Creativity and Innovation Definitions
Creativity can be defined as ability to surpass traditional rules, relationship, ideas and patterns in order to create new meaningful ideas, methods, forms and interpretation (Shallcross, 1973). Creativity allows people particularly entrepreneurs and organizations to think of new ideas and make new things to improve current situation. Moorcroft (2001) defined it as mental characteristics that allow company employees to think outside the box to ensure that organization not only survive but prosper by using different approaches for a particular task. Creativity is a necessity for the innovation. The prominent scientist, Charles Darwin mentioned in his theory of evolution that organisms including humans who learn to collaborate and improvise most effectively have a higher chance of survival. This is also through for business organization amidst stiff competition brought about by globalization.
The business organization need to invent ways of producing quality products and serving the customers well more that the competitors do. More business organization are adopting technological means for communicating with customers (Kristensson et al., 2008). The advent of social media has proven useful for the companies to display its products in Facebook, You Tube, Twitter, Instagram and company website and allow customers to order directly through a designed mobile application or online platform. Thanks to electronic payment systems that has allowed customers to pay for goods and services across different parts of the world. Many authors in businesses have agreed that creativity turns new and imaginative ideas into reality and have argued that if people have ideas and cannot act on them then they are imaginative and not creative (Amabile, 1988; Liu & Noppe-Brandon, 2009). In my own opinion, I feel that someone who is creative must have passion and commitment is since there are many hurdles in bringing ideas to reality. DeFillippi et al. (2007) highlighted that resistant to cultural change and limited financial resources are some of the major challenges for unleashing creativity in public and private entities. The business organization need to take risk and get through many discomfort situations in order to get to the finish line and achieve creativity. All the novel products are regarded as creative.
Innovation is the process of translating invention or idea into a process, good or service that creates value for customers, government or organizations (Baregheh et al., 2009). Innovation also involve implementation of new or significantly improved product that creates value to the society. The idea must therefore satisfy a specific need in order to be regarded as innovative. The customers’ change in taste and preferences requires organization to generate new ideas that can be applied to processes, products and services to satisfy the needs and expectations of the customers. The innovation is prerequisite for business organization to create revolutionary products that create new markets (Archibugi & Iammarino, 2002). The scientific knowledge generated through experimentation studies has contributed immensely to creation of many things that has not previously been in existence. With this regard, organization need to allocate resources for research to stimulate innovation that increases competitive advantage. The IT industries producing electrical like phones, tablets, laptops and desktop computers are being innovative by incorporating new features to their products to create niche and increasing purchasing power for its customers. This is seen in several new phone and computer models released into the market every day (Bhuie et al., 2004).
Importance of Creativity and Innovation
Creativity is all about creation or conceiving new products, thought, tastes, art, ideas, plans and sensation. Creativity is being adopted by organization to solve problems, create and market its products. Innovation on the other hand, involves common processes by improving on it. The innovation transforms newly created ideas into something practical and useful. The innovation can therefore be regarded as a process of transforming theory into action. Innovations are evolutionary in the sense that it finds ways of making improvements to goods and services. The innovation therefore carries fewer risks compared to creativity (Anderson et al., 2014). DeFillippi et al. (2007) suggested that opportunities for innovation can be sought existing customers by asking them for feedback on what they value most about products and services. The customers offer useful information on aspects that need to be improved on company products. for instance, for a given brand of phone, the customers might suggest improvement on battery life. Krishna and Swathi (2013) indicated the relationship between innovation and creativity as given below:
Innovation = Creativity + Risk-Taking
Creativity is vital for organizations to improve employee performance, create quality products and manage tasks. The company image is now significant determinant for business success and thus the managers are adopting creative ways to foster company image and make it appealing to both customers and potential investors. Creativity allows businesses to apply new technology in business to minimize cost and increase production efficiency. Innovation is also important for organization to differentiate its products from those of competitors. This is because the clients and customers are keen on products with distinctive and valuable features (Kristensson et al., 2008). The innovation by employees can be achieved through motivation.
