Welcome back friends. So, we had our first
session where we understand that what type of environment is there and why innovation
is necessary for meeting out the challenges of those business environment.
And we particularly focussed on Indian conditions that why particularly seeing the global environment,
it is necessary for Indian organizations to innovate.
Now, in this second session of this course, we will discuss basics of innovation and creativity;
so, to start the discussion on innovation and creativity. I am taking you to the one
of the most popular author of management Peter F Drucker.
And Peter F Drucker says that Innovation is the specific tool of entrepreneurs, the means
by which the exploit change as an opportunity for a different business or a different service.
Now, if you see this definition given by Drucker it means two three important things.
And you see one is the exploit change. Innovation is a tool and tool of entrepreneurs . So,
one important thing we need to understand that it is a tool and with the help of this
tool we all understand I hope the meaning of tool.
Tools are those things which enable us to do something . So, if I am an entrepreneur,
I need certain tools and innovation is probably is one of the most important tool of the modern
day. And what I do with the help of this tool of innovation?
I exploit change as an opportunity, whenever something happens in my environment; I consider
it as an opportunity. For an example, let me take you to some of the changes which are
happening. Now, in India, the prime minister is focusing
on clean India; We know it as Swatch Bharath. Now, for large number of people those who
are of that kind of mindset, this becomes a good business opportunity.
But, what type of solutions I can generate around this clean India mission. There is
another problem in India that is corruption and we all know that those sitting in IT companies,
they thought that this corruption is a very good opportunity for developing the business.
Because to eradicate corruption, we want to have more transparency and IT can provide
that type of transparency. If you see the period of railway reservation before computerization
a lot of corruption was there in railway reservation. Computerization happened and everything became
transparent and all of a sudden it is complete removable of corruption from the railway reservation
system. So, the problems or the changes, the very
recent example, we all know that how in our country we moved from sales tax VAT to GST
and the change this change of GST gave opportunity to many entrepreneurs to develop softwares,
which can handle the GST calculations. Again, few months back, all most around 1
year back, we had another major decision of government of India that is demonetization
and in that demonetization decision also, we had a sudden change and lot of companies
which were involved in E-payment they use this as a good opportunity to sell their products.
So, innovation is a specific tool of entrepreneurs the means by which they exploit changes. So,
whatever changes are happening you will find two types of people in the society. They are
people who will curse all types of changes; they do not want to change anything.
And therefore, they will not be able to capitalize; they will not be able to leverage those changes.
On the other hand, entrepreneurs they look for these changes because they think these
changes can provide us opportunity for taking benefit of these changes.
So, that is what Drucker means with innovation that it is the specific tool of entrepreneurs
the means by which they exploit change as an opportunity for a different business or
a different service. So, they may start some new business, some new service to exploit
or to fulfil the requirement of change in the form of an opportunity.
Further to simplify this ah discussion of innovation that what do we mean by innovation;
we have a very interesting concept of 3-I. and in that 3-I, first I is this Idea .
Idea is our first I and in this Idea, we look forward that there should be a new Idea.
Now, you will see that during the course of this complete discussion, we will find many
new ideas; the only important thing is we need to keep our eyes, ears and brain open
all the time. If we are open all the time, you will see
that large number of new ideas will come to you .
But do not evaluate the idea initially; do not evaluate the idea initially, at the movement
we are in search of ideas and we want more and more ideas to come to us.
And therefore, idea is our first important I in the process of innovation. Now, we how
the ideas will come that we will come to discuss later.
The second important I is Implementation, you have idea and then it is not only idea;
but you need to implement that idea also. The idea might be executed and if you can
execute the idea, if you can execute the idea; then it is known as implementation . So, execution
is also very very important. Now, as far as innovation is concerned, it is possible at
both these stages. You may have a new idea; all together a new idea .
So, that may lead to innovation. It is possible the idea may not be new; the idea is old;
but you find a new way of implementing the idea that may also be innovation; For example,
the idea of non-violence and uh which Father of Nation, Mahatma Gandhi popularized in our
country. This idea is very old. The idea of non violence
is coming from Jain religion, from Buddhism; all those religions are favouring the idea
of nonviolence. [FL] But, the implementation of that idea for the freedom movement of the
country is the novelty of Mahatma Gandhi; And therefore, we all co that man as Father
of Nation . So, idea may be new; obviously, it will be
innovation. Idea may not be new; but the implementation the execution of that idea may be done in
a novel fashion that is also innovation. The third important I is Impact. You have idea,
you have executed that idea; but it must result in some kind of impact. If impact is not there,
then it is not innovation . So, 3 I's; one I is of Idea, another I is
of Implementation and another I is of Impact. These are the 3 I's and depending upon the
nature of organization, you may have different types of impacts.
