Importance of Creativity & Innovation in Business-Free-Samples

Question: Discuss about the concepts of creativity and innovation and their importance in the world of business. Answer: Introduction Believe you can change the world. Work quickly, keep the tools unlocked, work whenever. Know when to work alone and when to work together. Invent different ways of working. Make a contribution every day. If it doesnt contribute, it doesnt leave the garage. Believe that together we can do anything. Invent The above quoted lines from the 1999 HP Annual Report speak volume about the concepts of creativity as well as the innovation and their significance within the various business organizations. The advent of globalization and the recent developments in the fields of technology and innovations have drastically modified the way the various business organization as well as the companies conduct their business(Lozano, 2014). Therefore, it is often seen that the various business organizations often take the help of diverse kinds of innovative as well as creative strategies not only to outrival their competitors in the business market but also to bring about the overall growth and the development of their business organization (Ahmed Shepherd, 2012). It is a reflection of this that the concepts of innovations as well as creativity have gained prominence in the recent times within the various business organizations (Ahmed Shepherd, 2012). Thus the various leaders as well as the entrepreneur s in the present times take the help of these two concepts for effectively leading the various diverse entities of the organization towards the achievement of the desired goals as well as the objectives set by the organization (Lozano, 2014). This report will discuss the concepts of innovation and creativity and its importance in the various business organizations. Creativity and Innovation Creativity refers to the use of original ideas or imagination for the purpose of doing a particular thing (Dawson Andriopoulos, 2014). In the opinion of many scholars Creativity is a phenomenon whereby something new and somehow valuable is formed. The created item may be intangible such as an idea, a scientific theory, a musical composition, or a joke or a physical object such as an invention, a literary work, or a painting (Dawson Andriopoulos, 2014). In the specific context of the business world Creativity involves an ability to come up with new and different viewpoints on a subject. It involves breaking down and restructuring our knowledge about the subject in order to gain new insights into its nature. However, any definition of creativity is complicated because the concept has many dimensions (Piergiovanni, Carree Santarelli, 2012). In the opinion of Maslow, there are two levels of creativity are workplace (Piergiovanni, Carree Santarelli, 2012). In the first level of creati vity or the primary level of creativity he envisaged creativity as the source of new discovery, real novelty, or ideas which depart from what exists at a given point in time (Piergiovanni, Carree Santarelli, 2012). In the secondary level of creativity or the second level of creativity he envisaged secondary creativity as a characteristic possessed by many scientists in their collective search for discovery achieved by working alongside other people, extending the work of previous researchers, and exercising prudence and caution in their claims about new insights or ideas (Piergiovanni, Carree Santarelli, 2012). Therefore, in the view of Maslow the concept of creativity played a significant role in the achievement of the level of the self-actualization. It is significant to note that in the opinion of Maslow the attainment of the level of the self-actualization is the primary aim of the various individuals (Herrmann Herrmann-Nehdi, 2015). However, in the opinion of Sternberg and L ubart articulated in their book Defying the Crowd, A product is creative when it is novel and appropriate. A novel product is original not predictable. The bigger the concept, and the more the product stimulates further work and ideas, the more the product is creative. The concept of innovation, on the other hand, can be defined as the process by means of which the implementation of a new or significantly improved product, service or process that creates value for business, government or society is successfully achieved (Herrmann Herrmann-Nehdi, 2015). In other words, the concept of innovation can be defined as the process of translating an idea or invention into a good or service that creates value or for which customers will pay (Walker Batey, 2014). Therefore, it can be said that the usage of the concept of innovation is not only essential to develop new ideas but also to use the already existing ones in a new manner (Walker Batey, 2014). Thus, the various business organizations often take the help of this particular idea not only to outrival their competitors in the same field of business but also to bring about the overall growth as well as the development of their business organization (Walker Batey, 2014). The results of a study by Accen ture found out that more than 90 percent of executives believe long-term success of their organization's strategy depends on their ability to develop new ideas (Infoentrepreneurs.org, 2018). Therefore, it is seen that most of the business organizations take the help of the concept of innovation for their business process. Creativity and Innovation in business The results of a study by Adobe and Forrester Consulting reveal that 82 percent of companies believe there is a strong connection between creativity and business results (Infoentrepreneurs.org, 2018). Therefore, the focus of most of the business organizations in the present times is on the use of the concepts of creativity and innovation for the process of doing of same things yet in a new manner. The example of the company IKEA is significant to note in this particular context. The company IKEA in the present times has emerged as one of the giants in the furniture industry in the recent times. It is seen that most of the organizations in this particular sector seek to expand their business by following various strategies like price competition, providing discounted offers and others. However, the company IKEA offers cheap furniture to the customers and at the same time keeps its profit margin high by drastically reducing its shipping cost as it does not assemble and then transports the furniture (Business News Daily, 2018). Another example of similar kind of innovation and creativity used by a particular business organization is the company Gillette which in the recent times has emerged as one of the major business organizations of the world. The business organization follows a unique model of business whereby it sells razors at very cheap prices while at the same time keeping the prices of the blades very high. It is a very marketing strategy as the blades of the razor manufactured by the company are not manufactured by any other company and therefore the customers would have to get the same from the company of Gillette only (Business News Daily, 2018). Taking about the significance of the concepts of creativity as well as innovation IBMs 2010 Global CEO Study said The effects of rising complexity