their own books at the
checkout at the local library. To identify unnecessary steps in your
process, first map the process by identifying the activities, information,
and people involved at each step along the way. Look for a
dysfunctional flow of products or information. Look at every process-
upstream and downstream-to find innovative ways to eliminate
unnecessary steps.
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2. Find the Bottlenecks in your Processes.

• Norfolk General Hospital mapped the X-ray Process and found
bottlenecks and inefficiencies. The improved process reduced the time
it takes for X-rays by 81 percent.
• Remember, Improvements cannot be made in Isolation. Even if an
organization such as a Pharmaceutical Company improves its
Research and Development process to save twelve months of
development time, the time saved might be canceled out by not having
their documentation ready for the government's drug-approval
procedures later on in the process.
3. Implement Seamless Processes, How often do your customers hear,

"We don't handle that in this department. You'll have to call this other
number."
Coordinate processes from department to department by letting "the

one hand know what the other one is doing." Also, consider replacing
sequential processes (where Step 2 cannot begin until Step 1 is
completed) with parallel processes (where Steps 1 and 2 are done
concurrently).
While the efficiency of Internal Processes is important to Innovation, the

largest benefit can usually be derived from improving processes with
customers, partners, suppliers, and other external stakeholder groups.
Supply-Chain Management, e-procurement, Lean Logistics,
Enterprise-Resource Planning, and Customer-Relationship
Management are all areas of growing interest for managers who want
to identify more Innovative Process Designs.
4. Simplify Decision-Making. Redesign your processes so that

Information flows quickly and decisions can be made quickly.
Streamline processes so that customers can deal with a person who
can make an immediate decision for them. Improve the
responsiveness of your organization by enabling more decisions to
be made by junior staff members. Eliminate multi-layered approval
processes for micro items. And remember, your organization is
wasting time if your employees are afraid to discuss a new idea and ask
questions early on in the idea-development process and are instead
waiting until later when they have a fully developed idea.
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5. Have everyone identify the Sacred Traditions that no longer add

value. Cut out redundancy or wasted effort. Have everyone identify
crazy things that waste time, money, and effort. Identify quick
improvements or just eliminate the thing that is not adding value.
6. Take advantage of Technology. Use Technology to maximize the

flexibility of your product or service. Most hotels and motels now use
Technology to provide up-to-date information on their room rates. You
can also use Technology to enhance communications and
collaboration with other team members so that time is not wasted.
7. Operate on Customer Hours. With Technology and the shift to Global

Operations, many organizations are investigating ways in which they
can offer their products and services anytime, anywhere. Brokerage
Services operate twenty-four hours a day so customers can place a
stock trade in the middle of the night. Pizza Delivery Services and
Pharmacies are open twenty-four hours. Why dry-cleaners and car
repair shops aren't also open twenty-four hours a day?
Become extraordinary by Picking up the Pace. Ask yourself the

• How can we eliminate unnecessary activities or "the crazy things we do"
so that resources can be funneled toward more innovative activities?
• How can we simplify decision-making so those innovative ideas can make
it through the system quickly?
• How can we take advantage of technology to quickly deliver something
"distinctly new and better" to the customer?
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8.7 EXTRAORDINARY STRATEGY 6:SYSTEMIZE WITH

MODULES
Simply stated, A Module is a standardized part. By moving to

standardized parts, an organization can eliminate the wasted time and
effort spent "reinventing the wheel" each time that part is needed. When
an organization develops a Standard Operation or System that is
repeated time after time, it can capitalize on the following benefits:
1. Customers have a greater sense of power in the buying process.
Consumers can mix and match the component parts depending on their
unique needs. Dell encourages its customers to build their own
computers using an array of standardized parts.
2. Greater Efficiency in operations can be achieved. Hewlett-Packard
uses standardized component parts for its printers. Starbucks uses a
standardized "shot of espresso" in numerous coffee-drink recipes.
3. Credibility is increased. By using Module parts behind the scene, the
ability to deliver a consistent product or service to a customer is
strengthened. As a result, the customer believes that the organization
"knows what it is doing."
4. Expansion Plans are also easier. By having the core architecture in
place, researchers are able to identify new products, applications, and
improvements more easily.
• 3M has the Post-it note architecture in place and now just needs
to identify more new products that can take advantage of this format.
• In the automobile industry, where design costs and the need for
new car models are high, manufacturers use components that can be
incorporated in more than one car model. The time to develop New
Models can also be shortened if a series of products is considered and
Multi-year expansion plans are developed.
5. Internal Processes are easily coordinated. For example, a Sales

Team can use the same component parts to produce a Standardized
Sales Presentation or Internal documents.
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To become Extraordinary by Systemizing with Modules, ask

yourself the following questions:
• How can we use the concept of modules to simplify our customers'
buying process?
• How can we modularize our internal processes?
• How can we use the concept of modules for our future plans?
8.8 EXTRAORDINARY STRATEGY 7:PROFIT FROM THE

POWER OF BRANDING
Club Med, Harlequin, CNN, AOL, Gap, Canada, the Cannes Film Festival,
British Airways, Singapore, Motorola, Intel, Marlboro, Tahiti, the Olympics,
KFC, MasterCard-everywhere we turn, Brands are being offered. Tom
Peters even suggested that people brand themselves-with a distinct
name, features, and positioning in the marketplace.
• A Brand goes beyond the simple features of the product to create
'a distinct image. For example, a cup of black coffee is only a cup of
coffee, but by placing the Folgers brand name on it, we have the
perception that the cup of black coffee is of higher quality.
• Likewise, Sport Shoes with the Brand name Nike and Women's handbags
with the Brand name Coach command higher prices than similar
products with less respected Brand names.
• So do Brands such as Calvin Klein clothes, Diesel Jeans, Harley-
Davidson Motorcycles, and Heineken Beer.
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Why is Branding important to Innovators? Here are a few reasons:
1. Branding helps break through the Clutter. Distinct Branding helps a

brand to stand out in a marketplace overwhelmed by many similar
products, services, and programs.
2. Branding helps simplify the message and makes the Buying
Decision easier. Branding can simplify the message for busy
consumers. Most customers are busy and have a lot on their minds.
Branding helps facilitate the speed of their Buying Decisions. They can
rely on the most popular brand or continually purchase the Brand upon
which they have come to rely. A Brand name reserves a spot in the
customer's memory bank.
3. Branding delivers Economies of Scale. Consistent Branding
simplifies the task of communicating the features and benefits of the
product or service. Consumers know what-brand to ask for, simplifying
the task even further. Similar Branding can also be used across the
global marketplace, leading to lower marketing costs.
4. Branding delivers a Guarantee of Consistency if done right. You
know what Coca-Cola will taste like. You know how solid a Volvo car
will be. You know that Four Seasons Hotels and Resorts will take
special care of you. The customer knows what to expect from the brand,
even from one Country to another.
Done well, Branding can help not just a product or service, but also a
New Program.
• For example, a Government Agency can benefit from Branding its

programs so that constituents understand the differences between
programs, know what program to request, and also realize the breadth
of distinct programs offered through this specific agency.
Branding is not just the domain of the Executive Team or the

Marketing Team. More and more Human Resources and Operations
Managers are adopting the Principles of Branding in order to improve the
communications of their programs, both within and outside of the
organization. Among other things, Organizations are turning to stronger
Branding Programs so that they can position themselves in the best light
when recruiting new talent.
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Become Extraordinary by profiting from the Power of Branding. Ask

yourself the following questions:
• How can we use the power of branding to simplify our selling message?
• How can we use the power of branding to increase the consistency of our
selling message?
• How can we use the power of branding to position our new programs to
the employees in our organization?
8.9 EXTRAORDINARY STRATEGY 8: ADD CREDIBILITY
If it is difficult to communicate how your Innovative Idea is "distinctly new

and better," you may want to consider Adding Credibility or Prestige
from several of the following sources:
1. Investigate the potential of patenting the idea and, if the patent is
granted, tell everyone.
2. Win a prestigious award. Films that win at thebhave instant
credibility.
3. Have a leading authority support your idea. Restaurants rely on
restaurant critics to write wonderful reviews, writers covet Oprah
Winfrey's endorsement, and toothpaste manufacturers pursue the
endorsement of the Dental Association.
4. Profile Testimonials from satisfied customers
5. Seek testimonials from Celebrities (but only seek Testimonials in
fields in which the Celebrities have expertise).
6. Reference Experience in the field such as twenty-five years in
business, president of this or that, or author of seventeen books.
7. Advertise that you are "number one" in something or that you are
widely accepted by many customers, such as "top-rated movie,"
"number one in the category," or "have served over nine million
customers."
8. Offer a money-back guarantee to lower the risk of trying your new
product or service.
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9. Offer a sample of the product or service. AOL encouraged people to

sample their service with free CD's. Cable channels offer thirty-day
trial periods with the hope that their customers will "get hooked" on the
new channels. Food companies offer samples of their new food
products.
10.Offer insight that no one else has. Highlight the ten secrets in
your area of expertise.
11.Advertise that a large number of customers requested the new
idea such as "by popular demand, the product is finally available in
Canada."
Become Extraordinary by Adding Credibility. Ask yourself the

• How can we add prestige by winning an award?
• How can we gain support from leading authorities in our field?
• How could we enable potential customers to test this product or service?
8.10 EXTRAORDINARY STRATEGY 9:CREATE MAGNET

WORKS
Here are some ideas on how you can Network and involve others:
1. Network within your organization. First and foremost, remember
that Opportunities for Innovation lie within your organization. Break
down your walls and inspire others to share their insights, ideas,
resources, and learning in order to tap into your organization's collective
wisdom. Share your work. Make it easy on your team members by
sharing your processes with them so they can understand what you do
and offer assistance if needed.
2. Network to learn from others. The Internet has enabled many to
exchange insights and ideas through chat rooms and shared-interest
Web sites. Others share best practices through Industry Associations or
through Direct Experiences, as the Postal Service of Canada did in an
exchange with its Indonesian counterpart. The fastest route to
understanding is to network with an entity that has faced a challenge
similar to yours.
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3. Network to share the infrastructure burden with other

competitors. Packaged-goods companies, e.g., Coca-Cola and
Kellogg's, are looking at using the same distribution resources to take
advantage of shared Economies of Scale. The Star Alliance, a network
of several airlines, shares both marketing power and infrastructure
capacity.
4. Network to share Research and Development insights and
responsibilities.
• Software companies such as Microsoft encourage users to test their
new software programs before they are offered to the public at large.
• Linux attracted a large number of programmers who contributed their
ideas for the development of its new "open source" operating system.
• Bluetooth, a development project investigating the feasibility of a
radio-based link between different electronic devices, is another
example of a network or "virtual community of program developers."
Bluetooth represents a significant leap forward in Technology. Partner
Organizations include 3Com, Ericsson, Intel, Lucent Technologies, IBM,
Microsoft, Motorola, Nokia, Philips, Toshiba, and Texas Instruments.
The network now has over 2,000 active members.
5. Network to Outsource. Outsource the parts of the process that are
inefficient for your organization and then concentrate on developing
your capacity in the areas that are important to your future vision.
• Dell chose to outsource its manufacturing.
• FedEx chose to outsource some of its ground transportation so that it
could concentrate its efforts on building a brand as well as a strong
technology infrastructure for e-commerce.
• Some organizations outsource administrative tasks, such as payroll and
sales functions. IKEA, the furniture manufacturer and retailer,
even outsources to customers, who have the responsibility for
assembling their own furniture products. Outsourcing enables an
organization to take advantage of "best-in-breed" partnerships and
quicker delivery times.
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6. Network to enhance Buying or Selling power.

• Convenience Stores network to benefit from strengthened Buying
Power.
• AARP negotiates price discounts and special offers for its members.
Amazon.com and Toys R Us established a service network so they
could both benefit by selling toys online.
7. Network to create an organization of managed companies.
• Four Seasons Hotels and Resorts and Fed Ex are two examples of
organizations that oversee the operations of other organizations within
their networks.
8. Network to provide a Hub or Meeting place for others.
Monster.com, an employment Web site, eBay, an Internet auction
site, and the various stock exchanges around the world represent
examples of networks established to provide a meeting place for buyers
and sellers.
These are all examples of "magnetworks" ("magnet"+"network"), networks

of competing and collaborating individuals or teams who innovate together
for mutual benefit. The members of this network assist one another in
achieving mutual innovation goals. Success breeds success. The stronger
the success of the network, the more it attracts new Innovation Teams,
which adds further momentum to the Magnetwork. Become
Extraordinary by creating a Magnetwork.
Ask yourself:
• How strong are our networks within our organization?
• How can we network with other organizations to identify and develop
new ideas?
• How can we use technology to strengthen our magnetworks'?
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1. People ideally want life to be easy. Many people have profited from
providing easy services that others do not like to do, such as a simple
service like barbeque cleaning, superscoopers for cleaning up after
dogs, an errand service, or a 1-800 tele-tutor service for school-age
children who need assistance with their homework.Imagine what kind of
easy service can be organized by you in your area.
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2. Consumers can mix and match the component parts depending on their
unique needs. Dell encourages its customers to build their own
computers using an array of standardized parts.
What is your idea about mix and match in case of your motorbike?
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8.12 SUMMARY
Once consumers have tasted a better coffee, used a fancier toothbrush, or

been served in less than a minute, it is difficult for them to accept what
they perceive to be lower-quality products and services. Instead, they are
looking for the extraordinary.
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1. Explain the Extraordinary Strategy 1: Target the Most Profitable

Customer
2. Explain the Extraordinary Strategy 9: Create Magnetworks
1. To target your most Profitable Customers, ask yourself the following

questions:
(Find out the wrong one)
(a) Who are the most profitable customers?
(b) Who will be the most profitable customers in the future?
(c) What specific needs do they have now and will they have in the
future?
(d) Where is the customer's corporate office?
2. Become Extraordinary by offering something Distinctly New and

