The process of developing a new or fresh idea that can add value to the existing or latest products is not an easy task. Therefore, commodities that are manufactured be reliable, cost effective and must satisfy the needs and demands of customers (Anderson, Potočnik. and Zhou, 2014). Thus, innovation is a deliberate effort of an individual in context with imagination, collecting information so that quality products can be delivered to consumers. Mr. John Watches is a small company that runs its business in United Kingdom and it is growing rapidly and sustaining a better position in market area. The report throws light on some of the points that are mentioned in this assignment like innovation and its importance to organization in comparison with invention. Use of organizational vision, leadership, culture and teamwork for shaping innovation and commercialization has been mentioned. Apart from this, 4Ps of innovation with the use of innovation funnel has been explained in this report. Development of frugal innovation with the help of example is included in this assignment writing task and lastly, various tools and technologies for developing and retain the intellectual property are involved.
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P1 Innovation and its importance in comparison with invention
Innovation is a process that is used in order to add value into their products so that they can fulfill all the needs and demands of customers in an effective manner. Innovation helps an organization in obtaining a better position in the market area by applying different strategies and plans that can satisfy consumers. Therefore, Mr. John Watches has added numerous features in their products and for this the concepts that have been applied are given below:
Raise efficiency level of company: This is an essential part of the innovation as it shows the state of company. It enables an organization in providing excellent services and facilities at a reasonable price. This makes the product more reliable and cost effective, other than this it saves time as well. Therefore, it enhances overall productivity and enhances the brand image of the product Boons, Lüdeke-Freund, 2013).
Sustain effective communication process: While implementing any innovative concept it is important that a proper communication is maintained amongst employees and superiors. This will help seniors to guide their workers in an effective manner. Through a proper communication company can reduces the chances of misunderstandings which can act as a barrier in the whole process of innovation.
Helps in effective utilization of resources: For having a best quality product it is essential that company make an optimum use of all the resources that are available to them. It will help company in making the product more reliable for customers. Thus, for making their product unique Mr. John Watches are using various assets that can assist them in giving better outcomes (Brynjolfsson and McAfee, 2012).
Give profit to business organization: Innovative and new products always help the organisation in attracting maximum number of customers towards their organisation. Therefore, by launching new products or re-launching the existing products by making some alterations always aid the organisation in having competitive advancement (Cross, 2011). By providing appropriate services and facilities to customers Mr. John Watches is earning maximum benefits and as a result an increase in its growth rate can be seen.
Therefore, innovation and invention both differ from each other in some context and these are mentioned below so that it can be understood in an effective manner:
Innovation is a thought that is used to make the product more reliable and are used for adding value in their existing products. Thus, for this company make certain changes are required for an effective growth.
Invention happens abruptly and it occurs for the first time. All the activities performed under this are not been attempted.
Concept of implementing this approach is to add more value to the commodity so that it can increase the sales and profitability.
Inventions are done for a better cause so that citizens can enjoy the services and facilities. Therefore, in this a new product is manufactured.
For developing a new innovative product it is not that a person must be properly skilled, just need some of the required skills and knowledge and information that will be helpful in innovating fresh commodity.
For invention it is necessary that an individual must have proper knowledge about the background. Other than this, a person must be very sound in scientific knowledge.
For getting an effective result the activities are split in various departments who are capable of performing their task very well.
As mentioned in the above point for invention excellent skilled person is required, as the task is performed within limited department because for this it is required that confidentiality is maintained.
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation
Innovation is a wider concept to understand because it involves certain elements which can have an impact on business operations whether internally or externally. Vision, leadership, culture and teamwork always help a company in attaining their targets in specific time period. Therefore, before introducing any product it is important that new strategies are formed that can give effective results (De la Mothe and Paquet, 2012).
Leadership and innovation: For gaining a better position it is important that employees get better guidance form leaders. Thus, leaders must give freedom to workers so that they can think freely about the ideas through which they can achieve better results.
