M3

• Creativity 


  The ability to develop new ideas, discover new ways to look at challenges and opportunities it also consists of thinking outside the box.
• Role of Creativity

  • Fosters new ideas generation
  • Creation of novel products
  • Fosters creativity thinking that leads to strategy articulation and implementation.
  • Generates modern approaches to solve organizational issues.
  • Facilitates attitudinal changes in employee, the ability to accept change; flexibility
• Importance of Creativity

  • Help to solve problems - problem solving
  • Enterprises move ahead of competition
  • Benefits all the functions of the entrepreneurs have to perform
  • Business to survive it must constantly change and creativity help with doing this.
• Process of Creativity

  • Recognition/ Preparation
  • Incubation
  • Insight
  • Validation/ Refinement
• Recognition/ Preparation 


  Involves gathering information, exploring various perspectives, and acquiring knowledge relevant to the problem or task. Includes research, brainstorming, and immersing oneself in the subject matter.
• Incubation 


  Refers to when the mind subconsciously processes the information and ideas gathered. Stage involves stepping away from the problem consciously, allowing the subconscious mind to make connections and generate new insights.
• Insight 


  Stage is characterized by the sudden emergence of a novel solution or idea (aha moment). Conscious realization of a new perspective, solution, or creative breakthrough, which may arise unexpectedly.
• Validation/ Refinement 


  Newly generated idea or solution is evaluated, refined, and developed further to ensure its viability and effectiveness. It involves testing the idea against relevant criteria, gathering feedback, making adjustments, and refining the concept to enhance its practicality and relevance.
• Innovation 


  The ability to implement creative solutions to those into products or services.
• Role of Innovation

  • To create a competitive edge
  • TO solve problems
  • Fosters economic growth (creates markets, product, increase productivity)
  • Enhances the quality of life
• Importance of Innovation

  • Key to ensuring that a business’s products are differentiated from similar products
  • Provide entrepreneurs with first mover advantages in the market
  • Creates better products and services
  • Increases productivity
• Different Between Innovation and Creativity 


  Creativity refers to the ability to develop new ideas, discover new ways to look at challenges and opportunities it also consists of thinking outside the box. Whereas innovation is the implementation of creative solutions and ideas into a product or service. The new ideas and solutions are made to be more functional and practical for consumer use.
• Types of Innovation (4Ps)

  • Product innovation - change what is offered to the end user; develop a new product; improved versions
  • Process innovation - improving the process, change the way something is done; efficiency or reduce costs
  • Position innovation - repositioning products, change in the context in the way products us framed and communicated
  • Paradigm innovation - changes in the underlying mental models which shape what the organization does; shift the way in thinking.
• Core Innovation Concepts (MADD RIO)

  • Incremental innovation
  • Modular innovation
  • Architectural innovation
  • Discontinuous innovation
  • Radical innovation
  • Disruptive innovation
  • Open innovation
• Innovation Concepts Explained

  • Incremental - series of small improvements to an existing product.
  • Modulor - products or platforms consisting of or facilitating relationships e.g., people and products
• Innovation Concepts Explained Cont...

  • Architectural - components and design concepts remain unchanged but the configuration of the system changes
  • Discontinuous - paradigm shift in science and technology
• Innovation Concepts Explained Cont...

  • Radical - development of entirely new products, services, or technologies that offer significant improvements or benefits compared to existing solutions.
  • Disruptive innovation - creation of new products, services, or business models that disrupt or displace existing markets, industries, or ways of doing business
• Innovation Concepts Explained Cont...

  • Open - International leveraging of the research, ideas, or technologies of outsiders, that is people or companies that are not part of the corporate entity, rather than solely relying on innovations that are generated from inside the company.
• Sources of Innovation

  • New market
  • New technology
  • New political rules
  • Running out of roads (limited options)
  • Change in market sentiment or behaviour
  • Deregulations
  • Changes in the business models
  • Global trends
  • New knowledge
• Sources of Innovation Explained

  • New markets - changing demands for goods and services. required to improve upon existing product/ service offerings. Improve the business needs to find innovative ways.
  • New technologies - incorporated in business operations to support innovation. These can be applied in varying departments of a business.
• Sources of Innovation Explained

  • New political rules - political conditions shape the economic and social rules which may shift dramatically.
  • Running out of roads - firms are faced with limited options and they need to think outside of the box. Remain viable they look to turn ideas into something useful or marketable.
• Sources of Innovation Explained Cont...

