Creativity vs Innovation In Your Business: What's the Difference?

Learning Centre > Creativity vs Innovation In Your Business: What's the Difference?

There's much confusion surrounding creativity and innovation.

"Creative types," in particular, claim that creativity and innovation can't be measured. Performance, however, demands measurement so you can identify what success looks like. In a world that changes every second, it's imperative that companies figure out the difference between creativity and innovation.

You better believe they're different.

Creativity vs Innovation

The main difference between creativity and innovation is the focus. Creativity is about unleashing the potential of the mind to conceive new ideas. Those concepts could manifest themselves in any number of ways, but most often, they become something we can see, hear, smell, touch, or taste. However, creative ideas can also be thought experiments within one person's mind.

Creativity is subjective, making it hard to measure, as our creative friends assert.

Innovation, on the other hand, is entirely measurable. Innovation is about introducing change into relatively stable systems. It's also concerned with the work required to make an idea viable. By identifying an unrecognised and unmet need, an organisation can use innovation to apply its creative resources to design an appropriate solution and reap a return on its investment.

Organisations often chase creativity, but what they need to pursue is innovation. Theodore Levitt puts it best: "What is often lacking is not creativity in the idea-creating sense but innovation in the action-producing sense, i.e. putting ideas to work."

Managing Innovation

Because creativity and innovation are often confused, it's long been assumed that you cannot force innovation within an organisation. Innovation is either evident, or it isn't. The introduction of a common language for innovation — design thinking — enables organisations to measure milestones in their innovative efforts better.

To employ design thinking, it's necessary to understand it as a system of overlapping spaces, rather than a set of process steps to move through. Those spaces are: inspiration, where the problem that motivates solution-finding is found; ideation, the process of generating and developing ideas; and implementation, the activities that enable a creative concept to move from the drawing board to the marketplace. Any design thinking-based project may loop back to an earlier space more than once as a team explores, develops, and implements its idea.

Design thinking provides a consistent approach to defining challenges. It helps organisations identify problems before they even begin the brainstorming sessions most associated with creativity. Now, organisations can see what they were missing when previous ideas didn't reach market sustainability.

Using design thinking, organisations can capitalise on creativity by paying attention to the life of the idea after its initial development. Applied creativity must always lead to innovation — linking a great idea with an actual customer need (or, better yet, the needs of a whole market!).

The need for clear leadership for innovation

The use of design thinking in this manner also demands the guidance of engaged leadership.

Leaders are critical to the success of any group's long-term innovation strategy. It's their job to ensure that innovation is consistently pursued and their employees don't settle into business as usual. They set the tone for what is, and is not, possible in the company through their attention and action.

Two main issues with nurturing innovation

Organisations serious about fostering innovation have to wrestle with two main issues: risk-taking and failure aversion. All change involves risk, and all risks include the possibility of failure. Failure should never be seen as a black mark; it is a learning experience. Leaders and their organisations cannot be afraid of failure — or they will never incorporate the innovation they need to meet customers' needs truly. Design thinking offers a path to risk-taking that's manageable, repeatable, and driven toward maximising the effectiveness of the new idea.

Of course, the very term "innovation" connotes something new and different. Still, paying attention to companies that are consistently innovative in their industries is always a good practice.

Innovative companies to Model

Consider some of the world's leading companies that use the principles of design thinking to achieve their strategic goals:

  1. Proctor & Gamble embraced innovation under former CEO A.G. Lafley. During his tenure, P&G's value increased by more than $100 billion. In 2000, it had 10 billion-dollar consumer brands; today, it has 22.
  2. Kaiser Permanente is the largest not-for-profit health provider in the USA. Kaiser's National Facilities Services group has, for over five years, been working on the Total Health Environment, a program applying design thinking to every aspect of Kaiser's operations, from medical records to colour palettes. The results speak for themselves: improved patient health, satisfaction, soundness of sleep, the speed of healing, and cost control.
  3. Square is mainly associated with innovation since its plugin device helps millions of mobile vendors and small business owners. No longer are they confined to cash payments or expensive credit card machines. Square noticed that the economy was quickly becoming paperless and provided customers with a way to keep up.

Creativity is vital in today's business world, but it's only the beginning. Organisations need to foster creativity and new ideas. Driving business results by running ideas through an innovation process puts those newly created ideas to work — for companies and their customers.

Creative ideas are ten a penny. In today's market, innovation is what brings the buyers to you.

Creativity is the price of admission, but it's innovation that pays the bills.


What are the 3 main differences between creativity and innovation?

The 3 main differences between creativity and innovation are:

  1. Innovation involves a process of thinking that is driven toward meeting a customer need or market demand.
  2. When it comes to design, the input of participants is crucial if the process is going to capture their real needs. Design thinking can't succeed without participant input from start to finish.
  3. When it comes to innovation, failure isn't seen as a "failure" but is viewed as an opportunity for learning.

What are 3 ways design thinking influences innovation?

The ways design thinking influences innovation are:

  1. Design thinking makes regular problem solving more effective.
  2. It encourages new insights on problems or challenges by encouraging people to think differently about the issue at hand.
  3. It reduces risk by allowing people to try out their ideas in low-risk ways.

Why is design thinking important for innovation?

Design thinking is important for innovation because it's a way of using creativity and imagination to solve problems and create products, services, and experiences that meet real needs and desires.

Is innovation basically a creative process?

Innovation is not basically a creative process, but it does require creativity. It also requires the steps of an established innovation process to foster creativity and run ideas through an innovation process that puts those newly created ideas to work for companies and their customers.

I have a new creative idea. Can this be seen as innovation?

New ideas, without the context of an established process, are not likely to lead to innovation. Innovative thinking requires that you consider how your idea or product can fill a need or solve a problem for your customers.

How are innovative organisations encouraging maximum creativity in their employees?

Innovation-focused organisations encourage maximum creativity in their employees by encouraging a culture of innovation, providing training and development programs to their workforce, implementing design thinking processes, and hiring people with innovative mindsets. This culture is often hard-coded into their business model and allows these organisations to be agile and adopt unorthodox methods as they present themselves, taking newly created ideas from the drawing board to implementation.

Why is "fail fast" important in the innovation process?

Fail Fast is important because it allows people to test their ideas and begin finding ways they can improve. If you're not failing every now and again, then you're most likely not trying hard enough to achieve the radical innovation that you've been asked for.

Why should every business innovate?

A business should innovate because it's a way of making your business stand out from the rest which will provide you with a competitive advantage. It'll also give people a reason to buy from you as opposed to your competitors, as you offer unique and innovative products and services that no other competitor does.

Should I hire for creativity?

Hiring for creativity is a worthwhile process, however, it's unlikely that you'll find employees who have a high level of creativity and a high level of innovation. You may find creative people who don't have the ability to innovate their ideas into something useful or marketable.

Allowing employees who have displayed creativity to be responsible for brainstorming innovative ideas and processes is generally easier than separating those roles.

How can creativity in my organisation establish demand for my product?

Creativity in your organisation can establish demand for a product by creating the must-have innovation to meet consumers' needs. This creativity will allow your organisation to create the new, innovative products that people are looking for.

Can creativity help me sell more of my existing product?

Yes. Creativity can help you sell more of your existing products by giving your existing customers new and exciting ways to use the product via marketing, promotions, and awareness campaigns.

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