Organizational culture and innovation: Maintaining a perfect balance between various cultures is crucial in order to have a healthy environment at work place. This will help the employees in working and sharing a mutual understanding amongst each other.
Innovation and teamwork: Implementation of innovation will only be possible if a company have an effective team who can perform the activity so as to achieve the targets and goals in specific time period. For this, it is essential that a proper two conversation is done between employees and superiors. In context with Mr. John Watches, company is using effective tools for communicating with each other.
Vision and innovation:To set a future goal is important this will delineate the future targets which company wants to achieve. This will enable them in increasing their level of productivity. Therefore, vision of Mr. John Watches is to give better service and facilities to consumers so that company can sustain their loyalty for a longer period of time.
Hence, all the factors that are mentioned above are considered by Mr. John Watches and as a result they are growing day by day in forward direction. With this their brand image, market value and shares are also increasing (Gennaioli, Shleifer and Vishny, 2012).
P3 4Ps of innovation and use of innovation funnel
4Ps of innovation model was formulated by two renowned personalities named John Bessant and Joe Tidd, they developed this model in order to analyze the process of innovation this help an organization or an individual to build a hypothesis and based on that they can make alteration and positive changes so as to get maximum profits. Below all the 4 P’s are explained so as to understand it in a better manner (Gunday, G. and et. al., 2011).
Product innovation: Under this, changes for making improvement are done so that better services can be provided to end users. Therefore, to make an effective commodity it is necessary that all the resources whether tangible or intangible must be utilized in a better manner so that effective product can be made.
Process innovation: Making a new and innovative item is not so an easy as it has to go through a process as recent time is rapidly changing and for company it is impossible to give positive impact. Therefore, from first step of manufacturing till the last step is considered in this like designing, technical resources, assembling the parts and many more in order to execute the final product (Gunday, G. and et. al., 2011)
People innovation: This is the third step of innovation which emphasizes on human resource of the organization who are considered as most essential asset.
Press innovation: It is the last P (Jiménez-Jiménez, and Valle, R., 2011).
Use of innovation funnel in shaping Innovation
Innovation funnel constitute certain steps that help the organization in developing its product through an appropriate process. Thus, the main aim of innovation funnel is to create a commodity that can be according to the needs and want of consumers. Therefore, initial step of innovation funnel, company tries to collect more and more information and knowledge which they can determine for developing a quality product (Kleinknecht). This is done through various mediums like competitors, researches, colleges, university etc., in the second step i.e. narrowing segment information which was gathered are analyzed so that it can be evaluated whether they are related or not. In the final step which is narrow segment, organization ensures that the innovative thought is implemented and excellent quality products are delivered to customers.
Therefore, Mr. John Watches, have implemented all the steps of 4Ps of innovation and innovation funnel as well so that they can sustain the loyalty of customers by giving them superior quality products. Although it is simple to adopt but sometimes this may discourage creative ideas because it required to be tested before implemented (Lundvall, and et. al., 2011).
P4 Development of frugal innovation and its use in an organization
Frugal innovation considers as an important activity in which company make new products and services to its customers. Basically the main aim of this is to bring down the products cost and at the same time maintain its quality in effective manner. This will aid in inviting as well as attracting larger number of customers towards the company product and services (Manso, 2011). Along with this, the main benefit of frugal innovation is to enhance their overall performance level because it provides various opportunities to company to increase their market share. In context of Mr. John Watches, they also offer their quality products to middle class customers which may leads in attaining better success at market place. In this, company also cut down the overall cost and maintain their products quality in appropriate manner. In this context, there are some following principles which help in effectively understanding the concept of frugal innovation are as follows:
Determine opportunity in adversity: It is one of the important principles of frugal innovation in which researcher is responsible for investigate all the issues and problems. With the help of this, they try to convert all the treats into opportunities in order to resolve issues effectively.
Do more with less: This type of principle is important for researcher to put their positive and strong efforts in whole research. With the help of this they can easily find better solution in appropriate way (Metcalfe and Miles, 2012).
