Analyses of the difference between innovation and creativity business essay

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Motive for taking up the project: Evaluating reasons which can be held responsible to bring in clear version of creative and innovative management strategies.

Information Required:  management strategies, management approaches , Reasons for new policies, future strategy.

Sources of Data: Secondary sources: Internet, magazines,

Background of the Research:

Organizations working scenario are mainly connected innovation and creativity which  are always required by business organizations..

Creativity and innovative ideas are strong pillars for business organization and in a competitive market with such hard core competitive nature There are several other factors as well such as better quality, good service, etc but maintain success for smooth long run innovation is the core ingredient of a successful business, innovative ideas are making advancements;  therefore a company have to sustain in the market and win this competitive game with creativity and innovation.

Innovation management is something which is put in action to achieve a efficient and sound managing system for Research & Development (R&D), but as there is huge advancement in business management although his whole process is a huge layout and is spread far beyond the core area because innovation is very important for business growth. Innovation management is divided in two main duties which includes managing both input and output of innovative materials.

Innovation management needs to conduct the flow of innovative ideas into the organization for required or subsequent usages. In simpler words, it is to collect all relevant external innovations and to serve the internal innovative system.

There are basically three components of Creativity

Creativity is not something which can be taught to somebody nor its an indiviual act it involves various thought process ,everyone have it in them, but there are still several factors which play an important role for creativity:

Motivation : This is one inner power given to human beings through which mountains can be moved there for creative ideas motivation is must it can be self motivation or being motivated by someone else.

Creative thinking skills: The ability of individuals to think out of the box for any new invention can be defined as Creative thinking skills.

Expertise: Learning from experiences is a good skill injected in human beings and similarly learning from your experiences and good judgement helps in creative thinking.

Aim of the Research

"Innovation ca be defined as an "external" factor. We can measure it determine it. It all about tried and tested things, which can be talked about and have been tested properly and found to have worked in the real world. In other words Innovation can be defined as or can be seen as the process that is a regular constant change on an ongoing process, or anything which stands out different from the usual can be known as Innovation.

"Creative", however, is more of an "internal" word. It's subjective, it's murkier. It's far harder to measure, it's far harder to define. It's an inward journey, not outward. Which is why a lot of people in business try to keep the word out of their official lexicon, preferring instead more neutral, more externally-focused language like "Value", "Excellence", "Quality".

There is a huge difference between the two words Creativity and Innovation but people often mistaken it and think it to be one word there the core aim of this research is to justify the statement that innovation and Creativity are two different things in an organization and they both play a significant role in it.

Reasons that support the above stated statement i.e Innovation and creativity are two different words:

Creativity is creating or originating a new idea or plan whereas innovation is implementation of the plans and new ideas

Creativity is to think about how things can be done where as Innovation is getting things done in new formats

Creativity is only about ideas where in Innovation is about actions

Components of innovation and Creativity:

An unto date Innovative management system with the current market

Creative ideas used for planning the growth of the organization

Acceptance by all employees for the changing environment

New and innovative environment for the employees.

Effective Management: There are various leadership styles which can be used to have a effective management system, therefore one or more style can be adapted according to the situation, for this particular research democratic and participative and autocratic leadership style can be used. As by autocratic style a strong leader can decide better policies for the organization, them by democratic organization an individual thought process is also needed for betterment of the organization.(Rick Daniels,2003)

Motivation: For every human the word motivation is a process of pushing themselves to work harder and achieve there desired goals. It is very important for managers to motivate their employees, as motivation is one of the factors responsible for innovation.

Detailed Analysis of Innovation and Creativity


"Innovation is the process that transfers ideas into commercial value"-Anil Singh Chauhan

Characteristics of Innovation:

Combination of Knowledge

Ongoing process

Addition of values

Different version of ideas

Different kinds of Innovation:

There two major parts in which innovation can be divided into first is technical innovation and second is Administrative innovation.( Dr.Gurudutt,2009)

Technical innovation consists of new tools, products, machinery, production process

Administrative Innvations combines of group work,team effor and HR strategies.

Factors for Innovation:

Good management system

Detailed Consumer survey and well planned strategies

Motivation by subordinates

Innovation varies from various levels some of which are discussed below in details

Incremental Innovation: This level of innovation is small level of innovation it includes very minor changes such as modification in current available plans and ideas, any enhancement in the quality of the product come under this particular category

Modular Innovation This level of innovation includes innovation at middle level such as further developments and creation of new plans and policies

Radical innovation This level of innovation takes place when whole new plans and policies are required and new policies from the scratch needs to be started.(Patrick Dawson,2009)

Types of Innovation in business organization

Service Innovation 

Product Innovation

Management Innovation

Risks involved in Innovative Idea and Policies

Human Behavior: We all are human beings and it is very difficult for each human to adapt changes and work accordingly therefore all employees can not cope up with the latest and dynamic plans. With each individual the working criteria is different and therefore by implementing these biggest challenge to be faced by the company is the adaption of theses plans by there employees. Mangers can only give the instruction and they cannot make someone work accordingly, each employee according to its capability.

