2 Product

PRODUCT = The Deliverables of Creativity and Creative Endeavours: Value and Purpose of Creativity

 

The Creative Output: P₂ = Product

Very often, when laypeople comment on creativity, or indicate an idea or artefact as being “creative”, they consider the output of a person’s/teams’ creative endeavours – we will call this output “the creation”. Creative competence (or talent) and genii’s output(s) have been viewed from various angles throughout history, with different eras and contexts impacting creative production. The outputs, as the visible or tangible results of genii’s creative thinking and application of themselves to solve a problem (e.g., moving water from A to Z, removing rubbish from parks and public areas, improving staff engagement through 4-day workweeks, improving production with workflow models), are manifested in new products and strategic innovations in the arts, science or business inventions (e.g., new types of business strategies – including crowd-funding, block-chain and crypto currencies). In this chapter we focus on “product” and our efforts and ability to determine/measure/evaluate whether this output is worthy of the title “creative” or “innovative”.

This chapter discusses the value and purpose of creative thinking, and how genii’s output benefits individuals and corporations, and society. It notes that creativity is a fundamental, necessary skill to solve unpredictable and unexpected problems in the modern world and to help humans to survive and thrive in a continuously changing environment best by sticky and wicked problems. The chapter divides the benefits of creative thinking into three sections, starting with the personal benefits, which include the ability to adapt to change, evolve with the changing world, and become more resilient. The section then discusses how creativity can help people make sound, effective, and efficient decisions, especially in an ever-changing environment, to benefit business and society as a whole. This chapter highlights that knowledge, experience, and training may no longer be enough to solve future challenges. Instead, creative intelligence and access to creative competencies and tools will create a desirable and employable talent. In addition, humans’ ability to employ artificial agents such as AI, robots and ICT to achieve advanced outcomes will be more and more in demand to produce and manage artificial intelligent agents. This section also points out that creativity is necessary for economic growth, as 82% of companies see a strong connection between creativity and business results. However, despite the known strategic imperative, 68% of senior management currently do not see their companies as creative in the short term, or ‘generally’ innovative in the long run (PWC Leadership Report, 2024), although 61% reports that is should be a priority and primary focus of their business.

Educators and practitioners alike grapple with measuring creative output, with issues ranging from the ability of a creation to surprise, be unusual (novel) or to impress judges. This raises obvious questions ranging from who the judge of creative output should be, to the level of novelty (for observers and who that should be), to how the yardsticks must different for the various different disciplines (e.g., dancing, sculpting, painting, crafts, scientific discoveries/breakthroughs and the complex, ambiguous area of business products and process innovations). Further, the perceived creativity of a product is not an objective fact like weight or colour, size or dimension, but a subjective perception or interpretation. Mihaly Csikszentmihalyi (1996) acknowledged that creativity lies in the eye of the beholder and involves a “relative subjectivity”, by stressing that creative outputs are domain-specific. I think readers will intuitively agree that creativity in engineering, science and business will be quite different from (say) art, dancing and music.

We focus here on the current state of knowledge, which considers four over-arching characteristics to define creative output (product):

1. novelty (uniqueness/ability to surprise);
2. relevance (appropriateness/correctness/usefulness/value);
3. aesthetics (elegance/pleasingness); and
4. genesis (germinal/gestative) impact.

Each of these characteristics is discussed in the following sections.

Novelty

Novelty indicates the uniqueness, unexpectedness or surprise-element of a creation. However, although necessary, novelty and surprise are not sufficient to determine whether an artefact, product, or output is creative. For example, scholars report that surprise that is derived from ignorance, lack of discipline knowledge, or blind rejection of what is known or in existence, is “pseudo-creativity”. Similarly, a high level of fantasy with a tenuous connection to reality (simply put, weirdness), is merely “quasi-creativity” and adds little value to society because of its uselessness (especially if there is not even mere aesthetic value). It is important to consider two groups when judging creativity. One is the creators (genii, creative producers) and two is the audience for whom the creation is intended. The creation needs to be at the very least novel, or have some surprising elements (either emotionally or cognitively) in relation to the intended target audience. When the work of genii is assessed (judged or adjudicated, especially for awards or recognition), the likelihood of the creation being unusual or unexpected for the group the genii belong to (e.g. other artists, other scientists or other designers) is a key consideration in assessing the level of novelty. The novelty of a creation can  be placed in a space (see Figure 2.2) the relative placement will be somewhat uncertain as the exact knowledge of the production group and the target groups can only be estimated. Note that there are no clear demarcations or sections between Big-N, little-n, uninventive or low EQ novelty, as measures are fully determined by the beholder (person/group doing the measuring).

