Creativity can be defined as the act of turning new and imaginative ideas into reality. Creativity involves two processes: thinking, then producing. Innovation is the production or implementation of an idea. If you have ideas, but don’t act on them, you are imaginative but not creative. Creativity is a core competency for leaders and managers and one of the best ways to set your company apart from the competition. Corporate Creativity is characterized by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions.
Generating fresh solutions to problems, and the ability to create new products, processes or services for a changing market, are part of the intellectual capital that give a company its competitive edge. Creativity is a crucial part of the innovation equation. In the organizational context, innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc. All organizations can innovate, including for example hospitals, universities, and local governments. Innovation has been studied in a variety of contexts, including in relation to technology, commerce, social systems, economic development, and policy construction. There are, therefore, naturally a wide range of approaches to conceptualizing innovation in the scholarly literature.
All innovation begins with creative ideas. Innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second. For innovation to occur, something more than the generation of a creative idea or insight is required, the insight must be put into action to make a genuine difference, resulting for example in new or altered business processes within the organization, or changes in the products and services provided. Creativity is the process of bringing something new into being. Creativity requires passion and commitment. Out of the creative act is born symbols and myths. It brings to our awareness what was previously hidden and points to new life. The experience is one of heightened consciousness-ecstasy.
Creativity refers to the phenomenon whereby something new is created which has some kind of value. What counts as “new” may be in reference to the individual creator, or to the society or domain within which the novelty occurs. What counts as “valuable” is similarly defined in a variety of ways. Creativity is fostered in organizational cultures that value independent thinking, risk taking, and learning. They are tolerant of failure and they value diversity. Open communication, a high degree of trust and respect between individuals are crucial. Creativity leads in to innovation. The word creativity and innovation are interrelated. Innovation is a new way of doing something or new stuff that is made useful. It may refer to incremental and emergent or radical and revolutionary changes in thinking, products, processes, or organizations
Innovation is an important topic in the study of economics, business, design, technology, sociology, and engineering. Colloquially, the word “innovation” is often synonymous with the output of the process. However, economists tend to focus on the process itself, from the origination of an idea to its transformation into something useful, to its implementation; and on the system within which the process of innovation unfolds. Since innovation is also considered a major driver of the economy, especially when it leads to increasing productivity, the factors that lead to innovation are also considered to be critical to policy makers. In particular, followers of innovation economics stress using public policy to spur innovation and growth.Leaders who want to create an innovative business culture must understand the steps of the creative process, but that alone is not enough. To promote business innovation, executive leaders should commit certain business practices, and institutionalize them in the culture – by training managers in these practices and then doling out promotions and rewards to those who employ them successfully. Leaders who want to encourage business creativity must be sure also to build talent driven, positive cultures that place a value on learning.
Innovation is generally understood as the successful introduction of a new thing or method. Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services. Innovation typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs.