Importance of Innovation for Businesses

This assignment delves into the crucial role of innovation in driving business growth. It examines various types of innovation, highlighting their impact on competitive advantage and customer satisfaction. The document also emphasizes the importance of protecting intellectual property through trademarks, copyrights, design rights, and patents. Furthermore, it discusses effective commercialization strategies, such as the innovation funnel and marketing funnels, to maximize sales and revenue generation. Ultimately, the assignment stresses the interconnectedness of innovation, intellectual property protection, and strategic commercialization for achieving sustainable business success.

INNOVATION

INTRODUCTION
Innovation is related to generation of new ideas which are used to design or develop a
product or process. By applying knowledge, information, imagination, a new thing or product
can be developed. This process can be used in organization to increase effectiveness of strategies
which will ultimately lead to company's success. It helps the firm to design and develop an
innovative product, which attracts customers towards that and encourages sales. Talent Plus is
one of the leading talent assessment company. Structured interviews and other assessment
criteria enhances human potential (Drucker, 2014). They believe in increasing profitability,
retention, engagement, job performance, sales performance, etc. Talent plus is a management
consulting company and also operates in others sectors like health care and hospitality, as retail
in automotive and consumer products, education, engineering, financial, etc. This assignment
will focus on importance of innovation and invention with the context of organization, different
factors which influences shape of innovation and commercialization. 4P's of innovation and
various development of frugal innovation are described in this project. It will also describes
importance of commercial funnel, application of new product development and different tools to
protect intellectual right of organization had been covered in this assignment.
TASK 1
P1
As described above, innovation is a process of generating ideas and imagination which
can be implemented to produce different service. This helps company to formulate innovative
strategies which can maximise their productivity. Talent plus is an enterprise which help
candidates to assess their talent and improve their job performance and engagement. With the
help of innovation process, company can design strategies which can enhance skills of
candidates and they can give more results to their company. Managers identify strengths of
individual and utilize those strengths to maximise output and manage their work more
efficiently. As Talent plus deal in many industries, they can use innovation in those sectors to
improve their plans and implement by considering all factors like internal and external, which
are necessary for organisation to consider (Manyika and et al, 2011). This process helps to
catalyst the process of growth and success of business organisation.

On the other hand, invention is considered as new ideas which has never been thought
before. Difference between innovation and invention are described below:
BAISIS FOR COMPARISON INVENTION INNOVATION
Meaning- It is the generation of idea for
a process that is new to
everyone.
Innovation is he
implementation of ideas for a
product or process for the first
time.
What is it? Something new is created. Changes are done in existing
products.
Concept- It is an original idea or
imagination.
Innovation is the practical
implementation of idea.
Occur when- When new idea occur in the
mind of someone.
When existing product require
modification.
Activities- Invention activities are
restricted to Research and
development centre.
Innovation activities are spread
across the organisation.
Commercialization- It may not be commercialized. It results into
commercialization.
Concerned with- It is a single process or
product.
It is combination of various
process or products.
Below are some importance of innovation and invention related to business organization:
 Implement best method for organizations: Managers generate different
methods for completion of tasks. They select best methods for operating a
particular activity. With the help of innovation, managers can develop better
strategies which can enhance effectiveness of plan an results in extraordinary
outputs (Stokes, 2011). Through this organization can earn profits and can
achieve desired success.

 Create a competitive advantage: To lead in this global business environment, it
is necessary for company to implement new ideas in their functioning so that they
can always stay ahead in the market. Through innovation, company can develop
different products and services according to customer preferences and achieve
competitive advantage over other rivals.
 Responding to increasing customers expectations and choice: Main aim of
every company is to satisfy their target customers by fulfilling their needs and
requirements. By using innovation process in ructions of goods and services, they
can attract customers toward their company and this lead to increase in sales and
profits to company.
P2
Company can achieve ultimate success by using innovation and commercialization in
their production activities. Innovation is implementation of new ideas for developing a process or
product which consists of unique qualities and features whereas commercialization is a process
where company can launch their new products into market place. Talent plus is a company which
improve talents and skills required for proper functioning of individual can attract candidates
towards them. This help them to enhance their confidence and knowledge level. Below are some
organizational factors which shapes innovation and commercialization:
Vision: To run a business successfully, it is critical to develop vision statement. It is
referred to as a statement which a company wants to achieve in future. Top level management
can think appropriate vision for their company. They can use innovation process to make their
statement more effective and attractive (Edquist, Tebbe and Goldberg, 2013). This help in
attracting more customers towards their company. By implementing new ideas and imagination
after considering many relevant factors and elements of business, company can achieve
maximum profits.
Leadership: This is the ability of a leader to direct, control, motivate, inspire, guide an
business organization. Leadership plays an important role to maintain discipline within company.
They can use innovative ideas in their leadership theories and styles, so that they can modify
their functioning. Innovation helps them to formulate new plans which can benefit company as
well as employees. Leaders can better direct and guide their employees towards new products
and service, which soon they are going to manufacture.