  • Change in market sentiment or behaviour - public opinion of behavior shifts slowly and then it tips over into a new model. Action through pressure groups and suddenly the system switches or tips over.
  • Deregulations - constrain how much can be changed within processes when responding to changes in the market. Reduced regulations allows for businesses to find additional ways of satisfying existing and emerging demands
• Sources of Innovation Explained Cont...

  • Changes in the business model - business model is the means by which a firm aspire to get value from business activities. It incorporates business processes and provides a framework and involves value creation in the business.
• Sources of innovation Explained Cont...

  • Global trends - urbanization, globalization, sustainability, or demographic shifts can inspire innovation by creating demand for new products/ services that address emerging challenges or opportunities.
  • New knowledge - breakthroughs in scientific research, academic discoveries, or technological advancements contribute to innovation by expanding the pool of knowledge and providing new insights or capabilities for solving problems or creating value.
• Nurturing and Managing Innovation

  Innovation must be nurtured and manage from both the macro/organizational level and the macro/national level.
• Micro/ Organizational level

  • Incentive for innovating
  • Internal policy
  • Organizational culture
• Incentive for Innovating 


  Encourage persons to find new ways of doing things without fear of failure. Further encourages person to be more expressive and willing to share ideas with other employees encouraging further innovation. (cash prize, gift vouchers, awards, recognition)
• Internal Policy 


  Organizational practices are guided by its policy, which can support or discourage innovative behaviors. An environment where the policy encourages open thinking and sharing of ideas across departments. Many restrictions result in innovation being non - existent.
• Organization Culture 


  A system of shared assumptions, values and beliefs which governs how people behave within an organization. leaders build a culture of innovation within the organisation.
• Building a Culture of Innovation Can Be Done Through:

  • Inspiration - creative means of famous innovators that they can emanate, workers will observe the recognition of, the lifestyle and financial rewards and they would follow suit.
  • Observation - culture where employees, leaders, customers, suppliers and other stakeholders share their opportunities to innovate.
• Building a Culture of Innovation Can Be Done Through:

  • Listening to consumers - build a mechanism that slow for the constant slow of innovative ideas. Done verbally or suggestion box.
  • Organizational structure - establish one that is ‘flatter’ and encourage the smooth flow of communication back and forth. A democratic approach and one that allows upward flow of communication.
• Macro/ National Level 


  Policies develop to encourage firms to be innovative.

  1. Social policy
  2. Political policy
  3. Economic policy
  4. Cultural policy
  5. Ethical policy
  6. Environmental policy
• Social Policy

  • Innovation must ensure that it supports and does not conflict with the changing demography.
  • Changes in income, age and education generates new demands.
  • Innovation must match the expectation of the changing populations.
• Political Policy

  • Stability of the government directly affects the level of innovation.
  • Country is less stable there is less certainty of support and protection for innovation.
  • Policy support for innovation across government and under any socio – economic condition.
• Economic Policy

  • Economic incentives offered to support innovation.
  • Reduce/ preferential interest rates.
  • Reduce customs and import duties on inputs and various forms of tax waivers.
• Cultural Policy

  • A good/ service must be culturally feasible.
  • Clear guidelines, which support innovation.
  • Guidelines will reflect what is culturally accepted by the target consumers.
• Ethical Policy

  • Important consideration in business operations.
  • Ethical standards and practices that should be adhered to in the production process.
  • Policy guidelines should be ethically acceptable.
  • These policy should be adhered to ensure all stakeholders are satisfied
• Environmental Policy

  • All innovation support the environmental focus of the country.
  • Clear regulation and laws must be established.
• Challenges Associated With Social Innovation

  • Resources
  • Conflicts
  • Voluntary nature
  • Lumpy funding
  • Scale of the challenge
• Resources 


  Limited financial resources can hinder the development and implementation of social innovation initiatives. Makes it challenging to sustain efforts over the long term and scale up successful interventions.