Assignment Sample on Business Creativity
Introduction
Business creativity refers to a way of thinking that influences individuals to create innovations and opportunities that contribute to improving the business functions (Hughes, 2018). The presentation will discuss the role of creativity in business along with the theories. Several creativity processes will be discussed in this. The blue ocean strategy and canvas and Galbraith strategies will be used for business development. Creativity and innovations for the creation of business ideas will be elaborated in this. Empirical evidence will be provided to suggest innovations used in the organizations for business development. The use of creativity in the business model will be highlighted as well. Motivation for the business model and challenges in the business innovation will be discussed in this presentation. The benefits of utilizing innovation in the business function will be discussed as well.
Role of creativity in business
Organizations worldwide are getting more competitive in the global environment, so creativity is becoming a significant factor for business development (van Knippenberg, 2017). Furthermore, creativity brings new ideas, challenges and benefits for the employees and offers more business opportunities. Some of the roles of creativity in business development are provided below.
- Creativity is essential in the business functions that offer organizations competitive advantages.
- Creativity plays an essential role in the development of company culture
- Most importantly, it assists organizations in improving productivity
- Creativity helps entrepreneurs and leaders of organizations to resolve problems in the business functions
- Creativity support business leaders to create effective business strategies for business developments
Furthermore, creativity plays an essential role in business development for every organization around the world. Apart from that, organizations often utilize the invention to grow in the competitive business environment by surprising rivals in the same market.
Theory of creativity
Researchers often augment whether people are born of creativity or learn from different experiences that make individuals creative, and it is also considered the “nature versus nature” discussion. There are no elaborate discussions made on the theory of creativity previously. However, the creative person tends to create effective strategies and apply skills for implementing new ideas in the business functions, and that is recognized as creative thinking.
The synopsis of the theories of creativity is provided below.
- Elegance is an idea that suggests that creativity is God’s gift that people inherit from inspiration.
- Accidents suggest that creativity arises in individuals through accidents, and scientific inventions happen from accidents.
- Analytic is mainly made on cognitive procedures that include identification, reasoning and comprehensions. Furthermore, this theory suggests that an individual needs to be hardworking and productive to be creative.
Creativity processes
The creativity procedure is considered the result of the inner and outer self of the awake and insensible mind, thought and energetic collaboration. In psychological terms, it states the inspiration and generation of ideas through different situations. Creative processes are usually made by five steps, which are provided below.
- Preparation refers to a step that usually comprises creative belief and consists of researching a label, the availability of the audience, and collection of information from different sources.
- Maturation is the second step of the sequence, where gathered ideas are sent for the next stage, and ideas form in the subconscious mind (Leszczynski et al. 2017). That’s when individuals get out of trouble and make decisions that suit the current situation.
- Radiance stage deals with two ideas and solids into one single idea
- Evaluation deals with previous skills, experience and knowledge that contributes to the formation of the idea
- Execution is the last stage of the process, where previous experiences, skills and expertise forms as the idea and gets executed at the same time
Blue ocean strategy
The blue ocean strategy is considered a process that strives for differentiation and low cost in the new and open market and establishes new customer expectations (Alam and Islam, 2017). Furthermore, it also focuses on the acknowledged market and makes competition immaterial.
- Apple has used the blue ocean strategy to separate competition from the market, promote new products, and indirectly helped the organization make business development plans and capture the entire market. Another example of blue ocean theory utilization includes the Nintendo case.
- The Nintendo Wii launched in 2006 and utilized innovation, which has the low cost-benefit and product differentiation (Au and Tucker, 2018). That organization has managed to capture the gaming market that has also reduced the processing for graphics and quality.
- Most importantly, the blue ocean strategy aims to capture the market without battling with rivals and concentrates on the marketing strategy for business growth.
Canvas and Galbraith’s star model
The canvas business model is considered an essential strategic management tool; the simple nature of this model communicates effectively with the business ideas (Sparviero, 2019). Furthermore, this would help organizations learn more about target customers and preferences and strategies to attain these customers for profit.
