Business Studies Paper on Creativity in Business

Abstract

In the recent past, many businesses have increased their emphasis on creativity due to its positive impact on profitability and competitiveness. Different firms have devised distinct methods of promoting creativity including through empowering their employees, easing communication process, and encouraging diversity. Primarily, these techniques are designed to not only increase the competitiveness of the firms but also to reduce the risks that they face. The constant change in technology has enabled businesses to increase their interaction with stakeholders, including suppliers and customers, which has made it is easier for the corporations to understand their needs. Essentially, the continued emphasis on this concept has helped companies to build proper relationships with their customers, identify risks, and employ competent workers. Several factors promote creativity in the workplace, and they directly contribute to the success of an enterprise.

 

Creativity in Business

Background of the Problem

The primary objective of a business is to convert the available resources and knowledge from external sources to aspects that add value to both the institution and its stakeholders. The increase in methods of doing business has over the years intensified competition among industries thus forced them to establish unique methods of augmenting their performance in the market (Hon & Lui, 2016). Firms are determined to promote creativity across departments to maintain their profitability and overall competitiveness in both local and international markets.

Creativity is the ability to think of new ideas, develop them, and to discover alternative ways of solving problems and utilizing existing opportunities. The success of a business relies on its ability to exploit the new opportunities and ideas more than its competitors (Baack et al., 2016). However, success is also directly proportional to the ability of the entity to develop new skills. Modern organizations emphasize on stimulating creativity as it triggers an increase in productivity. Moreover, it prompts employees to think outside the box to enable the corporations to diversify their portfolio and minimize the risks that they encounter.

With the constant change in technology, enterprises consider creativity as the best way to stand out in the market and attract more customers. Many institutions, particularly in the manufacturing and service industries, have largely embraced digitalization due to its effectiveness and accuracy (Seidel, Shortland & Elzinga, 2015). Since creativity can come from different parts of an organization, including partners, target groups, employees, and customers, most businesses develop mechanisms to empower their stakeholders in different quarters. International organizations, including Coca-Cola, have increased investment in research and development to cultivate alternative mechanisms of controlling and penetrating new markets. As such, these companies not only raise their participation in the industry but also solve some of the problems that affect them.

Notably, the advancement of technology has largely determined how companies conduct their operations both in the domestic and international markets. Increased connection and the continuous sharing of data among business around the world and digital devices have created entirely advanced revenue streams and business models (Lukic et al., 2017). Due to their effectiveness, enterprises have acquired and installed most of the digitalization materials, which have increased their competitiveness. Most firms have turned to the concept of creativity as the best technique for improving their performance and producing quality products for their customers to remain unique in the market.

Problem Statement

The emphasis on creativity by many businesses in the modern economy has been linked to them reaping benefits. Typically, organizations in the modern-day operate in highly competitive and risky environment that limits their ability to endure risks. Notably, the concepts of creativity and innovation fuel big ideas, avail new opportunities for the business and change employees’ way of thinking. According to del-Corte-Lora, Vallet-Bellmunt & Molina-Morales (2015), promoting the idea in question in firms is one of the factors that enhance success. Other influences include vision, management discipline, and integrity.

Institutions have devised different methods of encouraging creativity in both their internal and external environments. Companies such as TATA reward their employees for bold and novel ideas that they develop and attempting to achieve exceptional results that can lead to the overall growth of the enterprise. Other firms, such as the design firm, IDEO, hire workers based on their creativity levels (Seidel, Shortland & Elzinga, 2015). Essentially, the organization encourages diversity among its workers to increase interaction between cultures, promotes flexible thinking, and builds an innovative team that can change the thinking of the entity.

Businesses become increasingly creative when they feel motivated by the outcome of the process or other factors, such as the change of internal pressure, satisfaction, and interest among both workers and the customers. Particularly, the drive to augment productivity is encouraged by a company’s urge to increase its competitiveness in industry and control a specific portion of the market. Occasionally, companies may encourage their employees to use their innovativeness to develop unique products or modify the existing ones to change customer’s perception and increase sales.

Due to the changing business environment and global economy, firms are slowly turning to creativity not only to increase their level of competition but to survive in the industry. The emergence of new entrants who have implemented advanced technologies and effective market approach strategies has threatened other enterprises (Baack et al., 2016). Encouraging the concept in question allows managers to consider different approaches to assessing the market and reducing the risk of liquidation or acquisition by major companies. Creative ideas can come from any avenue in an organization including partners, employees, and customers, therefore, it is the duty of the management to ensure proper approaches are established to empower the concerned parties.

