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Creativity, Innovation, and Market Performance
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation. There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas. There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted. Creativity, Innovation and Market Performance In the broadest terms, strategy is about growth. Decision makers are constantly looking for growth, in fact, in listed firms, shareholders demand it and at ever increasing rates. Decision makers have therefore to decide how to grow. There are a number of growth models and one of them is the Ansoff Model, which is useful for this argument: a) Market penetration - existing products in existing markets b) Market development - existing products in new markets c) Product development - new products in existing markets d) Diversification - new products in new markets. The strategies above suggest, at least, that: a) There should be a strong correlation between new products and market performance. This is proved correct (Tidd et al, 2005). b) Innovation is required consistently no matter what strategy is chosen. Existing products in existing markets must consistently improve their cost / performance mix to beat off rivals and innovation is required to find new markets for existing products. It is more obvious that innovation is required when new product strategies are engaged in. These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com. You can also receive a regular, free newsletter by entering your email address at this site. Kal Bishop, MBA ********************************** You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained. Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com
MORE RESOURCES: Creativity - Google News Creativity trumps cute factor in Super Bowl ads - The Detroit News
Ningbo Hangzhou Bay New Area to build a cultural and creative production base - Ningbo Expat Life
Hayes: Reflections on being caretakers of creativity - Midland Daily News
the mystery of consciousness - CNN International
Innovation and creativity move to the heart of the curriculum - Financial Times
Who's More Creative? Introverts or Extroverts? - Big Think (blog)
Travel to Latin America with Creative Cauldron - Patch.com
Pinterest, an online bulletin board, inspires creativity - Pensacola News Journal
Machine Knitters Club offers both creativity and friendship - Knoxville News Sentinel
Plant Creativity Saves GM Millions - Chicago Tribune
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