Explore What Creativity Means In Your Field Of Study Introduction In this fast paced world creativity has become an essential for every field of study. Even those fields which traditionally relied on standardized guidelines now have to use creativity to solve their problems. One such field is applied finance. According to Runco (1995) Creativity can be defined as nothing more than going beyond the present limits, whether those are limitations include skill, information, existing practices, social norms, or beliefs. Creativity is important for innovation ( Runco 1995 p45). Creativity is considered as the "cohort of ideas” (Gurteen 1998 p5).
For example financial and technical factors require knowledge creation and generating novel ideas. And this can only be done by being creative. Creativity as becomes apart of many fields of studies previously believed in traditions rules of analysis. One such field of study is finance. Now financial experts use their creativity to give a more précis analysis creativity in this field has led financial research to study new topic and markets which were previously avoided. This paper will give a in-depth analysis of the importance of creativity in applied finance, keeping in mind the fact that creative problem solving and market forecasts have currently become apart of finance. Thesis statement Creativity plays an important role in the applied finance due to it’s requirement of problem solving and market analysis. Analysis Finance has two linked major roles of control and creativity.
As a control Financial Management can be used to implement, monitor and evaluate a business strategy and creatively, finance can be used to power an organization towards its objective and to give the firm advantages over its competition. Applied finance requires a lot of creativity as the main function for many users is to estimate the future.
However estimation can only be made by interpretation of the past for creative and innovative thinking is required. There is thus a significant shortcoming in any interpretation as to its effectiveness in estimating the future (Amabile 1996 p45). There are a lot of financial and technical factors which make an organization turn to creativity. Applied financial schools realize that boundaries can not be maintained just by changing plans now creativity has to be used even by their finical experts.
Considering the fact that competition is quite intense thus financial experts who are studying applied finance have to be trained to use their creativity. Applied finance helps financial analysts to think creatively while making analyses of the market. As financial experts are thought to help a corporation or company makes more benefits and profits thus they require innovative and creative ways in which they can chalk out a strong financial plan for the organization.
However, financial analysts work in different aspect and way to achieve user's goal in order to work in these aspects they use as creative pattern of thinking. Generally speaking, since their goal is to maximize the value of the company. they can only attain this goal through creativity as it will help them in a market where competition is at it’s peak (Joas 1996 p15). They are just like a doctor. They examine the whole financial condition of a corporation or company, and figure out the virus (bad strategy or financial policy).
They cannot think in just one direction in order to achieve their goals, they need to think differently and more innovatively so that they can design a better plan or policy (Keeney 1992 p53). According to Bailey (1997) this diverse way of thinking helps financial experts to give and design more effective plans as they tend to study possible factor which may have affected the market (Bailey 1997 p14).