calls for CEOs and their teams to lead with bold creativity, connect with customers in imaginative ways and design their operations for speed and flexibility to pos ition their organizations for twenty-first century success (Thersa.org, 2018). Therefore, following this particular thinking pattern the famous coffee chain Starbucks uses various effective strategies to motivate their employees and also to help them to work in a much better manner like the coffee-sipping ceremony, calling the employees shareholders rather than employees, providing them regular training and others (Business News Daily, 2018). As per a recent article by the World Economic Forum, around 85% of productivity gains are related to investments in innovation. Innovation is now as important as infrastructure, skills and markets. In light of the current economic slowdown, companies must resist the pressure to cut back on innovation spending as it is critical to the future growth (Thersa.org, 2018). It is a reflection of this that most of the new start-up companies in the country of Australia like the PurePonics, Afterpay, TRIBE, Uptick, Unlockd and others which depend heavily on the use of creativity as well as innovations for the operation of their business (Business News Daily, 2018). The opinion of Mike Mansbach, president of BlueJeans Network, a videoconferencing service is significant to note in this particular context when he says that Not only does creative thinking produce ... winning sales and marketing campaigns that increase brand appeal to the end user, but [it] can also help foster a unique company culture that ultimately reflects and encourages creativity within each department (Business News Daily, 2018). It is a reflection of this the major focus of most of the business organizations in the present times is one the use of the concepts of creativity and innovation. Significance of the use of the concepts of creativity and innovation The use of the concepts of creativity as well as innovation within a particular business organization provides several benefits to the organization concerned not only in terms of monetary benefits but also in terms of other aspects (Amabile Pillemer, 2012). For example, the constant use of the concepts of creativity as well as innovation helps the concerned business organization to create a creativity environment at the workplace which helps the various employees of the concerned organization to perform in a much better manner (Amabile Pillemer, 2012). It is often seen that the use of the concepts of creativity as well as innovation makes the job roles of the various employees much easier (Andersen Kragh, 2013). The result of a survey conducted on more than 1,500 chief executive officers by IBM in the year 2016 are interesting to note in this particular context Creativity was ranked as the number one factor for future business successabove management discipline, integrity, and eve n vision (Thersa.org, 2018). In the opinion of other people, the use of the concepts of creativity as well as innovation not only enhances the individuals performance of the employees and helps them to do their jobs in a much better manner but also enhances the overall organizational performance of the organization (Andersen Kragh, 2013). Therefore, most of the business organizations in the present times take the help of the concepts of innovation and creativity. Mind map Overview Figure 1: Mind Map Source: (Created by the Author) The above given mind map clearly give an overview of the concepts of creativity as well as innovations. The above figure also lists the various kinds of creativity like divergent creativity, problem solving creativity and the inspirational and inspiring creativity and the different functions for which they are utilized (Andersen Kragh, 2013). Furthermore, the mind map also lists the different kinds of innovations which are commonly used by the various business organizations, namely, open, disruptive, reverse, incremental and breakthrough and the various purposes for which they are used (Andersen Kragh, 2013). The mind map also provides a few examples of the business organizations which utilize the concepts of creativity as well as innovation to conduct their business in a much better manner. Conclusion To conclude, creativity and innovation form an important part of the various present day business organizations and most of the business organizations in the present times utilize these two concepts to not only conduct their business in a much better manner but also to bring about the overall growth as well as the development of their business processes. Furthermore, it is also seen that the use of the concepts of innovation as well as the creativity also helps the various business to create a creative environment at their business organization which not only help them to enhance the performance of each of the individual employees related to the concerned organization but also to enhance the organizational performance of the entire business organization concerned. In addition to these, in the present times it is also seen that the various business organizations utilize these concepts to come up with more effective business strategies in a bid to outrival their competitors in the same field of business. References Ahmed, P., Shepherd, C. (2012).Innovation management. Pearson Higher Ed. Amabile, T. M., Pillemer, J. (2012). Perspectives on the social psychology of creativity.The Journal of Creative Behavior,46(1), 3-15. Andersen, P. H., Kragh, H. (2013). Managing creativity in business market relationships.Industrial Marketing Management,42(1), 82-85. Burns, P. (2016).Entrepreneurship and small business. Palgrave Macmillan Limited. ?erne, M., Jakli?, M., kerlavaj, M. (2013). Authentic leadership, creativity, and innovation: A multilevel perspective.Leadership,9(1), 63-85. Creativity in business: productivity not aesthetics - RSA. (2018).Thersa.org. Retrieved 22 April 2018, from https://www.thersa.org/discover/publications-and-articles/rsa-blogs/2017/05/creativity-in-business Dawson, P., Andriopoulos, C. (2014).Managing change, creativity and innovation. Sage. Entrepreneurs Answer the Question: 'Why Is Innovation Important'. (2018).Business News Daily. Retrieved 22 April 2018, from https://www.businessnewsdaily.com/5167-innovation.html Herrmann, N., Herrmann-Nehdi, A. (2015).The Whole Brain Business Book: Unlocking the Power of Whole Brain Thinking in Organizations, Teams, and Individuals. McGraw Hill Professional. Lozano, R. (2014). Creativity and organizational learning as means to foster sustainability.Sustainable development,22(3), 205-216. Parjanen, S. (2012). Experiencing creativity in the organization: From individual creativity to collective creativity.Interdisciplinary Journal of Information, Knowledge Management,7. Piergiovanni, R., Carree, M. A., Santarelli, E. (2012). Creative industries, new business formation, and regional economic growth.Small Business Economics,39(3), 539-560. Use innovation to grow your business. (2018).Infoentrepreneurs.org. Retrieved 22 April 2018, from https://www.infoentrepreneurs.org/en/guides/use-innovation-to-grow-your-business/ Walker, A. Batey, M.. (2014). Taking a multilevel approach to creativity and innovation.Creativity in business, 112-128.