Innovation is not limited to changing product or service but it also encompasses finding innovative new processes to create product cheaply without compromising on quality. This allows organization stand out from competitors by offering quality product at low prices. Innovation further enables companies to adopt new distribution system that allows fastest delivery to the customers (Berry et al., 2006). Creativity and innovation in workplace can be achieved by allowing employees to go beyond what is expected of them and do whatever they feel it can boost company’s performance. It involves creating a conducive working environment that support employees’ skills and talents. The managers need to let the staff feel free to explore new ideas that make changes to existing products and services to fulfill the need among varied customers.
Comparison of Creativity and Innovation
Creativity conceive ideas while innovation implement those ideas. Creativity starts with brainstorming to generate ideas and ends when new ideas are conceived. Innovation on the other hand implement something. Therefore, there cannot be innovation without implementation of something. There cannot be innovation without creativity.
The population is growing rapidly in many parts of the world necessitating creation of jobs to provide employment opportunities for young population. The entrepreneurs need to be innovative to solve problems associated with rapid population such waste management, provision of better healthcare, increase food security, high-quality education and clean energy. Creativity is the heart of enterprise to create value to the society through provision of goods and services while accumulating wealth (Fillis & Rentschler, 2010). The developed countries can attribute their economic development to innovative entrepreneurial approach to business. This is due to shift in focus of managers from quantity to quality and products to processes (Baron & Tang, 2011). This is true for many industries across the world that have realized the need to increase customer satisfaction through laying foundation of their business in creativity and innovation.
In the current century, innovation and entrepreneurship seems inseparable. Innovation is a necessity for all business organization irrespective of their sizes due to competition that has extended from local to global scale. Krishna and Swathi (2013) argued that Indian companies are able to compete successfully against international companies due to investment in research and development to improve performance. Trade liberalization led to abolishment of tariffs and quotas, reduced protection of local industries, minimization of government controls, increased foreign investments and increased competition. These factors have forced entrepreneurs to be creative and innovative in order to survive (Anderson et al., 2014). Creativity and innovation is vital for entrepreneur to deliver a mix of value by doing things differently. Furthermore, entrepreneur’s creativity allows him to drive well in the market by changing process and goods to create demand. Entrepreneurs drive innovation and creativity to produce solutions to their business by developing alternative approaches (Berry et al., 2006).
Raytheon is a technology leader in Boston, US that is specialized defense and homeland security. Since inception in 1922, the company has grown significantly and is now capable of generating over $24 billion annually. It has about 6300 employees who engage in many activities, mainly developing engineering technology for the US government in the field of defense and electronics (Boston Business Journal, 2017). The major customers for the company is therefore the government then a few are private organization and homes. It produces torpedoes, electronic system and sonar for ships. It further specialize in land and sea based radars, air and missile defense and systems for managing communication, cyber, surveillance, computer, intelligence and reconnaissance. The company has further extended services to 19 countries major company branches established at Germany, United States, Australia and United Kingdom to serve global customers (Raytheon, 2017).
Value of Creativity and Innovation in Entrepreneurship
Raytheon is the pride for America as its technology span to air, water and land security system. For a long time, Raytheon has helped American ships to navigate through adverse climatic and political conditions by guarding the ships against ballistic missiles and any other threats using radars and satellites. Raytheon is engaging technology to make America safe place. They have strong air traffic management system that keeps plane move safely around the world.
Raytheon has pride for its cool products and services that enables it to build strong customer base. The company has find it necessary to take care of employees’ welfare in order to create a culture that is able to offer best customer service. Many companies have laid emphasis on customer satisfaction, forgetting that motivated employees are the one who make customers come back for organization’s products. Raytheon Company is best example of organizations that value its employees. The company expects excellence and giveback through perks and many other programs that reward, recognize and appreciate its employees. This has led to low employee turnover, acquisition of highly talented employees and high retention for top-performers. This company has followed suggestion of Markos and Sridevi (2010) who stated that a company that treat their employee right, the return on investment will be better performance, higher profitability and greater employee retention.