Different. Ask yourself the following questions: (Find out the wrong one)
(a) How is this idea distinctly new and better for the customer?
(b) How does this idea stand out in the marketplace?
(c) What is the profit margin?
(d) How is this idea distinctly new and better for our organization?
3. To become Extraordinary by Setting Priorities, ask yourself the following

questions:(Find out the wrong one)
(a) Have we identified our product, customer, region, and project-
innovation priorities?
(b) Do we have a mix of priorities in our portfolio in order to manage
customers?
(c) Have we identified a strong innovation pipeline of new product,
service, and project ideas for the future?
(d) Have we identified and discontinued any losing products,
services, or projects?
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4. Become Extraordinary by Making it easy. Ask yourself the following

questions:
(Find out the wrong one)
(a) How is your idea (product, service, program, or process) easy to
understand?
(b) How is your idea (product, service, program, or process) easy to
buy?
(c) How is your idea (product, service, program, or process) easy to
use?
(d) How is your idea (product, service, program, or process) easy to
sell?
5. Become Extraordinary by Adding Credibility. Ask yourself the following

questions:(Find out the wrong one)
(a) How can we add prestige by winning an award?
(b) How can we gain support from leading authorities in our field?
(c) How could we enable potential customers to test this product or
service?
(d) How can we gain support from politicians in our field?
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TRANSITION FROM CHAPTER 8 TO 9 AND 10
My dear students, after the Creative Thinking and Strategic Thinking, now
is the time to learn to Ignite Passion and to Take Action.
By now, there is a good foundation in your mind about Innovation as a

subject, and so you are ready to travel further on this path. Before you
begin, ensure that the earlier topics are fully understood by you. If not
seek the clarification from the faculty. It is necessary before going further.
Innovation comes not only from the mind but also from the heart and soul.
Innovators need to tap into their own source of passion as well as unleash
the innovative spirit among others.
The next important principle is "Take Action". If ideas are not accepted and
implemented, the value of having these ideas cannot be realized.
The topics are interesting. Master them.
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Reference Material
chapter
Summary
PPT
MCQ
Video Lecture
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IGNITE PASSION
Chapter 9
Ignite Passion
Objectives:
At the end of this chapter, you will know the importance of Passion in
Innovation Management.
Structure:
9.1 Introduction
9.2 What Is Passion?
9.3 Why Have We Lost Our Passion?
9.4 Passion Killers
9.5 Passion Supporters
9.6 Passion at the Individual Level
9.7 Passion at the Team Level
9.8 A Passionate Physical Environment
9.10 Summary
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IGNITE PASSION
9.1 INTRODUCTION
We all know about or are familiar with people who have lost their Passion--
those individuals who appear to be detached from the world throughout
their lives.
However, we also know people who are extremely passionate about their
work and their lives, who radiate positive energy and excitement wherever
they go. Not onlythe kind of work that these people are doing is exciting,
but also it is their attitude toward their work.
Oprah Winfrey (talk-show host and philanthropist), Tiger Woods (world-

class golfer), and Nelson Mandela (South African activist and former
president) all put their hearts and souls into manifesting their human spirit
and potential through their work. If we are open to it, their Passion can be
contagious.
Fig 10.2 Fig 10.2 Fig 10.3
Passion is also about linking creativity with a deeper purpose. Even

when faced with tough situations, Passionate people seem to find a
deeper meaning to guide themselves.
If you have a chance to visit Seattle's Pike Street Fish Market and
witness first-hand the workers, you will see Passion. Not only will you have
a chance to watch these workers toss large fish back and forth among their
team, you will also enjoy their wonderful and very entertaining sense of
humor. If these individuals can bring Passion to selling fish day in and day
out, surely bringing more passion to your work and workplace should not
be as challenging.
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IGNITE PASSION
9.2 WHAT IS PASSION?
What do we mean by the word "Passion"? The Concise Oxford Dictionary

defines “Passion” as : "Strong emotion or strong enthusiasm”.
To show your Passion for something, therefore, requires you to

display your enthusiasm from within. When you put your heart and
soul into what you are doing, you are tapping into your strong emotional
force or, in other words, your passionate self! The more you tap into this
emotional force, the more you are filled with positive energy.
9.3 WHY HAVE WE LOST OUR PASSION?
Why have so many people lost their Passion? Why are employees so
alienated from their work? While the answers may be many, here are my
reasons why people may be losing Passion:
1. Too much Choice. The more choices a person has (in fact, the more
freedom they have to make these choices), the more overwhelmed they
may feel. They feel too much pressure to make too many choices in
their jobs without having the necessary support from others.
2. Too many Projects and not enough support. Many people lose
Passion when they feel unsure of their ability to complete their projects
on time and in the manner that they feel is best warranted. Many
organizations have eliminated positions through downsizing but are still
employing the same processes or expecting the same results with a
reduced resource base. Loss of Passion is worsened when priorities are
not reestablished in accordance with the weaker resource base or with a
change in direction. When employees cannot complete projects in the
way they desire, they feel defeated.
3. Weak Decision-Making Processes. Many employees complain that

either they do not understand how Decisions are made in their team
and in their organization or that; the Decision-Making Processes are too
slow.
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IGNITE PASSION
4. Fear and Anxiety. The uncertainty surrounding one's ability to hold on

to a certain position within an organization can lead to increased Fear
and Anxiety, which, in turn, can lead to decreased job performance and
the loss of creativity. If someone fears the loss of their job, they will be
less likely to take risks and may attempt to hide any potential signs of
weakness to avoid becoming the next candidate for downsizing. If this
fear is not addressed, they may lose the Passion for embracing anything
new and innovative.
5. Pursuit (attempt to achieve) of Extrinsic Rewards. In an interview

to fill a vacant marketing position,one of the candidates for the position
was a woman who was working in another department in the same
company. When asked why she was interested in working with the
Marketing Team, she replied, "The job pays better than my current job
does."
There was no mention of any Passion for the actual job or for learning
more about how to market a product to a target consumer group. There
was no mention of any interest in wanting to work with a team of
energetic, passionate marketers!
So many people are focusing so much on Extrinsic Rewards instead

of pursuing a deeper attachment to the actual work.
6. Cynical Humor. The drama occurs in many of our organizations, where

employees and managers have lost their Passion and have turned to
Cynical Humor as a deflection for their serious lack of true meaning and
passion in their work.
7. Stifled (Preventing from Continuing). Too often, people are

encouraged to keep their Passion under wraps.
• "It's not acceptable to show emotion when you work for the
government."
They soon stop bringing their true selves to work and, instead, dull
their senses throughout the day. New employees, who are naturally full
of Innovative Ideas, are encouraged to mimic "how things are done
around here." Too often, Passionless Managers spread the virus by
teaching others to stifle Passion for Innovative Thinking.
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IGNITE PASSION
8. No time. Many people say that there is no time to be passionate about

looking for and developing new ideas.
• "I don't have time to think."
• "I don't have any time to innovate."
People may have lost their Passion for these reasons. They may also
have heard too many Passion Killers. For example:
• "Bob, give me an idea of how we could increase our inventory levels"
• "We could look into scheduling three shifts instead of two."
• "We thought of that already. Don't you have any practical ideas?"
As Groucho Marx said, "Whatever it is, I'm against it."

Here is a list of Passion Killers. How many have you heard in your
Organization? How many have you said?
9.4 PASSION KILLERS
We’re not ready for that idea yet. That's not your job.
We’re too busy It's too radical a change.
It’s too hard to implement It's against company policy
If it’s such a great idea, why hasn’t The president will never go for it. The
anyone thought of before? Head Office will never go for it.
It’s all right in theory, but it would Let's give it some more thought.
never work here We won't get the budget for it.
If we let you do that, then everyone It's never been tried before.
will want to do that.
It’s a bad idea We tried that before and it didn't work
It's not a priority. That breaks all the rules.
Let's put it on hold for now. It will cost too much.
It's not a good time. It's ahead of its time.
We've always done it this way. We're not ready for that.
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Don't rock the boat. It's too big for us to handle.

Have you lost your mind? Let's wait.
We don't have the resources. That's a stupid idea.
It won't work in this organization. It won't work.
It wasn't invented here. Why would you want to do that?
9.5 PASSION KILLERS
What happens if we listen to all those criticisms? We end up back where we

started. Hearing these Passion Killers-even the anticipation of hearing
these Passion Killers-can stifle Innovation.
My two favorite Passion Killers are:
• "We haven't done that before" and
• "We've done that before!"
It seems like these two Passion Killers are a Catch-22.

You have only so much energy. You can spend it being positive or you can
spend it being negative. If you have 50,000 thoughts a day, what
percentage of them are positive thoughts and what percentage of them are
negative thoughts.
Ask yourself:
• Do you find it easier to criticize an idea than to support it? Why?
• How many of these Passion Killers do you find yourself saying each day?
• What is happening to all the good ideas in your organization?
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9.6 PASSION SUPPORTERS
Some seeds will fall on fertile soil, while others will fall on the pavement
where they will find no nourishment and will be wasted. In order for
Innovation to flourish, new ideas must be supported. Surround yourself
with Passionate people who give your ideas the support they need. Support
others' ideas and ask them to support yours. How many of these Idea
Supporters are you using on a regular basis?
Passion Supporters
Terrific You're the best

You outdid yourself again Go for it
Keep up the great work Right on
Wonderful That's top rate
Now you're cooking Let's do it
Well done I'm behind you
Wow I wish I'd thought of that
I knew you could do it That's a great idea
I'm glad you're on my team I think it will work
That's your best work ever That will really shake up the industry
You're right on target The president will love this idea
As individuals, we all want the opportunity to free our entrepreneurial

spirit. Look what happened in Silicon Valley during the early dot-com
days. Many individuals, including some hot teens, shook up the
establishment with their passion and enthusiasm for finding and launching
new business ideas. Most of them did it because they loved what they were
doing. Wouldn't you like to be more like these Passionate people who
cannot sleep because of the excitement of their work instead of like those
who cannot sleep because of the stress of their work?
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Passion is the intensity we feel when we engage in an activity or

project that deeply interests us. It is the life energy we receive and
draw upon from doing what we love! In our chaotic world, it is
important to know what makes or will make us more passionate about our
work and about life in general. The more that you can align your personal
values with your work, the more likely you are to find the deeper purpose
in what you are doing, and the more passionate you will become.
9.7 PASSION AT THE INDIVIDUAL LEVEL

Work should not just be about tasks and projects that need to be
completed. Rather it should be a manifestation of our individuality and
have a deeper sense of meaning in our lives. Whatever challenge you are
facing, whatever your job responsibilities may be, it is always beneficial to
try to rise up above the task or project and see both the bigger picture and
the deeper meaning of what you are trying to achieve.
Ask yourself:
• Are you engaged in activities that deeply interest you?
• Are you fulfilling your potential?
• Are you blocking out cynics and other negative influences?
• Are you being the change you want to see in the world?
• Are you giving yourself enough time to be innovative?
9.8 PASSION AT THE TEAM LEVEL
It is important to understand the difference between the Stated

Culture and the Real Culture. Many teams post a list of the principles
and practices that comprise their Stated Culture on their boardroom wall
but then do nothing to correct behavior that deviates from this Stated
Culture. Real Culture relies more on the personalities and behaviors of
the team members than on a list of desired attributes.
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There are at least four key Passion Drivers at work:

• Doing challenging work
• Having a sense of ownership in the ability to identify and implement
• Being recognized and rewarded for one's innovative work
• Having the opportunity to work with other passionate people in a
passionate environment
The employees at Walt Disney World, or cast members, as they are often
called, share their Passion to create a wonderful experience for their
customers or guests. When you visit the Disney theme parks, you can feel
that their employees are excited about what they do and what their
organization does for the Entertainment World.
Figure 10.4
The employees at Southwest Airlines are encouraged to be creative and

make improvements on their own initiative. Co-founder Herb Kelleher
knew that, in order to truly create an environment for Innovation, he had
to be willing to grant his employees the freedom to make decisions "on the
spot," decisions that they felt were in the best interest of the Organization.
By pushing Decision-Making down to the levels where it was most
productive, he signaled to the organization that Southwest Airlines truly
values it employees. Employees' Passion for their jobs rubs off on the
customers. If you fly with Southwest Airlines, you can see and feel
the Passion in the air!
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Figure 10.5
Many people feel more Passion when they feel a sense of

ownership in an idea. If a person is granted the opportunity to continue
to work on an idea once it has been approved, they will feel a stronger
sense of ownership and pride in seeing the idea realize-the potential they
had originally promised.
It is important to recognize the Originators of ideas as well as

those who implemented them. It is often the case that a person, who
joined the team in the last minute, as a new idea was being launched into
the marketplace, received all the glory while the Development Team, who
spent the previous year shaping and reshaping the idea, receives little or
no recognition. How does your organization recognize Innovators
and their contributions?
Ask your team:

• Do we have a passion for pleasing our customers? Do we feel free to
make decisions?
• Do we feel a sense of ownership for our ideas?
• Do we formally recognize our team members' ideas?
• Do we all know each other or are we just viewing each other as people
completing projects and tasks?
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9.9 A PASSIONATE PHYSICAL ENVIRONMENT
Imagine two Reception Areas:
• The first exudes Excitement. The sun shines brightly through the many
skylights and rests gently on the marble floor. On one wall is a vivid
display of the company's product line while on the other wall is a display
of letters from satisfied customers. On the coffee table are copies of the
company's latest promotional materials and a jar of jellybeans that just
happen to match the corporate colors. The Receptionist smiles kindly
and asks if the directions to the building were easy to follow.
• The other Reception Area screams Depression. Three tattered old office
chairs surround one old coffee table. The remains of this morning's
newspaper (the business section is missing) lie beside two copies of
Newsweek dated a few months ago. A lonely plant leaning slightly to the
right stands limply beside the Reception Counter. On the Reception
Counter is a small sign: Please ring bell.
Which environment shouts, "We're excited you're here. We want to work

with you"? Which environment communicates the company's passion?
Which company seems more innovative? With which company would you
rather work?
Passionate Environments truly vibrate at a higher level. You can

just feel the energy when you walk into the building.
• First, one of the factors influencing new employees' choice of
employer is the Environment in which they will be Spending the
majority of their working hours.
• Second, Space is a symbol of the Excitement and Pride that
employees have for the business. If employees have the opportunity
to work in an environment that supports this excitement and pride, they
will potentially be more passionate about their work, which could lead to
higher productivity.
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• Third, if employees have the opportunity to work in a passionate

environment that also celebrates their individuality, they might feel
more open to sharing their "crazy, innovative" ideas instead of feeling
pressure to conform to the "way it has always been around here." (Of
course, other factors such as Innovation-Process Networks and Cultural
and Financial support for new ideas also play a key role in determining
the level of Innovation produced by a Team or Organization.)
• The Advertising Agency GSD&M believes that there is a relationship
between Physical Environment, an Energetic Culture, and Creative
Output. Their building in Texas is designed to stimulate interaction
among employees and therefore has more than fifty rooms of various
sizes where co-workers can meet and share ideas.
• Some organizations are investigating or have built separate "creativity
centers" within their existing office spaces. These centers typically
represent a cross between a Resource Center with access to magazines,
videos, and other materials, and a Community Center, with comfortable
chairs, strobe lights, toys, squirt guns, and even karaoke machines!
A better and clearly more comprehensive approach is to incorporate

Passion and Innovation into the design throughout the building. Begin with
an inviting lobby that signals Innovation. Then you might want to add a
Hall of Fame to profile your top innovators. Think about your own offices
and conference rooms--not all Offices and Conference Rooms need to look
the same. Add excitement through different aesthetic treatments. Create
innovative names for your Conference Rooms.
Figure 10.6
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Ask yourself the following questions:

• Is our environment inviting?
• Does our environment communicate who we are, what we do, and what
we are most proud of?
• Do we use color, lighting, art, greenery, sound, and other aesthetically
pleasing techniques to convey excitement and energy?
• Do we have a good mixture of group meeting spaces to fit the needs of
our team to meet formally or informally?
• Does our environment change or evolve as our work evolves?
• Does our environment communicate that we are an innovative
organization?
Remember though, designing a passionate physical space does not

guarantee that the team will magically become more Innovative! You must
also consider the psychological environments (climate, rewards, and
recognition) as well as the processes, resources, and skills development
that are needed to support Innovation within your Organization.
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1. Analyze the following points and make a write up:

• Are you engaged in activities that deeply interest you?
• Are you fulfilling your potential?
• Are you blocking out cynics and other negative influences?
• Are you being the change you want to see in the world?
• Are you giving yourself enough time to be innovative?
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2. Refer 10.4 and make a list of passion killers that you have experienced.
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9.10 SUMMARY
Passion is also about linking Creativity with a deeper purpose. Even when
faced with tough situations, Passionate people seem to find a deeper
meaning to guide themselves. To show your Passion for something,
therefore, requires you to display your enthusiasm from within. When you
put your heart and soul into what you are doing, you are tapping into your
strong emotional force or, in other words, your passionate self! The more
you tap into this emotional force, the more you are filled with positive
energy.
1. List the main Passion Supporters.
2. What do you understand by Cynical Humor?
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1. What do we mean by the word "Passion"? The Concise Oxford Dictionary

defines Passion as:
(a) Strong emotion or strong enthusiasm
(b) Strong physique
(c) Strong Love and affection
(d) Latest Fashion
2. "We thought of that already. Don't you have any practical ideas?" This is
an example of:
(a) Passion Supporters
(b) Passion Killers
(c) Motivation
(d) Continuous Improvement
3. "Whatever it is, I'm against it." Who said it?