Think and act flexible: Under this, it is important for problem solver to think flexible at the time of finding solution of the problems which leads in attaining positive outcomes in most effective manner.
Keep it simple and attractive: It is an effective method which used by manager as well as problem solver in which they should be determining the simple and appropriate solution of the problems. With the help of this company save time and cost as well. Along with this, it directly contributes in enhancing the performance level of the company at market place.
Include the margin: It is more effective principle in which company focus on their customers and their issues. This will help in attaining better results and at the same time also helps in determining right and appropriate solution of the problems.
Follow your heart:Under this principle, manager as well as workers should be focus on their work to attain positive outcomes (West and Bogers, 2014).
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P5 Significance of commercial funnel and application of new products development for innovation
Commercial funnel is a thought that is utilized by most of the organization with a reason of identifying paths from which company can gain maximum profits in order to sustain in the market for longer period of time. Therefore, for converting this into reality, firm make lot of plans and strategies so as to apply them for attaining success. In this, commercial funnel plays a crucial role and help the organization in choosing an idea that will give them in generating revenues and profits (Anderson, Potočnik. and Zhou, 2014). Henceforth, the main of implementing this concept is to increase the sales and profit for an organization. Some of the steps are mentioned below so that it can be understood in a better way:
In the first step basically firm tries to identify the thoughts or ideas that they can implement for gaining maximum profits. This involves some of the elements that are essential for developing a product for example: conversion rate, deciding the cost process, proper implementation of plan and strategies and many more. Therefore, Mr. John Watches is making innovative and fresh ideas in order to implement them in their products for achieving maximum benefits.
Process of new product development
Manufacturing a fresh product can be difficult process as it takes a long process and undergoes certain steps that are mentioned below:
Idea generation: While making a commodity there is a possibility that many ideas come up in the mind. Thus, it is the first step from where the thought of producing a unique product generates. For this all the knowledge and information are gathered through which an innovative commodity can be developed. Therefore, all the needs and wants of customers are considered in this step (Boons, Lüdeke-Freund, 2013).
Idea Screening: A detailed analysis is done under this step so that a right plan for making a perfect product can be implemented. Mr. John Watches for making new strategies they are taking help of experts and experienced person who can guide them in giving best results that will be very helpful for future proceedings and actions.
Concept development: Under this, thought that was generated are converted into the final report so that it can be pen down on a paper. Further company can use it in order to make it into reality. For this, organization uses various new tools and technologies by which they can manufacture best quality products.
Development of strategies: To implement the idea into actuality firm makes lot of plans and strategies for this, managers and superiors help them out in doing so. Thus, managers play an important role in enhancing the image of company in front of customers (Brynjolfsson and McAfee, 2012.
Examine business conditions: Before implementing any product it is necessary to evaluate the market area so that organization can sustain in the market for a longer period of time. As a result it will gradually enhance the sales and productivity along with this, an increase in brand image of firm can be seen.
Product development: Under this stage all the resources that will be used are considered and finalized in order to manufacture the product as per the needs and wants of customers so that consumers can be satisfied.
Test Marketing:in order to check the dependability of the product it is important to know the nature of the environment where the product will be sold.
Commercialization:It is the final step which is used so as to promote the commodity in order to make it available to every person by providing the related information. For this, many companies uses different strategies, tools and technologies so as to increase the sales of the at huge level. Other than this, organization utilizes various medium like newspapers, social media, online, internet and many more (Cross, 2011).
P6 Innovation business case for an enterprise
Innovation helps an organisation in increasing the performance level so that they can give better services and facilities to consumers. In relation with Mr. John Watches, company is a small business enterprise and manufacture products for all the sections of the society. This is helping them in creating a strong customer’s base as a result increase in the sales and productivity can be seen. Below business case of Mr. John Watches is mentioned for better understanding:
Executive summary: Mr. John Watches is a small business firm and operate its business at local areas. They are giving excellent services and it is providing them maximum advantages.