Difference in opinion: Every individual have different opinions which create hindrances' in smooth running of the plans therefore it wont be easy to mange everyone's view point and work together in a same direction. To make so many people understand a particular thing is just next to impossible.

Lack of leadership: For a huge employee organization good leader are must as working in a team can only increase the quality of work and achieve the desired goals. But at the same time lack of leadership qualities are often seen which act as a hurdle for smooth running of new creative policies.

Benefits of Innovation:

Improved working Environment: The new policies and plans will lead to a more healthy and efficient working conditions which motivates all employees to work for the welfare of the company. Creativity often leads to better results and new plans of innovation will result in a positive way for SSS company.

Employee Satisfaction: If the employees are getting the desired results and equal importance is given to them by there managers then the senses of work satisfaction will always prove to be a source of development for all the employees.

Increased profits: Clear and well planed policies for business growth will always lead to expansion of business and huge success for the profits of the company. If there is a well planned management it will automatically lead t increase in profits for the organization.


"Creativity is the occurrence of a composition which is both new and valuable"-Henry Miller

Characteristics of Creative indiviual:

Broad minded

Different approach

Acceptance of changes

Idea generator

Importance of creativity in Business management:

Best utilization of available resources

New ideas and new inventions lead to better results

Healthy competition

Less wastage of products available

Stages involved in creativity process:

Preparations: The fore most step for creativity process is preparations it can be further defined as the initial stage of thought process of an individual in which the whole planning for the preparation about the new idea takes place,it includes collection of data and research work

Incubation: Secondly after the reparation is done the creator or the indiviual carries the second step of creativity process that is incubation in which he analysis all the problems and obstacles involved in the plan, all the data collected in our unconscious mind start getting to work under this stage.

Illumination: the third step is the illuminator phase in which all kinds of illusions come under and the individual brains works to all spheres under this stage all the solutions start coming up.

Verification: After all above stated steps the last step is of verifying the plans and polices set up in human brain, all the positives and negatives characteristics of the idea are evaluated.

Various Theories related to Innovation and Creativity

According to Mandler(1995) Whatever human mind thinks off is a genuine and true creativity nothing can be repetitive and similar, in further words it can be described as unique concept and every indiviual have there own interpretations. (Mark A Runco,2007)

As said by Kuhn(1970) innovation paradigm concept refers to different things all together. These two things consist of collection of various values, concepts and technique for scientific use and other is for finding appropriate solutions for the problems being faced by business organization.(John Sundhbo,1998)

Theory of Economic Development: According to Joseph Schumpeter innovation is defined development of motor. His emphasis lied upon the fact that if there is a betterment seen in the economical sphere of the organization that automatically leads to innovation.

Problem Theory: This is one theory in name of innovation which gives pays attention on the problems faced by the organization and why there is need of innovation is required to solve the emerging problems of the organization.

Scientific Approach : As Creativity is a outcome of human brain therefore creativity lies in the functioning of human brain the left side of the brain works for all materialistic works such as calculation, verbal output, logics et wherein right idea is for all emotional matters.


For every Business organization innovation and creativity are the most important factors, which play a significant role in business development. its human tendency to keep on changing the plans and ideas therefore innovation is must required for this process.

But there are times when Innovation and creativity these two words are often taken into consideration as one word but there are number f differences in these two words some of them are listed below:

Innovation is a combine group of various small plans and steps combined together where as creativity is bigger in term is huge thought process

More of thinking is required but for creativity more physical work is required

Innovation is best for all business organization but creativity's more efficient for big firms

Innovative and creative ideas are must for any business orgaization as we go through the report there changes required by all business firms to face the competition in market which is increasing day by day and f they do not bring in changes it would be very difficult to maintain there rapid growth with existing policies.

The Business organization needs perfect policies and the mangers appointed in the organization need to be updated with the market policies. If they do not handle the company management structure well then the company would have to face a downfall in the near future.

Theses changes are good and required by the organization but its not only the changes that will wonders for the organization, the more difficult part of the whole process is the creating innovative ideas for these changes and finding out appropriate ways of implementing them

If all the innovative and creative ideas are implemented in an organized manner then there are no further hurdles any business organization they will emerge as a strong organization with would have a big name in the market.

As we go through the entire report it is very clear that these two words Innovation and creativity serves as backbone of every organization and although they seems to be similar words but there is a huge amount of difference in hem

Innovation is required for constant changes in the current plans and policies of the organization and creativity is required for bringing in new ideas and policies in the business organization.


RickDaniels,2003 Nursing Fundamentals: Caring & Clinical,

Mark A Runco,2007

John Sundhbo,1998 ,The theory of Innovation

Dr.Gurudutt Kakkar, 2009, Renaissance of HRM through creativity and quality

Patrick Dawson,2009