Creativity and Innovation: Driving Business Growth and Development

This report delves into the critical role of creativity and innovation in achieving individual and organizational success, particularly within the realms of entrepreneurship and business development. It defines creativity and innovation, highlighting their interconnectedness and importance in generating new ideas and implementing changes. The report explores models of creativity, including domain-relevant skills, creative processes, and task motivation, while also examining innovation processes such as product, service, and business model innovation. It emphasizes the significance of fostering a creative environment through brainstorming, soliciting ideas, training staff, and rewarding innovation. Furthermore, it provides examples of innovative companies and discusses the impact of creativity and innovation on entrepreneurship, workplace innovation, and overall business growth. The report concludes by underscoring the need for businesses to embrace creative thinking to adapt to technological advancements and maintain a competitive edge.

Running head: Role of creativity and innovation 1
Creativity And Innovation
Role of creativity and innovation

Role of creativity and innovation 2
Is Creativity & Innovation important to individual or organizational success?
Creativity and innovation are used synonymously. They have become critical skills for
attaining goals in well developed economies. It has been analyzed that the need for creative
problem solving has raised as more because the issues of management is required to creative
insights in order to search the suitable solutions. In that phase, creativity moves hand in hand
with innovation. Innovation cannot be succeeded without creativity. Creativity is able to generate
new ideas and vies to bring the changes within an organization. Innovation is considered as the
implementation of that creativity. Creativity is the back support of innovation and incorporates to
look things with different perspectives so that new ideas could generate (Proctor, 2014).
Figure 1: Creativity & Innovation
Source: (Gholami & Karimi, 2014).
Creativity as well as innovation is essential for the growth of business because they have
the ability to explore new things with different perspectives which may lead business in the way

Role of creativity and innovation 3
of success. Creativity is concerned as the process of mental and social which is used to generate
new ideas, concepts and views. Through the process of creativity, employees of an organization
are ventured with searching the beneficial result of an existing attempt, which will be helpful to
generate and apply different products services and procedures which can be used by conscious or
unconscious insight. This creative insight will be considered as the straight result of the
multiplicity of the group included an individuals who skilled in different imputes and prospect. It
is required to know that innovation is not a naturally occurring situation. For instance, growing
plant requires the sufficient nutrients to flourish which include efficient approaches and
substructures that enhance various level of thinking (Dentchev, et. al., 2016).
Concepts of creativity and innovation
There are so many models of task and innovation which facilitate to understand the
creativity and innovation’s concept. A model of creativity is focused on elements that encourage
employees of the organization to develop creative behavior. There are three components in
creativity model such as domain relevant skills, creativity relevant process and task innovation.
Figure 2: Model of creativity and innovation

Role of creativity and innovation 4
Source: (Inno Work, 2014)
Domain relevant skills
Domain relevant skills are considered as innate skills. It is comprised the all effective
response which is required at the time of problem or situation. It is the skill which is comprised
with principles and opinions, technical skills is an essential component for specific domain.
Special domain with factual talent would be able to contribute to creative productivity. Domain
relevant sills are made up of innate skills which are gained by education. In the case of higher
domain relevant skills, there are lacking creative relevant process which may be produced
creative outcomes.
Creative relevant process
It is the component which includes the traits of personality as self-discipline,
independence, delay of gratification and perseverance. It comprises the cognitive style which is
able to understand complexities. Along with that it includes work style, it focuses to provide the
relevant solution for unsuccessful solutions and it is the process of motivation (Mainela, Puhakka
and Servais, 2014).
Task motivation
There are two types of motivation intrinsic and extrinsic. Intrinsic motivation refers a
foremost driver for creativity at the level of an individual. There is no need to work in opposition
to intrinsic and extrinsic motivation, especially in the term of creativity of entrepreneurial. It is
the activity to need a harmonious motivation which involves both intrinsic and extrinsic
motivation by focusing on competence and skill development (Gholami & Karimi, 2014).