(a) Groucho Marx
(b) Karl Marx
(c) Einstein
(d) Mark Twain
4. There are at least four key Passion Drivers at work (Find the wrong one)
(a)Doing challenging work
(b)Having a sense of ownership in the ability to identify and implement
(c)Being recognized and rewarded for one's innovative work
(d)Having the opportunity not to work with other passionate people in
a passionate environment
5. The employees at Walt Disney World are often called as:

(a) Cast members
(b) Team Disney
(c) Beatles
(d) Disney associates
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Reference Material
chapter
Summary
PPT
MCQ
Video Lecture
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Chapter 10
Take Action
Objectives:
At the end of this chapter, you will come to know about the third Stage of
the Nine-Step Innovation Process: Action
Structure:
10.1 Introduction
10.2 The Nine-Step Innovation Process: Part 3: Action
10.3 Developing the Innovation Roadmap
10.4 Writing the Innovation Roadmap
10.5 Gaining Commitment
10.6 Understanding Your Audience
10.7 Preparing a Prototype
10.8 Presenting Your Idea or Innovation Roadmap
10.9 Receiving an Idea
10.10 Overcoming Resistance to Your Idea or Innovation Roadmap
10.11 Implementing the Innovation Roadmap
10.12 Implementation in the Marketplace
10.13 Passion, Patience, and Perseverance
10.14 Timing Is Important
10.15 Find Supporters
10.16 Repeat the Presentation of Your Idea
10.17 Repackage Your Idea
10.19 Summary
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10.1 INTRODUCTION
Example of Five Frogs

"Five Frogs are sitting on a log. Four decide to jump off. How many are
left?" You might think this is a simple riddle. "Why, one frog, of course,"
you respond, "That was an easy and straightforward question."It is not
until someone else in the crowd answers "five frogs" that you stop and
examine the riddle again. You see, even though four frogs decided to jump
off, there is nothing in the riddle to indicate that they actually jumped.
One of the lessons provided by this simple riddle is that there is a

big difference between deciding to do something and actually doing
it! Indeed, the Nike slogan "Just Do It" is often much easier said than
done. However, Innovation, by definition, requires that a Creative idea be
Implemented or acted upon in order to add value.
Simply put, Great ideas are not "innovative" unless they are successfully
implemented. The critical factor is not the number of ideas that you or your
team may have, but the successful implementation of the ideas. There are
many examples of organizations that were on the right track but failed to
take action, took too little action, or moved too slowly with their ideas.
• Digital Research had access to the technology of the revolutionary 16-

bit operating system (DOS) but failed to capitalize on this idea, thereby
leaving the door open for Bill Gates to network with IBM and lay the
groundwork for what would become the Microsoft Corporation.
• Atari, Commodore, and Kaypro are other examples of organizations

that were once "king of the hill" or industry leaders but failed to
understand the need for a sense of urgency when it came to finding and
implementing new ideas.
Many people have been conditioned to believe that once a certain level of
"success" has been achieved, they can sit back and reap the benefits-
• "Once I get my MBA degree. . . ,"
• "Once our business has the largest share of the market . . ."
• "Once our government agency wins an award for performance excellence
• "If only that were the case!
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Although we should, of course, celebrate and enjoy our successes, we

should also always be aware that the world is constantly evolving and that
we therefore need to be constantly innovating. In today's world, there is
no such thing as a "sustainable competitive advantage." Every
organization is vulnerable to competition, even those at the top of
their field or industry.
Take, for example, McDonald's Restaurants, generally recognized as

leading the way into fast-food heaven. Now, McDonald's needs to innovate
in order to deal with the very serious threat of mad cow disease and the
dire impact that perceptions about this disease could have on its
hamburger business.
Another example is Bausch & Lomb, well known for leading the way with
contact lens solutions. Now Bausch & Lomb needs to innovate in order to
deal with the trend toward disposable lenses and laser eye surgery.
As Stephen Covey so wisely said in his groundbreaking book "The 7

Habits of Highly Effective People",
Habit #1 is Be Proactive.
So many great organizations and the people aligned with them fail to reach
their full potential due to lack of action. We all know that words on a page
by themselves will not transform an organization. Action will.
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10.2 THE THIRD STAGE OF THE NINE-STEP INNOVATION

PROCESS: ACTION
The final stage of the Nine-Step Innovation Process involves building the
Strategic Ideas into full Business Concepts and Plans. These plans are
reviewed in accordance with the strategic Innovation Goalposts, which
were discussed earlier, making acceptance more realistic and more
plausible. From here, the ideas are implemented and reviewed for shared
learning.
The specific steps in the Action stage are:
(1) Developing the Innovation Roadmap,
(2) Gaining commitment, and
(3) Implementing the Innovation Roadmap
Let us take a look at each of these three steps.
10.3 DEVELOPING THE INNOVATION ROADMAP
Categorize your Business Ideas or Concepts into different groups,

such as:
a. Ideas on hold-relevant but not applicable for the next few years;
b. Ideas to investigate further before a decision can be made;
c. Fast-track ideas for presentation, development, and implementation;
and
d. Fast-track, high-potential ideas for immediate presentation,
development, and implementation
You may want to apply different criteria to different types of projects.

• For example, Projects that represent products or services to be
introduced to the marketplace in the next two years might be subject to
different criteria than Projects or services that will be introduced later.
In order to build these concepts into full business plans, revisit the six
BIG-Picture criteria. (Ref. Chapter 6)These criteria will help you develop
a strategic idea into a full business concept and will help you prepare
your idea for presentation.
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1. The Big Idea must be simple. What is your BIG idea? Good Ideas
should be simple and easy to explain. A weak seed cannot grow into a
healthy plant, no matter how rich the soil! If an Idea starts out as a
weak idea, everyone will have to spend extra time to fix it along the
way.
2. The Idea must support the overall Business Strategy. How does
this idea fit with the Innovation Goalposts discussed at the beginning of
the project? How does this Idea support the overall strategic vision and
path the organization has chosen to pursue? How does this Idea fit with
the organization's other products, services, and programs? How does
this Idea fit with the organization's core competencies?
3. The Idea must be "distinctly new and better" What problem are
you seeking to solve or eliminate? Why do we need this idea? Why do
current or future customers need this idea? What new value does this
idea bring? How will this idea change the organization or the
marketplace?
4. The Idea must be proven. Even if you feel your Idea is new to the
marketplace, find examples of other Ideas that are relatively similar to
your Idea and share those with your team. Most people want to
minimize risk. Unfortunately, people tend not to believe in the potential
of new Ideas unless someone else, especially someone whom they
admire, has already done it. Every Manager wants to balance the risks
associated with new Ideas. How can you link your Idea with another
Idea that others already know or have had experience with? Have other
organizations succeeded with a similar Idea or with parts of your Idea?
Finding examples of how similar Ideas or Idea attributes have generated
positive results for other organizations will lower the perception of risk
for your new Idea. Also, summarize any Market Research results you
have on the Idea.
5. The Idea must be profitable. Show them the money! What will be the
revenue gained from your Idea, and how high can the revenue go?
Show how the Idea can be expanded to attract even more revenue in
the future. Demonstrate how the Idea will deliver social benefits. What
kinds of investments are needed to support the Idea? Will it deliver
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good value for the funding required? Determine how the Idea will be
funded.
6. The Idea must be quickly and easily implemented. Determine how

easy the implementation will be by highlighting the steps involved, the
timing, the resource needs, and the implementation team. List the
changes that will be needed in order to implement this new Idea in
terms of team members' roles, core competencies, and any necessary
process changes.
10.4 WRITING THE INNOVATION ROADMAP
Once you have thought through your new business concept, you may wish
to prepare a written Innovation Roadmap. Instead of preparing a
thirty-page plan or a five-inch thick stack of PowerPoint slides, write a
simple yet focused six-page Innovation Roadmap.
Here is a template that can be used for all Innovation Roadmaps-at the
corporate, business-unit, category, and specific product, service, or
program level. The six-page Innovation Roadmap template includes:
• Page 1: Learning (key lessons learned from your review of the current
state of your business, your customers, your competition, and other
elements of the marketplace)
• Page 2: Future (your predictions for the future re: customers, the
marketplace, competition, technology, and other challenges)
• Page 3: Vision (your vision or future destination, the direction or path
to reach this vision, and your BIG idea)
• Page 4: Requirements (core competencies and resources needed to
achieve the vision, path, and BIG idea)
• Page 5: Action Plans (a summary of key action plans with timing and
responsibility)
• Page 6: Financials (financial resources and forecasts)
Challenge yourself to include only key pieces of information. Use bullets or
point form and charts to summarize the information.
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10.5 GAINING COMMITMENT
We have all had experiences where our Ideas have been rejected by
managers who obviously lacked vision or "just didn't get it." Looking back
on some of these experiences, we may come to realize that perhaps we
could have done a few things differently in order to package our Ideas so
others could see the light. There might have been things we could have
done to reduce the amount of uncertainty surrounding our new Idea.
Spending the time to prepare and package Ideas is, therefore, a critical
step in the Innovation Process, especially for creative people who are
facing the challenge of having to prove the merits of their new Ideas to a
very linear, logic-based audience.
10.6 UNDERSTANDING YOUR AUDIENCE
An important step in preparing and packaging your Idea is to focus on who

is "buying" it. Who is the appropriate audience for your Idea? Is this
audience ready to discuss a new Idea? Not everyone is the same, and not
everyone will focus on the same aspects of your Idea. In my experience,
there are four types of people in the world:
• those who want to see the numbers,
• those who want to focus on tasks,
• those who want to focus on people, and
• those who want to focus on BIG-Picture strategy
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Take time to determine who is in your audience.

• What type of ideas do they usually support?
• What type of questions do they usually ask?
• Do they want to know the numbers?
• Do they want to know the details of the tasks needed to implement the
plan?
• Do they want to know the impact the plan will have on the people in the
organization or on the customer?
• Do they want to know how the plan fits with the organization's overall
strategy?
It is rare that an idea is accepted at its initial presentation. Recognize that

your audience may be at different stages of the Innovation-Decision
Process. Each buyer, whether they are buying an idea or a product, goes
through several stages before taking action. These stages include
knowledge, persuasion, decision, implementation, and confirmation. It is
therefore prudent to gauge what stage your audience is at in the buying
cycle and to be realistic about how quickly you can move them to making a
decision!
10.7 PREPARING A PROTOTYPE
Many ideas are rejected because they are misunderstood. In this regard,
you may want to consider developing a Prototype of your idea so that
others can gain a better understanding of its various elements. A
Prototype is simply an illustration or sample that represents the
essence of your idea in its preliminary stages of development. The
design firm IDEO is famous for developing numerous Prototypes and doing
so very rapidly. You can use a Prototype to make your idea come alive for
your audience.
As veteran IDEO studio head Dennis Boyle often says, "Never go to a

meeting without a Prototype." If your idea is difficult to Prototype or if a
Prototype of your idea is not available, find another object or several
objects that illustrate your idea. This helps the audience visualize the
potential.
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10.8 PRESENTING YOUR IDEA OR INNOVATION ROADMAP
Often people get so lost in the details of their idea or Innovation Roadmap
that their audience loses its focus on the Simple Big Idea. Here is the
simple Six-Step Selling Process that you can use to present your ideas. The
process will help focus your audience, and yourself, on the important
aspects of your idea. Your entire team may wish to follow the same Six-
Step Selling Process when presenting their ideas so that it becomes second
nature.
Six-Step Selling Process Table 10.1
Topic Explanation
1 Groundwork Describe the situation.
Highlight the problem.
Explain the implications if the problem intensifies or if the
problem is not addressed immediately.
Set the stage for the introdu tion of your simple big Idea.
2 The Simple Present the simple big idea.
Big Idea
3 Brief Give a brief explanation of how the simple big idea works.
Explanation
4 The Benefits Explain the benefits of adopting your simple big idea.
Refer the Six BIG-Picture criteria:
(1) Simple big idea,
(2) Supports the overall business strategy,
(3) is distinctly new and better,
(4) is proven,
(5) is profitable, and
(6) can be quickly and easily implemented.
5 Implementati Give the major highlights of your implementation plan.
on Plan
6 Asking for Ask the decision-maker for a decision.
Action Tell them what you want them to do now that they have
heard your presentation.
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Go into the presentation with the assumption that your audience might not
understand your new idea and that you therefore need to simplify your
communications and walk them through your thought process step-by-
step. If your idea is too difficult to understand, you already have a barrier
between you as the seller and your audience as the buyer.
Keep your presentations simple and only offer facts or examples that
support your big idea. Do not overload your audience with unnecessary
details. Give them surface details and if they have specific questions, this is
the time to "drill down" to give them more detailed explanations. Limit
your use of jargon so that the audience can concentrate on your
message.
Create the demand for your idea as a solution to the problem or situation.
When presenting, spend at least 25 percent of your time selling the
problem and all its implications. The members of the audience must
understand the context in which they are being asked to make a decision.
More than likely, your audience will support you if they believe in the power
of the idea-that there is indeed a real problem and that you have a good
solution for that problem. Your audience must believe your solution will
work and will add value. People will fight you if they do not believe in the
severity of the problem, if they do not think your idea will work, or if you
present the idea in such a way as to totally confuse and irritate them.
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10.9 RECEIVING AN IDEA
Just as the presenter has the responsibility to offer well-thought-

out ideas, the audience has the responsibility to receive new ideas
in an encouraging and motivating way. Besides reviewing the idea to
determine whether it fits with the Decision-Making criteria, consider the
larger implications of your comments as a receiver of the new idea.
• If you are rejecting the idea, are you doing so because you are resisting
change?
• Why are you really stopping this idea?
• Are you unwilling to change what has made you successful in the past?
• Are you asking for too much rigorous evaluation, or are you setting the
hurdles so high that very few ideas can ever make it through your
review?
• Is the report or committee work you are asking for really necessary?
• Are you hiding behind complicated rules, policies, or bureaucracy so you
do not have to risk making a decision?
• Are you evading your Decision-Making responsibility by using Passion
Killers such as "the board or president will never go for this idea"?
• How are your comments affecting the presenter? Are you balancing your
negative comments with positive ones? Are you motivating or inspiring
the presenter to continue the search for new ideas?
• How can you link the presenter with others who can help develop the
idea?
• Are you creating a sense of urgency for Innovation?
If Managers will not let Good Ideas through, the Organization suffers from
an obvious lack of progress in advancing its Innovation objective.
It is a two-way street. Every organization needs a dual strategy for both

presenting ideas and accepting new ideas. Many organizations, such as
Singapore Airlines, are starting to offer training in how to accept as well as
present ideas.
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10.10 OVERCOMING RESISTANCE TO YOUR IDEA OR

