Creativity: Role in Organizational Growth and Innovation Challenges

Document from University about Creativity. The Pdf explores the role of creativity in organizational growth, presenting Greiner's model with its five phases of development and related crises. This University document in Economics also analyzes challenges in implementing innovation, like resistance to change and ROI measurement difficulty.

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16 Pages

Role of creativity in organizational growth-Impact on greiner curve model
1972,1998 - II
NEXT CHAPTER: INNOVATION
INNOVATION: CONCEPT - CORPORATE INNOVATION
It's not the same talking about pure innovation and corporate innovation. It's two different concepts. Strategic
management innovation is also a different concept
The implementation of execution of the new creative ideas. BCG: the think and make binomial. Think relates to
creativity, make new things relate to innovation
1.
Creativity/ innoation: inseparable processes, linked to the process of solving problems and decicion making 2.
-
Corporate innovation in terms of Tangible results3.
It's the process of introducing new ideas, methods, products or services within an organization
Product innovation
-
Process innovation
-
Business model innovation
-
Organizational innovation
-
Strategic imperative
All this matters have converged in the STRATEGIC IMPERATIVE. It's a summary of all the findings of some people
Larry keeley
-
Michael porter
-
Clayton M christensen
-
Rita McGrath
-
Eric Ries
-
It's divided in 7 primary reasons. innovation has a lot to do with:
Mantaining and keeping the CA: 1.
corporate innovation helps to differentiate ourselves either through our machines, our design
Innovation in order to drive growth and profitability:2.
innovation should equal added value, we want added value because we want to become successful in the market.
-
Increase gradually the ROCE and Return fo capital employed
-
Measure the innovation tanglible results obtained - setting up related innovation KPI to measure like number of
new products, patents, R&D, etc.
-
Enhancing adaptability and resilience3.
Improving efficiency and productivity 4.
Time to market approach. Being slow gets reflectted in poor efficiency and poor productivity.
-
Attracting and retaining talent5.
Meeting evolving customer needs6.
Fostering a forward-thinking culture7.
There are some Challenges/hurdles in implementing innovation
Resistance to change due to 1.
Corporate inertia
-
Bureaucracy and/or
-
Risk aversion
-
Lack of Clear innovation Strategy path2.
Without a defined vision and objectives, innovation efforts can become fragmented and ineffective. There's a risk
of perceived "roller coaster" or discontinuous actions.
-
Difficulty in measuring ROI3.
The returns on innovation investment can be long-term and difficult to quantify in the short-run
-
Siloed thinking effect4.
Lack of collaboration and communication across different departments can hinder the flow of ideas ant the
implementation of innovative solutions.
-
Resource constraints 5.
Insufficient funding, time or talent
-
Corporate innovation fatigue 6.
Rita Mcgrath provided the idea that there's an innovation fatigue,
-
Solutions for the challengess above
Strong leadership, commitment and vision1.
Top leadership must not only verbally support innovation but actively chamption it. This includes allocating
resources (time, budget, personnel). Setting clear innovation goals aligned with the overall business strategy, and
visibly participating in innovation initiatives
-
"why not" promotion culture that embraces experimentation and risk. 2-
Integrate innovation into the strategic planning process3-
Innovation must match your strategy
-
Cross-functional collaboration and communication (the opposite of Siloed thinking effect)4-
Availability of resources (financial and human): dedicated resources and processes for innovation 5-
Establish clear innovation metrics and KPI's6-
Foster an external orientation and openess to ideas7-
DIFFERENCE BETWEEN CORPORATE INNOVATION & STRATEGIC INNOVATION MANAGEMENT
(SIM)
SIM is a subsubject within the innovation universe. It has to do with the process of providing instructions & mechanisms.
There are some companies that are good at the company/Corporate innovation arena but they are poor in SIM
processes
SIM
Guided process focused at organizing and managing the vailable resources
Increasing the creation of new knowledge
-
Innovation is people creating value by implementing new ideas
Innovation (business benefit) = ideation (innovators) + implementation (executors)
