business studies essay creative thinking

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The Importance of Creativity in Business

• 25 Jan 2022

When you think of creativity, job titles such as graphic designer or marketer may come to mind. Yet, creativity and innovation are important across all industries because business challenges require inventive solutions.

Here’s an overview of creativity’s importance in business, how it pairs with design thinking, and how to encourage it in the workplace.

Access your free e-book today.

Why Is Creativity Important?

Creativity serves several purposes. It not only combats stagnation but facilitates growth and innovation. Here's why creativity is important in business.

1. It Accompanies Innovation

For something to be innovative, there are two requirements: It must be novel and useful. While creativity is crucial to generate ideas that are both unique and original, they’re not always inherently useful. Innovative solutions can’t exist, however, without a component of creativity.

2. It Increases Productivity

Creativity gives you the space to work smarter instead of harder, which can increase productivity and combat stagnation in the workplace. Routine and structure are incredibly important but shouldn’t be implemented at the expense of improvement and growth. When a creative and innovative environment is established, a business’s productivity level can spike upward.

3. It Allows for Adaptability

Sometimes events—both internal and external—can disrupt an organization’s structure. For example, the COVID-19 pandemic has dramatically changed how the present-day business world functions . In such instances, imaginative thinking and innovation are critical to maintaining business operations.

Creatively approaching challenges requires adaptability but doesn’t always necessitate significantly adjusting your business model. For example, you might develop a new product or service or slightly modify the structure of your operations to improve efficiency. Big problems don’t always require big solutions, so don’t reject an idea because it doesn’t match a problem’s scale.

Change is inevitable in the business world, and creative solutions are vital to adapting to it.

4. It’s Necessary for Growth

One of the main hindrances to a business’s growth is cognitive fixedness, or the idea that there’s only one way to interpret or approach a situation or challenge.

Cognitive fixedness is an easy trap to fall into, as it can be tempting to approach every situation similar to how you have in the past. But every situation is different.

If a business’s leaders don’t take the time to clearly understand the circumstances they face, encourage creative thinking, and act on findings, their company can stagnate—one of the biggest barriers to growth.

5. It’s an In-Demand Skill

Creativity and innovation are skills commonly sought after in top industries, including health care and manufacturing. This is largely because every industry has complex challenges that require creative solutions.

Learning skills such as design thinking and creative problem-solving can help job seekers set themselves apart when applying to roles.

Creativity and Design Thinking

While creativity is highly important in business, it’s an abstract process that works best with a concrete structure. This is where design thinking comes into play.

Design thinking —a concept gaining popularity in the business world—is a solutions-based process that ventures between the concrete and abstract. Creativity and innovation are key to the design thinking process.

In Harvard Business School Dean Srikant Datar’s course Design Thinking and Innovation , the process is broken down into four iterative stages:

• Clarify: In this stage, observation and empathy are critical. Observations can be either concrete and based on metrics and facts or abstract and gleaned from understanding and empathy. The goal during this stage is to gain an understanding of the situation and individuals impacted.
• Ideate: The ideation stage is abstract and involves creativity and idea generation. Creativity is a major focus, as the ideation phase provides the freedom to brainstorm and think through solutions.
• Develop: The development phase is a concrete stage that involves experimentation and trial and error. Critiquing and prototyping are important because the ideas generated from the ideation stage are formed into testable solutions.
• Implement: The fourth stage is solution implementation. This involves communicating the solution’s value and overcoming preexisting biases.

The value of design thinking is that it connects creativity and routine structure by encouraging using both the operational and innovation worlds. But what are these worlds, and how do they interact?

The Operational World

The operational world is the concrete, structured side of business. This world focuses on improving key metrics and achieving results. Those results are typically achieved through routine, structure, and decision-making.

The operational world has many analytical tools needed for the functional side of business, but not the innovative side. Furthermore, creativity and curiosity are typically valued less than in the innovation world. Employees who initiate unsuccessful, risky endeavors are more likely to be reprimanded than promoted.

The Innovation World

The innovation world requires curiosity, speculation, creativity, and experimentation. This world is important for a company’s growth and can bring about the aforementioned benefits of creativity in business.

This world focuses more on open-ended thinking and exploration rather than a company’s functional side. Although risky endeavors are encouraged, there’s little structure to ensure a business runs efficiently and successfully.

Connecting the Two Worlds

Although the operational world and innovation world are equally important to a business’s success, they’re separate . Business leaders must be ambidextrous when navigating between them and provide environments for each to flourish.