If it is a business organization, then the impact may be in terms of increased market
share; it may be in terms of lower cost; it may be in terms of increased profits etcetera.
And if it is a non business organization, so here, the criteria of impact may be as
per the nature of the organization. For example, if you are a a school, your impact may be
measured in terms of number of children going for higher education from your school.
If you are a religious organization; so, may be your impact can be measured a number of
people who left alcohol , who left drugs because of your influence. So, depending upon the
type of organization, you may have different types of criteria to measure the impact.
But these 3 I's Idea, Implementation and Impact are very simple formula to evaluate whether
a particular phenomena can be classified as innovation or cannot be classified as innovation.
Because many a times we are confused with innovation and invention. And therefore, I
have a specifically develop this idea that if you have one idea, you implemented that
idea . So, these two I's make Invention and when
you add Impact in this Invention, it is Innovation . So, Invention is ah let me put in a simple
language; invention means something is up to the lab, something is at the experimental
stage . So, you come with a new concept, you executed
that concept in a controlled environment; you implemented that idea in a controlled
environment and that is invention and when you take that invention to the commercialization
stage, when you make some kind of impact out of your invention that becomes innovation
. So, it is quite possible that in our higher
educational institutions, where we do MTech; where we do Phd; where we do MBA projects;
there may be large number of project reports available, where invention element may be
there; where invention element may be there. But because that remained within the files;
that remained within the dissertation, it is not the part of market. Therefore, it is
not innovation. In some of you can search those reports in
your colleges and take those reports make products make services, make some kind of
processes out of those concepts which are mentioned in those reports and some kind of
impact is done; then it becomes innovation .
So, it is very very important that uh we are clear about the terminologies; what is the
boundary of invention and what is to be added in that boundary so that it becomes innovation.
And I hope that now you can understand various examples where these are inventions, but not
innovations and uh when those ah things are becoming popular in the market, those things
become the part of your routine life, these things become innovation .
So, that is about the way we want to define innovation; one way is with the help of uh
opportunities arising from change that is the concept of Peter F Drucker, where you
capitalize the opportunities which are resulting from the changes which are happening in the
environment. And in our session one, we already discuss
that how different types of changes are coming in the society and those changes will help
us in getting more and more opportunities. And the second thing is the concept of 3 I's
which also help us in differentiating between invention and innovation .
So, after understanding that what is innovation What is invention and the different ways of
innovation, we move to another very important discussion which is very useful at this movement
in the beginning of this course that is about Myths of Innovation.
We have certain innovations; we have certain myth about innovation and one of the myth
about innovation is that since I am not a creative person, I cannot innovate.
People feel like that I am not creative; I cannot innovate and that is my myth number
one. People say that innovation begins with creativity; but it is not the case.
The reality is innovation begins with curiosity. Innovation begins with creativity; it is Myth
and innovation begins with curiosity; it is the Reality. So, we need to understand that
what is curiosity? Curiosity is if you keep asking questions like why?
Keep asking questions like how, what, why this thing is happening in this particular
fashion? Can it be done in a better way? Can I minimize the waste; can I minimize the time;
can I minimize the efforts? If I keep asking these question, it means I am curious. and
when I am curious; it means I am a fit case for innovation .
So, first important we need to remove this myth from our minds that innovation begins
from creativity. It begins with curiosity. If I am asking questions; if I am asking questions
you see a a small child in your family, 3 years old, 4 years old the child keeps asking
so many questions and that is a good example of curiosity .
Child ask question about everything which he sees around him and uh we also need to
ask large number of questions may be to somebody else or may be with our self only , but asking
questions is very very important in the process of innovation. If you want to innovate you
should develop this approach of curiosity. Why is it like this way; why is it like this
way; how can I improve the working of my office; how can I reduce my monthly electricity bill;
how can reduce the wastage of water; how can I reduce the collection of garbage around
my house? If we start asking these questions, you will see that large numbers of problems
around us will automatically disappear . And therefore, innovation begins with curiosity
is our first important answer to myth of innovation begins with creativity. The second myth is
that innovation is a a smooth linear process .
We feel that first idea will come; we feel that there is idea. We will implement this
idea and this will create some kind of impact .
So, it looks like that is a simple linear process first you need to have a novel idea,
you need to go to a lab, you need to go to a manufacturing set up to develop the prototype
around that idea and then, go to market and start earning profit and that is a simple
smooth linear process of innovation . But, I am sorry that this is not correct . In
fact, you will see that innovation is iterative and the outcome of series of experiments.
