The Creation Of A Creativity Culture Commerce Essay

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Innovation is a really significant tool for a manager and for a company to perceive. If the innovation is used in the correct manner, it can provide an organisation the competitive advantage that it needs to reach to the success in its industry. First of all, it can be beneficial to look at innovation in general. According to Naylor (1999, p 212) 'innovations are opinions which are transformed into new products or processes. They end in differentiations which consumers' release that it is new.' Dess et al (2007, p 96) describes innovation as 'innovations which are new to change processes in the organization or make traditionally valuable products, services and processes.'

Creativity and innovation are two of the most important tools which have a really important place in the area of business world and also in social area. The significance of globalization and rising competitive markets made a threat for the companies to be survival in this competitive markets and also differentiation and innovation has became a necessity to reach economical development and competitiveness. Instabilities and times of uncertainty mean unusual opportunities. At the time of this situation, organizations has to create some new occasions by concerning on the correct development works and after these, making these developments more beneficial, effectively and creatively. Thus each company wishes to become more and more innovative. Innovation is likely to come in a large number of ways such as product development, process innovation, service innovation, business model innovation and so on. However, it is difficult to say that becoming innovative is easy. A large number of difficulties occur in some situations of innovation and one of the most important and hardest challenges of being more innovative is developing the corporate culture.

Modern economies are often referred to as innovation economies. Innovation and information are the crucial assets of a business and there is a need to learn to handle these assets in new ways. Organizations are required to share information and innovation internally and learn to adapt more quickly to external circumstances in order to retain their competitive advantage. In response to this situation, the first phase of KM was focused on information technology and systems. Technical tools were used to collect the existing innovation in order to make the organization run more smoothly. In the second phase of KM, it focuses more on the creation of new innovation- Creativity and Innovation in order to keep the organization one step ahead of its competitors. (Mullins, 2005, p114)

In other words we can say that simply recycling old innovation will not serve the purpose of survival but creation and application of new innovation is required to achieve the lofty peak of competition and success. However it is important to keep in mind that the created new innovation should be useful for the organization.

To define the term innovation it is first required to differentiate between data, information, innovation and wisdom. Although innovation is often seen as a richer form of information but this differentiation is not helpful. What we can say here, as Neil Flemming (1996) has also given;

A data gathering is not information.

An information gathering is not innovation.

An innovation gathering is not wisdom.

A wisdom gathering is not truth.

The collection of data where is no relation between the factors of data is not information. A pattern can be seen beyond relation. Pattern also serves as an Archetype with both an implied repeatability and predictability. (Denning, 2005, p 166)

At the time a pattern relation exists with the data and information, the pattern is likely to represent the innovation. In this situation, the only thing that becomes is innovation. On the other hand, one of them has ability to recognise and percept the patterns and their implications. A pattern that shows innovation also gives, at the time the pattern is understood, a high level of reliability or predictability.


A simple non-business example may be that of a shirt. An analysis of its molecular contents i.e. cloth, thread and buttons is data. If we look over these contents individually we can not even think that it may be a shirt. A list of the tools and material required for the preparation of a shirt is Information- more useful an experienced tailor could probably make the shirt- here the pieces of data are related. The method through which a shirt can be stitched is Innovation (written innovation) explicit innovation- tells how to prepare a shirt. On the other hand an inexperienced tailor even knowing the method of stitching may not make a good shirt. A person however with the innovation, experience and skill- innovation in their heads- that is not easily written down- tacit innovation- will almost certainly stitch an excellent shirt from the available material. Finally Wisdom is about knowing which type of shirt (fashionable or trendy) to stitch and how to use it. It is about wise judgement. (Dess, Lumpkin and Eisner, 2007, p 124)

An important point to note here - to make innovation productive - we need information. Knowing how to prepare a shirt is not sufficient - we need information - the list of tools and material needed. And to make a wise decision we too need information - the needs of the users of that chair. So innovation on its own is never good enough - we need information and innovation - and of course 'doing the wrong thing well' is also not productive, we need wisdom also. (Naylor, 1999, p 261)

Let us suppose that we are missing content for the preparation of the shirt- knowing why a particular content was used in the method might help an innovation-able tailor substitute an alternative.

There is no agreed definition of Innovation Management. The term refers to a process of generating value to the organization through the creation, dissemination, renewal and proper application of innovation. It can be defined as a creative way of utilizing information and people throughout the organization. A simple definition will be that innovation management is about make use of "what we know" in the best possible manner so as to gain the competitive advantage in the business world. (Mullins, 2005, p 241)

Innovation management is the mantra that facilitates the smooth flow and distribution of innovation of the individuals, groups or teams across the organization in certain ways that directly affects the performance and potential levels.

Precisely, Innovation Management aims at getting the right information within the right context to the right person at the right time for the right business purpose. It comprises of a range of practices used in an organization to identify, create, represent, distribute and enable adaptation of insights and experiences. Such practices contribute in the things like improved performance levels, competitive advantages, innovations and sharing of lessons learned and continuous improvement of organization.

According to Rudy Ruggles (2003, p 181), a leading KM thinker, the following items are integral components of KM:

Generating new innovation

Accessing valuable innovation from outside sources

Using accessible innovation in decision making

Embedding innovation in processes, products, and/or services

Representing innovation in documents, databases, and software

Facilitating innovation growth through culture and incentives

Transferring existing innovation into other parts of the organization

Measuring the value of innovation assets and/or impact of innovation management

In this way innovation can be seen as a crucial resource for an organization which needs to be managed by the creation of new innovation, collection of valuable innovation from internal as well as external sources, proper implementation of this innovation in processes, products or services, maintaining the innovation within the organization at various places i.e. databases, documents or in people's heads, establishing an creative environment in the organization and sharing the innovation across the organization.