Creativity should be encouraged and innovation fostered, but never at the expense of a business’s functionality. The design thinking process is an excellent way to leverage both worlds and provides an environment for each to succeed.

Since the design thinking process moves between the concrete and abstract, it navigates the tension between operations and innovation. Remember: The operational world is the implementation of the innovative world, and innovation can often be inspired by observations from the operational world.

How to Encourage Creativity and Innovation

If you want to facilitate an innovative workplace, here are seven tips for encouraging creativity.

1. Don’t Be Afraid to Take Risks

Creativity often entails moving past your comfort zone. While you don't want to take risks that could potentially cripple your business, risk-taking is a necessary ingredient of innovation and growth. Therefore, providing an environment where it’s encouraged can be highly beneficial.

2. Don’t Punish Failure

Provide your team with the freedom to innovate without fear of reprisal if their ideas don’t work. Some of the best innovations in history were the product of many failures. View failure as an opportunity to learn and improve for the future rather than defeat.

3. Provide the Resources Necessary to Innovate

While it can be tempting to simply tell your team to innovate, creativity is more than just a state of mind. If your colleagues have the opportunity to be creative, you need to provide the resources to promote innovation. Whether that entails a financial investment, tools, or training materials, it’s in your best interest to invest in your team to produce innovative results.

4. Don’t Try to Measure Results Too Quickly

If an innovative idea doesn’t produce desirable results within a few months, you may consider discarding it entirely. Doing so could result in a lost opportunity because some ideas take longer to yield positive outcomes.

Patience is an important element of creativity, so don't try to measure results too quickly. Give your team the freedom to improve and experiment without the pressure of strict time constraints.

5. Maintain an Open Mind

One of the most important components of an environment that fosters creativity and innovation is keeping an open mind. Innovation requires constantly working against your biases. Continually ask questions, be open to the answers you receive, and don't require fully conceptualized ideas before proceeding with innovation.

6. Foster Collaboration

Collaborative environments are vital for innovation. When teams work together in pursuit of a common goal, innovation flourishes. To achieve this, ensure everyone has a voice. One way to do so is by hosting brainstorming sessions where each member contributes and shares ideas.

7. Encourage Diversity

Diversity fosters creativity and combats groupthink, as each individual brings a unique outlook to the table. Consider forming teams with members from different cultural backgrounds who haven’t previously worked together. Getting people to step outside their comfort zones is an effective way to encourage innovation.

Learning to Be Creative in Business

Creativity and innovation are immensely important skills whether you’re a job seeker, employer, or aspiring entrepreneur.

Want to learn more about design thinking? Start by finding fellow professionals willing to discuss and debate solutions using its framework. Take advantage of these interactions to consider how you can best leverage design thinking and devise different approaches to business challenges.

This exposure to real-world scenarios is crucial to deciding whether learning about design thinking is right for you. Another option is to take an online course to learn about design thinking with like-minded peers.

If you’re ready to take your innovation skills to the next level, explore our online course Design Thinking and Innovation , one of our online entrepreneurship and innovation courses. If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

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Essay: Business notes: Creative problem solving

