Creativity and Innovation

In innovation, creativity is a very important issue in producing the better and more efficient products, processes or services. Creativity is the ability to produce lots of new ideas, which includes looking at issues such as resolving long term complaints and cost reduction in the production process in relation with the quality of the product. However other contributing processes include the  examining and the ability to rethink an old idea, this is very important towards thinking up a new application for an existing technology. 

Figure 2.3  The three domains for creative action

Source: Gundry et al., 1994

The Formation of a creative organisation is consisted of a mixture of Education, environment and application. In education, through creative thinking, members of the organisation should come up with a new process in solving problems. Through environment, by understanding the logic and principle of the current climate this could lead to the creation of a more innovative processes and ideas. The main key factor for this model to work is it needs all the three key sectors to  instigate with the organisation. 


Due to the recent global recession, organisations are less keen in risk taking. This results in a fall of  creative thinking and creation of new ideas, as the potential financial benefits may not outweigh the initial risk involved.