The Role of Creativity and Innovation as a Major Component of Success in Any Organization - Term Paper Example

Creativity and Innovation: Keys to Organizational Success Student’s Name Subject Professor University/Institution Location Date Introduction Overall, any organization`s relevance in it area of expertise spells it success. The relevance is obtained in employing specific strategies of paramount importance in that domain. The massive inceptions of many new firms with same or new line of service in the market, calls for ultimate relevance to remain an ‘A’ player in whichever industry (Amabile 1996). Furthermore, the industrialized world is changing at a rapid rate. What is new today could be archaic or obsolete in a few months with ever changing needs, and potential never thought of years back, is fully integrated now (Stenseng 2012). For that reason, creativity and innovation are too good to leave to chance. Instead they ought to be part and parcel of management of every organization in the 21st century. Creativity is invention of novel and functional ideas in any domain (Amabile 1996). To be termed creative, an idea or production must be completely different from what has been done before, or ultimately unique. Also, it is of the essence to avoid misconceptions on creativity. Creativity is not; eccentric personality implying that whatever a creative person does must be creative. Secondly, creativity is not the arts, rather a novel and appropriate behavior in any domain of mankind activity. Thirdly, it is not only intelligence or always good. Creativity behaviors can be applied to evil and destructive ends as well (Shapiro, 2001). On the other hand, innovation is the implementation of creative ideas within an organization. In other words creativity is the raw material for innovation. Thus, creativity may be at the individual level, while innovation is at the organizational level. Innovation is a seal to change the game in order to stay ahead of competition. Effective innovation demands concentrating on obtaining the right structure, focusing on interdependencies, targeting the right capabilities and making it happen. Hence, organizations that pursue this course make innovation a sustained and permanent part of their management and operational methods. Researchers on creativity prove that, contemporarily, every human being with normal capacities is able to contribute some creative work in some domain at times. Creativity and innovation are not an event, rather occurs day and night to ensure the company keep pace (Sundegren 2003). Organizations ought to work extra smart to maintain their hard won clientele as well as keeping a consistence profitable growth, even at difficulty periods. A dynamic environment of industrialization, globalization and rapid technological change, cause short life cycles for products and services. Therefore, more than ever before organizations have to employ creativity and innovation to survive, compete, to grow, and to lead (Jung et al. 2003). This paper explores the role of creativity and Innovation as major component of success in any organization. For organizations, there are a number of reasons why creativity and innovation are important. Organizations indulge in creativity and innovation mainly for purposes that in turn brings the expected success. Importance of creativity and innovation is implanted in, market, people and organization, external forces, and financial purposes. Market purposes` importance To begin with, creativity and innovation are imperative in sustaining of organizational development and organizational success. A continued inception of innovation in an organization facilitates growth and development through strategic acceleration (Samson 2010). Moreover, further invention and innovation in a successful business ensure it sustainability in the marketplace by enhancing competitiveness and continual penetration. The competitive advantage of market penetration is established and maintained through innovation and creativity (Meisinger 2007). The ever increasing consumer value demand; at lowest cost, highest quality and fast cycle time and ultimately satisfying the consumers needs necessitate incessant creativity and innovation in the business. Smith and Munn, 2006, assert that success in any organization is achieved mainly by cycling down the costs and enhancing operating efficiency through creativity and innovation. To survive adverse changes in operating circumstances, protect market share, reposition and raise market profile as well as opening new horizons and move out of the rut of limited potential creativity and innovation are of essence (Mobbs 2010). Secondly, creativity and innovation develops unique selling point for the organization. People often perceive innovation as something that adds value to a company or to its products. If appropriately used, innovation can provide the organization with a commercial advantage. This is so especially in cases of flooded or speedily changing markets. Developing a systematic innovation capability to spells series of innovations that enable deliver of business value. At this juncture, consumers may prefer a higher price tag for a well-designed, novel and innovative product or service, rather to cheaper, but less exciting rival (Samson 2010).Also, organizations that invest well in innovation, there is a premium in the marketplace for innovative products, and in stock markets too (Samson 2010). Still, by innovating, organizations are by designing flexible and in better position to handle market events and challenging environments and trends compared the rest. Importance of creativity and innovation for purposes of People and organization Thirdly, creativity and innovation enhances good organizational culture vital for organization`s success. On tapping to their creative potential and empowered to do so, employees engage each other in search for a better output. This participation and contribution and decision making, organizations ultimately benefit because creativity and innovation have become critical factors in organizational development. According to Shapiro, 2002, innovation and integration unlike the hierarchal authoritative methods upholds interdependence through group effort. Consequently, the staffs have been overly engaged in making the company a success. According to Mobbs, 2010, invigorating staff with interesting and challenging work calls for interdependence from all departments. This makes it easier for general cohesion, hence improving the business. Fourthly, creativity and innovation enhance customers’ value. Generally, consumers are attracted to be associated with innovative companies. It is human nature to get