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1 Unit 1 – Creative problem solving 1.1 Introduction A business leader is expected to identify problems, implement solutions and find business opportunities. To do so, they must learn to plan, analyse situations, identify and solve problems (or potential problems), make decisions, and set realistic and attainable goals for the business/unit. These are the fundamental thinking/creative requirements for leadership, and these set direction to a successful future. Without this critical competence, you will have to rely on others to do your thinking for you, or you will simply have to learn to nurture your creative thinking skills which will help you on your journey towards successful business. Creative thinking forms part of this continuous problem solving process, and is the fundamental basis for facilitating in the development of solutions, new initiatives, products or services. In an entrepreneurial context, the end result of this process should be directly linked to a feasible opportunity in the market environment. Quote – What lies behind us and what lies before us, are tiny matters, compared to what lies within us. – William Morrow The creative problem solving process consists of the following four steps: ‘ Problem analysis ‘ Solution analysis ‘ Decision analysis ‘ Solution implementation 1.2 The process The creative problem solving process consists of an important core process, namely the idea generation process see figure 1. This is an important step, especially if you need to come up with creative ideas for products, services, and processes, to solve a consumer problem. The idea generation process consists of the following four steps: ‘ Step 1 – Generating ideas ‘ Step 2 – Developing ideas into a concept ‘ Step 3 – Converting a concept into a tangible or intangible product ‘ Step 4 – Finally protecting the tangible or intangible product Figure 1 – The process of creative thinking (idea generation) Initially you need to understand the problem and find the root cause of the problem. Many techniques are available to find the causes of problems, you can use the 5 Why technique in this case, if you are familiar with it. The more advanced courses will describe how to use the major problem identification techniques, but this course will focus on the idea generation process. 1.3 Where to start In the entrepreneurial phase, the best way to start the idea generation process is when you are required to come up with a new product or service, to identify a potential consumer problem. Initially, focus on identifying problems in the area of your expertise (your knowledge base). If you have no knowledge of the problem, the product development stage could be a challenge for you. You will learn in the next section that not all problems are opportunities, and entrepreneurs should be careful as to how they approach this stage, when generating ideas in trying to identify a new product or service. 1.4 Problem versus opportunity In most cases, the idea-generation phase in the creative problem solving process is neglected. Individuals normally identify a problem or an opportunity (which may seem like an opportunity, but is actually just an idea), and then develop a new product in line with the new assumed idea or opportunity. It is therefore important to distinguish between an idea and an opportunity. Resources may be wasted if a mere idea is incorrectly perceived as an opportunity. Any opportunity is initially problem based (e.g. a coffee shop in a destination where there is a lack thereof, this creates several problem situations and potentially feasible opportunities for the entrepreneur). The creative thinking (idea generation process) involved, is the means to solving these problems, and bring forth solutions to the market problems, which create further opportunities. 1.4.1 Difference between problem and opportunity There is, however, a critical difference between a problem and opportunity. Consider the following: ‘ Is it an idea or an opportunity to develop a high speed train between two major cities which are not far from each other? Some may say it is a great idea, but when you need to pay R200 a day to make use of it, it is simply not an opportunity. Only a few people would make use of the service, resulting in a negative impact on the market. ‘ If it is possible to transport people between the two cities for a lower cost, say R10, it would possibly be a more feasible opportunity. Here is a good example of an opportunity – Around the turn of the twentieth century, a shoe manufacturer sent a representative to Africa, to open up a market in the undeveloped area in that continent. After exploring the culture for a month, the rep sent a telegram to the home office shouting, ‘Disaster! Disaster! These people do not wear shoes. Bring me home immediately!’ A short time later, another shoe company sent their agent to Africa for the same purpose. A month later his home office also received a telegram: ‘Opportunity! Opportunity! These people do not wear shoes! Triple production immediately!’ Quote – Every situation contains the potential for disastrous problems or unprecedented success. The event is what we perceive it to be. Unknown Now the question arises: How do I distinguish between an idea and an opportunity? Looking at above examples, every problem is not an opportunity, and it really depends at how you are looking at the problem. If you see a viable opportunity in a problem then you are looking at the problem with a different perception than most people (the glass is half full or half empty). From a business perspective all opportunities are not necessarily a viable opportunity, the market determines the available opportunities. Without the knowledge to interpret the market conditions, you could miss it totally in terms of your opportunity analysis. Table 1 shows the different industries in South Africa, the level of entrepreneurial activity, and how the same opportunity differs in each of these market areas. 1.4.2 The global entrepreneurship monitor The Global Entrepreneurship Monitor ‘ specifically identified the entrepreneurial activity in the various industries of South Africa. It can be generalized to state that an industry with a high level of entrepreneurial activity, gives away more business opportunities (e.g. manufacturing, retail, hotel, restaurant and business services), while one with a lower level will indicate far less opportunities (e.g. agriculture, forestry, hunting, fishing, finance, insurance, real estate and health, education and social services). If we analyse just one ‘high-opportunity’ industry, for instance manufacturing, it may be an opportunity today to manufacture a final product, and export it to an international market. A ‘low-opportunity’ industry, for instance insurance (especially in the market entry phase), may be negative as having an extremely high crime rate and insurance companies have to pay out claims at an alarming rate. It is also evident that low-opportunity industries may create feasible opportunities. An entrepreneur should therefore be wary of following a fad, (latest trend) and exploiting assumed opportunities in a ‘popular’ industry. Percentage of Entrepreneurs ISIC Category Start-ups New Firms Total Agriculture, forestry, hunting, fishing 1,3 2,6 1,6 Mining, construction 9,7 5,0 4,1 Manufacturing 14,3 19,1 13,8 Transport, communications, utilities 9,8 0,7 8,0 Wholesale, motor vehicle sales, repairs 6,0 6,5 6,3 Retail, hotel, restaurant 40,8 47,7 43,5 Finance, insurance, real estate 0,3 5,2 1,4 Business services 10,1 7,9 9,4 Health, education, social services 2,6 0,7 2,3 Consumer services 11,0 3,5 9,7 Source: Driver. Wood, Segal & Herrington, 2001 Table 1 – The percentage of entrepreneurs in the different industries in South-Africa 1.4.3 What is an opportunity? What exactly is an opportunity and how does an entrepreneur exploit a feasible opportunity? According to Hesrich & Peters (2002), an opportunity is the process whereby the entrepreneur assesses whether a certain product, service or process, will yield the necessary earnings based on the resource inputs that are required to manufacture and market it. ‘ The nature of opportunities needs to be assessed – thus, what leads to the existence of an opportunity? The following factors may result in an opportunity: ‘ General and specific problems faced by consumers ‘ Market shifts ‘ Government regulations ‘ Competition There are two equally important criteria in the assessment of an opportunity. Firstly, the size of the market – will the number of customers reward the input and energy required, to create and deliver the product? Secondly, the length in terms of the frame of the opportunity (window of opportunity). For example, is the demand for this product only a short fashionable phenomenon or is it based on sustainable business, or how long will it take before someone else (a competitor), to grab the opportunity? These two aspects should also link directly to the personal skills and competence of the entrepreneur. For example, entrepreneurs with no skills or interest in information technology will not necessarily achieve their personal goals. They should rather venture into an opportunity which suits their experience and personality. 1.4.4 Transform opportunity into a business Table 2 shows how the development of a business plan links to the identification and evaluation of opportunities, the determination of the resources required and the eventual management of the enterprise. All of these factors play a significant role in the correct assessment of the business opportunity. This means that the business plan must explain in sufficient detail how the business will exploit the situation, to transform the opportunity, into solving a problem for the consumer, which generates extraordinary profits for the people involved. ‘ Identify and evaluate the opportunity Develop the business plan Determine the resources needed Manage the enterprise Creation and length of opportunity Real and perceived value of opportunity Risk and returns of opportunity Opportunity versus skills and goals Competitive situation Title page Table of contents Executive summary Description of business Description of industry Marketing plan Financial plan Production plan Organisational plan Operational plan Summary Appendices Existing resources of the entrepreneur Resource gap and available supplies Access to needed resources Management style Key variables for success Identification of problems and potential problems Implementation of control systems Source: Hisrich, R.D. & Peters, M.P. 2002: 40. Entrepreneurship. Boston: Irwin/McGraw-Hill. Table 2 – Link between Opportunity and business plan 1.5 Instruction Exit and resume to your current page.