Appropriateness

Appropriateness refers to the extent to which a solution (of a problem) or a creation (in response to a brief or assignment) fits within task expectations and constraints (budget, timing, resources used, media and format). Correctness and delivery in terms of the requirements (pre-set performance standards) provide the measures for appropriateness. The concept of “appropriateness” refers to the relevance, suitability, and effectiveness of a creative idea or solution in a given context or for a specific purpose. It ensures that the creative output not only stands out as novel or original but also aligns well with the intended goals, audience, and practical constraints. Here are some key aspects of appropriateness in creativity:

• Contextual Relevance: The idea or solution should fit within the context it is intended for. This includes cultural, social, and situational contexts, ensuring that the creative work resonates with the audience and aligns with their values, norms, and expectations.
• Goal Alignment: The creative output should meet the objectives it was designed to achieve. Whether it’s solving a problem, communicating a message, or creating an experience, the appropriateness of a creative work is measured by how well it fulfils its intended purpose.
• Practicality: A creative idea must be feasible and practical to implement. This includes considering available resources, time constraints, and technical limitations. An appropriate creative solution is one that can be realistically executed within these boundaries.
• Effectiveness: The appropriateness of creativity is also judged by its effectiveness in achieving desired outcomes. This could be measured by the impact it has, the response it elicits from the audience, or how well it solves a problem.
• Ethical Considerations: Ethical appropriateness involves ensuring that the creative work does not offend, harm, or disrespect individuals or groups. It should adhere to ethical standards and promote positive values.
• Balance of Novelty and Familiarity: While creativity often involves novel and unique ideas, appropriateness ensures that these ideas are not too far removed from what is recognizable or acceptable to the audience. It strikes a balance between innovation and familiarity, making the creative work accessible and engaging.

Mark Kilgour proposed a useful model to illustrate the axes created by contrasting relevance/appropriateness (usefulness) and novelty (unusual/surprising). The model delivers four spaces, ranging from weirdly novel and utterly useless wacky creations, to little-c creative output that is somewhat novel and fairly appropriate, to Big-C output that is highly useful/appropriate/relevant (within the scope of the brief and solving the problem) and simultaneously novel (unusual). The four continuous blurred areas are illustrated in Figure 2.3 below. To illuminate creations (Product of the 6Ps) further, we cover aspects related to appropriateness (utility, value and performance) in a lot more detail when discussing product selection, the stage models and evaluation of prototypes and inventions for commercialization.

Note that this figure only covers two of the four dimensions of creative output (novelty and relevance). It is hard to demonstrate more three dimensions in two dimensional (2D) figures, so now we move on to the last two dimensions namely aesthetics (elegance of the solution, pleasingness, completeness, recognition), and germinality (genesis, generic or generalizability beyond the immediate solution; new alternatives) in the next sections. Taken together, these four creativity measures apply to creative genii’s work, and can be recalled using the mnemonic GENA (generative, elegant/aesthetics, novel and appropriate).

Aesthetics

Scholars refer to aesthetics as the set of qualities of a creation that “excite admiration in the mind of an observer”. Bob Slater (2006) broadly categorizes three types of general aesthetics:

• pure aesthetic qualities (such as exquisiteness, gloriousness or gracefulness”),
• formalist qualities (e.g., “unity,” “harmony,” or “complexity”), and
• technical properties (e.g., “high quality of construction”, “skilfulness”, or “professional finish”).

Different situations impact perceptions of aesthetics differently. This can easily be demonstrated by examples from the domain of photographic art: a photograph of the blood-stained body of a new-born in the arms of her elated mother, versus a photo from a war-zone portraying the body of a bloodied infant might be equally impactful but the latter is unlikely to be pleasing. Contextual information influences the perception of observers of the aesthetic value of an idea or creation. A moth on the lamp of your camping tent may be a beautiful sight, but a moth nibbling on your woollen coat is likely displeasing.

Another set of generalized criteria is reflected in the “universal aesthetic criteria” of English artist William Hogarth, author of “The analysis of beauty” (1627):

(a) harmony among the parts of a work;

(b) variety in as many ways as possible;

(c) uniformity, regularity or symmetry, which is only beautiful when it helps to preserve the harmony in point (a);

(d) simplicity or distinctness, which gives pleasure not in itself, but by enabling a beholder to enjoy the work’s variety;

(e) intricacy, which makes it necessary for the beholder to think actively about the work; and

(f) magnitude or quantity, which captures beholders’ attention and produces admiration and awe.

 

 

 

 

 

 

 

 

In Table 2.1 (the CSDS tool) you will find Hogarth’s classification of creative output. His matrix, using the GENA-dimensions discussed in this chapter, arranges the four dimensions (plus quasi/pseudo creativity) in a hierarchy, ranging from the “routine” product (characterized by the single characteristic of effectiveness) (little-c in Kilgour’s model), to “innovative” products (Big-C in Kilgour’s framework) the with “original and “elegant” in between those two outer extremes.

Table 2.1: CSDS A Tool: Levels and Kinds of Creativity in Creative Output
[Adapted from Cropley & Cropley (2008) p.157]

Product/Output Classification GENA	Kind of Product
	Routine	Original	Elegant	Innovative	Pseudo or quasi-creativity
Effectiveness (Appropriate)	+	+	+	+	̶
Novelty (Unique, New)	̶	+	+	+	+
Elegance (Expression)	̶	̶	+	+	?
Genesis (Generative)	̶	̶	̶	+	?

Functional Creativity: How We See Creativity in Business

A useful tool for both experts and novices is the Creative Solution Diagnosis Scale (CSDS) developed by Cropley and Cropley to assess functional creativity (e.g., consumer products, engineering solutions, business systems). The model suggests five classification criteria (see Table 2.2): relevance and effectiveness, problematization, propulsion, elegance, and genesis. Each of the five functional criteria can be subdivided into three to seven supportive criteria as set out in the table.

Table 2.2: Revised Five-factor CSDS Structure for Functional Creativity

FUNCTIONAL CREATIVITY**
Relevance & Effectiveness	Problematization	Propulsion	Elegance	Genesis
Performance	Prescription	Redefinition	Pleasingness	Vision
Appropriateness	Prognosis	Re-initiation	Completeness	Transferability
Correctness	Diagnosis	Generation	Sustainability	Seminality
Operability		Redirection	Gracefulness	Pathfinding
Durability		Reconstruction	Convincingness	Germinality
Safety			Harmoniousness	Foundationality
			Recognition

**Note: See expanded explanation of the terms in Table 2.3 below.

The full tool to measure functional creativity is set out in Table 2.3. This useful tool will help you as practitioners and business executives to judge (also in formal competitions or assessments) both the amount and kind of creativity.

Table 2.3: Criteria & Indicators of Creativity for Various Solution Types

Criterion of Creativity		Kind of Solution	Property of the Solution	Indicator
Relevance & Effectiveness		Routine	Solution displays knowledge of existing facts and principles and satisfies the requirement in the problem statement	PERFORMANCE (the solution does what it is supposed to do) APPROPRIATENESS (the solution fits within task constraints) CORRECTNESS (the solution accurately reflects conventional knowledge and/or techniques) OPERABILITY (the solution is easy to use) DURABILITY (the solution is reasonably strong) SAFETY (the solution is safe to use)
Novelty	Original		Problematization (solution draws attention to problems in what already exists)	PRESCRIPTION (the solution shows how existing solutions could be improved) PROGNOSIS (the solution helps the beholder to anticipate likely effects of changes) DIAGNOSIS (the solution draws attention to shortcomings in other existing solutions)
			Solution adds to existing knowledge	REPLICATION (the solution uses existing knowledge to generate novelty) COMBINATION (the solution makes use of new mixture(s) of existing elements) INCREMENTATION (the solution extends the known in an existing direction)
			Solution develops new knowledge	REDEFINITION (the solution helps the beholder see new and different ways of using the solution) REINITIATION (the solution indicates a radically new approach) GENERATION (the solution offers a fundamentally new perspective on possible solutions) REDIRECTION (the solution shows how to extend the known in a new direction) RECONSTRUCTION (the solution shows that an approach previously abandoned is still useful)
Elegance	Elegant		Solution strikes observers as beautiful (external elegance)	RECOGNITION (the beholder sees at once that the solution “makes sense”) CONVINCINGNESS (the beholder sees the solution as skilfully executed, well-finished) PLEASINGNESS (the beholder finds the solution neat, well-done) Solution is well worked out and hangs together (internal elegance)
			Solution is well worked out and hangs together (internal elegance)	COMPLETENESS (the solution is well worked out and “rounded”) GRACEFULNESS (the solution well-proportioned, nicely formed) HARMONIOUSNESS (the elements of the solution fit together in a consistent way) SUSTAINABILITY (the solution is environmentally friendly)
Genesis	Innovative		Ideas in the solution go beyond the immediate situation	VISION (the solution suggests new norms for judging other solutions existing or new) TRANSFERABILITY (the solution offers ideas for solving apparently unrelated problems) SEMINALITY (the solution draws attention to previously unnoticed problems) PATHFINDING (the solution opens up a new conceptualization of the issues) GERMINALITY (the solution suggests new ways of looking at existing problems) FOUNDATIONALITY (the solution suggests a novel basis for further work)

Generalizability/Generative/Genesis

Generative creations relate to problems past and future. They offer new solutions for old/existing problems, draws attention to future work or previously unnoticed problems and highlights possible/likely expansion of options to offer (additional) future opportunities. Generalization is the broadening of an application to a wider set of domains or to artefacts/objects of a similar or different type.

The germinality aspect of creations is very valuable because it is the label for the already-included new conceptualizations that are made possible by the novel solution. The creation itself leads to further ideas and solution generation and captures these ideas’ inherent ability to create opportunities for further creation. In the business world, where innovation to keep up with competitors is the name of the game (and probably means a competitive edge or survival), this built-in generative capacity of ideas and inventive products is very valuable, as it leads to further innovations likely to generate revenue. Take as an example the current extensions of Lego^TM (e.g., various construction packs aimed at builders from 5 to 95 years old > Lego Movies > Lego Theme packs in partnership with Disney > Lego clothing and accessories). Similarly, many TV series lead to movies (Sex in the City; Downton Abbey) and inversely movies may lead to either mini-series or Netflix bingeable shows (e.g., Rocky I to V) or books (SAFE by Harlan Coben) may lead to a movie. Similarly, a popular book might lead to a Broadway Show and then to a Cirque du Soleil extravaganza.

In the next section we consider the benefits to individuals, enterprise (via economic impacts on business and society) and the larger, more far-reaching benefits of developing creative intelligence and a culture of innovation and progress for the planet and even beyond.

 

The Critical Role of Creative Output, Innovations, and New Inventions in Society and for the Planet

Benefits of Creative Competency and Creative Thinking Skills for Individuals

Investing in creative competency and creative thinking skills offers numerous benefits for individuals. Firstly, it enhances problem-solving abilities. Creative thinkers can approach challenges from various angles, finding innovative solutions that others might overlook. This skill is highly valued in the workplace, making individuals more competitive and adaptable in their careers. Secondly, creative thinking fosters resilience and adaptability. In a rapidly changing world, those who can think creatively are better equipped to handle uncertainty and change. They can pivot and adapt their strategies to new situations, which is crucial for personal and professional growth.