What do I mean by that? This is correct and this is myth. Innovation is highly iterative;
therefore, you need to have lot of patience; without that innovation is not possible.
Now, what do I mean that innovation is iterative and the outcome if series of experiments when
idea is here, you have this stage of implementation. In this case you have this type of loop also.
You will implement; you will start executing your idea; you will not get favourable results,
then you will modify your initial idea . And it becomes a very iterative process. Then
once you are able to execute correctly and you are now commercializing, you are taking
this idea this product to market and when you are looking for some kind of impact, you
will see that uh impact is not as per you expectations.
The market is not responding what you expected and therefore, you may again come back to
the implementation stage or even you may come to the idea stage also.
It is a very iterative process it is not a a smooth linear process. You need to come
back, do another experiments slightly change your idea and then again experiment, again
go to market all these things are you need to do regularly. Therefore, it is not a a
smooth linear process. Then another myth is Innovation is about risk-taking.
Yes, it is. Innovation is about risk taking , but it is not purely risk taking; it is
not like you are drinking alcohol and driving your motor bike on a hilly terrine at a speed
of 100 kilometres per hour; it is not that type of risk taking. It it is risk taking
assessment and mitigation also . So, if you are driving your bike on a hilly
terrine, you know that what type of mitigating measures I need to have; I need to wear helmet;
my vehicle should have proper breaks; I should not drive over a particular speed limit; I
should not consume any kind of toxic elements .
So, all these mitigating measures I take . So, ; obviously, it is a risk , but you also have
some kind of counter elements, you also have some kind of mechanism to handle your risk
which is involved in the innovation process .
So, we see that innovation begins with curiosity; this is the reality. Innovation is iterative
and the outcome of series of experiments; this is the reality. And effective innovation
involves [vocalized- noise] ah risk taking, assessment of risk and mitigation of risk
. So, these are our myth and these three are the reality of innovation .
So, it is very very important that right from the beginning you are clear that uh what is
this process of innovation; how are we going to move in this and we need have patience,
we need to know that uh we always should be surrounded by some kind of ah counter risk
strategies so that we can minimize our risk .
So, this is very very important part in the ah process of innovation; otherwise if you
take ah innovation as such there are ah lot of challenges are there.
But, if we are clear, we know about the path of innovation and uh we uh understand that
these different steps which are coming in the journey of innovation are bound to come
these steps are not surprise element to us; then probably you are better prepared to handle
those ah unexpected outcomes. But if you feel that today I am starting a
new venture and tomorrow I will start getting profit and if then profit is not coming; you
feel depressed, you feel ah ah leaving your organization, leaving your enterprise probably
it is because you are still living in those myths.
So, in the beginning itself it is very much required that uh we should have a clear cut
picture in our mind that what type of innovation activities and uh how you will travel the
path of innovation and uh the most important thing which I will certainly like to ah highlight
that is the ah innovation begins with curiosity. If you keep asking question . So, here I am
writing that uh we need to develop this approach of asking questions; keep asking questions
and more you ask more innovative you will be.
Because one more important thing is innovation is a team activity; it is a team activity,
it is not individual activity. So, if I am asking question, it is not necessary that
I know the answer also ; but some of my friend who could not visualize that question, he
or she may be having the answer of my question. So, if I am asking the question, somebody
else will give the answer of that question that becomes the idea; somebody else will
give us proper tools proper facility so that we can experiment with that idea and somebody
else will help us to create impact out of that idea .
So, it is a team activity , but the starting point of this whole process is the person
who asks question . So, keep starting, keep asking question and more you ask more questions,
more ideas will come and who knows tomorrow you will also become a great innovator.
The second point of reality that innovation is iterative. This point focuses on the journey
of innovation. This is that the path is not simple; this path is full of may iterations,
may forward backward movements and therefore, many a times innovation takes huge amount
of time. And third is when we are moving in the path
of innovation, we also need to have some kind of uh ah mitigating strategies with us which
will minimize; which will minimize our loss because each iteration will increase our cost
of innovation each iteration will delay our product of ah to deliver into the market .
So, you need to have some kind of uh ah safe guard measure so that you do not loose, you
do not incur heavy expenditure, heavy losses because of iterative nature of innovation
process . So, ah these are important thing that we understood that what are the myths
and how can you ah handle those myth with reality .
So, ah thank you very much for this session and we will discuss ah different types of
innovation in our coming sessions. Thank you very much.
