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Innovation, Creativity, and Design Definitions Paper

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University of PhoenixJanuary 19, 2010IntroductionBusinesses rely on several factors to start business, stay in business and compete with other businesses. These factors include staff such as managers and employees, consumers, the market, economy, and environmental aspects. Innovation can keep a business current and differentiate itself from the competition. Creativity and design play important roles during the innovation process. This paper will define innovation, creativity, and design. It will explain the business implications and identify similarities and differences.

InnovationWhat is innovation and how does it apply to business? According to BusinessDictionary (2010), innovation is the process of applying ideas, imagination and initiative to create new products. Innovation is typically geared to a specific product that will fill a customer’s need and provide measurable results on the business’ performance. Today innovation has taken over a previous term once known as “new product development” (Stamm, 2003). There are different categories and levels to innovation and the common categories are product innovation and process innovation. Product innovation is the product that is offered by the company and process innovation is the process of creating the product and how it is distributed to the target audience. Bettina von Stamm (2003) defines innovation as “a frame of mind. It is the art of making new connections and continuously challenging the status quo without changing things for change’s sake.” Innovation is the result of creativity and implementation.

Creativity and ImplementationCreativity is defined as “a mental characteristic that allows a person to think outside of the box which results in innovative or different approaches to a particular task” (BusinessDictionary, 2010). Creativity is an individual act that may be encouraged, trained, and fine tuned; however, it cannot be forced. “Implementation – putting ideas into practice – is made up of three aspects: idea selection, development, and commercialization…” (Stamm, 2003). Implementation puts the innovative process to work. Innovative success lies within companies who rely on team efforts with creative individuals and designers. These people work toward a common goal and structure, policies, and procedures provides for an effective transition to the market.

DesignAccording to Bettina von Stamm (2003), design has several definitions that depend on the context of the word. Stamm (2003), defines design in the business context as “the conscious decision-making process by which information (an idea) is transformed into an outcome, be it tangible (product) or intangible (service).” Design is a way that businesses can differentiate themselves in the market, giving them a niche for specific appeal. Effective designers use their skills and abilities to improve processes, redesign existing products, and develop new products. These processes can increase value and lead to growth through the introduction of new markets while maintaining visibility in current markets.

Similarities and DifferencesInnovation results from creativity plus implementation. Innovation also results from the application of creativity and design. These factors: innovation, creativity, and design work together to provide an end result whether that is a product or a service. Similarities lie in the common goal. Innovation, creativity, and design individually contribute to the goal at hand, which may be profitability or growth. The vision of the product or service is a similarity because the vision is a representation of the goal, even if it is only a portion.

Innovation needs creativity and design to be effective. Design needs creativity to be effective. Creativity is sparked from one’s imagination, one’s idea. These factors need one another because one precedes the other. Innovation, creativity, and design share benefits, challenges, and internal and external drivers; however, the process is not the same for each.

Creativity begins with a spark, an idea from an individual. Creativity is a product of risk takers, problem solvers, flexible, and imaginative people. These people operate individually and their talent is intangible. Design, however is tangible. The design usually results in the completion of the final product or service. It is also different because it is usually performed within a team environment.

ConclusionThe success of a company’s innovation, whether that is a product or a service, depends on the business’ creativity, implementation, and design. These traits come from the people within the company and their talents. The first step of the innovation process is the idea and then the implementation of the creative process is next. The design is the final step and the result often-times find a new audience.


Rowe, A. (2004). What can we learn from creative individuals. Creative Intelligence: Discovering Innovative Potential in Ourselves and Other, chapter 3. Retrieved on January 17, 2010, from University of Phoenix week 1 eRourse at https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspxStamm, B. (2003). What are Innovation, Creativity and Design. Managing Innovation, Design and Creativity, chapter 1. Retrieved on January 17, 2010, from University of Phoenix week 1 eRsource at https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspxBusinessDictionary. (2010). Definitions: innovation, creativity. Retrieved January 17, 2010, from http://www.businessdictionary.com

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