Organisational Culture and Innovation

Every organisation has innovators but the key is to create a culture where innovation comes through. Culture is the energy that fuels innovation and it may also be a poison that prevents it so buzz today is to develop a culture which supports innovation. Culture of the organisation is a living, breathing and ever-evolving entity. Corporate culture may be defined as the set of important understandings that people of an organisation share in common. It describes how people expect to work & what the rules are about how the firm is run. Culture is the mix of attitudes, experiences, beliefs and values of an organisation.

When a new employee joins a firm he usually adopt the culture of that firm and in some cases the culture is so pervasive that it becomes the identity of firm and this culture sometimes discourage the change & resist the new approaches when it is required. The corporate culture that exists in many of the companies which focuses on cost cutting, outsourcing, quality & process excellence presents a significant hurdle for innovation.


The answer is that everyone can be creative and innovative the only requirement is to encourage the innovation among people. In the words of Peter Drucker (2006, p112) "Innovation is real work and it can and should be managed like any other corporate function but that does not mean it is the same as other business activities. Indeed, innovation is the work of knowing rather than doing."

Buzz today is to encourage and manage innovation through innovation management. One strategy to build up an innovative organization is getting people to accept that the way they work just might not be the best. The most important thing is to help people broaden their perspective. Innovation is like a sky with horizons defined. These horizons can only be broadening through innovation. (Leonard and Straus, 2001, p 212)

Another way to manage innovation is to have creative people in order to produce ideas which are novel and worthwhile; they should continuously update their innovation, find the gaps in their innovation and get that innovation from right sources. Encouraging the people for innovation is not an easy task. What the problem today with many of the organizations is that people with ideas have a sense of irresponsibility. They think that their jobs are finished once the ideas have been suggested and it is the work of someone else to find out the details and then implement the ideas. However implementation of ideas is the finally desired goal. Therefore, it is needed to encourage the employees not to just producing the ideas but also to implement them for generating value from them. (Uecke, 2002, p 1-13)

Innovation is all about taking risks. It is required to encourage innovation when an organization is doing well because the last thing which is desired is to gain competitive advantage and for that innovation is required. When we create some new product or services it may be acceptable in the market or not but until we wouldn't take the risk of the failure, we will not achieve the success. One must not afraid of the possibility of failure and of taking risks. (Reddy and Rathan, 2004, p145)

One of the misconceptions about innovation is that innovation is about creating the next new product, that's why most of the companies focus on their R&D. But since it is easy for other companies to copy any new product, the return on investment is very less. Hence it is required to encourage innovation in every field such as in customer service, in business models, in networking and so on. One can actually spend less and make more money in innovation if he pays attention to the valleys, those places which competitors have overlooked. (Gurteen, 2005, p 66-74)

Accelerating Innovation in organisations

For including innovation in the firm's corporate objectives and developing a culture of innovation in the organisation the first step is to be taken by senior management and then by the people of the organisation.

1. Developing a Vision

This includes making a new mission of expected future situation which is innovative, reliable and useful. Managing team must create a vision for a new creation which defines the significance of being creative to the company in carrying out its business mission and this relationship must be clearly articulated.

2. Communicate the plan

Just having a vision of being innovative does not guarantee that everyone will follow, communicating the plan to everyone is required. Communicating the new vision of innovation goes beyond the traditional corporate communications that use formal channel alone.

3. Removing all physical & organisational barriers

Many businesses contain physical and/or organisational barriers that obstruct innovation. Organisations need to have right infrastructure in terms of R&D facilities, labs, computers, software etc. In addition it also needs organisational support in form of leadership & guidance. Having a strong support from the top leadership within an organization helps to encourage innovation. Leadership support ensures that the right infrastructure for innovation is in place and people have access to it. Leaders also inspire employees to try something new & be innovative. They should encourage departments and team members to work together.

4. Embrace the fear and encourage people to innovate

"It is better to have tried and failed to have never tried at all." This message should be communicated to the people. Often staff members feel unsafe to explore the innovative ideas as they have a fear of failure. Sometimes their ideas are rejected by the company without proper consideration and this is the reason employee feel de-motivated. Here the role of management is to give considerable thought before rejecting or accepting an idea because it has been seen that what looks the most funny at first becomes an innovation to the organization.

5. Compensate for innovation

Most of the employees do what they are compensated and motivated to do. The next step must be created to get presents to these whose new creations have been being implemented within by giving praise to these whose new creation could not be accepted but was notable. Changing the compensation of the individuals involved in innovation will encourage people at all levels to spend more time focused on innovation activities. Until people are compensated to take risks and recognize they won't be punished if they add up sum cost for innovation, it will be impossible to create innovation capabilities in any scale.


It can be concluded that in this competitive world where complexity and uncertainty increases every day, the only way to survive is to manage the innovation with the help of creativity and innovation. Innovation can be managed through capturing and making the full use of a firm's collective expertise. In fact, innovation management is the fuel or raw material for innovation which is the only competitive advantage that a company can use for sustaining in the unpredictable business environment. Today Innovation is the final way to land on the aeroplane of Success and growth which can only be used by the fullest and optimum use of Innovation management. To innovate successfully one must hire, work with and promote people who are unlike to him who make one uncomfortable because only those will challenge him for his decision and . The need is to encourage every type of innovation in an organization, to inspire people for taking risks and to make them know that whatever they are doing is not the best. Thus by building an innovative organization, companies can ensure their future growth and success.