The company is able to stay ahead in security system due to heavy investment in technology. Innovation is the center heart of Raytheon business. The company has established a research center named Raytheon BBN Technologies that is involved in research and development to offer best technological solution to its clients. The company has adopted best technologies to deliver custom solution to deal with real-world challenges. The research team in research and development is experienced with excellent skills in quantum communications, computing and sensing enabling the company to be the leader in security technologies. They have software that fits IP military network and offer accuracy in security system (Weill & Aral, 2006).
The company is also innovative in that it corporate training solution to its customers. Raytheon Professional Services is involved in offering training expertise on latest technologies that are designed suit unique businesses. To achieve professionalism in service delivery, Raytheon offer consultancy services in more than 100 countries in 28 languages. The customers need to be able to use products and service so as to continue outsourcing them from the company. Since security is a complex system requiring technical knowledge, Raytheon offer training and developmental solution to its customers across the world. The company has anti-discriminatory policy that applies to recruitment, training, hire and promotion for all jobs to promote equal job opportunities for all regardless of color, genetic information, national origin, gender, age, race, creed, religion, sex, disability or veteran status (Raytheon, 2017).
Another innovative approach for Raytheon business is its value to workforce diversity. The company embrace diversity by employing people from different background in terms of gender, race, color religion, sexual orientation and nationality. The organization further values diverse opinions from customers and its employees to attain inclusive culture. This strategy has enabled the company to attract world-class talent that is able to develop innovative solutions their global customers. The company view diversity as their key enabler for growth and to achieve competitive advantage.
Raytheon involvement in corporate social responsibility can be seen as an innovative strategy to make difference in many of its stakeholders. They do this by making a long lasting impact to the society through offering support to education and armed services. The company sponsors students to pursue their education in science course, particularly engineering, mathematics and technology (Raytheon, 2017).
Other innovative ways that makes the company stay ahead in technology is amazing benefits that are offered to employees. The company offer weekly paychecks, 24 paid days off per year, flexible scheduling, health insurance and retirement plans. The company further recognizes top performing employees who make exemplary contributions to the company. By partnering with local suppliers, Raytheon enables its employees to purchase consumables at relatively lower prices. In conclusion, the company is bale to achieve a greater milestone in business by motivating employees. Highly motivated employees are able to generate great ideas that can improve decision making and solve company problems including reduction in cost of production, better public relation strategies, production of quality goods and services, improved distribution system and improved profitability.
Creative people in business
It is definitely important to have creative people in business. Every business would like to keep up with latest trends in business therefore must have creative employees to always stay ahead of competitors. There is a strong connection between creativity and business and companies that foster creativity is able to outperform other rivals in market share, competitive leadership and revenue growth (Im & Workman Jr, 2004). Creative people are essential in almost all aspects and departments of an organization ranging from design, production, packaging, marketing and delivery. The creative thinking in an organization produce a unique company culture that encourage creativity to accomplish company objectives. It is therefore important to have creative people in an organization to build a culture of creative thinking.
Creativity can be defined as intellectual ability to make discoveries and creation implying that neurophysiology plays important role in generating ideas (Fink et al., 2007). Creative people are thus born, however, it is important to note that everyone has some degree of creativity. Though creativity can come from both nature and nature, creativity born with is more prevalent. This is because the scientists have proven that incubation of ideas arises from specialization in brain that allows one to have divergent-thinking. Neurophysiologist believe that creativity is associated with brain networks and the individuals with widespread connectivity in the brain are more creative (Fink et al., 2007). I believe Steve Jobs is a creative genius in information technology for innovating personal computers that allowed easy navigation through the screen images by a mouse click. Steve Jobs further introduced iPhones and iPad tablets that has greatly change the way digital content is consumed and disseminated globally. Though he did not compete undergraduate studies, Steve Jobs made significant contribution to electronic industry.
I would propose that we find creative individuals. However, consideration must given towards nurturing innovation through creation of conducive environment that fosters creativity and innovation. Creativity and innovation need to be rewarded in organizations through compensation like cash bonuses and patenting to raise their morale. The gifts are further known to incentivize employees and foster loyalty to organization. Recognition through showcasing employees with exceptional performance is also more effective reward compared to financial compensation. Perk rewards can also be used. From my own experience, I feel creativity and innovation has eased human live and has alleviated many human suffering through development in transport, communication, food, health and agriculture industry.
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