Additionally, developing creative intelligence boosts personal fulfilment and mental well-being. Engaging in creative activities can reduce stress, improve mood, and provide a sense of accomplishment. It also encourages lifelong learning and curiosity, keeping the mind active and engaged. Furthermore, creativity can lead to greater innovation and entrepreneurship. Individuals with strong creative skills are often the ones who start new businesses, develop ground-breaking products, or introduce novel ideas that drive progress in various fields.

Arguably even more importantly, creative competencies and fully developed cognitive abilities provide humans with the agility to keep adapting to the significant environment changes. A recent surge of interest in creativity has resulted from the rapid development in artificial intelligence and automation. With advancements in big data, cloud computing, the Internet of Things (IoT), machine learning, advanced algorithms, many tasks traditionally performed by humans are now handled by computers. Repetitive tasks, or those involving pattern recognition in large datasets, can be easily automated. As 5G and the Internet of Things make data more accessible, industries such as home building, transportation, accounting, and education are undergoing significant changes. These developments have dramatic effects on employment, income, and societal equality. Despite these changes, humans are highly adaptable, showcasing our creative abilities. While research into computer-based creative problem-solving is underway, the complexity of the human brain still gives us a significant edge. Future-focussed planners indicate that human intelligence augmented by AI will still outperform AI, and AI-AI combined intelligence for a long time to come. People are incredibly adaptable, which reflects our creative abilities, our agility to make small and radical changes when necessary. In our VUCA (volatile, uncertain, complex and ambiguous) business environment this is most certainly a necessary competence. While research into creative problem-solving augmented by AI is just taking off, the complexity of the human brain means that humans still have an edge. Moreover, if we can address the wealth distribution issues in societies, people’s resistance to self-improvement and accepting technological advancements (see TAM theory by Rogers and MOORE’s chasm later) should be reduced. Growing automation could then lead to people having more time to focus on a wide range of creative (and hopefully self-actualizing and transcendent endeavours (see more on transcendence in the next section).

Overall, investing in creative competency enriches an individual’s life, providing them with the tools to navigate, survive and thrive in an ever-evolving world.

Benefits of Creative Competency and Creative Thinking Skills for Business & Enterprise

Creative output, innovations, and new inventions are fundamental to the advancement of society and the well-being of our planet. They drive progress, solve complex problems, and open new avenues for sustainable development. CEOs surveyed by Price WaterHouse Coopers (PWC, one of the Big Four consulting firms), support this view (see Figure 2.1)

Here are several key reasons why Creative Intelligence and continued innovation are critical:

1. Economic Growth and Prosperity

Innovations and new inventions are the lifeblood of economic growth. They lead to the creation of new industries and job opportunities, fostering economic prosperity. Creative industries, from technology to entertainment, generate significant revenue and contribute to a nation’s GDP. The continuous development of new products and services ensures that economies remain dynamic and competitive on the global stage.

2. Improving Quality of Life

Innovations in medicine, technology, and infrastructure have a profound impact on the quality of life. Medical breakthroughs lead to better health outcomes, increased life expectancy, and improved patient care. Technological advancements simplify everyday tasks, enhance communication, and provide new forms of entertainment and education. Innovations in infrastructure, such as smart cities and sustainable transportation, improve living conditions and make cities more liveable.

3. Addressing Global Challenges

Creative solutions are essential in addressing some of the most pressing global challenges, including climate change, poverty, and food security (see the discussion about the UN’s goals later in this chapter). Innovation in renewable energy and sustainable practices is crucial in reducing carbon footprints and mitigating environmental impact. Agricultural advancements help in increasing food production and ensuring food security for growing populations. By tackling these challenges creatively, we can create a more sustainable and equitable world.

4. Fostering Social and Cultural Development

Creative output in the form of art, literature, music, and film plays a pivotal role in shaping cultural identity and fostering social cohesion. It provides a medium for expression, reflection, and dialogue, enabling societies to explore and celebrate their diversity. Cultural innovations can also bridge gaps between different communities, promoting understanding and peace.

