Role and Value of Creativity and Innovation in Modern Organizations

This report emphasizes on the value of creativity and innovation in an organizational setting of Atlassian Corporation Plc, an Australian enterprise software company and the way forms of creativity and innovation have witnessed exponential growth over recent years. Furthermore, it evaluates the way modern organizations like Atlassian has attained substantial level of prominence and growth by employing creative thinking and innovation and actions they have employed in order to achieve success with innovation.

Running head: CREATIVITY AND INNOVATION
CREATIVITY AND INNOVATION
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Executive Summary
Innovation and creativity play a decisive role in the process of innovation and idea
generation, creativity and innovation which aims to enhance the value is identified as a creator
as well as sustainers of high level performance and transition. Creativity has typically been
situated at the centre of human endeavour and being linked to innovation tends to create highly
unanticipated implications. Thus creativity has been widely recognized as fundamental to
organizational performance. With the significant shift to knowledge economies there can be
witnessed an increasing demand of interest and significance of generating creative ideas and
ingenuity in organizations. Thus innovation is regarded as an imperative for the growth and
progress of organizations. The following report highlights the role and value of innovative,
creativity in the path of success of modern organizations and the way these factors encounter
several barriers in the developing growth of organizations.

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Table of Contents
Introduction...........................................................................................................................3
Discussion............................................................................................................................3
Understanding the Conceptualizations of Creativity and Innovation.......................3
Theoretical Understanding of Organizational Creativity and Innovation................4
Processes of Business Opportunity.............................................................................6
Sources of Innovation.....................................................................................................6
Leveraging Modern and Innovative Organizations....................................................7
Importance of Leadership in establishing culture of Innovation...............................8
Significant obstruction to business innovation............................................................9
Conclusion..........................................................................................................................10
References.........................................................................................................................12
Appendices.........................................................................................................................14

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Introduction
Innovation and creativity in business have become increasingly vital elements of
organizational development, performance, achievements, growth as well as long-term
sustainability. As business organizations effectively seek to control the ideas, strategies and
suggestions offered by their employees, it is highly evident that the procedures of creative ideas
and innovation generation along with effective implementation have been serving as a source of
distinctive competitive benefits (Anderson, Potočnik & Zhou, 2014). Yet concepts of ingenuity,
creativity and innovation typically are identified as highly multifaceted, multi-level and an
increasingly developing phenomenon which tends to necessitate competent leadership
techniques to effectively capitalize on the profits of recently developed and enhanced ways of
functioning (Edwards-Schachter et al., 2015). The perception of the creative formation of
organizations through entrepreneurship has transformed drastically in the past ten years.
Entrepreneurship being a creative action tends to occur when desired goals or preliminary
propositions remain unidentified at the initial stage but are raised during the process. Creativity
and innovation at work thus are defined as processes, results and products of endeavours to
successfully develop and generate innovative as well as improved processes of activity
(Barroso-Tanoira, 2017). The purpose of the following paper is to emphasize on the value of
creativity and innovation in an organizational setting of Atlassian Corporation Plc, an Australian
enterprise software company and the way forms of creativity and innovation have witnessed
exponential growth over recent years. Furthermore, it evaluates the way modern organizations
like Atlassian has attained substantial level of prominence and growth by employing creative
thinking and innovation and actions they have employed in order to achieve success with
innovation.
Discussion
Understanding the Conceptualizations of Creativity and Innovation
The ingenuity stage of work processes refers to aspects of idea generation and innovation
aimed at the consequent phase of realizing ideas towards improved measures, practices or
services. Forms of creativity and innovation can have their occurrence at the stage of the
individual, team activity or at other than one of these stages when being collective, however aim
to consistently gain at one or more of these levels of evaluation (Lu et al., 2017). Creativity has
further been recognized as the invention of constructive ideas, while innovation on the other