Objectives:The main objective of this company is to manufacture watches for the people of every section so that they can afford it (De la Mothe and Paquet, 2012).
Solution: For sustaining a better position in the market organisation is making certain changes in context with its looks and designing. Along with this they are manufacturing products as per the needs and wants or customers.
Why products are innovative: As the firm has make some alterations and added new and innovative features that is why it is innovative. Other than this, with respect to safety company has added alarm features and for health conscious people also they have made some changes.
Customer’s research: Before launching the product it is important to set a target audience from whom company can get maximum benefits. Therefore, to win the loyalty organisation is producing goods as per their choices (Gawer, 2011).
Funding:Making changes on a regular basis is not an easy task as it requires a lot on money. Thus, to manufacture the product firm is taking loans from banks as well as stakeholders who can invest their money for achieving success.
Expected benefits: Company is planning to get maximum profits so that their performance level can be increased. Attaining a better profitability is the biggest concern for Mr. John Watches.
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P7 Tools used to develop, retain and protect knowledge and intellectual property
Although Mr. John Watches is a reputed company in United Kingdom and deals in giving services and facilities related watches. For optimizing a large market share they are making innovative and new changes for manufacturing unique products. For example: they are making alterations in their designs along with this, company is making watches for health freak who can track their regular daily activities (Gennaioli, Shleifer and Vishny, 2012). It is important that company know some of the basic laws and legislation in order to protect themselves from illegal and fraud activities. Some of them are given below:
Trademark:This kind of element is used by any organization so that they can make their product unique from other this will help them in making a separate image of themselves in front of customers through this consumer can easily identify the brand. Under this, companies use various signs and symbols to make the commodity or brand different from others. Thus, it can be easily seen in gift vouchers, offer or discount coupons and many more.
Copyright: This is formulated by governmental bodies so as to safeguard the product and provides power to the manufacturer. This enables them in sustaining the authenticity of the commodity. The biggest drawback of this is that it only protects the thought but not the process which will be used for further proceedings (Gunday, G. and et. al., 2011).
Patent: It is a collaboration of certain exclusive rights that are formulated by the regulatory bodies. This is sustained only for the limited period of time and help the creator to claim the orders that was helpful for the innovation that is done. Therefore, it assists an organization to safeguards the product from being copied. This can last for only 20 years and cannot be further exceeded.
From the above report it can be concluded that innovation and commercialization of the product is very helpful in order to increase the sales and productivity of the company. For this, organization uses various tools and technologies that are as per the new market scenario. Other than this, to remain in the competition with rival companies they make strategies and plans which enable them in giving tough fight to competitors. Innovation helps an organization to make new changes in the product so that they can re-launch them and win loyalty of customers.
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Books and Journals
- Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework.Journal of Management. 40(5). pp.1297-1333.
- Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-the-art and steps towards a research agenda.Journal of Cleaner Production. 45.pp.9-19.
- Brynjolfsson, E. and McAfee, A., 2012.Race against the machine: How the digital revolution is accelerating innovation, driving productivity, and irreversibly transforming employment and the economy. Brynjolfsson and McAfee.
- Cross, J., 2011.Informal learning: Rediscovering the natural pathways that inspire innovation and performance. John Wiley & Sons.
- De la Mothe, J. and Paquet, G. eds., 2012.Local and regional systems of innovation(Vol. 14). Springer Science & Business Media.
- Gawer, A. ed., 2011.Platforms, markets and innovation. Edward Elgar Publishing.
- Gennaioli, N., Shleifer, A. and Vishny, R., 2012. Neglected risks, financial innovation, and financial fragility.Journal of Financial Economics. 104(3). pp.452-468.
- Gunday, G. and et. al., 2011. Effects of innovation types on firm performance.International Journal of production economics. 133(2). pp.662-676.
- Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and performance.Journal of business research. 64(4). pp.408-417.
- Kleinknecht, A., 2016.Innovation patterns in crisis and prosperity: Schumpeter’s long cycle reconsidered. Springer.