5. Encouraging Scientific and Technological Advancement

Innovation drives scientific discovery and technological advancement. Research and development (R&D) activities lead to new knowledge and technological tools that can be applied across various fields. This continuous cycle of innovation and discovery is essential for scientific progress and the development of cutting-edge technologies that can transform industries and improve lives.

The importance of creative output, innovations, and new inventions cannot be overstated. They are the catalysts for economic growth, improved quality of life, and the resolution of global challenges. By embracing and promoting creativity and innovation, we can build a more prosperous, sustainable, and harmonious world for current and future generations.

Benefits to Society & The Cosmos

The United Nations identified 17 Sustainable Development Goals (UN SDGs) for 2025 and beyond.

The Role of Creativity and Innovation in Achieving the UN SDGs

Creativity and innovation are crucial for achieving the ambitious goals set by the United Nations Sustainable Development Goals (SDGs). These goals, which aim to address global challenges such as poverty, inequality, climate change, and environmental degradation, require solutions that are not only effective but also sustainable. Creativity drives the generation of new ideas, while innovation transforms these ideas into practical and scalable solutions. Together, they form the backbone of progress towards the SDGs. Creativity and innovation are indispensable for addressing the UN SDGs and solving the complex, wicked, and sticky problems facing humanity. By harnessing the power of creative problem-solving and collaborative ideation, we can develop sustainable solutions that not only meet the needs of today but also ensure a better future for as yet unborn generations and perhaps even inter-stellar opportunities (and threats) to come (See Figure 2.10 below).

1. Tackling Wicked and Sticky Problems

Many of the issues targeted by the SDGs are considered “wicked” problems. These problems are characterized by their complexity, interdependencies, and resistance to straightforward solutions. They often involve multiple stakeholders with conflicting interests and require a holistic approach to problem-solving. Similarly, “sticky” problems are those that are persistent and difficult to solve, often due to entrenched behaviors, systemic inertia, and significant barriers to change.

Creative problem-solving and ideation are key to tackling these larger-than-life problems. By thinking outside the box, we can break down complex issues into manageable parts, identify underlying causes, and develop innovative solutions that address root problems rather than symptoms. For example, tackling climate change (SDG 13) requires creative approaches to reducing carbon emissions, developing sustainable agricultural practices, and promoting green technologies. Similarly, achieving zero hunger (SDG 2) involves innovative agricultural techniques, food distribution systems, and policies that ensure food security for all. Further, innovative technologies such as renewable energy solutions are essential in achieving SDG 7: Affordable and Clean Energy. Creative approaches to education and healthcare can significantly contribute to SDG 4: Quality Education and SDG 3: Good Health and Well-being. Additionally, creative thinking in policy-making and urban planning is vital for developing sustainable cities and communities, as outlined in SDG 11. By fostering creativity and innovation, we can develop new ways to address these complex and interlinked challenges.

In addition, achieving the SDGs necessitates collaborative creativity – these problems are far too wide in impact and complex as problems to be tackled by one institution or one nation. Bringing together diverse perspectives from different sectors, cultures, and disciplines can spark new ideas and approaches. International and cross-disciplinary collaboration encourages cross-pollination of ideas, leading to more robust and comprehensive solutions. For instance, partnerships between governments, businesses, and civil society are essential for creating sustainable and inclusive economic growth (SDG 8) and building resilient infrastructure (SDG 9).

2. Enhancing Environmental Sustainability

New inventions and creative solutions are vital in promoting environmental sustainability. Innovations in waste management, recycling, and sustainable manufacturing reduce environmental degradation and resource depletion. Green technologies, such as electric vehicles and solar power, offer cleaner alternatives to traditional energy sources, contributing to a healthier planet.

 

3. Inspiring Future Generations

Creative output and an innovative spirit inspire future generations to pursue careers in science, technology, engineering, arts, and mathematics (STEAM). By fostering a culture of innovation and creativity, we can nurture the next generation of inventors, scientists, artists, and leaders who will continue to drive progress and address future challenges.

