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Essay: ‘Creativity’ and ‘Innovation’ in business

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  • ‘Creativity' and ‘Innovation' in business
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Often ‘Creativity’ and ‘Innovation’ are used synonymously. However, there are indispensable differences. Literally creativity is an essential pillar for innovation. This is reflected in the now widely accept definition of innovation equalling creativity plus (successful) implementation. Creativity by itself, to come with new ideas, is not enough. In order to get benefits one needs to do something with it. History tells many takes of great innovators, who were not able to get the benefits from their labour, For example vacuum cleaner, invented by a Mr Spengler but commercialised by Hoover. X-ray scanner had been invented by EMI but were successfully commercialised by General Electric.VCRs which invented by Ampex/Sony but made a commercial success by Matsushtia.


Creativity can manifest itself on many different levels including the personal along with the organisational. Individuals can be creative on their own with the organisation enhancing or encouraging it. (Petrowski,2000). But what exactly is creativity?

Kao (1985 cited in Jones and Goss-Turner 2000) described it as the “Process of human activity leading to result which is novel useful and understandable.”

Gurteen (1998) found creativity to be “about divergent thoughts and to come with new ideas”

From above definitions its clears that Creativity is the basic procedure of human mind and philosophy which involves the detection of ideas or any concepts or any adjustment of existing concepts, and these ideas or concepts come into mind either consciously or unconsciously.

Unsurprisingly a straightforward incidence, it is in fact moderately complex. It has been deliberated from the perspectives of behavioural psychology, community psychology, psychometrics, cognitive science, insincere intelligencephilosophyaesthetics, olden times, economics, design research, trade, and management, surrounded by others. The studies have sheltered everyday creativity, incomparable resourcefulness and even artificial resourcefulness. Disparate many phenomena in science, there is no single, dependable point of view or definition of creativity. And unlike many phenomena in psychology, there is no harmonized dimension procedure.

Creativity has been accredited variously to divine interference ,cognitive processes, the social environment, individuality personality , and serendipity (accident, chance). It has been associated with mastermind, mental poor health, the funny side and REM sleep. Some say it is amannerism we are born with; others say it can be taught with the application of simple techniques. Originality has also been viewed as a beneficence of a muse orMuses.

Although prevalently connected with art and literature, it is also an necessary part ofmodernization anddevelopment and is important in professions such as business, economics, structural design, industrial propose, graphic design, marketing, mathematics, music, science and engineering, and teaching.

Despite, or perhaps because of, the indistinctness and multi-dimensional nature of resourcefulness, complete industries have been spawned from the detection of creative information and the improvement of creativity techniques.


Creativity is on occasion confused with innovation but literature clearly identifies a difference between the two

Innovation is defined as “The implementation process by which creative inspirations lead to practical results”. (Anderson and King, 2001).

Gurteen (1998) described it as the “taking of new or existing ideas and turning them into action”. Overall both creativity and innovation are concerned with developing new solutions to problems which an organisation is faced with.

That is a course of turning opportunity into fresh ideas and of putting these ideas into broadly used practices. It is a particular instrument of enterperuninar the means by which they exploit amend or a chance for a various business or service.”

In other way it can be describe as

The generation and implementation of ideas which add-value. Innovation is way of improving an organisations performance or falling the cost at which a given level of performance is achieved.

“Innovation is a course of action, involving many activities, performed by multiple actors from one or several organisations, during which recent combinations of means and/or ends, which are new for a creating and/or adopting item, are developed and/or produced and/or implemented and/or transferred to old and/or new market partners.” (Biech, 1996)

From above it is obvious that a way of doing something in modern way is innovationor new substance that is made constructive.It may demote to incremental anddeveloping or fundamental and revolutionary changes in assessment, commodities, processes, or organisations. Following Schumpeter (1934), contributors to the intellectual literature on innovation naturally make a distinction between invention, an idea made apparent, and innovation, ideas functional successfully in rehearsal. In lots of fields, like the arts, finances and administration guiding principle, something new must be considerably different to be innovative. In economics the transform must enlarge assessment, purchaser assessment, or manufacturer value. The ambition of innovation is encouraging change, to make someone or somewhat enhanced. Innovation leading to augmented productivity is the elementary source of increasing material goods in an economy.

Innovation is a considerable topic in the analyse offinancial side,commerce, private enterprise,model, technology, sociology, andindustrial. Clearly, the phrase “innovation” is over and over again identical with the harvest of the process. However, economists have a propensity to focal point on the process itself, from the beginning of a thought/idea to its conversion into something effective, to its execution and on the system in which the process of innovation unfolds. In view of the fact that innovation is in addition considered a most important driver of the economy, particularly when it leads toward modern product categories or growing production, the factors with the purpose of guide to innovation are too deliberate to be crucial to policymakers. In particular factions of innovation economics anxiety using in the public domain policy to spur innovation and growth.

