The paper "Creativity and Innovation Are the Keys to Organisational Success" is a great example of management coursework. Innovation and creativity are two interrelated concepts that are invoked frequently in the fields of organizational management. Although the words ‘ creativity’ and ‘ innovation’ are often used interchangeably, they actually refer to two different activities or processes that take place in organizations. Creativity refers to the process of generating and sharing new ideas while innovation refers to the process of implementing new ideas. According to Meisinger (2007), innovation is the successful exploitation of new ideas for organizational growth and success.
This implies that the process involves the successful application of new knowledge and techniques in new ways and for new purposes. It also entails attempts to organize a business to take advantage of new opportunities profitably. Both creativity and innovation are necessary for organizational success. In the modern world of business where competition is the order of the day, organizations are increasingly getting interested in creativity and innovation to cope with changes in economic factors, technological advancements and market dynamics (West, 2002). Creativity in organizations is fundamental to the process of innovation.
Innovation is merely part of the system and processes that produce it. Therefore, the ability of an organization to implement creative ideas is a pre-condition for successful utilization of creative resources, new technologies and processes. In the converse, the introduction of new technologies often presents immense opportunities for organizations, leading to changes in management practices and production processes (Chesbrough & Teece, 2002). Importance of Creativity and Innovation to Organizational Success Many business organizations see creativity and innovation as opportunities to create and maintain competitive advantages over their rivals.
Therefore, many organizations have created processes and strategies that encourage an atmosphere of creativity and innovation. For many of these organizations, the real challenge is not in getting staff to come up with new ideas but finding the most effective and practical ways of implementing new ideas. Essentially, there is an imperative need for an effective innovation process that can be relied upon to produce a steady stream of sustainable and breakthrough ideas as well as new products and services. Such an innovation process can enable organizations and their people to create and capture data in new ways, eventually leading to organizational growth (Mumford & Licuanan, 2004). With the ever-increasing dynamics of competition, the key to organizational growth no longer lies in relying on past processes, technologies and ideas.
As such, the business case for innovative and creative is firmly accepted as the norm in organizational management. Creative ideas, technologies and processes translate into innovative business practices only when implemented, managed and evaluated carefully. Mumford and Licuanan (2004) have noted that organizations that are capable of innovating and differentiating their products and services are on average twice as more profitable as other organizations.
Moreover, engaging employees in the generation of new ideas fosters loyalty and a strong sense of organizational commitment. Creativity and innovation play a fundamental role in the development of new and successful products and services. Essentially, the lifeblood of any business is to be able to create new products from the resources they have at hand and then turn them into something that is of commercial viability. According to Cafolla (2007), innovation and creativity are high cross-functional activities, which if implemented well can create constructive tension between competing strategic objectives.
These objectives can be about product creation, minimization of development costs, performance enhancement, time management or distribution of product to the market. As such, innovation and creation touch on every aspect of an organization. An important function such as strategic planning, purchasing, customer support as well as finance is heavily dependent on sustained creativity and innovation. How well these functions work harmoniously depends greatly on how effectively the management will be in developing creative and innovative support activities.
Atkins, C. R., Dykes, P., Hagerty, J., and Hoye, J. (2002). How customer performance partnerships can sharpen your competitive edge. The Journal for Quality and Participation, 25(3), p. 22-54.
Cafolla, L. (2007). Championing change from the bottom up. China Staff, 13(7), p. 2-32.
Chesbrough, H. and Teece, D. (2002). ‘Organizing for Innovation. When is Virtual Virtuous?’ Harvard Business Review. Vol. 80, No.8 (August), pp. 127-134.
Edwards, J. R. (2001). Multidimensional constructs in organizational behavior research: An integrated analytical framework. Organizational Research Methods, 4(2), p. 144-192.
Hornstein, H. A., and Guerre, D. W. (2006). Bureaucratic organizations are bad for our health. Ivey Business Journal Online, 1-4.
Meisinger, S. (2007). Creativity and innovation: Key drivers for success. HR Magazine: on human resource management, 52(5), p. 10-42.
Mumford, M. D., and Licuanan, B. (2004). Leading for innovation: Conclusions, issues, and directions. Leadership Quarterly, 15(1), p. 163-171.
Shapiro, S. M. (2002). 24/7 innovation: A blueprint for surviving and thriving in an age of change. New York: McGraw Hill.
West, M.A. (2002). ‘Sparkling fountains or stagnant ponds: An integrative model of creativity and innovation implementation in work groups’, Applied Psychology: An International Review, 1(3), p. 355-387.