Business model innovation
SIM is realed to the business model innovation (explains how you create a business model that can put into reality all
this innovation concepts)
Strategic innovation management - Systematic model of strategic innovation
management - traditional approach A
New concepts / ideas generation <--> product/service development
I I
Operational & production sales & marketing and comm's processes redefinition
Processes redefinition
Knowledge and technology management
Corporate innovation feasibility level
The above is a cycle is a systematical model of SIM
SIM - Traditional Approach B
It's devided into 4 stages.
Idea generation1.
Development of the idea
-
Feasibility of the idea
-
Project selection: Choosing which ideas are worth it (select those who bring added value following someone's
approach you found in the slides)
2.
Innovation development 3.
Design the innovation, protoypes, beta testing, etc (cooking the meal)
-
Eliminate bottlenecks
-
Taking it to the market4.
Some experts say this approach is old fashion. So two new trends appear. The open innovation model and
The open innovation model - Henry W. Chesbrough, harvard 2003
Open innovation is a big topic, you have post-graduates and full course in open innovation.
IPR: intellectual property rights
Innovation principles for the closed approach is about secret. I do not share my findings, I will be the first one to launch
it
Open innovation principales is more open.
In some industries you need the open one and other ones you need the close on
ORGANIZATIONAL ADVANTAGES IN DEPLOYING AN OPEN INNOVATION MODEL
In order to set up an open innovation model you need some preliminary conditions. But this type of innovation is
Saving resources
-
Speed of responde
-
NEW SYSTEMATIC MODELS OF STRATEGIC INNOVATION MANAGEMENT - THE
INNOVATION VALUES CHAIN - HANDSEND & BIRKINSHAW, HBR, 2007
They merged the value chain of michael porter with current ideas.
It's a mix between the traditional approach and what they think it should be a current and modern value chain of a
corporation in order to set up properly the innovation efforts.
Julian Birkinshaw is a prominent author on innovation, specially on the value chain
IPR: intellectual property rights
The telecommunication department the UK is using is the MI6. This is related to the Huawei case who allegdely sold
secret information to China. Before they used to have the MI4 and MI5.
https://www.sis.gov.uk/
Creativity
Friday, 9 May 2025
09:01
Role of creativity in organizational growth-Impact on greiner curve model
1972,1998 - II
NEXT CHAPTER: INNOVATION
INNOVATION: CONCEPT - CORPORATE INNOVATION
It's not the same talking about pure innovation and corporate innovation. It's two different concepts. Strategic
management innovation is also a different concept
The implementation of execution of the new creative ideas. BCG: the think and make binomial. Think relates to
creativity, make new things relate to innovation
1.
Creativity/ innoation: inseparable processes, linked to the process of solving problems and decicion making 2.
-
Corporate innovation in terms of Tangible results3.
It's the process of introducing new ideas, methods, products or services within an organization
Product innovation
-
Process innovation
-
Business model innovation
-
Organizational innovation
-
Strategic imperative
All this matters have converged in the STRATEGIC IMPERATIVE. It's a summary of all the findings of some people
Larry keeley
-
Michael porter
-
Clayton M christensen
-
Rita McGrath
-
Eric Ries
-
It's divided in 7 primary reasons. innovation has a lot to do with:
Mantaining and keeping the CA: 1.
corporate innovation helps to differentiate ourselves either through our machines, our design
Innovation in order to drive growth and profitability:2.
innovation should equal added value, we want added value because we want to become successful in the market.
-
Increase gradually the ROCE and Return fo capital employed
-
Measure the innovation tanglible results obtained - setting up related innovation KPI to measure like number of
new products, patents, R&D, etc.
-
Enhancing adaptability and resilience3.
Improving efficiency and productivity 4.
Time to market approach. Being slow gets reflectted in poor efficiency and poor productivity.
-
Attracting and retaining talent5.
Meeting evolving customer needs6.
Fostering a forward-thinking culture7.
There are some Challenges/hurdles in implementing innovation
Resistance to change due to 1.
Corporate inertia
-
Bureaucracy and/or
-