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hand has typically been identified as both the creation of inventive and resourceful ideas at the
initial phase and their successful execution at the following stages. However, recent studies
have claimed that limitations and margins between both concepts have remained indistinctive
(Standing et al., 2016). Furthermore, stronger conceptual divergences have been identified
between creativity and innovation. While other section of scholars were of the opinion that
incidence not only at the initial phases of the improvement processes but has been identified as
a recurring, recursive procedures of creativity, idea generation as well as implementation.
Barroso-Tanoira, (2017) has further been claimed that by those concepts of creativity exhibit
greater level of inclination with absolute genuine novelty while innovation tends to incorporates
ideas and strategies which are considerably innovative (Dees, 2017). These innovative ideas
are regarded to have been implemented as well as acclimatized from other business
organizations but have recently been developed to the part of adoption.
As creativity serves a fundamental role in the course of generation of ideas and also
focuses on successful idea execution, concepts of creativity and ingenuity are typically identified
as the primary step of innovation (Anderson, Potočnik & Zhou, 2014). Furthermore, to the
degree to which the concepts of improvement are concerned, recently emerged ideas,
strategies and practices are executed in an organization may have the propensity to be created
by staffs in the main business. However, studies observed that effective generation of ideas by
employee base purposely generates and pertains to new ideas, mechanism or practice whereby
employees are said to be intrinsically engage in innovation (Edwards-Schachter et al., 2015).
However there can be recognized few significant theoretical perspectives situated in the domain
of creativity and innovation studies.
Theoretical Understanding of Organizational Creativity and Innovation
 Componential Theoretical Perspective of Organizational Creativity and Innovation:
There can be witnessed three vital factors playing contributory role to the sphere of
individual or aspects of competence, creative-perspective talent along with high intrinsic
enthusiasm (Amabile & Pratt, 2016). However in comparison to these small size work
environment, the fundamental constituents of the broader work environment which tend
to persuade employee creativity are referred as organizational impetus. These
impetuses aim to innovate, reservations along with managerial activities such as
facilitating exigent and demanding work and administrative encouragement (Roth, Sorg
& AG, 2017). However, the componential theoretical model has managed to attain

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considerable level of empirical sustainability regarding the role of its motivation factors
(Edwards-Schachter et al., 2015).
 Four Factor Theory of Team Climate for Innovation: West’s theoretical understanding
of Four Team Climate for Innovation primarily focus on components beneficial of
innovation such as aim, participative wellbeing, task direction as well as sustainability for
innovation (Barroso-Tanoira, 2017). Aspects of Innovation is fundamentally been
improved if idea is comprehensive, appreciated and approved by the team members,
team associates recognized they can create recently developed thoughts and
resolutions without properly being reviewed or assessed. Furthermore, Lu et al., (2017)
witnessed an invigorating debate and contest of various potential solutions within the
team which simultaneously be vigilantly evaluated. Lastly, team members identify
sustainability for innovation and significant advancements. However, such a theoretical
aspect has significantly been functional in the domain of collective innovation study and
thus has successfully attained sustainability from diverse domain of meta-analytic
observations.
 Cultural Divergences in Creativity: The role of imagination- Emphasizing at
individuals’ ingenuity and creativeness, conjectural aspects have shed light on cultural
variances in the sphere of individual creativity. These variances are related to the way
task as well as social situational contexts which tend to restrain the association between
the cultural perceptions, values and ideas of individuals. These values furthermore are
related to aspects of individualism or collectivism, power distance and uncertainty
avoidance as well as creativeness (Dees, 2017). Theorization of cultural disparities
further focus on the way culture exhibit the tendency to moderate leadership persuasion,
managers, workplace peers along with social associations on inventiveness and
creativeness and the way these factors tend to impact the whole process of creativity
(Roth, Sorg & AG, 2017).
Theoretical backgrounds have significantly been recognized as fundamental methods in
the domain of generation of ideas, creativity as well as innovation in organizations. However,
certain theories have attained considerable observed facilitation in comparison to the other
theoretical understandings but tend to highlight the role of diverse determinants of either
generating or implementing creative ideas (Lu et al., 2017). However, the primary oversight of
these outlines is that each one of these theoretical concepts fundamentally posits in the process
of idea generation or realization.

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Processes of Business Opportunity
The role of an entrepreneurship during organizational process is to primarily invigorate
and uphold the economy by contravention of conventional routines and frameworks. A business
opportunity can further be recognized on the basis of entrepreneurship cognition of the business
context (Standing et al., 2016). During business processes where business opportunities would
have the propensity to occur through the relevance of logic, organizations attain the expertise to
efficiently establish the initial conditions and ideas and further decide the necessity and
relevance of the ideas. Furthermore, Anderson, Potočnik & Zhou, (2014) claimed that during the
preliminary stage, organizations attain a position whereby they could successfully acquire an
indication of the status of its business. However, the development of a venture opportunity has
been noted as a significant rational process whereby individuals reveal incompetence of
acquiring relevant ideas and knowledge of the information which has its accessibility in any
situation or has been utilized in order to raise an inclusive illustration of reality (Barroso-Tanoira,
2017). Furthermore, in relation to problem-solving, attainment and generation of information
does not reveal rationality because of high level of creativity, ingenuity and innovativeness of
individuals (Burns, 2016).
Sources of Innovation
The primary forms of advances and innovation can be segmented into product
innovation, service innovations along with important technical innovations. Furthermore,
universal types of innovation have been recognized as market-oriented or market-push
innovation whereby the rest are engaged in the spheres of technology-oriented innovations the
reasons for which market must successfully be developed (Dentchev et al., 2016). However, the
seven vital sources of innovation or creativeness have significantly been identified by Peter
Drucker:
 Transitions in market or industry
 Development in perceptions and knowledge
 Process requirements
 Various forms of inaptness
 Demographic development
 Unanticipated emergences
 Recently developed knowledge or proficiency