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Creative Thinking, Essay Example

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It seems most people automatically think of the arts when “creative thinking” is the subject. I do that as well. Recently, however, I like to explore how completely open this concept is, because I am coming to realize that creative thinking can apply to virtually any single thing we engage in.

For example, I was struck by a strong example of creative thinking at the supermarket. It was not something exactly new, but I had never viewed it as the result of some seriously creative energy. It is a service we all have become familiar with; the scanning devices that allow you to ring up and pay for your own purchases without waiting in a checkout line.

On the face of it, I would guess that this is most often viewed as simply a business innovation, maybe a clever one, but nothing especially creative. I disagree. I think, in fact, that there must be many instances when truly creative thinking does not get credit as such because we quickly become used to what was not there before, and because, if it is not of an artistic nature, it cannot be really creative.

To me, what makes this ordinary service exceptional is that someone broke through paradigms of how supermarkets had always operated. It seems that having enough cashiers available must have always been an ongoing problem; how can any store know when, ten minutes after a lull, five loaded carts will be impatient at once? I think it is safe to say that, for decades, this problem was addressed through the expected channels, with managers continually urged to be as ready as possible. Nonetheless, the same limits were in place, because it is impossible to schedule enough workers when even predictable peak shopping hours contain spurts of unexpected business.

What makes me certain that creative thinking stepped in here is because, at some point, someone just said, “Why not let the customer check himself out? All we need are the same machines the cashiers use.” This may not have been brilliant thinking, but it was certainly radical and unexpected. It was creative openness of mind applied to a dull and ordinary problem, and it reveals how creative thinking is limited to nothing. Directed at anything, it can change anything.

