Basic building block of getting things done in an organisation is an individual/people.
Patterson (2005) argues that creativity and innovation are overlapping constructs, but the main distinction is with regard to novelty.
Creativity is exclusively concerned with generating new and entirely original ideas.
Innovation is a broader concept as it also encompasses the application of new ideas to produce something new and useful (in the context of groups, organisations or societies). Innovation is often referred to as a process, because implementing new ideas necessarily involves influencing others (whereas creativity could be achieved in isolation).
Employees must use an innovation to realize the intended benefits. Therefore, it is important to examine the adoption of innovation by individual employees within organizations because if there is no acceptance among employees, the desired benefits cannot be realized and the organization may eventually abandon the innovation.
Innovative employees increase productivity through by creating and executing new processes, which in turn may increase competitive advantage and provide meaningful differentiation.
Innovative organizations are naturally more flexible to the external environment; this allows them to react faster and more effectively to avoid risk and capture opportunities.
Empowering employees to innovate and improve their work processes provides a sense of autonomy that boosts job satisfaction.
Empowering employees to engage in broader organization-wide innovation creates a strong sense of teamwork and community and ensures that employees are actively aware of and invested in organizational objectives and strategy.
Managers who promote an innovative environment can see value through increased employee motivation, creativity, and autonomy; stronger teams; and strategic recommendations from the bottom up.
Innovation is a result of the people and the culture of the organisation. If people are encouraged to innovate and compensated and motivated appropriately, the culture and processes will follow.
If they are not motivated or compensated to be innovative, no amount of systems or processes will drive an innovation initiative. The people are the key to the success of innovation.
- Experiencing Creativity in the Organization: From Individual Creativity to Collective Creativity; Satu Parjanen Lappeenranta University of Technology, Lahti School of Innovation, Lahti, Finland ; Interdisciplinary Journal of Information, Knowledge, and Management Volume 7, 2012
- Boundless. “Benefits of Innovation.” Boundless Management. Boundless, 04 Nov. 2014. from https://www.boundless.com/management/textbooks/boundless-management-textbook/organizational-culture-and-innovation-4/adapting-and-innovating-36/benefits-of-innovation-193-1046/