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Peter Drucker furthermore had highlighted those innovative or advanced organizations while
seeking new avenues need to search for simple, focused explanations to valid issues which
tends to constitute considerable degree of diligence, perseverance, innovativeness, expertise
and knowledge (Roth, Sorg & AG, 2017).
Leveraging Modern and Innovative Organizations
`Creativity and ingenuity in products, services, procedures in recent times have obtained
considerable level of value and prominence and is essentially important in established,
successful business enterprises, public sectors and new endeavours (Altman, Nagle &
Tushman, 2015). With elevated rate of expectations, major proportions of managers and
supervisors do not purposefully suppress forms of creativity (Hogan & Coote, 2014). However,
in the pursuit of efficiency, expertise and strict regulations and supervisions, innovative idea
generation can highly be destabilized (Dees, 2017). Furthermore, it has been observed that in
Atlassian Corporation Plc, a start-up software company, the organization’s co-founders,
Cannon-Brookes and Farquhar that creative-perspective and thinking abilities constitute one
section of creativity while other forms of skills and motivation are also considered as
fundamental. In the opinion of Altman, Nagle & Tushman, (2015), the decisive role played by
managers and co-founders have also been claimed which however tends to be expensive and
more time intensifying but reveals an enhanced disparity by amplifying the inherent and
fundamental motivation level of the employees (Hogan & Coote, 2014).
Thus in order to uphold forms of creativity, ingenuity and innovations in ways which
would improve the sustainability of clients, audiences and stakeholders Atlassian Corporation
Plc aim to emphasize on five levers which focus on:
 The extent of challenge organizations can give to employees in order to stimulate their
thinking procedures (Roth, Sorg & AG, 2017)
 Level of autonomy enterprises grant based on procedures and processes in order to
curtail obstacles and complexities
 Processes through which advanced organizations design teams in order to successfully
identify ideas from all hierarchies (Polzin, von Flotow & Klerkx, 2016),
 Level of support and incentives globalized software corporation offer which typically
incorporate rewards, motivation as well as recognition
 The nature of organizational encouragement and motivation given by Atlassian.

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Factors of Creativity
Source: (Hogan & Coote, 2014)
Importance of Leadership in establishing culture of Innovation
The role of leaders typically is perceived as a facilitative determinant of innovation within
the organization. However it does not comprehend those leaders should take their
responsibilities as a universal phenomenon while generating ideas and creativity in business
(Willburn & Cullen, 2013). Leadership team of Atlassian- Mike Cannon-Brookes, Scott Farquhar,
Sri Viswanath and others focus on developing various approaches in order to successfully
shape the innovation and creativity process in organization by efficiently providing active
creative and inventive value (Barroso-Tanoira, 2017). However, leaders or managers
constituting high levels of creativity and ingenuity typically recognized as self-initiators who
possess the ability of rapid development through extensive degree of ease and expertise in
leading new and challenging ventures. However Lu et al., (2017) state that it is immensely
essential for the leadership team of Atlassian not to regulate innovation procedures as this could
restrain others of the workforce from sincerely sharing individual knowledge and innovative
inputs and have the opportunity to contest the ideas or strategies generated by leaders.
Reports reveal by Business.gov.au, (2018) that Cannon-Brookes and Farquhar recently
received a prestigious recognition and has been signified as a vital determinant in the start-up
sector of Australia. The company has significantly constituted wide range of tools and software
products that has been facilitating large array of organizations ranging from Airbnb to NASA