Risk aversion
-
Lack of Clear innovation Strategy path2.
Without a defined vision and objectives, innovation efforts can become fragmented and ineffective. There's a risk
of perceived "roller coaster" or discontinuous actions.
-
Difficulty in measuring ROI3.
The returns on innovation investment can be long-term and difficult to quantify in the short-run
-
Siloed thinking effect4.
Lack of collaboration and communication across different departments can hinder the flow of ideas ant the
implementation of innovative solutions.
-
Resource constraints 5.
Insufficient funding, time or talent
-
Corporate innovation fatigue 6.
Rita Mcgrath provided the idea that there's an innovation fatigue,
-
Solutions for the challengess above
Strong leadership, commitment and vision1.
Top leadership must not only verbally support innovation but actively chamption it. This includes allocating
resources (time, budget, personnel). Setting clear innovation goals aligned with the overall business strategy, and
visibly participating in innovation initiatives
-
"why not" promotion culture that embraces experimentation and risk. 2-
Integrate innovation into the strategic planning process3-
Innovation must match your strategy
-
Cross-functional collaboration and communication (the opposite of Siloed thinking effect)4-
Availability of resources (financial and human): dedicated resources and processes for innovation 5-
Establish clear innovation metrics and KPI's6-
Foster an external orientation and openess to ideas7-
DIFFERENCE BETWEEN CORPORATE INNOVATION & STRATEGIC INNOVATION MANAGEMENT
(SIM)
SIM is a subsubject within the innovation universe. It has to do with the process of providing instructions & mechanisms.
There are some companies that are good at the company/Corporate innovation arena but they are poor in SIM
processes
SIM
Guided process focused at organizing and managing the vailable resources
Increasing the creation of new knowledge
-
Innovation is people creating value by implementing new ideas
Innovation (business benefit) = ideation (innovators) + implementation (executors)
Business model innovation
SIM is realed to the business model innovation (explains how you create a business model that can put into reality all
this innovation concepts)
Strategic innovation management - Systematic model of strategic innovation
management - traditional approach A
New concepts / ideas generation <--> product/service development
I I
Operational & production sales & marketing and comm's processes redefinition
Processes redefinition
Knowledge and technology management
Corporate innovation feasibility level
The above is a cycle is a systematical model of SIM
SIM - Traditional Approach B
It's devided into 4 stages.
Idea generation1.
Development of the idea
-
Feasibility of the idea
-
Project selection: Choosing which ideas are worth it (select those who bring added value following someone's
approach you found in the slides)
2.
Innovation development 3.
Design the innovation, protoypes, beta testing, etc (cooking the meal)
-
Eliminate bottlenecks
-
Taking it to the market4.
Some experts say this approach is old fashion. So two new trends appear. The open innovation model and
The open innovation model - Henry W. Chesbrough, harvard 2003
Open innovation is a big topic, you have post-graduates and full course in open innovation.
IPR: intellectual property rights
Innovation principles for the closed approach is about secret. I do not share my findings, I will be the first one to launch
it
Open innovation principales is more open.
In some industries you need the open one and other ones you need the close on
ORGANIZATIONAL ADVANTAGES IN DEPLOYING AN OPEN INNOVATION MODEL
In order to set up an open innovation model you need some preliminary conditions. But this type of innovation is
Saving resources
-
Speed of responde
-
NEW SYSTEMATIC MODELS OF STRATEGIC INNOVATION MANAGEMENT - THE
INNOVATION VALUES CHAIN - HANDSEND & BIRKINSHAW, HBR, 2007
They merged the value chain of michael porter with current ideas.
It's a mix between the traditional approach and what they think it should be a current and modern value chain of a
corporation in order to set up properly the innovation efforts.
Julian Birkinshaw is a prominent author on innovation, specially on the value chain
IPR: intellectual property rights
The telecommunication department the UK is using is the MI6. This is related to the Huawei case who allegdely sold
secret information to China. Before they used to have the MI4 and MI5.
https://www.sis.gov.uk/
Creativity
Friday, 9 May 2025
09:01