INNOVATION ROADMAP
You may hear objections such as the Passion Killers discussed in Chapter
10.
• "We don't have any time."
• "We don't have any money."
• "It's too risky."
• "It will ruin our image."
• "We won't get the board's approval."
Recognize that it is a hundred times easier for a person to say "no" than to
say "yes." Moreover, the bigger the change required, the bigger the
roadblocks in its path. If people do not have to change, or if they are not
aware of the need for change, they will usually not make the effort.
Be aware that most people focus on what they have to give up with the
current method rather than what they might gain from adopting the new
idea. Understand how attached your audience is to the current approach or
idea. Obviously, if people are happy with the current approach, a change in
approach may not be viewed as necessary. Use discussion to get your
audience to agree that the current approach is not optimal. A fundamental
law of change is that if you want people to try something new and
different, they have to be dissatisfied in some way with the current choice.
You might be able to overcome resistance to change by offering the

opportunity for a trial implementation in order to help everyone manage
the risk of accepting a new idea. By offering a trial, you will be able to
show some progress toward your goal. As your Managers start to see the
benefits of your idea materialize, more support may be forthcoming. This
concept is similar to the promotional tactic used by many marketers. In
other words, provide a sample of your product. If the consumer likes your
sample, he might buy the larger size. In essence, you are recommending
base hits instead of expecting a home run right away.
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10.11 IMPLEMENTING THE INNOVATION ROADMAP
The last step in the Nine-Step Innovation Process is implementing

the Innovation Roadmap.
• Release your roadmap or plan into action.
• Remember to apply enough pressure until the plan is implemented to
ensure that people do not slip back into their old way of doing things or
find other priorities to work on. Even though someone might have said
they were committed to your plan, they may still be unsure about certain
elements of the plan. Take the time to ensure that when someone says
they are committed, this phrase means the same to you as it does to
them.
• Keep an eye out for any roadblocks. There are always some.
• Implement and have your team follow a good project-management
process that clearly outlines who will be involved at what stage, the tasks
involved, and the expected completion dates of each of the tasks.
• As discussed earlier, find ways to expedite the implementation of your
idea through parallel processing or by shortening the lead times for each
task.
Make sure you and your team have reviewed the number of projects on
your plate so that you can match the number of projects with the team's
ability to develop and implement them. Is there really room for one more
project? More projects do not always mean more results. Often more
activity is counterproductive since the organizational resources are not
being focused in the most productive manner. After all, three projects with
great results are better than five projects with mediocre results. Perhaps
the discussion of your new idea can spark a strategic discussion of where
your own and your team's energies should be directed for the good of the
overall organization. Perhaps your team can eliminate one or two other less
valuable projects in order to have the time to focus on your new, more
valuable project.
Adjust the Implementation Plan where needed and remember to review the
experience so that learning-what worked, what didn't work, what should
we do differently in the future-can be shared with all team members.
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10.12 IMPLEMENTATION IN THE MARKETPLACE
The strategies for selling a new idea in the marketplace are similar to those
previously discussed for selling an idea internally within an organization. In
order to persuade customers to change, they must be convinced that their
current approach is not optimal and that switching to the new idea will be
easy and profitable.
For example, take the recent flood of television advertisements for long-
distance telephone services. So many of the ads focused on the price of
the service, comparing one company's plans to others' plans. What was
missing in these ads was the switching plan to make it easy for the
customer:
• How do I switch from what I am using now to this new service?
• Do I need to change my phone number?
• How does it work with my local phone company?
The focus of the communication should have been on the simple switching
plan versus the small cost difference between telephone rates. In my
opinion, this was the problem that needed to be solved for the customer,
who already understood that alternative, lower-priced telephone services
were available. The lack of information on how to switch may have
prevented many consumers from buying the cheaper service.
Another example is Procter & Gamble's Dryel product.
Zip it.
Add 1-4 garments to the Dryel Fabric Protection Bag. Bag should not be
more than half-full to allow garments to tumble freely. Unfold Dryel
cleaning cloth and add to bag. Zip the bag and then place in the dryer.
Steam it.
Tumble in dryer on medium heat for 30 minutes to activate the steam-
cleaning environment, removing odors and protecting against shrinking,
stretching & fading.
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Wear it.
Clothes should be slightly damp when removing them from the bag.
Promptly hang or wear clean and fresh garments to help wrinkles fall out.
Throw away cleaning cloths after use, but save the Dryel Bag for next time.
It is designed to last up to 25 loads.
The concept behind this product is to encourage consumers to forgo the

existing method and simply use their clothes dryers instead. All they have
to do is place their clothes in a Dryel bag with a Dryel sheet and then place
this bag in the dryer.
The big challenge facing Procter & Gamble is how to convince consumers to
switch to this product when they have been conditioned all their lives not
to put certain clothes in the dryer.
Do you have a solid plan to convince your customers to switch to

your new idea?
10.13 PASSION, PATIENCE, AND PERSEVERANCE
"Today's mighty oak is just yesterday's nut that held its ground."
-ANONYMOUS
Remember, if you want others to believe in your idea, you need to be

passionate about it yourself. Innovation is about challenging the status quo
to find a distinctly new and better way. It is about the courage to stand
alone for a while until others catch up. For this, you need Passion and
Patience!
How did Alexander Graham Bell feel when he invented the

telephone and people criticized his idea? People in his day thought he
was crazy when he explained the ability to hear voices through a wire. If
only his doubters could see the world today: How the telephone has
progressed from the rotary dial phone to call waiting, call forwarding, call
blocking, voice mail, conference calls, and e-mail!
Video Link 1
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10.14 TIMING IS IMPORTANT
Is your industry ready for your new idea? Take solace from the fact that
many others who have gone before you have faced challenges in having
their great ideas rejected.
• The inventors of battery-operated cars and electric cars are still
waiting for the Automobile and Oil Industry to accept alternative methods
of transportation.
• Purveyors of Homeopathic and Naturopathic Medicine are
challenging the Medical and Pharmaceutical Industries to accept
alternative forms of Health care.
• The Spice Girls and the Beatles, two famous pop music groups,
were turned down many times before they found success.
Are consumers ready for your new idea? Will they resist switching
from their current solutions?
• It took Kellogg's over a decade to convince consumers to switch from
eating hot cereal to eating cold cereal.
• It took a long time for the Internet to make it into the mainstream. It
was used by the military and by universities long before consumer-
friendly Web browsers and programs made it more attractive to the
general public.
Video Link 1
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10.15 FIND SUPPORTERS
Find Supporters who can help your cause. The key Supporter for
your idea might be your immediate supervisor, someone in another
department, or someone on the executive team. At the early stages
of idea development, go to where the energy behind the idea seems to be
focused so that your idea receives the support it needs. Build a team of
supporters who will help to push your idea through the various
organization systems. Also, try to identify the group of supporters who will
pull your idea through the system, who, in other words, will be helpful for
advancing your cause.
• Find people to help you.
• Work underground as long as you can.
• Honor your sponsors.
Also, consider garnering support from the outside. Only a few key
people are needed to support your idea. By identifying those people who
are good connectors (those who know many people and can connect you
with the right people to help your cause), as well as by linking up with
people who are great salespeople (those who can educate others about
your cause), the job of selling your idea will become easier.
10.16 REPEAT THE PRESENTATION OF YOUR IDEA
It is our natural tendency to forget some or all of what we have just heard
as we move on to new tasks. Human beings tend to forget quickly and to
require information to be repeated in bits. Advertisers address this problem
by showing their Advertisements frequently in hopes that the message will
register with consumers.
Recognize that you may need to repeat your message on different

occasions before you can gain commitment.
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10.17 REPACKAGE YOUR IDEA
You may also wish to find more than one audience for your idea, or you
may wish to find more than one application for the idea if the selling
process is not going as smoothly as you would like. As with football, the
direct route to the goal line is not always possible. You might have to try a
different way to go around your opposition. You might need to make
several small attempts instead of trying to score with one play. Sometimes
what is needed is to take the spirit of your idea and repackage it in a
different way so that the probability of acceptance is higher.
When General Mills first introduced the Betty Crocker cake-mix

product, consumers resisted using the cake mix because they felt that
they should still be baking the old-fashioned way and that they were
cheating if they used the cake mix!
General Mills thought through this problem for a while and then came up
with a brilliant idea: Why not reinvent the cake-mix product so that a
consumer needed to add an egg? This way the consumers would feel as if
they were actually baking. The revamped product soon gained great
acceptance.
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1. The example of Bausch & Lomb, well known for leading the way with
contact lens solutions was cited earlier in this chapter. Now Bausch &
Lomb needs to innovate in order to deal with the trend toward
disposable lenses and laser eye surgery.
What Innovative Idea will you suggest to the company for their future?
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2. McDonald's needs to innovate in order to deal with the very serious

threat of mad cow disease and the dire impact that perceptions about
this disease could have on its hamburger business.
What Innovative Idea will you suggest to the company for their future?
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10.19 SUMMARY
There is a big difference between deciding to do something and actually

doing it! However, Innovation, by definition, requires that a creative idea
be implemented or acted upon in order to add value.
Great Ideas are not "innovative" unless they are successfully implemented.
The critical factor is not the number of ideas that you or your team may
have, but the successful implementation of the ideas. There are many
examples of organizations that were on the right track but failed to take
action, took too little action, or moved too slowly with their ideas.
The final stage of the Nine-Step Innovation Process involves building the
strategic ideas into full business concepts and plans. These plans
arereviewed in accordance with the strategic Innovation Goalposts, which
were discussed earlier, making acceptance more realistic and more
plausible. From here, the ideas are implemented and reviewed for Shared
Learning.
The specific steps in the Action stage are :

(1) Developing the Innovation Roadmap,
(2) Gaining commitment, and
(3) Implementing the Innovation Roadmap.
• Explain the six-page Innovation Roadmap template
• Explain the attitudes of four types of people in the world who are in the
audience for your presentation.
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1. Nike Slogan
(a) Life is good
(b) Because you are worth it
(c) Just Do It
(d) Invented for life
2. Page 1 of the six-page Innovation Roadmap template:

(a) Learning (key lessons learned from your review of the current state
of your business, your customers, your competition, and other
(b) Learning (key lessons learned from your review of the past state of
your business, your customers, your competition, and other
(c) Learning (key lessons learned from your review of the future state
of your business, your customers, your competition, and other
(d) Learning (key lessons learned from your review of the fund flow of
your business, your customers, your competition, and other
3. Create the demand for your idea as a solution to the problem or

situation. When presenting, spend at least ---- percent of your time
selling the problem and all its implications.
(a) 20
(b) 25
(c) 30
(d) 50
4. "Today's mighty oak is just yesterday's --------- that held its

ground."----ANONYMOUS
(a) Nut
(b) Bolt
(c) Kid
(d) Spanner
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5. It is ------------- that an idea is accepted at its initial presentation.

(a) Ideal
(b) Possible
(c) Rare
(d) Sure
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My dear students,
By now, you have come to know the most of the content of this subject of
Innovation Management.
The Creative Connections Power Tools, Nine step Innovation Process and
the Extraordinary Strategies have already enriched your knowledge about
the subject.
Now the next chapter will give you entirely new thought about Different
Thinking with lots of examples.
This upcoming chapter is indeed the highlight of this subject, which you
should never ever miss, because it will put you on top of this subject and
you will be a serious innovator.
In the next chapter, we have made an appeal to you to keep the subject of
Innovation alive, because it is in your hands. We have given you some
more thoughts about the subject in this chapter.
The last chapter will inspire you fully, because in this chapter, we have
cited many examples of Top Innovative Companies all over the world. Go
through the examples, and create your own Innovative Organization.
We are sure that you will cherish this journey for whole of your life.
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Reference Material
chapter
Summary
PPT
MCQ
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DIFFERENT THINKING
Chapter 11
Different Thinking
Objectives:
The importance of "Out of the box" Thinking is reiterated in this chapter for
you to become really effective and efficient Innovators.
Structure:
11.1 Introduction
11.2 Rule 1 of Different Thinking
The 3600 view: get inspiration from other industries.
Dead center: get out of those middle-of-the-market segments -fast!
Travel light: Cut the weight
Out of the box: create completely new markets.
Maxi size and mini size: place no geographical limits on your
success.
Mix it! Conquer new markets with innovative combinations.
Be the champion; create a temporary monopoly in your market.
Question existing product concepts.
Design as a competitive factor.
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DIFFERENT THINKING

Create an experience, trigger emotions.
Offer clarity, cut out the extra features to make your product
irresistible.
Question the established price models.
11.15 Summary
Figure 11.1
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DIFFERENT THINKING
11.1 INTRODUCTION
Stories of Different Thinkers:

You are a Different Thinker, as you are the one challenging the status quo.
The message that is conveyed to you in many different guises is that
incremental improvements are infinitely preferable to genuine Innovation -
although in fact the opposite is more often the case.
As a Different Thinker, you will have to overcome many obstacles.

Moreover, it is obvious that your rivals are going to try to shoot you down,
when you dare to break with established rules. The best way to deal with
all these skeptics is to question the overall strategy and to advocate a
completely new philosophy. A comprehensive approach is far more difficult
to find fault with than gradual changes, for example in a company's price,
product or marketing models. So, let us immerse ourselves in the world of
Unconventional Thinking and begin with a controversial topic.
Ted Turner's announcement of his new idea for a 24-hour news

channel: CNN When the different thinkers break into such an environment
with their fresh ideas, interestingly enough, such sources are often-
dismissed as insignificant. Just remember how the established television
networks in the United States reacted to Ted Turner's announcement of his
new idea for a 24-hour news channel: CNN was ridiculed as the 'Chicken
Noodle Network' and Ted Turner was seen as a crackpot and not as a
serious innovator.
Many of the giants on the market barricade themselves behind a

'maintenance of the status quo' mindset. The problem is that they
become weighed down by the burden of their own past: the burden
of a seemingly reassuring maintenance of the status quo at all
costs, and an aversion to taking the risks inevitably involved in any
form of Innovation.
The coffee shop chain Starbucks is a world-wide success story. In the

United States, Starbucks is so successful that it has more loyal customers
than any other retailer in the country. On average, a Starbucks customer
visits a Starbucks 18 times per month.
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DIFFERENT THINKING
Where was Nestle, the producer of Nescafe, the world's best-

selling coffee, when Starbucks got going? Why didn't Nescafe come
up with a concept for a world-wide network of trendy coffee bars?
It knows the coffee market better than anyone else, after all. What were
the people at Nestle thinking about while the Starbucks chain was being
established? Presumably, they were debating the color of their packaging
or the shape of the jars to be placed on the supermarket shelves, or
wondering how they could finally outpace their competitors at Procter &
Gamble.
Why wasn't it that existing companies introduced these innovations? The

answer is simple: they did not even see the opportunity staring them in the
face. Then, when outsider Howard Schultz launched Starbucks with a few
coffee shops in Seattle, they did not even realize that a new competitor
was born.
Let us now see the various rules for Different Thinking, like what these
great people did.
11.2 RULE 1 OF DIFFERENT THINKING
The 360° view: get inspiration from other industries.
Conventional Thinking:
Look for good and innovative ideas among your competitors and within
your own industry.
Different Thinking:
Deliberately look for ideas and inspiration for new products and services in
totally different industries.
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DIFFERENT THINKING
Example No. 1:
Figure 11.2
German Customs were looking for new ways to dispose-off many articles
impounded or confiscated by them. In their search, they looked beyond the
confines of their own sector to a completely different field: online
auctions. Almost 200 Government Agencies now auction off everything
that is confiscated in the name of the state: cars, carpets, computers,
electronic devices of all kinds, watches and clocks, even coffee and spirits.
What can this example teach us? Nowadays, companies-and this

applies equally to government agencies-are increasingly forced to
tread unconventional paths in order to reach their customers.
Second, when you break with convention, whole new avenues open
up: you have a temporary monopoly, you can establish your brand in a
new market and set up a learning infrastructure which gives you the edge
in the development of products and services for a new generation.
As Akio Morita, the founder of Sony summed up his Management