9CREATIVITY AND INNOVATION
(Atlassian, 2018). Furthermore, having provided a contributory role in the process of
government creativity and innovation agenda and the start-up community to a large extent,
Atlassian has obtained substantial level of prominence in the sector and a persistent creativity
leadership technique has been reinforcing several other innovators in Australia
(Business.gov.au, 2018).
Furthermore, recent observation by Business.gov.au, (2018) on process of innovation
and ingenuity tendencies during the phase of global recession witnessed several business
enterprises to persistently invest in generating ideas and demonstrating creativeness.
Organisations have been doing so regardless to recession or risks of organizational threats in
order to generate an enhanced recovery outcome after the conclusion of recession period. Such
a stance however, has been identified as a factor of immense risk as their fundamental aim has
been reliant on secured and stable bottom line sustainability (Willburn & Cullen, 2013). Thus
leaders of Atlassian Mike Cannon-Brookes, Scott Farquhar, Sri Viswanath must exhibit high
level of stringency while selecting significant areas of ingenuity and innovation to efficiently
develop the awareness of investment of the business. Leaders further posses the opportunity of
proficiently establishing a supportive and highly enthusiastic environment which facilitates the
chances of lateral thinking process and further enhance creativity (Dentchev et al., 2016). Thus
providing adequate autonomy and scope to personnel to proficiently alter physical environment
and further personalize those ingenuity can be considered as a significant way of encouraging
creativity and innovation. Organizations such as Atlassian and other innovation-oriented
organizations like Invoice2Go as well as QB50 (project of EU initiative) have provided opened
avenues for significantly collaborating on highly creative and innovative endeavours.
Furthermore they provide their workforce with enhanced availability to leaders and develop
creative role models and improved chances of successfully identifying as well as capitalizing on
exceptional ideas (Business.gov.au, 2018).
Significant obstruction to business innovation
It has been observed in recent times, that Atlassian has exhibited high level of inclination
towards government control and regulation, deficit of investigation and developmental funding,
lack of marketing proficiency, availability of investments as well as shortage of suitable
workforce as critical barriers to the path of innovation (Altman, Nagle & Tushman, 2015).
Reports revealed by MYOB further witnessed those medium-sized businesses encounter more
obstacles in comparison to small-sized businesses whereby a diminutive 4% of that segment

10CREATIVITY AND INNOVATION
claimed to have encountered no critical barriers towards innovation (Polzin, von Flotow &
Klerkx, 2016). On the other hand, around 30% of medium-sized enterprises showed greater
propensity to state deficit of R&D funding, availability to investment funding and around 25%
revealed the shortage of suitable workforce as critical barriers to the process of novelty and
innovation (Hogan & Coote, 2014).
Furthermore, the lack of proficient people has further been recognized as a significant
barrier to innovation by Roth, Sorg & AG, (2017) while certain micro, small as well as medium
sized enterprises consider that such a deficiency of proficient workforce has been identified as a
more critical barrier in comparison to large organizations. Several small and medium sized
businesses have emphasized on managerial barriers and challenge which hinder the generation
of creativity and innovation in these sectors. Furthermore, small businesses in Australia also
show incompetence to successfully comprehend consumers’ requirements and developments
as per customers’ desire (Anderson, Potočnik & Zhou, 2014). Furthermore, extensive deficit of
information on markets, business and technologies has also been identified as organizational
barrier in both small and medium sized enterprises in Australia. Lack of well established network
has also been observed by observers Roth, Sorg & AG, (2017) which typically provide
information, knowledge and guidance to wide range of SMEs operating in Australia. Moreover,
high incompetence in efficiently handling unexpected situations, uncertainties related to
organizational threats and challenges, outcomes and timing of innovation and creativity have
been predominantly acting as critical barriers to idea generation and ingenuity (Polzin, von
Flotow & Klerkx, 2016).
Conclusion
To conclude, it can be stated that Australia’s prospective workforce will necessitate
highly proficient expertise in areas of greatest importance to the sectors of new economy such
as science, technology and marketing. As recently developed initiatives are identified as primary
drivers of progress and achievement in the Australian economy. Learning about recently
developed creativity and various forms of ingenuity have facilitated my understanding about the
way creativity and idea generation of not only leaders but employees have contribute high level
success to modern organizations. Being a student of business, such a wide-ranging
understanding of various forms of inventive and ingenuity will aid me comprehend globalized
business sector and further guide me to successfully complete this module.

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This paper has provided an explicit understanding of the way creative idea generation
and innovation has been a significant foundation for several organizations in Australia.
Furthermore, it identified certain common barriers which emerge in the process of innovation
and creativity which results few organizations not to achieve success. However, the paper has
also highlighted the assertions of several theorists who have provided substantial understanding
of the way innovative and creative knowledge and leadership techniques have facilitated several
start-up organizations to attain success and raise the Australian economy.

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14CREATIVITY AND INNOVATION
Appendices
Atlassian Innovative Products and Services
Source: Atlassian. (2018)

15CREATIVITY AND INNOVATION
Atlassian Innovative Products and Services
Source: Atlassian. (2018)