Role of creativity and innovation 5
The main aim of this model to show the components of creativity model but in enhancing
creativity in an organization, there is need to consider in their intersection in spite of separate
components of creativity. With the help of creative intersection, people will be likely more
creative in their thoughts and can able to produce innovation (Johnston and Bate, 2013).
It has been stated by Fichman, Santos,and Zheng, (2014), Creativity is the concepts and
builds a thought in the mind and innovation is considered as the implementation. It can be said
that when creativity ends, innovation begins. Creativity and innovation are intermingled and
there is necessary to have both of them for progressive growth. It is more important to have the
creative people in our business because they give the opportunity to business to utilize their ideas
in the way of growth of company. There are various approaches which will be helpful to
encourage creative thinking. These approaches are make time for brainstorming, actively solicit
ideas, train staff in innovation techniques, challenge the way staff work, be supportive, tolerate
mistakes, act on ideas and reward creativity. World has been changing day by day due to
acceptance of new technologies (Anderson, Potočnik and Zhou, 2014). These technologies are
developed by creative person. Creative person refers as an adaptors and innovators. Adaptors are
preferred to things better whereas innovator prefers to do things in different way. The approach
of brainstorming refers new ideas and images to emerge. For instance, or brainstorming,
organization needs to conduct end meetings, hold the workshop and focus on arranging teams’
day out. Actively solicit ideas refers the open welcome of everyone to share their ideas and
views for particular issues. There should be proper training process in which team can get learn
various process to develop their skills of creative problem solving. It can be done by keeping
training sessions in formal techniques such as mind mapping, brain storming and lateral thinking
(Hogan and Coote, 2014).

Role of creativity and innovation 6
Stress the importance of creativity within an organization, it can be implemented by ensuring all
staff that organization is ready to hear their ideas and it will be implemented if it found in the
favor of an organization. Challenge the way staff works involves the encouragement of the
employees to keep observing the new ideas at the way they grab the opportunities. It is the way
in which employees of an organization start to think differently to achieve e the target as soon as
possible. To make creative environment organization need to take care of every employee by
being supportive (ICAEW, 2012). It is the approach which involves the responds with
enthusiastically. There is lot of chances of risk in the creative thinking. It is the approach of
creative thinking which allow employees to learn from their mistakes. Organization never put off
penalties on them whose ideas do not work out. There is a main role of creative and innovation
in the progress of business. Motivating employees are more active to provide new ideas for
generating more profit. Employees can be motivated if they get valued of their ideas by
rewarding and recognizing. Creative thinking can become more effective if its outcomes in
action. Organization need to provide the efficient time to their employees to implement ideas
worth acting upon. Failure in creative thinking it does not mean that organization would not be

Role of creativity and innovation 7
able to get advantage from innovation, but range of new ideas may well dry up if employees feel
the process is waste or pointless (Mahr, Lievens and Blazevic, 2014).
Innovation is the process which includes the decisions about the things that should be
amended planning for an organization. Innovation has four kind process innovation, business
model innovation, product innovation and service innovation. There is a process of innovation in
business for growth.
Figure 3: Innovation process
Source: (Frankenberger, Weiblen, Csik, and Gassmann, 2013.)
There are so many organizations that belief in creativity and innovation process and
launches various products and services to generate more profit in comparison of similar
company. There are examples of 22 creative companies has been introduced that belief in
creating corporate culture. Google provides so many services to their customers so that their staff
can remain happy for a long time. Happy staff will be able to being a loyal for the company and
will initiate to work for progressing not only for the company but also for himself. Apart from
Google, Chevron, Twitter, Warby Parker, Southwest airlines, Zappos, Square space, Facebook,
Adobe, Mind valley and World of digits are the example of company which maintains the better
corporate culture within the company. These are the companies found as more innovative

Role of creativity and innovation 8
companies by their efforts and it can be done due to providing efficient services not only their
customers but also staff (Sousa, Pellissier & Monteiro, 2012).
Importance of creativity and innovation in entrepreneurships
Entrepreneurship is the main element to innovate at the individual not only as the level of
business but also as inspiring entire business sector growth. Successful entrepreneurship needs to
focus on creativity, innovation and strategic business practices. Creative and developed
entrepreneurship is considered as the integral part of the stability and developed economic
growth (Fichman, Dos Santos,and Zheng, 2014). In general, entrepreneurship is able to access at
identifying and pursuing opportunities whether it is large or small. In the competitive
environment, company need to focus on creative and innovative process to stay in healthy
competition. They should explore the role of creativity and innovation while valuing practices of
strategic business. Ingenuity is the main element in the modern entrepreneurship. Entrepreneur
need to continuously force to boundaries of latest trends by using new approaches of ideas and
creativeness whether launching a new platform of social media or initiating the digital marketing
company (Dentchev, et. al., 2016).
Innovation at the workplace
Innovation at workplace is necessary for the growth. Many of the examples include an
organization that has had the scope to try something different and been appraised for doing so.
There are three examples of very different but positive illustration which shows that how
motivating innovation in the workplace can lead to positive results. Spotify is an example of n
innovation. It is the company that spotted a gap in the place of market and utilizes it by building
creative and innovative thinking. It allows to it subscribed music users to stream unlimited music

