When we talk about development in companies, the concepts of innovation and creativity are often mixed up. Innovation is basically about creating something new that is also realized and has an effect in the world. It can be a new product, a new process or a completely new way of organizing. Business creativity is something close but different. It is about using creativity specifically to develop the business, by thinking new about business models, customer journeys, revenue streams and resource use.
An innovation can be groundbreaking without directly having a business dimension. Business creativity, on the other hand, shines a light on how value is created, distributed and put into practice. Therefore, it is an important building block for sustainable and long-term competitiveness.
New thinking about business models
When building organizations, a lot is about understanding how economics, sustainability and resources are interconnected. This is called business modeling. Business creativity then becomes the ability to use creative methods to question and develop these connections.
A simple creative provocation could be to ask: what happens if we don’t charge for the product we sell, but for something else? At first glance, it may sound unreasonable, but there are already plenty of examples. Free newspapers do not charge readers but advertisers. Within digital platforms, it is common for the service to be free for the user, but for data or advertising space to generate revenue. Reversing the business logic is often what opens up new opportunities.
Rethinking products and services
A classic example of business creativity is transforming products into services or vice versa. The company Hilti is said to have said that customers don’t really want a drill, they want the ability to make holes in the wall. Similarly, many companies in industry have moved from selling machines to selling functions, where the customer pays for use rather than ownership. The opposite can also work. A digital service can be packaged in a physical product to become more tangible and easier to understand.
Rethinking customer journeys
Customer journeys describe how a customer interacts with an organization over time. With creativity, you can turn the customer journey around to discover new opportunities. Take parking as an example. In many cities, you only pay when you park. But what happens if you pay before? Then parking spaces can be planned in new ways, queues can be reduced and some customers can be offered better service. Small adjustments to the journey can have a big impact on both business and customer satisfaction.
Design thinking as a method
Business creativity gains extra power when you connect it to design thinking. Instead of starting from what the organization can and wants to do, design thinking starts with the customer’s perspective. By understanding the customer’s needs in depth, creating prototypes and testing early, you open up to solutions that would otherwise not have emerged. It is a process that allows for mistakes, exploration and iteration, which is necessary for real innovation.
Business creativity and sustainability
A dimension that is becoming increasingly important is sustainability. Business creativity has great potential here. Seeing sustainability as an integral part of the business model, rather than an add-on, can open up entirely new avenues. For example, a company can charge for recycling or offer services that reduce the customer’s climate impact. The business grows while the social benefit increases.
Real-life examples
Spotify is an example of how business creativity can reshape an entire industry. Instead of selling individual songs, they created a model where you pay for access, not ownership. Similarly, Tesla has not only innovated on the product side but also on the business model, through direct sales, software updates and an ecosystem of services.
We also see business creativity in practice in more traditional industries. In the construction sector, some companies are moving from selling building materials to selling circular systems where materials are reused. Here, business modeling and sustainability merge and create new ways of thinking about value.
Business creativity
The difference between innovation and business creativity is subtle but crucial. Innovation can change the world, but business creativity is what allows organizations to grow, survive and contribute in the long term. It is about using creativity not only to create something new, but to challenge the way business works at its core. When we are able to do that, we open up new ways to create value for customers, society and the planet.
