What is creativity?

Before you can assess where and how to apply creativity in your business, let's start by understanding what the definition of creativity is...

According to Wikipedia: "Creativity is a phenomenon whereby something somehow new and somehow valuable is formed. The created item may be intangible (such as an idea, a scientific theory, a musical composition, or a joke) or a physical object (such as an invention, a printed literary work, or a painting)"

The Cambridge Dictionary puts it more simply, "Creativity is the ability to produce or use original and unusual ideas." In other words, creativity is being able to envision something that has not been done before and then create it.

Examples of creativity in business could be developing new products or services, implementing variations across production, or making changes across the management methods.

Why is Creativity Important?

If you take a look at the world we live in today, you’ll realise that most of the technologies we seamlessly use today didn’t exist 15-25 years ago. Every new piece of technology requires thousands and thousands of hours of applied creativity to exist. In short, without creativity, progress would be thwarted.

Moreover, the paradigm we face in current times is that creativity tends to be undermined by the stress of uncertainty and crisis. However, creativity is also fundamental to finding a path back into stability and progress. Consequently, we can comfortably accept that creativity is essential for business, particularly in the current climate.

At Lumi.com.au, we specialise in online business lending, and we strive to be a valuable source for the SME community beyond our core business. And as such, this article aims to provide a set of perspectives that can help your business improve and progress by applying creativity across all business areas.

The following are five examples of creativity in business that we would like to share with you. We hope they will ignite your creativity and allow you to find a path to make your business bigger and better.

1. Market Creation:

Demand is essential for any business endeavour; without it, there's not much you can do to grow a business. The real question, though, is, can demand be created?

The short answer is yes. You only need to look at the many things that are used and taken for granted today. These illustrate items that were unheard of in the past, but now there is a constant demand for them.
 
Look at the case of Microsoft, which in 1975 released their first Operating System (Altair 8800) for an early version of a personal computer created by MIT. Creativity kicked in, and they realised that selling personal computers was only the springboard for software demand. The rest is history.




Another example of creativity in business is what Nescafe has done by selling a very affordable and good-quality espresso machine. The initial inspiration was barista-quality coffee at home.

The result was a steady demand for coffee cartridges, an incredibly lucrative business. That was a formidable way to grow from selling instant coffee at supermarkets to competing with higher quality barista coffee.

All you have to do is ask yourself ‘can you create a situation where new products or services drive demand, and are you one of the few that can service that new demand?’

For most people the answer is yes, you simply need to come up with an original idea that creates a captive market. That’s where creativity starts to pay off.

2. Business Model

For many decades, audiences primarily consumed mass media content via TV and Radio. It was hard to imagine any other form until the 90's when Napster came up with an early hint of the possibility of Music on Demand. This opened a revolution that led to outstanding examples of creativity in business. Today businesses like Netflix and Spotify have taken over the media markets and most people can’t imagine life without them.

The concept was simple, Netflix put you in control of what you wanted to watch and when. Instead of sitting in front of a TV with interruptions from multiple advertisements, a simple subscription allows you to choose what you want to watch.

The benefits of this creative business approach are vast from an enterprise and consumer perspective.

We know that questions tend to be more critical than answers when it comes to creativity, the questions are what inspires you to create something new?

It’s time to take a look at your industry and ask yourself, are any changes in your industry coming shortly? Is there an opportunity to cultivate opportunity by doing something differently?

Once you realise the answer is always yes, you can find the right opportunity for you and your business.

3. Sales Method

Not too many years ago, Amazon was a small business trying to sell books, music, and videos only. In short, it was an ordinary company trying to find its place in the market.

Then Jeff Bezos came up with one of the best examples of creativity in business. He created an upsell-function that automatically suggested a product based on what other clients bought before.

So, if you bought a particular book before you would walk away with just that purchase. Amazon simply looked at what else people who bought this book bought and suggested it to you. This little creative change sent sales to a much, much higher level and transformed the future of the business.



Another outstanding example of creativity is the Australian company Cashrewards. They realised that Loyalty plans usually don't provide the consumer with an instant and valuable reward. Instead, customers were given a sense that they had earned cash instantly?

The premise is simple, once you become a member and buy a product or a service from any of their associated brands, you receive an instant cashback payment into your bank account. There are no loyalty points. It is meaningful, simple, and solid enough to turn the concept into a tangible success in no time at all. After all, who doesn’t want money arriving in their account?

4. Business Operation

Uber is too one of the most remarkable examples of creativity in business. A simple yet incredible operational innovation, allowed them to create an entirely new industry (share economy).

Just like Airbnb is now the most significant accommodation business without owning any infrastructure, Uber is the largest taxi company, and it doesn't own any cars.

Examples of creativity in business are multiple, yet the Uber one takes lateral thinking, courage, and inspiration to a higher degree. That is undoubtedly an essential factor in the creative process.

Thinking out of the box is indeed a requirement; pushing your imagination without thinking of boundaries might hold the key for your business too.

5. Inventory Management

Can you catapult a small business by applying creativity to inventory management? Your senses would probably challenge this idea, yet this is one of the critical reasons Zara became what it is today.

Amancio Ortega had the brilliant initiative of investing in inventory management to keep the costs to a bare minimum while securing the right amount of products per store. This, in combination with the concept of disposable fashion, generated brilliant results. The company now has 2,220 stores in 88 countries.

So when it comes to examples of creativity in business, Zara is an excellent point of reference to follow. It went from a humble family business into a worldwide leading force in fashion. Zara indeed owes a great deal of its success to the above-described approach.

Yet, the key to their success is a relentless passion for business creativity, and that is ultimately the message to take away from this article.

Final Thoughts

Lumi.com.au is a leading online business lender, providing second to none loan options for small business owners. Their focus is to help small and medium-size businesses reach their potential. They endeavour to go beyond expectations, strive to provide better alternatives and more flexible lending conditions. This is instrumental to help business owners achieve their goals.

If you need business funding to take your business to the next level, don't hesitate to reach out to Lumi.com.au. We will be delighted to discuss options and see how we can help you get there.