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Creativity is a process influenced by individual and organizational factors that result in the production of novel and useful ideas, products or both the social and technological changes that organizations face require creative decisions.
Creative Process Graham Wallas & Richard Smith, in their work Art of Thought, published in 1926, presented one of the first models of the creative process. In the Wallas stage model, creative insights and illuminations may be explained by a process consisting of five stages :
Preparation : Preparatory work on a problem that focuses the individuals mind on the problem and explores the problems dimension; Incubation : Where the problem is internalized into the unconscious mind and nothing appears externally to be happening; Intimation : The creative person gets a feeling that a solution is on its way; Illumination or insight : Where the creative idea bursts forth from its preconscious process into conscious awareness; and Verification : Where the idea is consciously verified, elaborated, and then applied.
Idea Screening The object is to eliminate unsound concepts prior to devoting resources to them. o The screeners should ask several questions: Will the customer in the target market benefit from the product? What is the size and growth forecasts of the market segment/target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and delivered to the customer at the target price? Concept Development and Testing Develop the marketing and engineering details Investigate intellectual property issues and search patent data bases Who is the target market and who is the decision maker in the purchasing process? What product features must the product incorporate? What benefits will the product provide? How will consumers react to the product? How will the product be produced most cost effectively? Prove feasibility through virtual computer aided rendering, and rapid prototyping What will it cost to produce it? Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modelling. Business Analysis Estimate likely selling price based upon competition and customer feedback Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation Estimate profitability and break-even point Product development Beta Testing and Market Testing Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show Make adjustments where necessary Produce an initial run of the product and sell it in a test market area to determine customer acceptance Commercialization (often considered post-NPD) Launch the product Produce and place advertisements and other promotions Fill the distribution pipeline with product Critical path analysis is most useful at this stage
Creativity Creativity is typically used to refer to the act of producing new ideas, approaches or actions Creativity is reserved to apply specifically to the generation of novel ideas by individuals or group, as a necessary step within the innovation process. Creativity is preferred in art contexts. Creativity is the production of new ideas in any domain.
Innovation Innovation is the process of both generating and applying creative ideas in some specific context. Innovation is often used to refer to the entire process by which an organization generates creative new ideas and converts them into novel, useful and viable commercial products, services, and business practices. Innovation is preferred in business contexts. Innovation is the implementation of such new ideas.