Philosophy, 'I do not serve markets. I create them.'
Another factor distinguishes these companies:
• The courage of their Managers, who are prepared to tread new ground
and are willing to take risks and to redefine the rules of their industry.
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DIFFERENT THINKING
Figure 11.3
Example No. 2:
Earlier, traditionally customers did not change Banks. Today the situation
is different. Direct Banking, which is increasingly opening up the market
for foreign institutions, and of course Online Banking, have had a lasting
effect on customer behavior.
If customers cannot clearly see what makes your product unique and
innovative, you are heading for serious problems. The reason is that
customers have higher and higher expectations. They want more, they
want it faster, better and cheaper- and they want it on their conditions and
according to their time schedules.
The Umpqua Bank in Oregon, deliberately designed its branches in such

a way that customers are tempted to stay there for longer than it takes to
just withdraw some money or pay their bills.
Figure 11.4
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DIFFERENT THINKING
The revamped Umpqua Branches look more like Citizen's Centers

than Financial Institutions. Firstly, Umpqua realized that one of its
customers' most important goals was to improve their quality of life, and
that they were interested in seeing how far their bank could support them
in this. And so Umpqua does all it can to invite its customers to spend
more time in their bank, in an atmosphere more like that of a coffee bar
than a traditional bank. Customers can drink coffee at their leisure. There
are Workstations with internet access. There is a Postal service center and
a Library with books, newspapers and magazines on financial topics.
Moreover, of course, it offers extended opening hours on Workdays,
including Saturdays.
Dead Center: get out of those middle-of-the-market segments - fast!
The target group for your products or services should be as wide as
possible. Your range needs to be not too expensive, not too cheap and of
interest to as many people as possible.
Different Thinking:
Get out of the Dead Center of the market. Define yourself and your
products, and assume a clear position outside the middle of the market
(premium range or discount), where there is still money to be made.
The Consumer Goods Market is a prime example of increasing

Polarization. The discount and luxury goods sectors are seeing above-
average growth rates, while the middle of the market is losing ground fast.
This trend is particularly evident in many Consumer Goods sectors.
Moreover, the winners are not always those who focus on 'cheaper is
better'.
The air is getting increasingly rare in the middle of the market. You must
act now.It is the courage to take up a clear stance instead of trying to offer
'Something for everyone':
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DIFFERENT THINKING
Example No. 1:
Figure 11.5
Would you like to be either a self-service bakery with fresh bread at

discount prices or a premium bakery offering top-of-the-range goods at
correspondingly higher prices? The average bakery offering average
products to anyone out there will at most be able to keep its head above
water and only with tremendous effort.
The necessity to take up a clear stance can be seen in many industries. It

is more and more difficult for middle-of-the-road companies to create
excitement with customers. Just take a look around you.The Hairdressing
Chains offering inexpensive haircuts are increasingly popular, while the
more upmarket hairstylists have also carved out a niche ('because you're
worth it').
Figure 11.6
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DIFFERENT THINKING
Example No.2:
No matter how the economy is doing: there is always a market for

luxury
Figure 11.7
Let us stay with the example of the airlines for a moment. There is an
increasing number of low-price airlines.However, there is another
interesting development. Companies offering luxury services such as
private aircraft for managers are enjoying increasing popularity, despite
the continuing atmosphere of economic gloom.
The Teal Group, a team of US consultants, even sees the upswing in

the private air travel sector as the beginning of a lasting boom - far above
the current upswing in the Global Economy. Experts predict much higher
sale of business jets over the next decade. On the contrary, what is going
on in the middle of the market? Airlines such as Alitalia and others are
fighting for survival.
Travel Light: Cut the weight.
Try to carry out as many profit-making activities as possible under your
own steam.
Different Thinking:
Focus on the activities where you are really world-class and leave the rest
to suppliers, partners - or your own customers!
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DIFFERENT THINKING
You must ask yourself: are we really world-class here? If not, it

would be better to outsource it to others who can do it better.
Example No. 1:
Figure 11.8
In the Automobile Industry, only 35 per cent of a new car on average is

produced by the carmakers themselves. The rest is manufactured by
suppliers. Moreover, this figure is likely to fall as far as 23 per cent over the
next 10 years. The parts manufactured by suppliers are above all the car
body, sheet metal parts, paintwork, chassis and modules, but Outsourcing
of the manufacture of other parts is also increasing.
Example No. 2:
Figure 11.9
Take Puma. This sports equipment manufacturer and lifestyle

company concentrates on its core competencies, which are
Innovation, Design and Marketing. The business is run from modest
headquarters with few hierarchy levels. Production and almost the entire
logistics operations are carried out by partner companies. Distribution has
been delegated to subsidiaries of the company.
Customers, producers, distributors and franchisees are 'linked' via

information and communications technology, thus creating a network
of independent units, which are perceived from the outside as one entity
producing its own branded goods.
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DIFFERENT THINKING
And by the way, Adidas, Nike, Reebok and Benetton have a similar
structure. They have all cut their ballast in order to 'travel light', as we
called it at the beginning of this section. In a sector where Competition is
keen, they remain light-footed and extremely flexible. All excess baggage
has been cast overboard, leaving these companies free to concentrate on
what they are really good at.
Out of the box: create completely new markets.
Focus on your existing customers and strive for continual optimization of
the products and services you already offer them. This has always worked
in the past, so it cannot be wrong.
Different Thinking:
Escape the typical head-on competition by creating completely new
markets. To do so, either develop products and services new to your
industry or target completely new customer segments. One thing
needs to be clear from the outset. It takes courage to create new
markets, the courage to think unconventional and unorthodox thoughts
and the courage to take the risk of losing old customers who are not
prepared to follow you on your new path.
Example No. 1:
US company, Arm & Hammer concentrated for many years on the

production of Baking Soda for making bread, cakes and pastries. It was a
lucrative business when the firm was founded in 1846. However, Baking
Soda quickly became a standard product with extremely low profit
margins. Arm & Hammer took a close look at the properties of its main
product. Apart from baking, what can you use Baking Soda for? The
company discovered three highly interesting facts:
• Baking Soda is a natural cleaning agent.
• Baking Soda kills odors.
• Baking Soda is skin-friendly.
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DIFFERENT THINKING
Baking Soda is an odor absorber and can therefore be used to neutralize

unpleasant smells in refrigerators, laundry baskets and waste bins. It can
also be used as a mild cleaning agent for worktops and sinks, and you
can even brush your teeth with it. As it is easily digestible and skin-
friendly, it can be taken as an antacid or used to treat skin irritations and
to refresh tired feet.
Having established this, Arm & Hammer branched out into a

completely new field and won over a completely new customer
group with Innovative Cleaning Agents and Skincare Products
based on the ingredients of Baking Soda.
Figure 11.10
Today, it is one of the market leaders in the United States for

toothpaste, odor absorbers, deodorants and cleaning and skincare
products. All its products are manufactured based on Baking Soda, its
original product. Moreover, in its new market, Arm & Hammer was able to
successfully differentiate itself from the rest of the field because its
products are made using natural ingredients. Of course, it could have set
up a subsidiary company to produce the new product lines, but its
established name as a producer of Baking Soda only served to enhance its
credibility in the new business area.
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Example No. 2:
The company in question is Danish toy manufacturer LEGO, Europe's
largest producer of toys and the world leader in construction toys.
Founded in 1932, the company originally made wooden toys. In 1958, it
achieved its real breakthrough when it patented the LEGO brick and the
corresponding construction system with interlocking plastic building bricks.
Each type of LEGO brick is produced in an independent product program
that targets a specific age group.
How did LEGO's strategy work? The company reacted quickly to attacks
by rivals such as Fisher Price and Playmobil, and started continually
updating its products. For example, it introduced the `Mind
stormRobotics Invention' system where children can build their own
robots. In 1997 LEGO computer games were launched, produced under
license. Simultaneously the company strove to win not only the children,
but the entire family as customers. This is what the Varifocal Strategy is
about: focusing not only on the immediate target group -children in this
case - but looking at wider customer groups - families - in order to create
new markets. In 1968, LEGO established its first family fun park,
LEGOLAND, one of the biggest tourist attractions in Denmark.
Figure 11.11
More recently LEGO branched out again, with the opening up of an entirely
new market: LEGO for managers. It works! There are special LEGO sets
for executives. Playing with them, the managers learn to identify problems
in the company and find new solutions for them.
The name of the concept is LEGO Serious Play. Managers play - sorry,
work - in groups under the leadership of a specially trained and LEGO-
Certified Trainer. They build metaphors of their organizational
experiences with the LEGO bricks. Many well-known companies have sent
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DIFFERENT THINKING
their executives to play with LEGO, among them Nokia, Tetra Pak, Varta,
Alcatel, Orange and IT systems integrator Comparex.
This example shows how a company can open up completely new markets
with clever strategic action, and how a product as mundane as a toy for
kids can become a strategic instrument for managers. The bottom line is:
If a company can turn children's building blocks into a strategy tool
for managers, what has to stop you achieving as much?
Maxi size and mini size: place no geographical limits on your success.
You respect the geographical borders of your industry. For example, if your
industry centers exclusively on a regional alignment, you tailor your
products and services to the requirements of local customers.
Different Thinking:
You deliberately set out to swim against the geographical alignment of your
industry and create your own economic boost.
Example 1:
While undertakers usually operate regionally, Service Corporation

International (SCI) is a stock-exchange listed, vertically integrated
global player. It ignored the predominantly regional alignment of the
industry and became a globally operating service company. SCI has almost
2,500 business locations worldwide, including 451 cemeteries and 189
crematoria.
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Example 2:
Figure 11.12
The success of Starbucks shows that you can change the landscape of
your industry, even if you start from modest beginnings. The story began
with a chain of four shops in Seattle, selling coffee, tea and spices. The
founder of Starbucks had discovered a market niche, but not exploited its
full potential.Business was only moderately successful until Howard
Schulz took over the chain, which by now comprised several shops. He
focused on the coffee experience, setting Starbucks on the road to
unparalleled expansion. Today, the company has more than 8,500 branches
all over the world, with more coffee bars being added each day. There is no
sign of an end to its global expansion, and the company's declared target
of 20,000 branches can only be achieved through a dominant presence on
every continent. This means that in future, there will be a new word for
'coffee' in Asia, Europe, Africa, Australia and South America, too.
The other day, I was in Gurgaon, where I saw a Starbucks outlet.
Going against the established culture: Cafe Sacher versus

Starbucks
To attract as many customers as possible, Starbucks deliberately looks for

locations on busy street corners and on the ground floors of large office
complexes. Schultz will open a new Starbucks store in the direct vicinity of
or even opposite an existing one. This means customers do not have to
wait in peak trading hours, and leaves less room for Starbucks' competitors
to move into the area. Starbucks can design, fit out and open a new store
in just a few weeks. In Vienna, Starbucks has even ventured to open a
store right opposite the famous Café Sacher.
266
DIFFERENT THINKING
Mix it! Conquer new markets with Innovative Combinations.
Expand your existing range by simply adding products and services that
are already familiar and standard for your industry.
Different Thinking:
Combine products and services from two different industries to offer a
completely new mix. This simple but effective approach consists in linking
products and services in a new way. Moreover, the crazier the mix, the
more unique the combination will be!
Example 1:
A Law Office in a Coffee Shop:

This business model is a real innovation offered by lawyer Jeffrey J
Hughes in Los Angeles. The days when clients had to come to his office
to get legal advice are long gone. Today, clients can consult their lawyer in
the relaxed atmosphere of a coffee shop - and for an unbeatably low fee
into the bargain. A simple consultation, which lasts between 15 and 30
minutes depending on the case, costs just US$25 - and the coffee is
included in the price.
Figure 11.13
267
DIFFERENT THINKING
Just like at McDonald's, there is a list on the wall showing the charge
for different services: change of name US$200, entry on the trade
register US$500, and so on. There are now around 30 lawyers working
according to this system. There are experts on family law, labor law and
tenancy law, on immigration, taxation, accidents, suing for damages and
insolvency. 'It's something completely different. You meet in pleasant
surroundings where people are much more relaxed than they would be in
an office. "And I find new clients there," says Keith J Simpson, a
specialist in Family Law who offers his services at 'Coffee &
Counsel' for two hours twice a week.
All the lawyers participating in the scheme are serious representatives of

their profession. The café functions as a place of initial contact with a
relaxed atmosphere that helps people overcome their hesitation to take
legal advice, particularly as the fee for the first consultation is so low.
Example 2:
Babette's is a bookstore in Vienna that specializes in Cookery

Books and is located near the famous Naschmarkt Food Market. It
also sells exotic spices. Nothing special, you might think. However,
Babette's is a typical mix-and-match combination. The store
Figure 11.14
268
DIFFERENT THINKING
Be the champion; create a temporary monopoly in your market.
Following the principle of spreading risks, you create a wide portfolio of
products and services hoping to counterbalance a weak performance in one
area through good performance in others.
Different Thinking:
Be bold, find a niche or carve one out for yourself. Create your own
temporary monopoly.
The days of huge, widely diversified business groups are numbered. In the
age of surplus, companies need clear-cut profiles. Therefore, it is
vital not to aim for size at all costs, but to focus on those areas of business
where you have a competitive edge over your competitors.
Example 1:
Swedish company Bergman & Beving, with a staff of only 85, holds a
comfortable global market share of 50 per cent with a product most of us
will have had in our mouths at some time or another: the saliva remover
used by dentists.
Example 2:
Rational AG, based in Landsberg am Lech in Bavaria, has just one
product in its portfolio and has been global market leader for years with it:
a steam cooking system for hotel, restaurant and canteen kitchens.
269
DIFFERENT THINKING
Question existing product concepts.
You accept existing product concepts and strive to optimize your range of
products and services within these limits.
Different Thinking:
You question established product concepts and gain new scope for
innovative and cool products and services.
Example 1:
Take James Dyson as an example. He is the man who reinvented the
Vacuum Cleaner. If Dyson had simply accepted preconceived
ideas,beliefs and seemingly 'unshakeable' conceptions of what a vacuum
cleaner should look like and how it should work, he would probably never
have tackled this monumental task. Dyson found it unacceptable for
consumers that the suction power of conventional vacuum cleaners drops
off sharply shortly after you have put in a new dust bag. In other words,
for years the industry had been selling products that did not function
effectively.
Once he had discovered that changing the dust bag on the vacuum cleaner
only improved the suction power for a short time, he cut the bag open to
find out why. It did not take him long to find the cause of the
problem: the bag has fine pores intended to keep the dust in while
allowing the sucked-in air to circulate. The problem was that the dust clogs
the pores so that the air can no longer circulate freely. And if the airflow is
restricted, the suction power of the vacuum cleaner decreases sharply.
What does this teach us? Just because the manufacturers of vacuum
cleaners have been selling cleaners equipped with dust bags for more than
a century, it does not necessarily mean that this was the right approach.
In the very apt words of Kurt Tucholsky, 'Never trust an expert who tells
you he's been doing things that way for 20 years,
270
DIFFERENT THINKING
Figure 11.15
It could be he's been doing it wrong for 20 years!’
Dyson was motivated to develop a vacuum cleaner that functions

far better than all the rest - and without a dust bag. He replaced the
traditional bag with two cyclone chambers that cannot become clogged
up.The outer cyclone spins out larger dust and dirt particles, while the
inner cyclone accelerates the airflow in order to remove even the smallest
particles.
This unique new technology quickly made Dyson's Vacuum Cleaner

a market leader in Great Britain, and - this is the good news for Mr
Dyson - he makes a turnover of millions with his innovative products. His
customers include such famous names as Sarah Jessica Parker, Sharon
Osbourne, Elton John, Kylie Minogue, Tony Blair and the Queen!-
(although we have it on authority that the last two in the list are hardly
likely to be pushing the cleaners around themselves).
271
DIFFERENT THINKING
Example 2:
Toilets are mainly standardized products serving just one purpose.