interested and inquisitive to new and better things. Focus on customers render superior customer value by making them part of the innovation process. Innovative products and services in other industry raise the bar for others (Shapiro & McDonald, 2001). Whether in the form of new or enhanced products and services, or process innovations that reduce cost and therefore allow for more competitive pricing while achieving solid margins, it is of essence. As such, a clever, better and new solution to a need or problem means a net positive value for customers and they definitely go for it. Improving the existing products and services or creating news of better value helps meets customers’ service quality requirements. It is perceived by many as the major way to attain a healthy customer experience. An organization is expected to offer a variation on it services and products. Economists assert that the quality of services greatly relies on the final encounter in shaping consumer experience and acuity (AuBuchon 2011). This ensures customers turn from being first time visitors to loyal clients, more sales as satisfied customers have been retained and referrals by satisfied customers. For this reason, consumers feel important and part of the organization. Rectifying, better, creation and innovation of new, better products and services means success organization (Chiou, W, B et al., 2009). Fifthly, creativity and innovation helps an organization win in the labour market. Frequently innovating and enhancing business practices plays a role in attracting better staff as well as retaining more of existing ones (Innovation & Business Skills Australia Ltd 2009). Talented and skilled people get attracted to firms doing attention-grabbing things rather than the same old ones. As such, innovation supports reputational advantage and hence serving the purpose of winning the ‘combat of talent’ (Samson 2010). Innovation is attributed the high staff motivation and satisfaction, low turnover and hence labour market success for the firm. Consequently, an organization offers a services or products with a quality which is hard for competitors to match. This differentiation is essential to the long term shape, health and performance of any business (Queensland Goverment, 2012). Importance of Creativity for External forces purposes Furthermore, creativity and innovation responds to trends and competition. By actively involving in this model of business act, helps discover opportunities that exist now and what is likely to emerge in the future. Responding to customers and organizational needs through current market trends and predict future trends build up ideas to handle demands rapidly and effectively. Innovation ensures the organization stay ahead of competition with changing technologies, marketplaces and shift of trends. Therefore, an organization reinforces a reputation as a leader in the market and raises it market profile (Queensland Goverment 2012). These two add to the pool of a company’s differentiating capabilities that keep it distinguished from others. In this case, social environment should be structured so as to positively impact both the degree and rate of recurrence of creative behavior (Innovation & Business Skills Australia Ltd 2009). Importance of creativity and innovation for financial purposes Another major importance of creativity and innovation is that, they help make most of what an organization already have. As much as innovation is not about designing a new service of products but rather working to better existing ones as well (Samson 2010). This means no wastage of resources, energy and time is recorded. An organizations business processes and practices through creative innovation can be transformed to improve efficiency. This calls in new customers, reduces the wastage and significantly raising the business` profits. Additionally, they are vital when applied at Entrepreneurial Creativity level. Creativity drives entrepreneurship at all levels. Entrepreneurial creativity is whereby invention is put into practice, to convert a intangible idea into a workable and economically practical operation (Shapiro & McDonald 2001). Adding of a fresh appropriate and viable idea in establishing and delivering products and services from the existing ones, adds to the importance of creativity and innovation for an organization. New programs and undertakings in existing business results from creativity. As such, creativity is vital for expansion of the business in the sense that it creates a room for the same by providing ways and means for same. An organization that innovates always causes change in the way it does business hence benefiting all stakeholders (Innovation & Business Skills Australia Ltd 2009). Finally, they open doors for alliance partners. Other businesses that are looking for a merger would first go for the best creative organization. This means a better and boon for shareholders returns. Financially, the organization attracts extra funding which raises margins and profitability (Mobbs 2010). Conclusion Conclusively, innovation through creativity is fundamental component of success and competitive advantage of any organization and hence a strong national economy. As such, much better and targeting marketing strategies have come forth. And as the world-economy is changing and more and more individuals can needs services, it necessitates future professionals to be more skilled to provide up to date services for the growing clientele. The reality of massive of technology development clearly proves embryonic nature of any industry. What is new today could be archaic or obsolete in a few months with ever changing needs, and potential never thought of years back, is fully integrated now. In this regard; organizations must incorporate constant change to stay on the top of the game. This is the need to renew organizations and companies for the purposes of remaining competitive. Those that fail to answer the changing needs are likely not going to survive. To be relevant in future, current trends must be well analyzed to be able to understand future behavior of consumers. Additionally, as more and more customers expectations in an organizations are meet; the world can expect better services, more experience and further knowledge with continued innovations and as industries significantly develop. In this regard, creativity and innovation are two key ingredients for any organization to overly engage to achieve and succeed. 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Sundegren, M et al 2003, Creativity – A Volatile Key of Success? Creativity in New Drug Development. Creativity in New Drug Development. Vol 12, No. 3 , 145-161. Read More