Creativity and Innovation in Business - Literature review Example

Creativity and Innovation in Business Name Course Tutor Date Creativity and Innovation in Business Introduction With globalization taking shape in the business arena, companies are faced with challenges of competition and how to satisfy customer needs and wants. To remain competitive therefore, companies must devise various strategies so as to provide value to its customers. The major strategies for any business are usually creativity and innovation. Currently, creativity and innovation are considered the most significant topics being researched, more intensely and frequently. Each idea, no matter how resourceful or effective, will ultimately require to be substituted with a new one (Getz & Robinson, 2003, p.130). However, some business managers, as humans tend to stick to their old beliefs, mental models and ideas for a longer time than they ought to. For example, Henry Ford notably insisted on abiding to produce the Model T for a long time after other market players had created dazzling new vehicles which considerably cannibalized success of his once best-selling car (Getz & Robinson, 2003, p.132). Based on this realization, this paper defines and assesses creativity and innovation in business. Creativity and innovation in business According to Amabile et al (2005, p.367), creativity is described as people’s capability to transform their perception of realism. By changing perception they can then make new hypotheses, ideas, approaches and other approaches in life. On the other hand, innovation is defined as a transformation in reality (Amabile et al 2005, p.367). Innovation implies taking a current idea like the new product, business model and service concept and changing it to reality. Similarly in business, business managers must change the view on how they conduct day to day business. Getz & Robinson (2003, p.131) argues that Companies capable of creativity, innovation and differentiation of their products or services from rivals are on averagely twice as advantageous as other companies. In addition, employees’ engagement in new ideas promotes loyalty to a business and high levels of interest in the effective accomplishment of ideas. To sustain competition in the changing business platform managers must remain creative so as drive development and innovation agenda. Andriopoulos (2003, p.376) believes that the manager must encourage strategies like learning organization so that the organization remains updated with the current situation in the industry. Creativity, so business thinkers state, is a company’s key valuable asset. That is why there are mantras that say: “ideas are the future therefore innovate or be faced off” passing the message is simple enough however for many companies building and harnessing creative concept is easier said than carried out (Andriopoulos, 2003, p.376). Creativity is the most difficult idea for managers to handle and, more significantly, account for. The managing creativity and innovation is naturally difficult and risky, as several technologies fall short to be converted into products or services and might not be turned into a profitable success (Andriopoulos, 2003, p.379). Innovation can improve competitiveness but needs different forms of management skills and knowledge from those of daily business management. Building a culture of creativity and innovation within a business enterprise rests with the manager. There exist three elements needed for a creative and innovative culture to materialize. They include capability and methods to make possible creativity, integrating the aspiration in individuals to be innovative by means team working and to build an environment that empowers and enables innovation (Andriopoulos, 2003, p.378). The time Jean-Pierre Garnier became CEO of Glaxo Wellcome and SmithKline Beecham when these two companies merged some years ago; he understood that with no big innovation the firm was at a big risk (Getz & Robinson, 2003, p.132). Sustaining competition from other industry players and almost empty pipelines implied that Garnier had to reorganize how the company could uphold its 7% share of the market (Getz & Robinson, 2003, p.134). The solution remained with Tadataka Yamada, the expert and top researcher, who was told to find a completely new method to innovate drugs. Amabile et al (2005, p.401) claims that creativity in business involves structure, leadership and business strategies in an organization. Creativity and innovation require energy to prevail over the determination and inertia to transform the how things – several organizational structures support the status quo. An option is the “not formulated here” concern – the organization fails to observe the prospective of a new concepts or rebuffs it on the foundation of not fitting in the existing business strategy (BCA, 2006). Top management dedication is required to support systems that show and underpin a sense of management participation, commitment and interest. Management requires offering long-term dedication to key projects and not concentrating only on Return on Investment. Other strategies like market penetration and expansion, and strategic advantages must also be put into consideration (Andriopoulos, 2003, p.381). Also vital is management reception that innovation is naturally risky. The organization has to be prepared to make risks and consider failures as the learning and improvement opportunity. According to BCA (2006) teams or individuals should not be “punished” in such situations, this will just serve to decrease creativity and the force to be innovative; rather such situations should be taken as a learning occasion. Uncertainty may be eased, however, by means of research and information collecting exercises – organizations must not to take needless risks. Organizational structure is impacted by the form of the duties carried out in the organization. Formalization and control mechanisms limit innovation, whilst a decentralized structure combined with informal work procedures makes the organization to be more flexible and react to indecisive environments by means of innovation (Andriopoulos, 2003, p.378). The moment creative ideas are formulated however; a level of centralization is needed for the concept execution, and therefore innovation. The team-oriented organization is a potential resolution. The degree to which the team-based operating in organizations looks to be is a good determinant of innovation. It can be said that which drives creativity and innovation is technology. Technological creativity and innovation was critical for the U.S as it assisted in encouraging the industrial revolution (Amabile eat al 2005, p.374). Technological creativity and innovations resulted to automation which was then followed large scale production so as to achieve economies of scale. As a result it became attainable for better growth of businesses. The Toyota Production mechanism, assembly production line and many other dynamic and revolutionizing changes was formed (Getz & Robinson, 2003, p.133). These were significantly responsible for enabling large scale production, standardization continuous improvement concepts which ultimately resulted to the growth of change management as a different discipline. An instance of technological creativity and innovation is automation and use of information systems. The emergence of information technology and computers, although