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Grade 11 Business Studies Past Papers and Memos (South Africa)

This page contains Grade 11 Business Studies past exam papers and memos (South Africa). You can browse and download question papers and memos for your revisions (2019, 2018 May/June, October, November).

Table of Contents

Critical Topics for Term 1 Revision

• Influences on and control factors influencing business environments.
• Challenges in business environments
• Adapting to challenges in business environments
• Impact and challenges of contemporary socioeconomic issues on business operations
• Business sectors
• Benefits of a company versus other forms of ownership
• Avenues of acquiring a business

Critical Topics for Term 2 Revision

• Creative thinking and problem solving Stress, crisis and change management
• Transform a business plan into an action plan Starting a business venture based on an action plan Professionalism and ethics
• Presentation of Business Information

Critical Topics for Term 3 Revision

• Assessment of entrepreneurial qualities in business Citizenship roles and responsibilities
• Marketing activities, marketing in the formal and informal sectors Use of technology for marketing
• Imports and exports
• Foreign marketing
• The alignment of foreign marketing and the production function Production function
• Team Stages, dynamics theories and conflict management
• Introduction to the Human Resources function

Download Grade 11 Business Studies Past Papers and Memos

Business studies grade 11 2017 exams (english and afrikaans) question papers:.

• BUS STUDIES GR11 QP NOV2017_Afrikaans
• BUS STUDIES GR11 QP NOV2017_English
• BUS STUDIES GR11 MEMO NOV2017_Afrikaans
• BUS STUDIES GR11 MEMO NOV2017_English

Business Studies grade 11 2016  Exams (English and Afrikaans) question papers:

• Gr11-BSTD-N16-QP-Afr
• Gr11-BSTD-N16-QP-Eng
• Gr11-BSTD-N16-MEMO-Afr
• Gr11-BSTD-N16-MEMO-Eng

More Grade 11 Study Resources

• Grade 11 Computer Applications Technology Study Guides Available for Free Download
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• Saturday school for grade 11 by Sci-Bono
• Grade 11 English Home Language Study Guide Free Download
• Grade 11 Business Studies Study Guides Available for Free Download. 

Download all Grade 11 Previous Question Papers

Hello Grade 11 Learners. Modern Classroom has everything for you needed to pass your exams, tests, assessments, research tasks and assignments under CAPS Curriculum . Feel free to explore all resources for grade 11, such as Study Guides, DBE Past Exam Papers with Memos , and Speech Topics. That’s if you want to know how to pass grade 11 with distinctions in South Africa

Why passing Grade 11 is very important

Grade 11 ultimately prepares you for Grade 12. You regard Grade 11 as your last trial run for your Matric year because most of the work covered in the syllabus will prepare you for Matric anyway. Passing your Grade 11 very well, is usually a sign that you may pass very well in Matric.

What can you do with your Grade 11 marks in South Africa?

• You can apply at a South African University using your Grade 11 marks
• You can already apply for university bursaries using your Grade 11 marks

Other Grade 11 Subjects

• Accounting Grade 11
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Did You See These?

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Gr. 10 T3 W1 Business Studies Lesson Plan: Creative Thinking & Problem Solving

2020 Gr 10 Business Studies Lesson Plan: Creative Thinking & Problem Solving

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Caps Business Studies 10

Caps bs 10 term 3 week 1 – 2 creative thinking and problem solving, topic – creative thinking and problem solving.

• Creative thinking and its contribution towards successful and sustainable business practice • Creative thinking to generate entrepreneurial opportunities and to solve business problems

• Problem solving:
• Research skills -finding information to assist with problem solving
• Problem solving versus decision making
• Problem-solving cycle: identification of the problem, definition of the problem, formulation of the strategy, implementation of the strategy, allocation of resources, monitoring problem solving and evaluation of the problem-solving process
• Problem-solving techniques (e.g. Force-Field Analysis, Chair Technique, Empty Chair Technique, Delphi Technique, Nominal Group Technique, brainstorming, Forced Combinations, SCAMPER) — The use of indigenous knowledge to solve problems and identify business opportunities — The use of mind mapping, brainstorming and creative thinking/idea generation to identify innovative and entrepreneurial business opportunities — The use of non-conventional thinking to identify innovative business opportunities — Ways in which creative business opportunities can realistically be implemented