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Creativity and Organizational Growth

Friday, 9 May 2025
09:01

Role of creativity in organizational growth-Impact on greiner cu
1972,1998 - II

Greiner's Growth Model - 5 Phases

PHASE 1
PHASE 2
PHASE 3
PHASE 4
PHASE 5

5: Crisis of ?
Evolution stages
Large
Revolution stages
4: Crisis of
RED TAPE
Those who fail to change will risk being stereotypes
Size of the organization
3: Crisis of
CONTROL
5: Growth through
COLLABORATION
2: Crisis of
AUTONOMY< 4: Growth through
COORDINATION
1: Crisis of
LEADERSHIP
3: Growth through
DELEGATION
2: Growth through
DIRECTION
Small
1: Growth through
CREATIVITY
Young
Mature
Age of organization

Greiner's growth model - 5 Phases of Growth

Innovation Concepts

NEXT CHAPTER: INNOVATION

INNOVATION: CONCEPT - CORPORATE INNOVATIONrve modelIt's not the same talking about pure innovation and corporate innovation. It's two different
management innovation is also a different concept

  1. The implementation of execution of the new creative ideas. BCG: the think and make
    creativity, make new things relate to innovation
  2. Creativity/ innoation: inseparable processes, linked to the process of solving problems
  3. Corporate innovation in terms of Tangible results
    It's the process of introducing new ideas, methods, products or services within an organizat

1concepts. Strategic
binomial. Think relates to
and decicion making
on
ings of some people
r design
me successful in the market.
o measure like number of
ctivity.-

  • Product innovation
  • Process innovation
  • Business model innovation
  • Organizational innovation

Strategic Imperative for Innovation

Strategic imperative
All this matters have converged in the STRATEGIC IMPERATIVE. It's a summary of all the find

  • Larry keeley
  • Michael porter
  • Clayton M christensen
  • Rita McGrath
  • Eric Ries

It's divided in 7 primary reasons. innovation has a lot to do with:

  1. Mantaining and keeping the CA:
    corporate innovation helps to differentiate ourselves either through our machines, ou
  2. Innovation in order to drive growth and profitability:
    • innovation should equal added value, we want added value because we want to beco
    • Increase gradually the ROCE and Return fo capital employed
    • Measure the innovation tanglible results obtained - setting up related innovation KPI t
      new products, patents, R&D, etc.
  3. Enhancing adaptability and resilience
  4. Improving efficiency and productivity
    • Time to market approach. Being slow gets reflectted in poor efficiency and poor prod
  5. Attracting and retaining talent
  6. Meeting evolving customer needs
  7. Fostering a forward-thinking culture

Challenges in Implementing Innovation

There are some Challenges/hurdles in implementing innovation

  1. Resistance to change due to
    • Corporate inertia
    • Bureaucracy and/or
    • Risk aversion
  2. Lack of Clear innovation Strategy path
    • Without a defined vision and objectives, innovation efforts can become fragmented a
      of perceived "roller coaster" or discontinuous actions.
  3. Difficulty in measuring ROI
    • The returns on innovation investment can be long-term and difficult to quantify in the
  4. Siloed thinking effect
    • Lack of collaboration and communication across different departments can hinder the
      implementation of innovative solutions.
  5. Resource constraints
    • Insufficient funding, time or talent
  6. Corporate innovation fatigue
    • Rita Mcgrath provided the idea that there's an innovation fatigue,

Solutions for Innovation Challenges

Solutions for the challengess above

  1. Strong leadership, commitment and vision
    • Top leadership must not only verbally support innovation but actively chamption it. Th
      resources (time, budget, personnel). Setting clear innovation goals aligned with the ov
      visibly participating in innovation initiatives
  2. "why not" promotion culture that embraces experimentation and risk.
  3. Integrate innovation into the strategic planning process
    • Innovation must match your strategynd ineffective. There's a risk
      short-run
      flow of ideas ant the
      is includes allocating
      erall business strategy, and-
  4. Cross-functional collaboration and communication (the opposite of Siloed thin
  5. Availability of resources (financial and human): dedicated resources and processes for
  6. Establish clear innovation metrics and KPI's
  7. Foster an external orientation and openess to ideas

Strategic Innovation Management (SIM)

DIFFERENCE BETWEEN CORPORATE INNOVATION & STRATEGIC INNOVA
(SIM)

SIM is a subsubject within the innovation universe. It has to do with the process of providing
There are some companies that are good at the company/Corporate innovation arena but th
processes

SIM
Guided process focused at organizing and managing the vailable resources

  • Increasing the creation of new knowledge
    Innovation is people creating value by implementing new ideas
    Innovation (business benefit) = ideation (innovators) + implementation (executors)

Business Model Innovation

Business model innovation
SIM is realed to the business model innovation (explains how you create a business model tl
this innovation concepts)

Questions for successful Business Model Innovation
Value Architecture

  • Offer
    • Distribution & Communication
      Channels
    • How do we reach our customers?
    • What job do we solve for
      customers?
    • Customer Benefit
    • What are our value creating steps?
    • What is our value chain?
    • What benefit do we crea
      customers?
    • What benefit do we crea
      partners?
    • Core Capabilities
    • Partner
    • What are the core capabilities
    • Which partners do we need?
      In

Value Proposition

  • Customers
  • What is our offer?
  • Who are our customers?
  • How do we communicate with
    our customers?