Innovations are rare here. In fact, it was a minor sensation when some
restaurants installed toilets with self-cleaning seats.
You only have to visit Japan to see that it is possible to reinvent the toilet.
The Japanese love toilets, and in particular, luxury toilets. They are so
obsessed with toilets that you can even buy special street maps with
names like 'Tokyo's paradise for your posterior', which show you which
hotels, shops and restaurants offer the best toilets.
The VIP model
Figure 11.16
When you enter a bathroom, you receive a friendly greeting and are
confronted with an instrument panel that looks like something taken from
the cockpit of a Boeing 747. Nevertheless, Japan's high-tech loos
represent a huge Innovation. While most other manufacturers limit
themselves to such half-hearted changes as a new design or offering the
toilet in beige, light blue or mint green instead of only in white, Toto and
Intax, Japan's biggest producers of toilets, are racing each other to
launch the next Innovations. Together, they hold over 90 per cent of the
market, and the winning features of their products include seats with
adjustable heating, toilets that neutralize odors automatically by means of
air purifiers and filters and actually give the visitor's bottom a shower -
which can be adjusted to the desired strength and temperature. In
addition, if that is not enough to make you happy, there are toilets that can
carry out body fat or urine analyses. Toto has just developed a model for
diabetics that measures blood sugar levels. There are long-term plans to
incorporate
272
DIFFERENT THINKING
When you enter a bathroom, you receive a friendly greeting and are
confronted with an instrument panel that looks like something taken from
the cockpit of a Boeing 747. Nevertheless, Japan's high-tech loos
represent a huge Innovation. While most other manufacturers limit
themselves to such half-hearted changes as a new design or offering the
toilet in beige, light blue or mint green instead of only in white, Toto and
Intax, Japan's biggest producers of toilets, are racing each other to
launch the next Innovations. Together, they hold over 90 per cent of the
market, and the winning features of their products include seats with
adjustable heating, toilets that neutralize odors automatically by means of
air purifiers and filters and actually give the visitor's bottom a shower -
which can be adjusted to the desired strength and temperature. In
addition, if that is not enough to make you happy, there are toilets that can
carry out body fat or urine analyses. Toto has just developed a model for
diabetics that measures blood sugar levels. There are long-term plans to
incorporate a whole battery of medical tests into Toto toilets. Data
protectionists are even warning that the police could install toilets that
carry out automatic drug tests in public buildings. What a potential market!
Design as a competitive factor.
You focus on your products and their function -- design is the least
important step and serves solely to make products more aesthetically
pleasing.
Different Thinking:
You take advantage of unusual design to differentiate your products and
make them successful. The design of products, packaging and sales outlets
will thus become an integral component of your Corporate Strategy!
273
DIFFERENT THINKING
Example 1:
Sony:
Figure 11.17
Former President and CEO Norio Ohga says, 'At Sony, we assume
that all products of our competitors have basically the same technology,
price, performance and features. Design is the only thing that differentiates
one product from another in the marketplace.'
Example 2:
Kartell
Figure 11.18
Its hard plastic furniture with its superior design has become a
best-seller, enabling the company to achieve positive growth rates in a
sliding market. Kartell embodies the latest trends, aided by top designers.
274
DIFFERENT THINKING
Example 3:
The carmakers are rediscovering the factor design. After years of

monotony, years in which all the cars we saw on the streets had the same
practical but unimaginative design, the big groups are now opting for more
extravagant forms - not least because of the keen competition. 'There are
no really bad cars today,' says head of the International Design Centre
in Berlin. 'That's why design is becoming a crucial differentiating factor
more and more.' In addition, the carmakers are putting this maxim into
practice:
Figure 11.19
Renault, for example, woos consumers with models with very

unusual design and which thus stand out very clearly from the rest
of the field.
Create an experience, trigger emotions.
You rely on rational argument and the persuasive power of your products
(functionality, performance, quality etc.) to win customers.
Different Thinking:
Do something new. Be creative. Add something more to the rational
arguments, an element hardly ever talked about in the business
environment: emotions and experiences. Use your services as a stage and
your products as tools to help you win the hearts of your customers.
275
DIFFERENT THINKING
Example 1:
The manufacturers of dolls focus on selling their products and

accessories, while the actual 'experience' of playing with the dolls takes
place predominantly at home.
Figure 11.20
However, at American Girl Place, customers enjoy the experience of

play in the Store itself. American Girl has two large establishments,
the original branch in Chicago and another in New York. These are
anything but typical toyshops. They offer the consumer a world of
experience. The sale of products -American Girl dolls - is secondary here.
Instead, customers old and young can enjoy a whole range of attractions -
musical shows, cafés, restaurants, even a hairdressing salon for
the dolls. Visitors can spend hundreds of dollars without buying a single
doll. The special achievement of American Girl Place is that it has
transferred the activity of playing from the nursery back into the store. And
the concept is successful: with total sales of approximately 8 million dolls,
American Girl ranks second after Barbie.
276
DIFFERENT THINKING
Example 2:
Figure 11.21
Another example is the Ice Hotel in north Sweden. Every winter,

the hotel is rebuilt from ice. The beds are made of ice, with coverings of
reindeer skin and sleeping bags. The furniture, the crockery, the glasses -
everything is made of ice. Moreover, although the average temperature
is below zero, guests from all over the world come and pay a fortune a
night to stay there.
Really cool: the Ice Hotel

What is the product this hotel is selling? Is it the tact that you sleep on
reindeer skins? Or that you can enjoy a drink in a bar made of ice? The
breathtaking view over the snow-covered landscape of north Sweden? Or is
it everything together, the whole package? The product is all these things -
and much more. A night spent at the ice hotel may soon be over, but the
experience is unforgettable, the memory of each little detail and the special
atmosphere in this most short-lived of hotel stays. It is an experience far
beyond a mere journey, a good night's sleep and good food.
Following the Swedish example, a new `icebar' has now opened in

Milan.
277
DIFFERENT THINKING
The "Absolut"ice bar in the center of the Italian metropolis is made

entirely of ice - walls, bar and tables, even the glasses. The
temperature inside the bar is five degrees below zero, so guests are
handed moon boots and thermal coats at the entrance.
The bar needs complete reconstruction every six months. The 60 tons of
ice required every month to maintain the bar, which has an area of 120
square meters, are flown in directly from Sweden. Moreover, the bar
serves only vodka - to be drunk on the rocks, of course.
Offer clarity, cut out the extra features to make your product irresistible.
You keep on expanding the range of products and services you offer and
introducing even more price models. Your aim is to ensure that the
customers have an ever-increasing range and variety of products and
services to choose from.
Different Thinking:
You cut out the frills, simplify, focus on the essentials. Offer clarity and
simplicity that your customers will not be able to resist!
Example 1:
More than Coffee: the Tchibo System
Figure 11.24
278
DIFFERENT THINKING
'A new world every week'

is Tchibo's motto, and it applies this motto 52 times a year. Every week it
presents a miniature product, which exists for just seven days and
comprises up to 40 articles under the company's own brand name TCM.
The range is tailored so precisely to the requirements of consumers that

they often wonder how Tchibo knows them so well. Tchibo always seems to
have just the things that you were thinking of replacing - a new soap
dispenser for the bathroom, wellington boots for gardening or a new
barbecue for the patio. Moreover, each product is available in just one
design, so there is no problem making up your mind.
Example 2:
Fewer products mean better sales. The giants among the consumer
goods producers have now woken up to the trend. They have made radical
cuts in their portfolios.
Dutch-British conglomerate Unilever (which has brands such as

Iglo, Knorr, Sunil, Coral) has banished 75 per cent of its products from
the portfolio over the last four years.
Question the established price models.
You take the established price model for your industry as a given and strive
for optimization within these limits.
Different Thinking:
Instead of wasting your energy trying to optimize the established price
model for your industry or to be just that little bit cheaper than your
competitors do, you create your own price model.
279
DIFFERENT THINKING
Example 1:
New sources of income through Mixed Financing
You want to put an ad in the newspaper, for example to sell your old
kitchen. Then you will pay a fixed price calculated on the basis of the
length of the ad, the circulation of the paper and whether it is a local,
regional or national paper. If you want to put a classified ad in the
paper, you bear the costs - that is the way it is!
Nevertheless, there is an alternative! Websites like Quikr, OLX and

Papers like Bazar, Sperrmull and Zweite Hand have challenged this
established price model. Private individuals can place ads free of charge,
and the websites and paper is financed partly through the trade
advertisements it carries, premium ads etc.
1. How will you use Rule 9 of Different Thinking (Design matters: design as
a competitive factor) in your career?
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2. How will you use Rule 6 of Different Thinking (Mix it! Conquer new
markets with innovative combinations) in your career?
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DIFFERENT THINKING
11.15 SUMMARY
As a Different Thinker, you will have to overcome many obstacles.

Moreover, it is obvious that your rivals are going to try to shoot you down,
when you dare to break with established rules. The best way to deal with
all these skeptics is to question the overall strategy and to advocate a
completely new philosophy. A comprehensive approach is far more difficult
to find fault with than gradual changes, for example in a company's price,
product or marketing models.

1. Explain the Rule 6 of Different Thinking
2. Explain the Rule 8 of Different Thinking
11.17MULTIPLE CHOICE QUESTIONS
1. New idea for a 24-hour news channel: CNN was brought forward by:
(a) Ted Turner
(b) Unilever
(c) Umpqa
(d) Othmar Wickenheiser
2. -------------------- were looking for new ways to dispose-off many

articles impounded or confiscated by them. In their search, they looked
beyond the confines of their own sector to a completely different field:
online auctions.
(a) Deutsche Bank
(b) U. S. Army
(c) Unilever
(d) German customs
3. US company, ------------- concentrated for many years on the

production
of baking soda for making bread, cakes and pastries.
(a) American Express
(b) Amway
(c) Arm & Hammer
(d) 3M
281
DIFFERENT THINKING
4. The founder of Sony, ----------------------, summed up his management

philosophy, 'I do not serve markets. I create them.'
(a) Akio Morita
(b) Kawasaki
(c) Ishikawa
(d) Deming
5. "Because you are worth it" is the slogan of:

(a) Amway
(b) 3M
(c) Arm and Hammer
(d) L'oreal
282
DIFFERENT THINKING
Reference Material
chapter
Summary
PPT
MCQ
283
IT IS IN YOUR HANDS!
Chapter 12
It Is In Your Hands!
Objectives:
We would like to conclude by saying that the things about Innovation
Management are totally in your hands.
Structure:
12.1 Introduction
12.2 Change Management
12.3 There are Three types of Executives in the world
12.4 What-if Analysis
12.5 Intuition
12.6 Roles to be present in Balanced Amounts
12.7 Left Brain/Right Brain Distinctions
12.8 Story of a Sage
12.10 Summary
284
12.1 INTRODUCTION
Friends,
We would like to conclude this subject by giving you some more thoughts
on this subject of Innovation Management.
The future of any organization rests solely on its ability to co-

manage two dynamic and necessary processes:
• Improving quality, profits and levels of Customer Service in the short run
• Developing the Breakthrough Innovations that are going to form the
foundation for the organization in the longer-term
These two processes are the only way any organization can stay
competitive today and in the future. In fact, even though the two
processes call for entirely different skill sets, there is a vast amount of
dynamic additional energy that is liberated by the head-to-head battle
between the two processes.
Organizations that recognize, learn from and harness the power of that
interaction have the opportunity to leapfrog their competition and achieve
World-class status -- meaning they perform better than any other
comparative organization.
It requires a willingness on the part of the leader, to accept the challenge

to create an organization in which people can excel while simultaneously
managing the present and creating their own futures.
The key to achieving that has more to do with people and their
relationships with each other and less to do with products and
technologies than most people will realize at first glance.
An organization must actively invent its own future by:

• Working out ways to make its present operations better and more
effective
• Committing resources to the development of Future Innovations that
represent Innovative ways to rethink their line of business
• Creating ways to learn from both initiatives simultaneously
285
12.2 CHANGE MANAGEMENT
Dealing with inevitable change in an organization typically involves

transitioning to a new way of working. Sometimes this occurs during a
Business Transformation that realigns people, processes and technology
seamlessly to new strategic objectives. At times, Changes can be
intimidating and stressful, frequently because of the uncertainty often
associated with new situations.
Managing Change can be difficult, because most people become

accustomed to one way of doing things, and Change can cause stress for
individuals.
You can use some proven techniques to manage Change in an organization

and help to diminish the stress and potentially damaging effects on the
organization and its members, employees and customers. Some of them
are:
• Watch Competitors
• Plan Flexibly
• Seek Information
• Focus on Training
• Better Communication
Vibrant and robust organizations are always open, and even eager, to
embrace change. They do that by:
• Continuously finding ways to improve the Group Culture
• Incorporating appropriate humor into the organization
• Building the self-esteem of all employees
• Listening to employees intensely
• Giving people recognition for what they are doing well.
• Encouraging ongoing Personal Improvement
286
To prosper in the current competitive business environment, an

organization must simultaneously focus on improving current operations
while creating entirely new competitive arenas.
There is a need to strike a balance between Continuity and

Innovation.
Innovation is known to fuel organizational growth, to drive future success,

and is the engine that allows businesses to sustain their viability in a global
economy.
Both Managers and Researchers must regard Innovation as a 'life-and-

death matter for a firm', in which the constant need of fighting for survival
and the threat of Competition encourage firms to innovate.
Some Important Points:

• Innovation cannot be external to the organization.
• For Companies to succeed by Innovation, it is not enough to come up
with great ideas that can change your market.
• The organization as a whole must be ready to absorb Innovation.
• Innovative Companies are built into a shared Innovation Mindset.
• Teams are working together on new solutions that were not tested before
(that means more hard work and less replication).
• Managers involve the entire staff (down to the admin assistant), where
you see a collective interest and care for the project.
• Lesson Learning on successful projects must be shared across
departments and regions, side by side with insights on the projects that
failed.
• Innovation can be effectively implemented across the organization once
actual Innovation Projects are supported by Innovation Methodologies.
• Shared perceptions regarding innovation, human efforts engaged in
Innovation Processes, tools and platform utilized, and structured
Innovation Intervention Processes should be presented.
• Those should be used to examine organizational Innovation readiness.
• Human efforts should be invested in Innovation
287
Leadership Commitment Vision:

• Well communicated, clear strategic vision and goals
Innovation Dedicated Leaders:
• Innovation personas setting motivations and inspirations
• Engaged employees that care to promote Innovation Processes which

results in Cross Organization Employee involvement (Cross Departments
and roles)
Beware that Innovative Ideas are surely essential but most of them tend to
fail. A good selection criteria and ongoing managerial support are vital to
ensure execution. Optimal Organizational Innovation requires
translating the business strategy into an overall organizational strategy,
with proper mechanisms to ensure successful Innovation performance
when introducing new commercialized products to the market.
Video Link 1
Video Link 2
12.3 THERE ARE THREE TYPES OF EXECUTIVES IN THE