The phrase innovation refers to a novel way of doing something. It might refer to incremental, radical, and revolutionary changes in accepted wisdom, products, processes, or organisations. Dissimilarity is characteristically made relating invention, a view made clear, and innovation, ideas apply successfully. (Mckeown 2008) In many fields, something new must be substantially dissimilar to be innovative, not an unimportant alter, e.g., in the arts, economics, business and government policy. In economics the amend must enhance value, customer value, or producer value. The objective of innovation is optimistic change, to formulate someone or something well again. Innovation most important to increased productivity is the primary foundation of growing wealth in an economy. [3]

Difference between Creativity & Innovation:

There’s actually a big difference between a new idea, a new invention and an innovation. A new idea is just that – a thought about something new or unique. If you take that idea and make it real, then you have an Invention: a whirring, buzzing thing that the world has never seen before. Now, if you take that invention, and let it loose in the world, and it actually changes the way people live, that’s what we call an Innovation – an invention that has a socioeconomic effect.

Thus according to Oxford dictionary “Invention” is defined as “the action of inventing something, e.g. a machine or a system. The word “Innovation” is defined as “the process to make changes; to introduce new ideas, methods, etc.”

The definition of innovation does not narrow the scale or scope of the solution, although in most cases the greater its potential crash, the higher its potential value. It is also worth noting that this definition intentionally does not limit the type of innovation. In fact, it is important to consider four major types of innovation offer (product/service), process, structural (organizational), and strategic and each of these along the innovation lifecycle curve, spanning from the early idea generation stage through its diffusion and eventual end or eclipse:

  • Idea Generation – The earliest stage of idea generation and creation. Includes everything from early scanning, to rigorous gap analysis, to random sparks of insight.
  • Development – This stage focuses on development, and includes prototyping, experimentation, beta-testing, and other activities moving an idea closer to production and scaled-up operation.
  • Adopt & Diffuse – Most of the activities in this stage deal with implementation, whether in the form of product sales and service, process execution, or strategic follow-through.
  • End – The decline (intentional or otherwise) of the unique value of an innovation, where the premium rents to the innovator have all but disappeared.

Innovation within organisation:

Innovation normally involves creativity, on the contrary is not identical to it. Innovation involves performing on the creative thoughts to make some specific and physical variation in the sphere wherein the innovation happens. For innovation to crop up somewhat extra than the generation of a creative idea/thought or within reach is required, the insight must be place into action to make a real difference, resulting for example in new or changed business processes within the organisation, or changes in the merchandise and services provided. From this point of vision the emphasis is moved from the initiation of specific novel and helpful ideas to the general organisational processes and measures for generating, considering, and acting on such insights chief to significant organisational improvements in terms of better or fresh trade products, services, or inner processes. After examine these different kind viewpoints, creativity is usually basis for innovation, and innovation as the lucrative execution of creative ideas within an organisation. From this point of view, creativity may be displayed by individuals, but innovation occurs in the organisational environment only.

Leveraging Enterprise

Creativity in products, services, procedures, and processes is now more important than ever. It is needed equally in the established enterprise, the public sector organization, and the new venture. Why is it then that many organizations unwittingly carry out managerial practices that destroy it? With exceptions, most managers do not stifle creativity on purpose. Yet, in the pursuit of productivity, efficiency, and control, they often undermine it. The figure below shows, creative thinking skills are one part of creativity but that expertise and motivation are also essential. Managers can influence the first two, but doing so is costly and takes time. They can make a more effective difference by boosting the intrinsic motivation of personnel. To manage for creativity and innovation in ways that keep clients, audiences, and partners satisfied, they have five levers:

  • The amount of challenge they give to personnel to stimulate minds
  • The degree of freedom they grant around procedures and processes to minimize hassle
  • The way they design work groups to tap ideas from all ranks
  • The encouragement and incentives they give, which should include rewards and recognition
  • The nature of organizational support. Needless to say, managers must themselves be motivated [6]


Carly Fiorona, CEO Hewlett-Packard,

Invention which is at the heart and soul of what HP has been about and has to carry on to be concerning invention depends essentially on creativity. And creativity, I have faith in, springs from a various group of people chatting about the possibilities. And when I say various I mean people who look dissimilar, people who think in a different way, people who contain different backgrounds, people who have unlike skills, people who have unusual styles. I believe diversity is serious to creativity. And I trust creativity is at the foundation of invention. And so we must involve everyone. It is at the heart of our success going ahead. (HP Annual Report)

Innovation at Sony

Sony described itself as follows, on its news and information website:

Sony is a corporation dedicated to the CELEBRATION of life. We produce things for every kind of MIND’S EYE. Products that encourage the SENSE and refresh the courage Ideas that always amazes & by no means disappoint. INNOVATIONS that are easy to feel affection for, and EFFOTLESS to utilize, things that are not necessary, however hard to live without it. We do not have to be logical, Or predictable. We are here to track INFINITE potentials. We let the BRIGHTEST minds to interact freely, so the UNEXPECTED can come into view. We call new THINKING so ever more excellent can evolve. CREATIVITY is our spirit. We grab chances. We EXCEED expectation. We facilitate dreamers DREAM.


There are numerous definitions of innovations on hand, and they isolate a role of creativity in your own way. Personally, creativity is one of the pillars of innovation, but only one of several. Novel innovation is a business process which involves equally generating new opinion/ideas and bringing them to market, whereas creativity is a personal characteristic which helps in creating innovative ideas. Thus we might say that a creative individual is someone who is capable of producing new brilliant ideas, along with innovator possesses capabilities of transforming these ideas to commercially successful goods or services. Certainly, innovators can formulate ideas as well. But to bring a breakthrough (or a disruptive) idea to marketplace, creativity is frequently necessary along the entire process of innovation.

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