Teamwork: This is an effective way to complete work within specified time limit.
Managers and leaders try to assemble employees which have desired skills and talent which are
required to complete a particular activity. When different employees work together, they come
up with many new ideas which can be beneficial for company. As a team, they can implement
innovation process in their functioning by developing whole new products and services. This will
seek attention of many customers and therefore company will gain profits. Team can also work
towards commercialization of products in the market by planning launch events, promotion and
advertisements activities.
Culture: It is mainly refereed to as beliefs, norms, religions, values and attitude of
employees working in an organization. This pose great impact on innovation and
commercialization. Talent plus involves employees and candidates from different cultures. Both
can give innovative ideas to company to maximize their effectiveness in delivering appropriate
services. By generating effective commercialization activities, company can attract more
candidates with their services towards their company.
TASK 2
P3
There are 4P's of innovation which can be used to develop and design a new product in
market. They are Process, Product, Paradigm, Position. These P's are described below in detail:
Process: Best process is the result of hard work done by managers and employees. They
collect information from research and experiments done on target customers and market. After
that, they implement those facts and details in their process to make it effective. From numerous
process, scrutinizing is done to select best process and implement that to make desired product
and services for customers (Baden-Fuller and Haefliger, 2013). This concept is known as
innovation funnel.
Product: It is a tangible item or good that serve customers by fulfilling their needs and
requirements. It is crucial for organization to develop a product which are preferred by
customers. Organization can make alteration in existing products and re- launch that again in
market with modified characteristics.
Paradigm: This is related to the implementation of innovative methods in working of
company. Managers can modify their working style to make it more effective.

Position: This is related to implement new and unique ways to reach target customers
and market. Managers can decide best distribution channel by using innovation funnel. This
encourages right distribution of products and services. It increases satisfaction of customers and
clients needs by making timely distribution of goods.
Innovation funnel: Main aim of any manager is to implement best strategy or plan to
manufacture desired products and service. This is done by critically evaluating all procedures
and process made by numerous teams. Employees come up with different ideas and opinions and
express them in front of managers. It is there responsibility to scrutinize best ideas for further
processing which has the capability to fulfill demands of customers as well as employees.
Innovation funnel provides managers with appropriate structure to select best methods for
production (Gnyawali and Park, 2011). There are three stages which are involved in
development of funnel and are described below:
Focuses on wide mouth of funnel: In this, organization try to collect as many
information and knowledge to develop as many ideas as possible. As funnel have two side, one
part is wider and other part is narrower. So it is important to focus on both sides of funnel as both
have equal importance. Company have the opportunity to select best suitable ideas form pool of
idea and have large percentage to develop unique products. Before that, managers should have
clear knowledge about their goals and objectives, only then they will be able to product good
products.
Narrowing part of funnel: This is the second step. In this, best ideas are first selected
and matched with company's vision. Assessment of those ideas are carried out in this step.
Narrow segment of funnel: This is end part as well as the last part of this concept. In
this, company use commercialization theory to launch their products and service in market.
P4
Frugal innovation (FI) is used when there is no need of some characteristics which are
present in the product and are considered as non essential. These features can be excluded to
make that product more costly and economic. It also increases durability of that particular goods.
This concept is gaining popularity and is a new attraction for company. Through re- engineering
and re- inventing products and lowering the price, a significantly extended range of products can
be made affordable to customers who are of lower class and middle class. Managers and leaders
are focusing more on developing frugal innovation so that they can reach customers of all levels,

specially poor people. These requirement changes according to business operation in different
countries. This concept can be more popular in developing countries as compared to developed
countries. When company is facing low growth, then they can produce low cost products which
will encourage more selling and thus they can revive from tough situations.
In case of retail store like Aldi, managers can identify proper requirements of customers
and make those products available in their stores according to that. If they are operating in
developing countries, they can provide affordable ranges of goods so that customers can prefer
them over other rival retail stores. By using frugal innovation, they can exclude highly priced
items which are unnecessary for them to sell in these countries. It depend on areas where the
selling of goods and services are done. Company modify their strategies according to situation.
TASK 3
P5
It is necessary for company to make their products or services available in different
markets so that customers can easily reach to suitable products. With the help of commercial
funnel, company can manager their distribution of goods in target market. This encourages more
profits and sales for company (Camisón and Villar-López, 2014). Marketing department can
make strategies to initiate their distribution, so that company can achieve desired success.
Commercial funnel is and effective tool to increases sales of company. Below are some
importance of the same:
 Commercial or Sales funnel provide managers with best idea of selling their products and
items to target market and customer.
 By using this concept, company can enhance their sales of products.
 Company can make their goods available for their customers on timely basis.
 More in sales, more is the increase in profits to company, more is the success.
New product development process
It consists of procedures that are involved in development and production of a new
product. Every product go through some steps to finally reach to the market and those steps are
given below in detail: Generation of idea: This is the first step of developing a product. Idea generation is
crucial part to start with manufacturing process. Managers and leaders of company give t