WORLD
• There are those who can get short-term results and do not have a
clue where they are going to take the company in the future.
• Conversely, there are those who have a great ten-year plan but
are going to be out of business in ten months
• In addition, there are those who can get short-term results in
conjunction with a vision for the future. These are the good ones.
However, they are in unbelievably short supply.
288
Today's leaders must be willing to invest in something that will someday

come to replace all that they worked so hard to achieve.
Good leaders are very flexible. They separate the results from the pain of
the changes. They are prepared to deviate from their preconceptions to
allow people within the organization to grow and adapt. In this situation,
leaders see their role as supporters rather than dictators.
As Globalization tears down the geographic boundaries and market barriers

that once kept businesses from achieving their potential, a company's
ability to innovate-to tap the fresh value-creating ideas of its employees
and those of its partners, customers, suppliers, and other parties beyond
its own boundaries-is a must.
• In fact, Innovation has become a core driver of growth, performance,
and valuation
• Transformational Leadership has significant and positive relations with
both Empowerment and an Innovation-Supporting Organizational Climate
• Leading Strategic Thinkers are moving beyond a focus on traditional
product and service categories to pioneer Innovations in business
processes, distribution, value chains, business models, and even the
Functions of Management.
Recent Academic Research finds that differences in individual creativity and

intelligence matter far less for Innovation than connections and networks.
Social-Network Analysis can help leaders to diagnose existing networks in
order to ascertain their characteristics, such as the frequency of
collaboration and the degree of cross-functional interactions among
members, and to identify people who exchange information and
knowledge.
Respondents to a survey of 600 executives and managers indicated

that trust and engagement were the mind-sets most closely
correlated with a strong performance on Innovation.
289
Nothing stops an organization faster than people who believe that the way
they worked yesterday is the best way to work tomorrow. To succeed, not
only do your people have to change the way they act, they have to change
the way they think about the past.
Good organizations do not simply react to their customers - they anticipate

what customers will need in the future, given the pace of Technical and
Marketplace Innovation occurring all around them. There are two
techniques organizations can use to develop a vision for how the future
may unfold:
• Scenario Planning
• Intuitive Thinking
12.4 WHAT-IF ANALYSIS
It lets business leaders assess potential business changes before they

happen. Using past business data, users can see how different changes
would affect various aspects of their business. Enlisted in the next few
slides are a few notable benefits of the What-if Analysis Report. Benefits
of the What-if Analysis Report:
• Decreases Risk
• Reduces Decision time
• Improves Decision-making
290
12.5 INTUITION
Where you allow your subconscious mind to process all the facts
and send you signals in the form of your "sixth sense". This allows
non-rational factors to be brought into the mix, which is sometimes the
only way forward. Intuition is valuable as long as you can later come up
with a factual analysis of why you came to your conclusion.
Intuition is a genuine phenomenon that involves understandings and

processes that are non-hierarchical, not based on formal education or
years of experience, non-analytic, unpredictable, is quick and easy, and is
made without extended conscious deliberation. Emotional Intelligence is
the basis of Intuition. It allows executives to make the right decision
quickly, even without all the facts, but using the full power of their mind.
12.6 ROLES TO BE PRESENT IN BALANCED AMOUNTS
If the organization aspires to maintaining World-class status over the

longer term, all four of following roles must be present in balanced
amounts:
Figure 12.1
291
12.7 LEFT BRAIN/RIGHT BRAIN DISTINCTIONS
The central challenge for any aspiring great organization is to take into
account the left-brain / right-brain strengths of people and their natural
functional preferences to ensure the right people are placed in the right
areas of responsibility within the organization.
Figure 12.2
In the Final Analysis, great organizations focus on their people,

because only they can change and improve the organization's
present while at the same time designing its future.
Video Link 1
292
12.8 STORY OF A SAGE

Figure 12.3
Once upon a time, there was a sage, who was very knowledgeable and was
able to answer any questions posed by the people. A person could ask two
questions to him at a time. He was well known for giving correct answers
to the questions. People used to ask him questions like "When will my son
get a job?" or "When will my daughter get married?" etc. and the sage
used to satisfy the people by giving suitable answers.
One day, a naughty boy decided to ask him two questions and he was sure
that the sage would not be able to give correct answer to at least one of
his questions.
He carried a live bird in his hand and held it at his back so that the sage
could not see the bird.
The plan of the boy to prove the sage wrong was as follows:
The first question: "Sir, what is there in my hand?" Probably the sage
would say, "It is a bird”.
The second question: "Is the bird alive or dead?" If the sage says, "dead",
it would be automatically a wrong answer. If the sage says, "alive" then the
boy would kill the bird on the spot. Then the answer would still be wrong.
He went to him and greeted him. He asked the first question. "Sir, what is
there in my hand?" The sage replied: "It is a bird".
293
The boy then asked the second question: "Is the bird alive or dead?"
The sage replied: "That is in your hands!"
So I conclude by saying that it is in your hands whether you keep

the Innovation culture alive or not!
1. There are Three types of Executives in the world:

• There are those who can get short-term results and do not have a clue
where they are going to take the company in the future.
• Conversely, there are those who have a great ten-year plan but are
going to be out of business in ten months
• In addition, there are those who can get short-term results in
conjunction with a vision for the future. These are the good ones.
However, they are in unbelievably short supply.
Make a write up as to which category you would like to fall in. Give
examples of your way of working.
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2. Give an example of Intuitive Thinking which you have experienced in

your family or in your friends' circle.
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12.10 SUMMARY
The Future of any Organization rests solely on its ability to co-manage two
dynamic and necessary processes:
• Improving quality, profits and levels of customer service in the short run
• Developing the Breakthrough Innovations that are going to form the
foundation for the organization in the longer-term
These two processes are the only way any organization can stay
competitive today and in the future. In fact, even though the two
processes call for entirely different skill sets, there is a vast amount of
dynamic additional energy that is liberated by the head-to-head battle
between the two processes.
An Organization must actively invent its own future by:

• Working out ways to make its present operations better and more
effective
• Committing resources to the development of Future Innovations that
represent Innovative ways to rethink their line of business
• Creating ways to learn from both initiatives simultaneously
1. Explain "What if" Analysis.
2. Explain "Change Management".
295
1. You can use some proven techniques to manage change in an

organization and help to diminish the stress and potentially damaging
effects on the organization and its members, employees and customers.
One of them is:
(a) Watch Employees
(b) Watch Customers
(c) Watch Competitors
(d) Watch Suppliers
2. There are two techniques, which organizations can use to develop a

vision for how the future may unfold. One of them is:
(a) Organization Development
(b) Design of Experiments
(c) Advance Planning
(d) Scenario Planning
3. Good leaders are very ----------.

(a) Strict
(b) Flexible
(c) Smart
(d) Sincere
3. There is a need to strike a balance between --------------------and

Innovation.
(a) Invention
(b) Investigation
(c) Continuity
(d) Complacency
5. Benefits of the What-if Analysis Report: (Find out the wrong one)
(a) Decreases Risk
(b) Reduces Decision time
(c) Improves Decision-making
(d) Increases cost
296
Reference Material
chapter
Summary
PPT
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297
TOP INNOVATIVE COMPANIES
Chapter 13
Top Innovative Companies
Objectives:
After completing this chapter, you will be able to understand:
• Top Innovative Companies in the world and also in India
• The reasons why they are the top innovative companies
• Basis of the ranking of Innovative Companies
Structure:
13.1 Introduction
13.2 Ranking of Innovative Companies in year 2021
13.3 Top Five Innovative Companies as per Boston Consulting Group (BCG)
13.4 Top Five Innovative Companies as per Forbes
13.5 Top Ten Innovative Companies in India
13.6 Activities for the Students
13.7 Summary
13.8 Self Assessment Questions
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13.1 INTRODUCTION
Innovation increases our chances to react to changes and discover new

opportunities. It can also help foster competitive advantage as it allows us
to build better products and services for our customers.
The successful implementation of new ideas is important to a business

because it enables us to improve its processes, bring new and improved
products and services to market, increase its efficiency and, most
importantly, improve its profitability.
In order for our business to thrive, it is crucial to be continually innovating

and improving. Successful business innovation means finding new revenue
opportunities, optimising existing channels and, ultimately, generating
higher profits. As said above, it should also give companies an advantage
over their competitors.
Innovation enables us to effectively respond to industry disrupters. It also

enables us to increase market share, respond quickly to the external
challenges by developing human resources as well as technological
resources to do things differently. Innovation is the weapon for any
company to survive in the super-competitive market.
13.2 RANKING OF INNOVATIVE COMPANIES IN YEAR 2021
Successful innovation takes three things.

• Making innovation a priority: The number of companies reporting
that innovation is among their organizations’ top three priorities is up by
10% in 2021 to 75%.
• Committing investment and talent to it: Just under half of the
companies are putting real resources behind their priorities.These
companies are called as committed innovators.
• Being ready to transform investment into results: As per Boston
Consulting Group (BCG), innovation-to-impact benchmarking
framework (i2i) assesses the readiness of their innovation systems. A
perfect i2i score is 100—and only about a quarter of committed
innovators scored 80 or above. The median committed innovator fell
short of best practice on every i2i dimension, sometimes significantly.
299
Boston Consulting Group (BCG), a widely known consulting company,

takes innovation as a parameter to rank companies spread across the
globe. As per BCG, Apple leads all and ranked No.1 Innovative Company.
Alphabet, the mother company of Google, comes in second place. Among
the first five top innovative companies, there are Amazon, Microsoft, and
Tesla. All these companies rank from third to fifth respectively.
ServiceNow, Workday, Salesforce.com, Tesla and Amazon are the

top innovative companies as per Forbes.
The most innovative companies of 2021, according to the BCG research as

well as according to Forbes, are those that marry the desire to innovate
with the systems, leadership and processes that work to make it happen.
Many of these companies are household names, but some have surged up
the rankings after a period of innovation brought about by the emergence
of COVID-19.
13.3 TOP FIVE INNOVATIVE COMPANIES AS PER BOSTON

CONSULTING GROUP (BCG)
Let us try to understand why the aforesaid five companies viz. Apple,
Alphabet, Amazon, Microsoft, and Tesla are the top five innovative
companies.
Apple:
Technically speaking most of the technology that Apple produced existed
before Apple ever turned them into a product. They have never really
made an ‘original’ product. But they continued on the trend of taking
technology that already exists and making the product more valuable for
consumers. E.g. The early iPods weren’t all that different from MP3 players
but they gave their owners far more value. They took something that
existed and made it simpler to use. Then of course there was the iPhone.
We know all the technology for the iPhone existed before the iPhone ever
came to market but the iPhone was still the most innovative device of its
time. Simply put, it made smartphones easier and more intuitive than any
of the phones before it.It made browsing the web actually doable on a
smartphone. The iPhone’s innovation came not from any invention it
brought to the table but from how it synergized all those technologies in a
way that leapfrogged past the competition.
300
Alphabet:
In 2015, Google’s founders decided to launch a new parent and holding
company called Alphabet. Alphabet was introduced in order to create a
more stable management structure, appointing CEOs for each seperate
business, so that operations could be handled independently. This strategy
also allowed Google founders Larry Page and Sergey Brin to focus on
generating and maturing new world-changing ideas or ventures.
Although this sounds like a simple restructuring technique, it also creates

more potential for innovation and success of products or services that are
not related. Alphabet essentially seperates Google’s profitable businesses,
such as Google Search and YouTube from their riskier, innovative projects.
This in turn, keeps shareholders happy when it comes to the amount
Google is spending on these new ventures.
Google is well-known for being one of the most innovative and successful
companies globally. With that being said, Alphabet and its subsidiaries
(including Google) have very forward-thinking approaches and are involved
in many amazing, breakthrough innovations. They are able to do this
through consistent allocation of funds to their wide range of different ideas
and projects. The ability to have enough funding to invest in all of these
new ventures across their subsidiaries, allows Alphabet to position itself
ahead of other innovation hubs.
Focusing on Google, the culture created at their workplaces is the definition

of innovative, compared to the majority of other organizations. Google’s
“culture of innovation” is based around four important pieces: mission,
transparency, voice and space. Everyone knows children always asks
and repeat, “Why? Why? But Why?”. This is essentially what Google
supports, as each of these cornerstones encourage employees to
rediscover the child inside of them by asking questions through curiosity.
Furthermore, Google challenges employees to be motivated every single
day in their unique work environment — where there is free food, sleep
pods, and an overall relaxed atmosphere.
Another way that Google specifically fosters innovation in the workspace is

through their widely recognized concept “Google time”. If you have never
heard of this idea, it refers to encouraging employees to spend 20% of
their time at work, working on independent projects. This strategy that was
301
initiated in 2004, has created successful innovations like Gmail, Ad Sense

and Google News, just to name a few.
Amazon:
Originally known for selling books through its website (and later digital
versions via its Kindle e-reader), Amazon has built up a customer service,
inventory, and shipping empire that allows the site to offer everything from
clothes to lawn furniture to janitorial supplies. It also sells digital content
like movies, music, and apps. Its Amazon Web Services arm is a
multibillion-dollar provider of cloud-based services for millions of business
customers around the world, including government agencies and
universities. And it’s a major player in consumer electronics--not only by
offering devices such as Fire tablets and TV boxes, but also via its Alexa AI
assistant service, which made news at the CES 2017 gadget show by being
built into everything from LG refrigerators to Ford cars.
Amazon is even a Hollywood player, taking home two awards at the 2017
Golden Globes. Yet the basics of Bezos's business philosophy--focusing on
long-term customer loyalty over short-term profits and never-ending
expansion into new businesses--have been surprisingly consistent over the
years. And Amazon's obsession with efficiency explains why it's now
delivering products in just two hours via its Prime Now service, and why
it hopes to be among the first e-commerce companies to deploy its own
fleet of drones with Amazon Prime Air, a future fleet of autonomous aerial
vehicles that will deliver packages under five pounds.
In an interesting twist, Amazon has made significant investments in brick

and mortar, opening its first bookstore in Seattle in late 2015 and since
then expanding to 13 locations. In 2017, the company completed its
acquisition of Whole Foods and in early 2018 opened an Amazon Go
grocery store to the public at the company's headquarters in Seattle.
302
Microsoft:
Microsoft has re-engineered itself in multiple ways to ensure that decades-

old cash cows such as Windows and Office are part of technology’s future
rather than legacies of a more PC-centric past. The company has invested
in AI (Artificial Intelligence); championed bots as a new computing
paradigm; and developed ambitious apps for platforms such as iOS and
Android rather than trying to weaken the competition by tying its core
assets directly to Windows.
One core tenet of Nadella's leadership has been his focus on accessibility
and inclusive design so that Microsoft products are available to the one
billion people around the world who may require additional assistance due
to being differently abled. Emblematic of this mission is the Xbox Adaptive
Controller, which is designed for gamers with limited mobility. Originally a
hackathon project, it takes into account people who don’t have fine motor
skills or control of both hands and all their digits. Because of the high
number of variables that could affect a user's ability, as well as the
switches, joysticks, mounts and any other input devices users may already
have to enable play, the Adaptive Controller spreads out the possible inputs
in a single-file line to improve ease of use. The rectangular device is
designed to sit on a player's lap, allowing for more comfortable and longer
play than may have previously been possible for users for whom holding a
traditional controller can be overly taxing. Grooves and symbols guide
users to the right ports. Even the packaging materials were redesigned
with accessibility in mind. Many of the team's efforts are informing the
company's thinking for all its products moving forward.
Another key trait of today’s Microsoft is its willingness to design its own
hardware to show off what its software can do. In 2016, the company
shipped commercial and developer editions of HoloLens, an augmented-
reality headset that runs a “holographic” edition of Windows 10. It also
launched Surface Studio, an all-in-one PC with a pressure-sensitive pen
and a 28” display that doubles as a drawing table.
Plus, thanks to Microsoft's $2.5 billion acquisition of Minecraft, a video

game that has become a cultural phenomenon, the company has a foothold
with younger audiences. Millions of families around the world already pay
for Minecraft licenses; with the unveiling of Minecraft: Education Edition
last year, schools are now lining up, too.
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Tesla:
It’s no surprise to see Tesla leading major automakers in the deployment of