Building creative leadership involves cultivating a corporate and national culture that transcends individual needs, fostering contributions to the greater good of mankind and cosmic well-being. This visionary approach encourages leaders to think beyond local or personal gain, focusing instead on the interconnectedness of all life forms and even extending their concern to the galaxy beyond our planet. Creative leaders are essential in promoting sustainable practices that benefit the environment, ensuring the survival and prosperity of diverse ecosystems. By fostering a culture of empathy, innovation, and long-term thinking, these leaders inspire others to consider the broader impact of their actions on all creatures and the universe.

Incorporating cosmic well-being into leadership means prioritizing initiatives that support global and interstellar health. (E.g., awareness of the impact of lost satellites and discarded space vehicles in the space surrounding earth. In orbital mechanics, the geostationary ring is the region of space around the Earth that includes geostationary orbits and the volume of space which can be reached by uncontrolled objects). This includes advancing renewable energy technologies, preserving natural habitats, and exploring space with the intention of learning and coexisting rather than exploiting. By adopting a holistic perspective, creative leaders can drive policies and strategies that address both immediate human needs and the far-reaching implications for the planet and beyond. Such a culture not only benefits current generations but also lays the groundwork for a sustainable and harmonious future.

Ultimately, the cultivation of creative leadership for cosmic well-being necessitates a shift in values—moving from short-term gains to long-term sustainability and from individualism to collective responsibility. This paradigm shift can lead to a more ethical, equitable, compassionate, and forward-thinking society, capable of addressing the profound challenges that lie ahead for humanity and the cosmos.

Before we step away from the genii’s creations and consider the processes (in Chapter 3) a few last words about the types of inventions and innovations in business. We will cover this topic in more in the Chapter 8, where we discuss piloting and prototyping, but it would be negligent to fail to mention the three classes of business innovations here. Innovations in business can be categorized as incremental, radical, and disruptive, each serving distinct purposes.

Incremental innovation involves making small, continuous improvements to existing products, services, or processes. These enhancements aim to increase efficiency, reduce costs, and improve quality over time. They help businesses stay competitive by refining their offerings without fundamentally altering the market or industry. An example of incremental innovation is the regular updates and new features added to smartphone models each year.

In contrast, radical innovation refers to significant technological breakthroughs or substantial changes that fundamentally transform a company’s products, services, or operations. This type of innovation often leads to the creation of entirely new markets or the dramatic reshaping of existing ones. Radical innovations typically require substantial investment in research and development and carry higher risks. However, the potential rewards are equally significant, as they can establish a company as a market leader. An example of radical innovation is the development of electric vehicles, which has transformed the automotive industry; or the new business models of Uber and Airbnb in the well-established markets of rented transport and hospitality, respectively.

Disruptive innovation, a term coined by Clayton Christensen, involves introducing products or services that start in simple applications at the bottom of a market and then relentlessly move upmarket, eventually displacing established competitors. Disruptive innovations often target overlooked segments with cheaper, more accessible offerings. Over time, these innovations improve and capture a larger market share. A classic example is the advent of digital photography, which disrupted the traditional film photography industry by making photo-taking more accessible and convenient.

Understanding and leveraging these types of innovations is crucial for businesses seeking long-term growth and market relevance. Companies must balance the steady progress of incremental innovations with the bold steps of radical and disruptive innovations to navigate the ever-changing business landscape effectively.

 

References

Amabile, T. (1998, September). How to Kill Creativity. Harvard Business Review. https://hbr.org/1998/09/how-to-kill-creativity

Amabile, T., Pratt, M.G. (2016) The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning. Research in Organizational Behavior, (36), pp. 157-183, https://doi.org/10.1016/j.riob.2016.10.001

De Villiers, R. (2023). The Handbook of Creativity and Innovation in Business. Springer.

Kilgour, M. (2006) Improving the creative process: Analysis of the effects of divergent thinking techniques and domain specific knowledge on creativity. International Journal of Business and Society, 7(2), 79-107.

OpenAI. (2024). Image of GENA, a humanoid robotic assistant designed for assessing innovative products, prompted by R de Villiers, generated using DALL-E. Retrieved from ChatGPT, powered by OpenAI.