Creativity can be defined as problem identification and idea generation, while innovation can be defined as selection, development and marketing of ideas.

There are other useful definitions in this field, for example, creativity can be defined as composed of several ideas, several diverse ideas, and several novel ideas.

There are different processes that improve problem identification and idea generation, and similarly different processes that improve the selection, development, and commercialization of ideas. While there is no sure route to business success, these processes improve the likelihood that good ideas will be generated and selected, and that the investment in developing and commercializing those ideas will not be wasted.

Types of innovation

Tidd et al (2005) argue that there are four types of innovation; Consequently, the innovator has four avenues to investigate when looking for good ideas:

a) Product innovation: new products or product improvements. The new Mini or the updated VX Beetle, new mobile phone models, etc.

b) Process innovation: where a part of the process is improved to generate benefits. Just in Time is a good example.

c) Positioning innovation – Lucozade used to be a medicinal drink but was repositioned as a sports drink.

d) Paradigm innovation: where major changes in thinking cause changes. During the days of the expensive mainframe, Bill Gates and others sought to provide a home computer for everyone.

These and other topics are covered in depth in the MBA Thesis on Managing Creativity and Innovation, which can be purchased (along with an Innovation Bible, DIY Audit of Creativity and Innovation, Software Good Idea Generator and Presentation on Power Point) at http: // www. .managing-creative.com /

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Kal Bishop, MBA

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