artificial intelligence (AI). The California-based car maker is arguably one
of the most innovative companies in the world.
Tesla’s innovation strategy has resulted in an extreme level of in-car

hardware and software integration. Most other automakers have yet to
adopt such cutting-edge technology, let alone unleash the potential of AI
and deep learning.
Currently, as of 2021, Tesla ranks as number two for Luxury Hybrid and
Electric Cars, according to the U.S. News and World Report. More
specifically, the Tesla Model 3 has an impressive scoring of 8.8 out of 10.
The deep-rooted Tesla innovation culture sets the business apart – even
among top-tier competitors. Here are the key factors that contribute to
Tesla’s position among the elite.
Innovative Individuals
CEO Elon Musk is most associated with Tesla’s growth. Recently, he’s been
the focus of countless news stories concerning his alternative business,
Space X. A company set to “design, manufacture and launch advanced
rockets and spacecraft”. However, he’s also been pouring his creativity into
Tesla. According to Harvard Business Review, Musk’s brilliance is heavily
used towards building and using innovation capital to garner support for his
ideas.
Additionally, beyond Musk, the Tesla leadership is packed with innovative

individuals who’ve made it the world’s most valuable car maker. Key figures
include Tesla co-founder JB Straubel, who was Chief Technology Officer
(CTO) until 2019. And also Beth Davies, who stood as former Director of
Learning and Development at Tesla, as well as previously holding senior
roles at Apple and Microsoft.
Both Straubel and Davies were key contributors to Tesla’s innovation. Their
signification efforts supported Tesla’s growth as it became the world leader
in electric automobiles.
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The Products
Technology reigns in Tesla’s journey of innovation, and commentators have

rightly praised the way Tesla’s innovations are transforming the auto
industry.
Their electric cars have consistently defied consumer expectations for

reliability, performance, and style. Perhaps most importantly, they also
have the stamina to dispel wide-held concerns regarding mileage. (The
Tesla S and Tesla X mileage figures stood at 370 and 325 miles respectively
in 2019. 2020 upgrades to the US version of the Model S then pushed it
above the 400-mile mark.).
Over the next decade, Tesla is aiming to build 20 million electric vehicles a
year. Moreover, is establishing new factories in Berlin and Austin, Texas.
The latter being the main factory for the Tesla Semi and the Tesla
Cybertruck. Both are set for release within 2021 and 2022, respectively.
Other remarkable Tesla innovations
However, record-setting electric cars are just the start, as the list of Tesla
innovations goes much further:
Tesla’s cars are only able to set mileage records thanks to their fast-
charging sustainable batteries.
Tesla innovations now reach into the arenas of home power storage and
grid power storage. The Powerwall and Powerpack are examples of it.
Meanwhile, the Megapack serves for grid-deployment by utility companies.
In 2016, Tesla moved into the solar power space with the acquisition of
SolarCity. As a result, Tesla’s product range now includes solar panels and
solar roof tiles.
305
The Business Model
Many experts identify Tesla’s business model as the reason it has remained
financially sustainable. Let’s take a closer look:
Tesla’s ambitious mission of transforming global transportation and energy

production/consumption systems resonates with consumers. This message
also resonates through board calls and every customer engagement. As
consumers demand greener and more sustainable products, Tesla’s mission
to ‘accelerate the world’s transition to sustainable transportation’ is just
perfect.
Tesla’s marketing reaches out directly to customer-enthusiasts, without

relying on dealers or other middlemen who might dilute the message.
Many Tesla investments have a refreshingly long-term feel. The company

has invested heavily in building the Supercharger stations – which some
consider the most significant energy infrastructure development for 80
years. The aim is clear: To make prospective Tesla owners feel comfortable
with long-distance electric-powered travel. Tesla has also poured billions of
dollars into their Gigafactories around the world, to be able to produce
enough batteries to keep up with demand.
Corporate Structure
Tesla’s innovations haven’t always trickled from the top. The company
opted for agility over a traditional corporate hierarchy in order to gain the
advantage over larger competitors.
Adopting a management style that breaks communication barriers means

that “anyone can talk to anyone”. As such, Tesla’s employees have free
access to the executive team, allowing for an exchange of ideas that may
benefit the company.
There’s an interesting lesson here for growing companies: Problem-solving

is dependent on effective communication, and rigid hierarchies can
often re-route or prevent the optimal flow of information.
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13.4 TOP FIVE INNOVATIVE COMPANIES AS PER FORBES
ServiceNow, Workday, Salesforce.com, Tesla and Amazon are the top

innovative companies as per Forbes.
ServiceNow:
ServiceNow is an American software company based in Santa Clara,
California that develops a cloud computing platform to help companies
manage digital workflows for enterprise operations.
Built to manage everything as a service, ServiceNow helps the modern

enterprise operate faster and be more scalable than ever before. It does
this by placing a service-oriented lens on the activities, tasks and
processes that make up the day-to-day work life.
The biggest perk about it being cloud-based is that there are no ties to a
local resource, and it can easily scale across multiple networks. Unlike
other platforms, ServiceNow was natively designed in the cloud and it
shows. Many cloud based services are not designed to combat the stresses
of enterprise IT solutions.
Workday:
Workday is a leading provider of enterprise cloud applications for finance,

HR, and planning. Workday delivers financial management, human capital
management, and analytics applications designed for the world’s largest
companies, educational institutions, and government agencies.
Organizations ranging from medium-sized businesses to Fortune 50
enterprises have selected Workday.
Salesforce.com
Salesforce.com, Inc. is an American cloud-based software company. It is
a cloud-based customer relationship management software provider. It
builds customizable platforms that allow companies to organize data from
sales, app use, and various other business metrics all in one place.One of
the reasons that Salesforce is so popular is that it is packed with
features like no other CRM software; features such as contact
management, workflow creation, task management, opportunity tracking,
collaboration tools, customer engagement tools, analytics and an intuitive,
mobile-ready dashboard.
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‑
13.5 TOP TEN INNOVATIVE COMPANIES IN INDIA
1. Meesho:
First on the list is Meesho. A Bengaluru based social commerce platform

has more than 2 million users as its shopkeepers. Meesho lets users build
curated online stores by selecting merchandise from more than 20K small
and medium suppliers.
If we talk about the product offering of Meesho, then we have options like
jewelry, home, and kitchen. Users market these goods to their personal
networks through Facebook, Instagram, and WhatsApp. Meesho in return
takes a commission between 10-20%.
Homemakers in India who use the app have achieved financial freedom
without leaving the house physically. Isn’t it an innovative approach that
comes with a social cause?
2. Milk Mantra –
Kicked off in Odisha, Milk Mantra is an Indian agricultural dairy product

start-up. It was established in 2009 by the former director at Tetley and
was first operational in 2012.
The start-up produces and distributes milk and other milk-based products
like buttermilk, cottage cheese, curd, and yogurt.
In a country like India when almost everything has fair chances of

adulteration, there is some start-up that comes form the backbone of the
economy (agriculture) and promises to deliver top quality milk-based
products.
Milk Mantra definitely deserved to be one of the most innovative companies

in India.
3. CIPLA –
We need to thank CIPLA for being able to cure deadly diseases like AIDS.
Every deadly disease comes with an innovative approach to tackle. With
CIPLA’s new drug – Quadrimune which also comes in strawberry flavor, it
has helped save innumerable lives across the globe.
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4. Udaan –
While all the companies were struggling to grab a place in the B2C
universe, Udaan tried something different and now the team is flying a
smooth ride. India’s first B2B marketplace for 2 million retailers in 900
cities, Udaan is not only on the list of most innovative companies in India,
but it’s also one of the favorite start-ups India ever had.
Its mobile app connects 150,000 traders and retailers in the country,
enabling SMEs to do business directly with manufacturers.
5. Ambee –
Something different, innovative and worth a try. While NCR suffers some
serious drop in its air quality, there is a start-up that measures its quality.
Ambee is in an air-quality data network whose sensors measure air quality
in terms of dust, particulate matter, volatile organic compounds and every
other checkpoint that is measurable in terms of finding a fine air quality.
6. Locus –
Indian start-ups are not innovative only in terms of offering products to

end consumers. Locus is one start-up that takes care of all A-Z of supply
chains through its constantly improving AI approach.
The company automates tasks that previously required significant human

labor like tracking inventory, transporting goods from one place to another
and many more.
With Locus making such complex tasks simple for humans, it deserves to
be on the list of most innovative companies in India.
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7. Niki.AI –
India’s first voice and vernacular enable the eCommerce platform.

Headquartered in Bangalore, it was founded in 2015 by IIT ‘Kharagpur
graduates.
Its product is AI-powered chatbot which works like an intelligent personal

assistant name Niki. Users can interact with Niki in their natural language
and it will come with the best of the best suggestions.
It’s definitely not easy to come up with something that understands the
running language of users and reply accordingly. Which is why Niki.AI is on
the list of most innovative companies in India.
8. Urban Company –
How difficult it was to get in touch with laborers, home cleaners,

beauticians sometime ago. But with Urban Company, today we have a
plethora of freelance labor and home services right outside our door.
With just a call away we can boo appointments for body massage, entire
house cleaning, AC repair services and much more.
The company not only made our job easy but also provided employment to
many based on their skillset. Why shouldn’t Urban Company not be on the
list of most innovative companies in India when they come with a win-win
situation?
9. CureFit –
India’s one of the leading gym chains that not only have gyms with
sophisticate machines. But the company is also focused on diet plans,
along with mental health tools.
CureFit just raised the bar of gym business in India. While all other gym
chains were offering just machines and a place to work out, CureFit went a
step ahead and is not a one-stop solution for all the fitness enthusiasts.
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10. B9 Beverages:
Last but not least. We’ve all tasted Bira91 which comes out from the
house of B9 Beverages. Recently amid losses, the company raised a good
amount of funding and is said to come up with more tastes in its beers.
From its cute little monkey to its tasty-tasty beers, B9 seems to be

unstoppable in terms of innovations.
1. Make a write up on what actions you will take to make your own
Company a top innovative company.
2. Make a questionnaire to be used to interview a CEO of a top innovative

company.
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13.7 SUMMARY
The successful implementation of new ideas is important to a business

because it enables us to improve its processes, bring new and improved
products and services to market, increase its efficiency and, most
importantly, improve its profitability.
Successful innovation takes three things. Making innovation a priority,

Committing investment and talent to it and being ready to transform
investment into results.
Boston Consulting Group (BCG), a widely known consulting company, takes

innovation as a parameter to rank companies spread across the globe. As
per BCG, innovation-to-impact benchmarking framework (i2i) assesses the
readiness of their innovation systems. As per BCG, Apple leads all and
ranked No.1 Innovative Company. Alphabet, the mother company of
Google, comes in second place. Among the first five top innovative
companies, there are Amazon, Microsoft, and Tesla. All these companies
rank from third to fifth respectively.
ServiceNow, Workday, Salesforce.com, Tesla and Amazon are the top

innovative companies as per Forbes.
As per the latest information, the top ten innovative companies in India are
Meesho. Milk Mantra, Cipla, Udaan, Ambee, Locus, Niki.AI, Urban
Company, Curefit and B9 Beverages.
13.8 SELF ASSESSMENT QUESTIONS

1. Which three things are required for a compnay to be successful in
innovation management?
2. What is the specialty of Alphabet?
3. What different things has Udaan done to become a successful innovative
company?
312
1. They continued on the trend of taking technology that already exists

and making the product more valuable for consumers. E.g. The early
iPods weren’t all that different from MP3 players but they gave their
owners far more value. This is the description of:
(a) Alphabet
(b) Google
(c) Apple
(d) ServiceNow
2. Originally known for selling books through its website (and later digital
versions via its Kindle e-reader), this company has built up a customer
service, inventory, and shipping empire that allows the site to offer
everything from clothes to lawn furniture to janitorial supplies. This is
the description of:
(a) Amazon
(b) Meesho
(c) Udaan
(d) Locus
3. CEO Elon Musk is most associated with its growth. Recently, he’s been
the focus of countless news stories concerning his alternative business,
Space X. This is about which company?
(a) Tata Motors
(b) Mahindra
(c) Tesla
(d) Force Motors
4. It is an American software company based in Santa Clara, California

that develops a cloud computing platform to help companies manage
digital workflows for enterprise operations. This is about which
company?
(a) Intel
(b) ServiceNow
(c) Workday
(d) Meesho
313
5. It is in an air-quality data network whose sensors measure air quality in

terms of dust, particulate matter, volatile organic compounds and every
other checkpoint that is measurable in terms of finding a fine air quality.
(a) CureFit
(b) Niki.AI
(c) Ambee
(d) Locus
314
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INNOVATION MANAGEMENT

Sub Code - 733

Program Design and Advisory Team

Prof. B.N. Chatterjee Mr. Manish Pitke

Prof. Kanu Doshi Mr. Smitesh Bhosale

Prof. Dr. V.H. Iyer Prof. Vineel Bhurke

Prof. Venkat lyer Dr. Pravin Kumar Agrawal

Prof. Dr. Pradeep Pendse Mrs. Margaret Vas

Prof. Sandeep Kelkar Mr. Anuj Pandey

Prof. Dr. Swapna Pradhan Course Editor

Prof. Bijoy B. Bhattacharyya Prof. B.N. Chatterjee

Mr. P.M. Bendre Course Coordinators

Mr. Ajay Prabhu Ms. Kirti Sampat

Mr. A.S. Pillai Mr. Kishor Tamhankar

COPYRIGHT © by Prin. L.N. Welingkar Institute of Management Development & Research.

NOT FOR SALE. FOR PRIVATE CIRCULATION ONLY.

1st Edition, August 2021

Chapter No. Chapter Name Page No.

1 The Need For Innovation 4-27

1.1 HELLO, FRIENDS!

You are now entering the wonderful arena of Innovation Management,

1.2 CONTRIBUTION OF THE GREAT MANAGEMENT GURU,

Peter Ferdinand Drucker, (November 19, 1909 - November 11, 2005)

Peter Drucker was against Bureaucratic Management and emphasized

According to Peter Drucker, "every organization, not just business, needs

1.3 WHAT IS INNOVATION?

Innovation is the application of better solutions that meet customer's new

However, Innovation is not only associated with new products, new

Innovation differs from Invention. Innovation refers to the use of a better

Further, Innovation differs also from Improvement. Innovation refers to the

Due to its widespread effect, Innovation is an important topic in the study

Some of the areas that add to everyday quality of life are:

Innovation is the development of new value through solutions that meet

Given the noticeable effects on efficiency, quality of life, and productive

Then, look at the following example of the service in a restaurant. Look

Look at the following beautiful design of a bottlelike crate in which wine

Given below are some examples of innovative furniture designs:

Figure 1.6 Figure 1.7 Figure 1.8

Some innovative crockery designs:

Figure 1.9 Figure 1.10

1.4 INNOVATION AND CREATIVITY:

Generally, people have an impression that Innovation is same as Creativity.

Therefore, Innovation is defined as "Profitable implementation of strategic

1.5 TYPES OF INNOVATIONS:

There are three types of Innovations:

Marginal improvements to what already exists. Look at the chair in the

Distinctly new and better ideas

Radically new and better ideas

The wheelchair of a new concept shown above is powered by a strong

However, it is a challenge to balance the pursuit of these three types of

1.6 THE NEED FOR INNOVATION:

We are in the midst of a significant transition, largely because of three

These three factors are explained as follows:

• Customers are ever demanding more: Customers have more buying

One person had bought a good-looking mobile telephone just three

• Results of a Recent Survey:

In a constantly changing business environment, the ability to modify and

Once they were Champions, now they are forgotten

The Zundapp models never held the fascination of a BMW or a Harley