Creativity and innovation

From CEOpedia | Management online

Creativity and innovation are closely related to the topic of change and development. A change is not possible without a new idea, a new beginning or new ways.

Creativity

The term creativity comes from the Latin "creare" which translated means to create, to recreate, to invent or to select goal oriented.

The definition of creativity in educational terms is the creative force or creative capacity. Creativity is the ability to perform complex perceptions and to have an effect. For example, solving problems, creating or reinventing something, or thinking in a results-oriented way. Creativity is used in creating art, developing strategies, inventing products or in marketing. Thus, the term stands for every form of creative activity and thus affects all areas of human life[1]

Innovation

In economic terms, innovation is an innovation in the context of technical, social and economic change. Innovations result from ideas that create new products, services or processes. If these then have economic success and penetrate the market significantly in a new product group, it is an innovation[2]

Difference

Creativity is a process of thinking that at best leads to an extraordinary and unique idea. Whether or not this idea actually works is not important at first. That is why creativity is very difficult to measure from a business perspective. Innovation, on the other hand, is the process by which this idea is transformed into a new product or service, i.e. into something that is actually tangible. Touch it. Try it out. And if it works, to make money. That is something that can be measured.

Processes of Creativity and Innovation

Both the creativity and the innovation process is often presented in simplified form as a linear process with recognizable and distinguishable phases. The creativity phase is preparation, incubation, cognition[3]. The phase of innovation is discovery, research and development and ends with market introduction or diffusion. These steps are part of the process:

  • Convergence and Divergence: The attributes of convergence and divergence play a role in creativity. The creativity process is seen as the convergence in the preparation phase. Divergence is the main criterion of the cognition and incubation phase. The creativity process and the innovation process are different, but both processes have common characteristics and patterns. A successful realization of creativity and innovation processes can therefore result from a mixture of convergence and divergence.
  • Individual and Team Efforts: The basis for creativity and innovation is the individual effort of individuals and teamwork. The division of work and cooperation in the innovation process consists of two steps:
    1. The role of the individual in the group and his specific contribution to the innovation process
    2. This is where the focus is on the innovation team. Collaboration is very important for the innovation process, because without collaboration it can lead to disadvantages compared to others.
  • Supporting Creativity and Innovation Prozess: This is about facilitating activities that are carried out during these processes. For example, physical arrangements in the workspaces can support the process.

Innovation Methods

When generating alternatives for problem solving, which should not consist of existing answers to the problem but must be new and different. Speed is important here in order to be able to bring the idea to the market. This criterion must be fulfilled by the idea or innovation [4]:

  • The new product must have at least one advantage over the current offer from the point of view of the (potential) customer.
  • The new features must be compatible with existing habits and needs of the customer.
  • Functions as simple and self-explanatory as possible
  • Customer has the opportunity to test the new product

Organizational Innovation

Individual ideas or products can be identified as individual by experts, then " creativity is the production of novel and useful ideas by an individual or small group of individuals working together" [5]. Creative ideas are the basis for innovation. Organizational innovation is the successful building on the ideas in an organization. The ideas can be different, like new products and services but also new structures and processes in the organization.

Organizational innovations concern the operational and organizational structure. These can be organizational process innovations or management innovations, e.g. new tools for measuring customer satisfaction or optimizing delivery processes to reduce costs. Examples in business are the 360-degree evaluation of employees or the change from a hierarchical organizational structure to a team or project structure.

Examples of Creativity and innovation

  • Apple Inc.: Apple Inc. is a prime example of creativity and innovation. The company has revolutionized the tech industry with its innovative products such as the iPhone, iPad, and Apple Watch. Steve Jobs, Apple’s co-founder, was a creative genius, who created a culture of innovation and creativity. He was responsible for the design of the iPhone and the development of the App Store, both of which have revolutionized the industry.
  • Airbnb: Airbnb is a popular online hospitality service which allows people to rent out their homes to travellers. This creative idea has revolutionised the hospitality industry by connecting people with empty homes to travellers looking for an alternative to traditional hotels. It is now one of the world’s most successful start-ups and has created a new market for short-term rentals.
  • Tesla Motors: Tesla Motors is a company that has revolutionised the electric vehicle industry. They have created innovative technology such as the autopilot system, which allows cars to drive themselves, and their innovative battery designs which have made electric cars more efficient and cost-effective. Their creativity and innovation has allowed them to create one of the most successful electric car companies in the world.

Advantages of Creativity and innovation

Creativity and innovation have numerous advantages that can help to drive change and development. To begin with, they can create new solutions to old problems, generate new ideas, and provide fresh perspectives on challenging tasks. Additionally, creativity and innovation can lead to the development of new products, processes, or services that can improve the overall efficiency of a business or organization. Moreover, they can also help to increase the motivation of employees and give them the chance to use their creative skills to find new solutions. Finally, creativity and innovation can also help to foster collaboration and team work, as well as a sense of creativity and innovation within the organization. This can lead to a more productive and efficient work environment.

Limitations of Creativity and innovation

Creativity and innovation are essential for change and development, but there are some limitations to their use. The following are some of the limitations of creativity and innovation:

  • Lack of Resources: Creativity and innovation require a lot of resources to be effectively implemented. Without adequate financial, technological and human resources, it can be difficult to bring creative and innovative ideas to life.
  • Fear of Failure: People often become hesitant in trying something new due to fear of failure. This fear can be so intense that it prevents creative and innovative thinking.
  • Lack of Motivation: Without proper motivation and incentives, creative and innovative efforts may not be successful.
  • Lack of Leadership: A leader who is unwilling to accept change and foster innovation can greatly limit creativity and innovation.
  • Lack of Time: The time needed to brainstorm ideas and develop innovative solutions can be challenging to manage, especially in a fast-paced environment.
  • Short-Term Focus: Focusing too much on short-term goals can limit creativity and innovation, as the long-term vision and potential of an idea may not be seen.

Other approaches related to Creativity and innovation

In relation to Creativity and innovation, there are many other approaches that can be taken to foster change and development. These include:

  • Developing an effective strategy: By having a clear and structured strategy for achieving the desired change, it can help to build momentum and clarity. This includes defining the goals and objectives, creating a timeline, and assigning resources and responsibilities.
  • Fostering a creative environment: It is important to create an environment where creativity and innovation can flourish. This includes giving employees the freedom to explore new ideas, providing them with the resources to do so, and encouraging collaboration and open communication.
  • Developing a culture of experimentation: Experimentation can be a great way to foster creativity and innovation. By encouraging employees to experiment and fail, it can open up new possibilities and help them to explore the boundaries of their knowledge and skills.
  • Encouraging learning and development: Learning and development are essential for creativity and innovation. It is important to provide employees with opportunities to develop their skills and knowledge and to create an environment that encourages continual learning.
  • Creating an environment of trust and collaboration: Trust and collaboration are crucial when it comes to creativity and innovation. Employees need to feel safe to express their ideas and collaborate with each other.

In summary, creativity and innovation are closely related to the topic of change and development. To foster creative and innovative ideas, it is important to create an environment that encourages learning, experimentation, trust, and collaboration.

Footnotes

  1. ↑ Kairies (2016)
  2. ↑ Vianna (2014)
  3. ↑ Haner (2005) p. 289
  4. ↑ Moring & Deurloo (2018)
  5. ↑ Teresa M. Amabile (1988)


Creativity and innovation — recommended articles
Innovativeness — Learning organization — Design thinking — Transformational change — Change management model — Innovation and entrepreneurship — Chief innovation officer — Innovative leadership — Organizational innovation

References

Author: Paulina Hardegen

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