University of the Commonwealth Caribbean
School of Business and Management
Assignment #1
Present in partial fulfilment for the requirements of the course: BUS403 Entrepreneurship
TO
Mr. Reginald Nugent
By
Kevron D. Salmon
20195610
June 30, 2020
Former Governor of North Carolina Jim Hunt Jr once said “education is the foundation for
all we do in life, it shapes who we are and what we aspire to be. Creativity fuels innovation,
and it’s what all states should strive to install in the next generation”. This quotation should
be a firm stand which all entrepreneurs seek to realise and put into practice. The Cambridge
Dictionary defines Creativity as “the ability to produce or use original and unusual ideas”
while innovation is “a new idea or method, or the use of new ideas and methods”. Creativity
is the foundation for innovation, while innovation is critical to the competitiveness of
entrepreneurial firms this statement highlight the important nature of the two terms
creativity and innovation.
The first part of the statement put forward the idea that Creativity is the raw
material that goes into innovation and as such should be encouraged at the organizational
and individual supervisory level or any level of the business. This also shows that creative
thinking is the must have “skill” of an entrepreneur for the creation of new ideas. Creativity
allows a person to devise interesting processes, which gives so many advantages to
entrepreneurs. The second part of the statement highlights the important of innovation to
the business and at the same time provides a distinction between creativity and innovation.
The main difference between creativity and innovation is the focus. Creativity is about
unleashing the potential of the mind to conceive new ideas. Innovation, on the other hand,
is measurable. Innovation is about introducing change into fairly stable systems. It’s also
concerned with the work required to make an idea feasible. By recognizing an unrecognized
and unmet need, an organization or entrepreneur can use innovation to apply its creative
resources to design an appropriate solution and gain a return on its investment.
Innovation is the ability to generate and execute on new ideas. These ideas can be
incremental, evolutionary, or revolutionary. Innovative organizations repeatedly bring new
products or services to market over time. Innovation also picks up at the point where
creativity ends and is important in the completive business sector as it is the medium trough
where creative ideas come to life. There are three types of innovation namely Product,
process and business model innovation. Product innovation is the most well-understood and
common form of innovation and is related to either an introduction of a completely new
product a good example is Bitcoin currency or a new feature in an existing product for
example the introduction of camera features in a mobile phone or the enhancement of an
existing product feature such as a higher resolution version of the camera. Product
innovations mostly result from new technology or new insights about customer need.
Process innovation is how a product or service is produced or delivered to the client. It can
be a combination of methods, capabilities and technologies to produce, market, deliver and
support a product or provide a service. Business model innovation is usually not about
incremental change but more holistic and organization-wide transformation [ CITATION
Asa18 \l 8201 ]. A good example of business model innovation is in the case where Amazon
found a new way to reach and market to its customers online without going through the
conventional retail distribution route.
In concluding Creativity is the ability to produce or use original and unusual ideas
while innovation is a new idea or method, or the use of new ideas and methods. The main
difference between creativity and innovation is the focus. Creativity is about unleashing the
potential of the mind to conceive new ideas. Innovation, on the other hand, is measurable.
Innovation is about introducing change into fairly stable systems. It’s also concerned with
the work required to make an idea feasible. There are three types of innovation namely
Product, process and business model innovation.
Reference
Zaidi, A. (2018, May 26). Management Insights. Retrieved June 20, 2020, from Management
Insights: [Link]