- Canvas business model is utilized by Amazon for e-commerce services, establishes mission statements products, and reflects necessary strategies required for the business development and success of the products.
Jay Galbraith first develops the Galbraith’s star model, a business development framework to develop organizational business structure and divides it into five steps: strategy, procedures, rewards and selection & development (Eirich et al. 2019).
- The star business model is effective for creating different business strategies and varies on the situations of the various organizations.
- It aligns the business strategy with organizational objectives and offers effectively contribute to business growth.
Developing creativity in business ideas
The above topic is focused on the relationship between creativity and entrepreneurship. It offers opportunities to identify the innovation and utilization in the organizational functions for competitive advantage (Garza-Reyes et al. 2017).
- Creativity is essential for organizations as it offers a competitive advantage that consists of the originality of the idea
- Entrepreneurs makes business ideas on the basis of three factors
- Desirable ideas refer to the customer’s desire for product and services in the existing market that is growing significantly (Black et al. 2019).
- Feasible refers to lower risks and technology involvement in the existing market
- Viable cases are based on high edge, shorten of time, lower capital investments
Apart from that, creation, identification and transformation of the business opportunities are entirely founded on the entrepreneurial creativity and business situation.
Techniques for generating innovative ideas
“The Osterwalder and Pigneur (2010)” methods are used for the creation of innovative ideas for business models (Osterwalder et al. 2020). These six methods are provided below.
- Customer perception, as it suggests, focuses on the design of products and services that are wanted by customers. However, failure of the perspective might pose a negative impact on the business model. Customer perspective also focuses on the customer’s demand, daily routines and desire, which contributes to the development of business strategy.
- Attention refers to “ideation”, which is a creative procedure of creating a large quantity of business plans for the business models. Furthermore, separation methods are utilised in order to create a huge quantity of ideas, which are collected from small quantities of desirable, feasible and viable choices
- Optical thinking is based on visual tools in order to present the details in wider perspective and to discuss issues that business model could face
Empirical evidence (innovation)
Nike is one of the successful companies that is maintaining the 50 years of successes in the business by developing innovative ideas and implementing them to capture the market.
- Nike has managed to increase the annual profit by 4.21% from 2017 to $15.956billion in 2018, simply by maintaining innovative ideas in the business strategies (macro trends.ne, 2021).
- “Build in time for change” is an approach, which is still utilized by Nike. This innovative method allows organization to launch products at the competitive time and to capture market
- Amazon has a different method to utilize innovation for the business development, which is different from Google and Nike. Amazon allows employees to be creative in the workplace and sets innovative objectives.
- The implementation of Amazon kindle is considered as the most effective innovative approach in the business function (com, 2021). First, the company sets goals to meet highest sales, secondly, uses social media to reach out to customers. During the third stage, the consumer is analyzed and examined, and on the fifth stage, the product is sold to the expected customers by implementing the same technology.
Creativity in business models
The understanding of the business environment helps an individual to understand if changes are required in the existing business function or to determine the socio-economical situation is stable enough to establish an effective business model. An effective business model depends on the four important trends, which are provided below.
- Important trends focus on the social and cultural requirements; follow the socio-economic trends, authoritative trends and technological advancements (Vrbka, 2020).
- Market forces are concentrated on the market segments, current demands of the customers, problems in the market and most importantly focusing on the costs and revenue generation
- Microeconomic factors are focused on economic structures, market capitals and global market situation
- Forces in the industry are referred to availability of the suppliers, value chain management, stakeholders analysis, rivals in the market and more
Motivation for business model innovation
The oldest enterprise business models are made out of existing organizational framework, and the main four motivations for the development of the business model are provided below.
- A fight with the existing business model that motivates the organization to switch for newer and more innovative business model
- Modifying, developing and supporting the existing business model in order to shift to a changing business environment
- Implementing new technologies, developing products and services to meet the requirements of the customers
- Discovering and testing new business ideas and models in order to replace the old business model in the near future
Furthermore, there are four main points behind the development of business model innovations, which are provided below.