Findings of the Research

Creativity in business helps to bring out the best attributes of the entity and the management practices. Without this concept, every company would adopt the same techniques of approaching different issues in marketing, promotion, and production of commodities. Notably, creativity is essential to modem business, especially if it depends on technology to perform some of its operations (Forgeard & Kaufman, 2016). Most institutions have over the years encouraged their staff to think outside the box and even offered rewards for creativity to promote innovativeness among the stakeholders to increase efficiency. The continued emphasis on maintaining uniqueness is largely due to the benefits that it brings companies. For example, creativity encourages working with limited resources in an organization. Since nobody can control where ideas come from, each stakeholder is given an opportunity to work freely, without and strict policies, which encourages increased interaction within not only the internal environment of a firm but also the development of proper relations in the institution. Equally, it can help an entity to develop admirable cultures that inspire diversity among its members.

Creativity enables an organization to develop mechanisms that are essential in tackling significant problems that it faces. Businesses face different problems from both internal and external environments that may limit their performance. Furthermore, since the production process is continuous and monotonous, increasing its efficiency through the establishing alternative approaches reduces overall risks (Hjorth et al., 2018). Moreover, it enables employees to see the bigger picture and thus focus on increasing effectiveness of the production process. It also allows adaptability in business through enabling each stakeholder to work freely and diversify the mode of operation in the firm.

Creativity allows business to hire the right personnel that augments the productivity and competitiveness of an institution. Having the right staff enables a corporation to concentrate on its objectives and core values. It also aids in developing alternative methods of approaching the market (Nielsen, Byrge, & Lund, 2016). Although hiring workers for their creativity and skills can be a tiresome task for the management, it reduces the overall cost of operation. Notably, some of the basic traits considered by such firms include knowledge, persistence, imagination, and inspiration.

The ability to assess different ideas presented by their employees promotes experimentation in the business. Every business involves understanding the operating environment and develops mechanisms of reducing the current risks. Creativity allows free thinking in business through rewarding and recognizing new ideas regardless of their impact on the operations of a firm. The practice enables an institution to build trust and develop excellent communication with its employees. Other benefits of creativity to an organization include the provision of new ideas, formation of diverse teams, integration of ideas into the business plans, and enabling a firm to focus on its core objectives.

Conclusion

Creativity plays important roles in business. Primarily it increases productivity. The process of converting valuable resources of an enterprise into ideas that can increase the competitiveness of the institution requires participation by every member of the firm. The constant change in technology has enabled companies to develop various methods of reducing risks. Adopting the concept of creative businesses can be of benefit in various ways, including increasing competitiveness, empowering stakeholders, diversifying risks, hiring the right personnel, and establishing proper market development strategies. Indeed, these factors play essential roles in molding the success of a corporation as they encourage proper communication, diversification, and change in culture.

 

Reference

Baack, D. W., Wilson, R. T., van Dessel, M. M., & Patti, C. H. (2016). Advertising to Businesses: Does Creativity Matter?. Industrial Marketing Management55, 169-177.

del-Corte-Lora, V., Vallet-Bellmunt, T., & Molina-Morales, F. X. (2015). Be Creative but not so much. Decreasing benefits of creativity in clustered firms. Entrepreneurship & Regional Development27(1-2), 1-27.

Forgeard, M. J., & Kaufman, J. C. (2016). Who Cares about Imagination, Creativity, and Innovation, and Why? A review. Psychology of Aesthetics, Creativity, and the Arts10(3), 250.

Hjorth, D., Strati, A., Drakopoulou Dodd, S., & Weik, E. (2018). Organizational Creativity, Play, and Entrepreneurship: Introduction and Framing.

Hon, A. H., & Lui, S. S. (2016). Employee Creativity and Innovation in Organizations: Review, Integration, and Future Directions for Hospitality Research. International Journal of Contemporary Hospitality Management28(5), 862-885.

Lukic, T., Džamic, V., Knezevic, G., Alčaković, S., & Bošković, V. (2017). The Influence of Organizational Culture on Business Creativity, Innovation and Satisfaction. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies19(73), 49-57.

Nielsen, C., Byrge, C., & Lund, M. (2016). From Creativity to New Venture Creation: Exploring the Potentials of Training Creativity and Business-Opportunity Spotting. In ACERE 2016 Conference. The Queensland University of Technology.

Seidel, S., Shortland, K., & Elzinga, D. (2015). Creativity-aware Business Process Management: What We Can Learn from Film and Visual Effects Production. In Handbook on Business Process Management 2 (pp. 715-739). Springer, Berlin, Heidelberg.