Role of creativity and innovation 9
on their computers and phones. It took initiated step when piracy was at an above level, and
people were ready to pay to download the music. These services of innovative thinking address a
new market. Another example of innovation at workplace can be seen in the division of Pitney
Bowes. It is the company that wanted to remove the communication barriers within workplace in
among employees. The company has decided to redesign the structure in that way where
communications among employees can be improved. It beliefs that relaxed workplace are more
active to generate new ideas and process and the company was succeeded to launch new
products and services in lesser time due to effective workplace. Apart from that there are so
many companies such as Google, Apple, Facebook, GE, Nike, Amazon, Samsung and many
more that are progressing day by day by introducing innovation in technologies.

Role of creativity and innovation 10
References
Anderson, N., Potočnik, K. and Zhou, J., 2014, Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework, Journal of
Management, 40(5), pp.1297-1333.
Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T., Rauter,
R., Rosano, M., Snihur, Y., Tang, X. and van Hoof, B., 2016, Embracing the variety of
sustainable business models: social entrepreneurship, corporate intrapreneurship, creativity,
innovation, and other approaches to sustainability challenges, Journal of Cleaner Production,
113.
Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T., Rauter,
R., Rosano, M., Snihur, Y., Tang, X. and van Hoof, B., 2016, Embracing the variety of
sustainable business models: social entrepreneurship, corporate intrapreneurship, creativity,
innovation, and other approaches to sustainability challenges, Journal of Cleaner Production,
113.
Fichman, R.G., Dos Santos, B.L. and Zheng, Z.E., 2014, Digital innovation as a fundamental and
powerful concept in the information Systems curriculum. MIS quarterly, 38(2).
Frankenberger, K., Weiblen, T., Csik, M. and Gassmann, O., 2013, The 4I-framework of
business model innovation: A structured view on process phases and challenges, International
Journal of Product Development, 18(3-4), pp.249-273.
Gholami, K, & Karimi, A, 2014, The role of creativity, innovation and entrepreneurship in the
organization, BEPLS Vol 3 Spl issue II 2014.

Role of creativity and innovation 11
Hogan, S.J. and Coote, L.V., 2014, Organizational culture, innovation, and performance: A test
of Schein's model, Journal of Business Research, 67(8), pp.1609-1621.
ICAEW, 2012, 10 ways to Encourage creative thinking, retrieved on 21st August 2017 from:
http://www.icaew.com/archive/library/subject-gateways/business-management/strategy-and-
planning/innovation/small-business-update/10-ways-to-encourage-creative-thinking.
Inno Work, 2014, the concepts of creativity and innovation, retrieved on 21st august 2017 from:
http://www.innowork-project.eu/documents/Module_1_The_concepts_of_creativity_and_innova
tion_889.pdf.
Johnston, R.E. and Bate, J.D., 2013, The power of strategy innovation: a new way of linking
creativity and strategic planning to discover great business opportunities, AMACOM Div
American Mgmt Assn.
Mahr, D., Lievens, A. and Blazevic, V., 2014, The value of customer cocreated knowledge
during the innovation process, Journal of Product Innovation Management, 31(3), pp.599-615.
Mainela, T., Puhakka, V. and Servais, P., 2014, The concept of international opportunity in
international entrepreneurship: a review and a research agenda, International Journal of
Management Reviews, 16(1), pp.105-129.
Proctor, T., 2014, Creative problem solving for managers: developing skills for decision making
and innovation, Routledge.
Sousa, F, C., Pellissier, R, & Monteiro, I, P, 2012, creativity, innovation and collaborative
organizations, The International Journal of Organizational Innovation Vol 5 Num 1 Summer
2012.

Role of creativity and innovation 12