in its early stages, resulted to a modernized opening of opportunities in many domains as well as education (BCA, 2006). One of the recent cases of innovation is the Iphone and iPad. Apple Inc’s well-known former boss Steve Jobs was the one who came up series of I – devices such as iPad, Iphone and iPod (Iny & Brabandere, 2013). The world was waiting for some sort of technology product which could be used as a mobile phone but also work like a computer. At last Apple developed with iPad, Iphone and iPod and surprised many people across the globe with the release of these devices which represents a new form of media application in the current age (Iny & Brabandere, 2013). This breakthrough formed a new meaning of digital devices. They started new class of digital products. It has presented the consumers with more experience than what they anticipated and beyond their thoughts (Getz & Robinson, 2003, p.134). An example is that Apple could not develop the original iPod, until its mangers changed their ideas and thinking about what a portable music player could be— from Sony Walkman to one related to a broader ecosystem (Iny & Brabandere, 2013). The iPhone is not the first mobile phone that was developed, however, it basically transformed the box of what a mobile phones looks to be (Iny & Brabandere, 2013). One factor is much clear; no matter how dominant and robust technology is at the present, ultimately the iPhone and its network, and the assumptions and ideas behind them, will require re-assessing and replacing (BCA, 2006). With creativity and innovation one can imagine the incredible new offerings and opportunities that Apple will present the world with its new findings. Currently, the Google company is considered one of the most creative and innovative organizations in the globe (Katherine, 2007). The corporation always ranks amongst the Top two most innovative firms in Business Week’s yearly survey. This is regarded as no surprise because Google is an outstanding business which manages its own innovation in a very unique manner. After several attempts to structure their growth process, Google has decided to use the 70-20-10 resource management model in 2005, led by 2005 by the Google CEO Eric E. Schmidt (Katherine, 2007). This form of business model consider that to make best use of innovation in an organization, employees has to use of their moment in the ratio of 70 percent of the time must be set aside to major business assignments, 20 percent to tasks associated with the key business, and the 10% to tasks not related to the key business (Katherine, 2007). This type of model has significantly assisted stimulate creativity and innovation of Google’s engine because, Schmidt state that the latter comes from unpredicted places; so the major situation for innovation to take place is to just listen to individuals who are allowed time to get hold of creativity. As such, Google’s focus on creativity and innovation has enabled it to grow to be ranked in position one search engine globally (Katherine, 2007). According to Katherine (2007) these two ideas have provided the Google the capability to search for new methods to expand its provision which led to new programs such as Gmail, Google Maps, Google earth; Google blogs, Froogle, Google videos and Desktop Search among others. These concepts have also enabled Google to challenge status quo, to leverage the creativity of every employee, concentrate on talent and transform the model around information collection. All of this creativity or innovation is accompanied by the results. Google officially turned to be the biggest media corporation globally in 2005 with the revenue of $80 billion exceeding Time Warner which had revenue of $78 billion (Katherine, 2007). The keys to creative success What senior managers require to understand is that it should not only high-ranking employees who have ideal ideas (Andriopoulos, 2003, p.381). Staff in every level of the company can have ideas which could prospectively facilitate the company immense success. Amabile et al (2005, p.394) posit that considering these ideas and concept and using them is not just a means to employ of a resource the company already posses, but will enhance employees’ commitment and morale since they will have the feeling that their views are being recognized and also matter. There is desire to be a set system that officially looks and notes into ideas, and employees should realize they will be recognized and rewarded if they believe of the idea that they have raised will be of great help to the organization. Andriopoulos (2003, p.384) think that every organization intending to adopt creativity must have to deal with six possible paradoxes; that is, support employees in potential projects, but realize financial objectives; keep staff challenged but still positive; reward individual idea but stress on team work; hire diverse individual, but support close work groups; look at the past while concentrating on the future; and make calculated risks, but continue pressing forward. So as to achieve the most of business creativity, managers might need to think about developing their business around creativity by designing the organic business model which enables communication in every direction (Andriopoulos, 2003, p.386). Nevertheless, the significance of cautious business should not be ignored to evade getting into chaos. On the other hand, innovation is just valuable if it is handled efficiently. The suggestion from the managing director of a big design consultancy summarizes the healthiest approaches towards bringing the sense of balance between creativity and organization; that is, “creativity entails discipline, it is a logical process, it does not take place tactically – business cannot manage to pay for undirected creativity” (Andriopoulos, 2003, p.385). Conclusion In conclusion, it can be stated that moving to new ideas offers a brilliant opportunity to reassess work space, offering potential to strengthen the business and enhance its performance. The place of work is an influential medium communicating the organizational values to staff and external parties. Therefore, managers must come up with policies that encourages research, creativity and innovation which ensures that consumers are provided with goods that provide values more than their competitors. Also managers must understand innovation; creativity including analytical skills is extremely needed in managing a business. Most successful firms like Apple, Google, Hewlett Packard and others have often been as a result of an effective partnership between an analytical and a creative leader. References Amabile, T.M, Barsade, S.G, Mueller, J.S. & Staw, B.M. (2005). “Affect and creativity at work," Administrative Science Quarterly, vol. 50, pp. 367–403 Andriopoulos, C. (2003). “Six paradoxes in managing creativity: an embracing act.” Long Range Planning, Vol. 36, pp.375-88. BCA (2006). New Concepts in Innovation: The Keys to a Growing Australia. Business Council of Australia. Getz, I., & Robinson, A.G. (2003). "Innovate or die: is that a fact?", Creativity and Innovation Management, Vol. 12 No.2, pp.130-6. Iny, L & Brabandere, L. (2013). Apple’s New iPhone 5C and 5S: the Results of Creativity or Innovation? Retrieved 6th Dec. from http://blogs.hbr.org/2013/09/apples-new-iphone-5c- and-5s-th/ Katherine, Y. (2007). Google's engine for change. Knight Ridder Tribune News Service. Read More