responsibilities to their subordinate to come up with ideas and opinions. Large number of
ideas give maximum opportunity to choose from. It can include marketing of product,
launch events, designing, etc. By identifying target market, effective ideas can be
generated (Fischer and Qaim, 2012). Idea screening: In this, ideas go through screening process and best ideas are selected
from others. There are numerous factors which influence selection like strength and
weakness of company, needs of customer, expected return on investment, affordability,
etc. Concept development and testing: After proper analysis of ideas, concepts are made.
Different ideas which passes the screening test are converted into concepts for testing
process. These concepts are tested on target market to customers. Different employees
give information about the features and characteristics of product and tell them to
visualize it. Target customers give them feedback on products and managers try to make
modifications if necessary. Business strategy analysis and development: Result of experimentation helps the
company to come up with final strategy or concepts which can be inculcated in particular
product. Proper analysis of strategies and market are done at this stage. Product development: In this step, feedback are taken form target customer or clients
and necessary alteration are done in particular product if required.
 Introduction: This is the last step where commercialization concept is used. Here,
finished goods are launched into market.
P6
Innovation business case help organization to understand their procedures and activities
in effective manner to run a company successfully. This include some specific planning:
Executive summary: Talent plus is management consulting company and provide
appropriate training to candidates. They have long standing relationship with the clients.
Adopting innovation, they have implemented various instruments that help in assessing the
aptitude of individual's to perform their job with excellence.
Target: Their target is to maximize human potential by increasing their knowledge areas
and providing them with best training.

Customer research: In this step, Talent Plus identify those talents which can effectively
manage their workforce. They attract candidates and train them to maximize their potential.
To establish good name in market, it is necessary for Talent Plus to have sufficient funds.
If they lack appropriate funds they won't be able to implement their ideas in practical. There are
various types of investors which are as follows:
Angel investors: These investors provide huge amounts of funds to small entrepreneurs
to start their business.
Bank: They provide appropriate funds to small, medium and large enterprise for smooth
functioning. Industries can take loans form band to implement their production.
Venture capital funds: These investors don't like to take risks so prefer partial ownership
in the firm in which they are investing their money. They also take part in decision making
process which are related to management.
TASK 4
P7
Intellectual property are considered as fundamentals for innovation. This lead to
broadening of consumer's choice related to goods and technology. Different form of intellectual
property are patents, trademarks, design right, copyrights. These forms gives the legal rights to
owner to implement their innovations and ideas. Following are some important elements of
intellectual property:
Trade mark: Any logo, symbol, sign, expression which help in representation of
particular source is referred as trademark. Owner of trademarks can be an individual, business
organization, etc. This is approved by legal constitution of country and is registered at national
level. Company represent their trademark on their buildings and on their products, good,
services, etc which they manufacture (Bogers and West, 2012).
Copyright: The creator gives rights to others to reproduce their work. It is referred as
legal right of an individual or a company. Certain time period is given to manufacture a goods.
Design rights: This is subjected to copyright of design made by company. After
registering their rights, nobody can steal same design for manufacturing goods. It generally
protects appearance of a product which gives company an actual right for that appearance.
Patent: This provide company with an authority to protect their innovations. After
patenting any kind of work, no one can copy that . If anyone try to imitate patent work, legal

proceedings can be done. Company can register their work according to procedures made by
government.
These were some important elements which help company to protect their rights form
violation by others. It provide some benefits to company by using these properties:
 Anyone form outside cannot copy or steal the idea or innovation.
 Nobody is allowed to imitate design made by authoritative company.
 Company have legal rights to produce their work with the help of trademark and
patents.
These are some factors which should be implement by every company to reserve their
right of innovation. Films, journals, music, art and other creation that are listened, heard and seen
by customers are covered under intellectual rights (Van Hemert, Nijkamp and Masurel, 2013). It
is important to patent their work to avoid it from imitating and stealing.
CONCLUSION
From the above mentioned report it has been concluded that, innovations are necessary
for any company to implement within their strategies to make it more unique and different from
rivals. It is imagination or ideas which is new to everyone and with the help of these ideas,
company can achieve their desired success. Customers like different and unique items and its
responsibilities of companies to manufacture products according to their likes and preferences.
Managers can apply innovation funnel for selecting best method, ideas, procedures, process for a
product (Nathan and Lee, 2013). To make effective sales, marketing manger can use commercial
funnel to increase their sales of product and services. This will ultimately leads to increment in
profits and revenue. There are some vital elements which every company should focus on
implementing in their firm so as to reserve their work and designs from stealing and imitating.
These are legal foundations which are essential for growth of company. With the help of
innovation and effective commercialization company can lead in competitive market and can
build their brand image.