· our
te for our
te for ourQuestions for successful Business Model Innovation
Value Architecture

  • Offer
    • What is our offer?
    • Distribution & Communication
      Channels
    • How do we reach our customers?
    • How do we communicate with
      our customers?
    • Value Chain
    • What are our value creating steps?
    • What is our value chain?
    • Core Capabilities
    • What are the core capabilities
      we need?
    • Partner
    • Which partners do we need?

Revenue Model

  • Cost Structure
    • Cost structure is defined by the
      value architecture.

Team & Values

  • Team
    • Values
    • What values do we pursu
      Who is on our team?
    • What competencies do we have
      on the team?
    • How do we interact with
      and the customers?
      fl

Strategic innovation management - Systematic model of
strategic innovation management - traditional approach

A
New concepts / ideas generation <-- > product/service development
I
Operational & production
redefinition
Processes redefinition
I
sales & marketing and comm's processes
Knowledge and technology management
Corporate innovation feasibility level

Value Proposition

  • Customers
    • Who are our customers?
    • What job do we solve for
      customers?
    • Customer Benefit
    • What benefit do we crea
      customers?
    • What benefit do we crea
      partners?

L
-Revenue Sources
-With what do we earn m· our
te for our
te for our
oney?
e?
each other
uidminds
the business innovatorThe above is a cycle is a systematical model of SIM

Traditional Approach to SIM

SIM - Traditional Approach B
It's devided into 4 stages.

  1. Idea generation
    • Development of the idea
    • Feasibility of the idea
  2. Project selection: Choosing which ideas are worth it (select those who bring
    added value following someone's approach you found in the slides)
  3. Innovation development
    • Design the innovation, protoypes, beta testing, etc (cooking the meal)
    • Eliminate bottlenecks
  4. Taking it to the market

Open Innovation Model

Some experts say this approach is old fashion. So two new trends appear. The open
innovation model and
The open innovation model - Henry W. Chesbrough,
harvard 2003

Open innovation is a big topic, you have post-graduates and full course in open
innovation.

Closed Innovation Model
Corporate Limit
Ideas
Market
Corporate Limit
Open Innovation Mo
Alternative Market
Corporate Limit
Ideas
Corporate Limit
Odel
1
Market
ther IndustryExtern
Technologies
IPR: intellectual property rights
Innovation principles for the closed approach is about secret. I do not share my
findings, I will be the first one to launch it
Open innovation principales is more open.
In some industries you need the open one and other ones you need the close on

Closed vs. Open Innovation

CLOSED INNOVATION
OPEN INNOVATION
The smart people in our field work for us.
Not all the smart people work for us. We ne
work with smart people inside and outside
company.
TO profit from R&D, we must discover it, develop
it, and ship it ourselves.
External R&D can create significant value; in
R&D is needed to claim some portion of that
If we discover it ourselves, we will get it to market
first.
We don't have to originate the research to p
from it.
The company that gets and innovation to market
first will win.
Building a better business model is better th
getting to market first.
If we create the most and the best ideas in the
industry, we will win.
If we make the best use of internal and exter
ideas, we will win.
We should control our IP, so that our competitors
don't profit from our ideas.
We should profit from others' use of our IP,
should buy others' IP whenever it advances
business model.

Types of Open Innovation Challenges

TYPES OF OPEN INNOVATION CHALLENGES
Strategic
Operational
Legal
CulturalMarkets
ed to
ur
ternal
t value.
rofit
an
nal
and we
ourchallenges
and structural
challenges
challenges
challenge

  • Unclear goals
  • Wrong audience
  • Bulding an
    effective process
  • Intellectual
    property right
  • Negative attit
    and worries
  • Diminishing
    returns
  • Developing and
    implementing
    ideas
  • Terms &
    conditions
  • Lack of
    commitment
    participation
  • Finding the right
    tool
  • Rewarding
    participants

Organizational Advantages of Open Innovation

ORGANIZATIONAL ADVANTAGES IN DEPLOYING AN OPEN INNOVATION MODEL
In order to set up an open innovation model you need some preliminary conditions.
But this type of innovation is

  • Saving resources
  • Speed of responde

Innovation Values Chain

NEW SYSTEMATIC MODELS OF STRATEGIC INNOVATION
MANAGEMENT - THE INNOVATION VALUES CHAIN -
HANDSEND & BIRKINSHAW, HBR, 2007

They merged the value chain of michael porter with current ideas.
It's a mix between the traditional approach and what they think it should be a
current and modern value chain of a corporation in order to set up properly the
innovation efforts.

Idea generation
Conversion
D5
udes
or
ffusion

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