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This paper reviews literature on creativity, innovations, and creative organizations. An analytical approach has
been undertaken using various articles to identify the need of innovation and creativity in today’s world and how the
innovation of social networking is changing business activities. Creativity and innovation are crucial factors for the
endurance and progression of organizations in today's world. From the macroeconomic perspective, innovation is also
related with economic growth, development of living standards and a country’s international competiveness. The need for
innovation is assisted by Information technology in a range of ways and in this contemporary era it is hard to separate
innovation and technology due to its incredible offerings in all kinds of industries and sectors. One such innovation was
‘social networking and social media.’ In this epoch of social media, businesses are obliged to be extra transparent and
more personal. This does not eradicate the need of customary advertising, but social networks allow an innovative form of
communication which altered the approach of doing businesses. Businesses must concentrate on developing real and
direct connections with customers. Companies which lag behind to change to this new trend and culture will be in
damaging situation, as competitors will progressively try to reap the benefits out of it. All in all businesses need to adapt
with the growing importance and impact of social networking as a means of communication.
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