- In order to satisfy the needs of the customers in a new market (Geissdoerfer et al. 2018)
- To introduce new technologies, products and services to the new or existing market
- To development, disturb and change existing market with an effective business model
- To establish a brand new market
Challenges for inducing innovation in business
- The presence of insufficient business model
- No potential of risk-taking
- Lack of funds and financial support
- No vision and understanding of creative or innovative thinking
That suggests that if a country has bureaucratic governance then it restrains business innovation, which is worse for any startups to grow and compete with others. Entrepreneurs need to take risk in the competitive market or else business standards would not rise above average. Furthermore, many startups and entrepreneurs need constant funding and financial support in order to spread business in the competitive market or to complete the innovative business plan.
Benefits of disrupting innovation in business
The company expands the market and find niche
There is opportunity in the market as the behavior of consumer is changing every day. The organization can capitalize the gap in the market and utilize it to build the product even if the demand of the product is less.
Improvement of the company along the way
Any disruption gives us the opportunity to look back at the company and the current market share and find the solution.
Offers forward-thinking idea will be implemented
Diverse idea comes in the organization for engaging the customers.
Conclusion
Based on the above analysis, the presentation has concluded that creativity is the factor that offers opportunity for any businesses to grow in the competitive market. Furthermore, the canvas business model and the star business model play an important role for the creation of business strategies in the new business environment. Apart from that, the blue ocean strategy has provided startups to discover new customers in the unmarked markets. Organizations are able to implement innovative products in the existing market and encouraged organizations to capture new markets by surpassing rivals. Furthermore, the business creativity helps an organization or entrepreneurs to survive in the competitive market as it allows innovations and ideas in the business strategy.
References
Au, A. and Tucker, J., 2018. Blue ocean strategy for microenterprises. International Journal of Information, Business and Management, 10(2), pp.92-98.
Black, S., Gardner, D.G., Pierce, J.L. and Steers, R., 2019. Design thinking. Organisational Behavior.
Eirich, R., Schäfer, B. and Ringlstetter, M., 2019. An organisation design framework for digital innovation: Critical review of Galbraith’s STAR Model. In ISPIM Conference Proceedings (pp. 1-27). The International Society for Professional Innovation Management (ISPIM).
Garza-Reyes, J.A., Kumar, V., Martinez-Covarrubias, J.L. and Lim, M.K., 2017. Managing Innovation and Operations in the 21st Century. Taylor & Francis.
Geissdoerfer, M., Vladimirova, D. and Evans, S., 2018. Sustainable business model innovation: A review. Journal of cleaner production, 198, pp.401-416.
Gewirtz, D. (2021) Why Amazon is the king of innovation: Kindle’s clout | ZDNet, ZDNet. Available at: https://www.zdnet.com/article/why-amazon-is-the-king-of-innovation-kindles-clout/ (Accessed: 19 April 2021).
Hughes, P., 2018. Encouraging creativity in your business!. Farmer’s Weekly, 2018(18016), pp.27-27.
Leszczynski, M., Chaieb, L., Reber, T.P., Derner, M., Axmacher, N. and Fell, J., 2017. Mind-wandering simultaneously prolongs reactions and promotes creative incubation. Scientific Reports, 7(1), pp.1-9.
NIKE Gross Profit 2006-2021 | NKE (2021). Available at: https://www.macrotrends.net/stocks/charts/NKE/nike/gross-profit (Accessed: 19 April 2021).
Osterwalder, A., Pigneur, Y., Smith, A. and Etiemble, F., 2020. The Invincible Company: How to Constantly Reinvent Your Organisation with Inspiration From the World’s Best Business Models. John Wiley & Sons.
Sparviero, S., 2019. The case for a socially-oriented business model canvas: The social enterprise model canvas. Journal of Social Entrepreneurship, 10(2), pp.232-251.
van Knippenberg, D., 2017. Leadership and creativity in business. In Handbook of research on leadership and creativity. Edward Elgar Publishing.
Vrbka, J., 2020. Business environment quality model in the SME segment. Transformations in Business & Economics, 19(1), p.49.
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