Developing Innovation and Creativity for Business

This report focuses on the approaches of innovation used in strategic management for organizations planning to launch new products. It discusses Stockholm gases' approach to innovation, the role of the management team in organizational knowledge and experience, and open and closed models of innovation. It also provides recommendations to the Board of Munich gases regarding a new product investment.

Developing innovation
and creativity for
business

Contents
INTRODUCTION................................................................................................................................3
1. Stockholm gases approach to innovation...............................................................................3
2. Explain the role of one member of the management team in getting organisational
knowledge and experience...............................................................................................................5
3. Explain one closed and open model of innovation, suggesting which can be applied in teh
present scenario................................................................................................................................8
4. Making recommendations to Board related to the ,Munich gases must make investment of
10million in the new product project or not...................................................................................11
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14
Books &Journal:............................................................................................................................14

INTRODUCTION
Stockholm product is a Sweden based company and is an industrial gas company that is dealing
in liquid oxygen and are catering to the health care industry. Also, they serve carbon dioxide to the
beverage and drink industry. They have a successful R&D. Since, past 80 years they have been able
to maintain a dominant position in the market. This report is going to lay emphasis on the
approaches of innovation that is used as a part of strategic management for a organization while
they are planning to launch something new and innovation at the same time after making a detailed
and in depth analysis. There is a need of sustainable development in the changing scenario of
various external factors and also there is strong requirement for organisations that are willing to
make some new innovations that they have to take care of their own learning experience for their
workforce through this innovation and new product launches. All this helps them in getting a
competitive advantage and surviving at the same time for longer duration of time in the extremely
competitive external environment. The most recent project of this company has been using plasma
as a cleaning agent for teeth. The present report is based on developing a detailed understand of the
“developing a new product for teeth whitening market”. This report is based on developing a
detailed understand of the approach of Stockholm gases, role of the management team members in
development of the organisational experience and knowledge (Wu, and et.al 2018). There is use of
open end and close end model of innovation for making an analysis of the teeth whitening project.
Lastly, there are recommendations that have been made to the Board of this company related to the
MUNICH GASES must make an investment or not.
1. Stockholm gases approach to innovation
Innovation in modern era can be explained as new ideas creative thoughts imagination which
is tried from mind of individual for improving for providing solution to the modern requirements
problems and needs of market. Innovation take place through the provision of more effectiveness in
processes, products, technologies, services and business models which are available for market,
government and society to fulfil their needs and requirements more effectively. Innovation can be
termed as a synonym of effectiveness within the product for conception of product by market and
society(Brown and Mason, 2017). In context of any organisation, innovation is improvement in the
product and services of the organisation in a unique way or by bringing some new method which
will helpful organisation in increasing the market share of the product as well as profitability within
a specific time limit. Hear Stockholm gases, use a specific research and development department for
bringing Innovation and new product in market for increasing the market share at profitability of
firm as well as Goodwill within the definite companies operating in more than 70 countries with

huge 30,000 employee’s base. Expand more than hundred million Euros on research and
development department. This helped company in identifying new products which are related to
Innovation and the recent innovation of research and department is teeth whitening gas and plasma
based ionized gas which is being capable of conducting electricity and absorbing energy from
electrical supply it can also use as a teeth whitener.
There are number of innovation approaches which can be used by this company, some of these
approaches are mentioned below:
Breakdown innovation approach: like the name of the approach it is the innovation
approach which starts suddenly automatically by altering the process of the product of the company
which make the waves in markets. These are those innovations which completely changed the
market condition suddenly and they have rapid action on the market economic social factors and
technology of that area where the innovation happened. For example we can take telephones or
Smartphone where one company use an innovative idea to form smart phones which can work as a
computer and now this is a prominent idea where every organisation is using this and it became
compulsory for organisation to use innovation in their mobile phones for attracting customers.
Breakdown innovations are big bold and the changes topography in a representative market at
fundamental level (Doitchinova, Stoyanova and Harizanova-Bartos, 2019).
Disruptive innovation: innovation in walls making the great idea more better these are the
kind of innovation which are actually use or manage by making ideas more effective to bring
repeatable results and that's why they can be the most beneficial for the companies who are trying to
innovate over and over. This is helpful for the companies who are manufacturing smart phones trim
videos are wireless internet connections where they can use number of functions and innovation in
their applications attracting customers. Big change the direction of the market they sitting in
(Monda and Alakonya, 2016).
Open innovation: Open innovation is that practice which is related to merging the internal
asset and the resources with the outside of the organisation for capitalising the both. This function
have number of advantage like reduce the cost of conducting research and development it also help
in potential for improving in development of productivity and incorporate of customer early in
development process (Agapitova and Linn, 2016).
Sustainable innovation: this is the process which is used by number of companies as it
involves making small improvement to the product and services to meet the transparent market need
like making cell phone touch screen automatic any paperwork is a normal process. This bond
companies in the limit where they not they do not touch the competitors as and will not damage
other things which are prescribed in market. This method also help company in identifying new
opportunities a new product within the market by continuous selling their own product. This

company have to establish separate research and development department which help company in
bridging the gap between Innovation and product (Lindgren, 2016).
Stockholm gases company use sustainable innovation approach in their functioning where
company it invested separate amount on research and development department which is around
hundred million Euros. In this approach Stockholm gases use proper research and development
format where they are identified the small innovation in their product bye identification of new and
innovative elements which we can use in their services. This is the common method which is used
by this type of industry. Following packages company department identify plasma which can be use
tooth whitening company. This is an innovative idea because this element is capable energy and
conducting electricity from an electric supply.
When this is in a gas form, it can absorb electric energy and then automatically increase its
temperature which cause in change in of ions and fast vibration which lead to scrub a surface.
Company also found that plasma has been used to sterilize the teeth and because of its side effect
the yellow layer of teeth can be removed add converted into white. This will benefit Stockholm
gases company in a way of tax incentive as because of new and productive innovation company will
get the chance of attracting government towards it and will get number of tax incentives. This will
also attract customers towards the organisation as there are lot of customers who are facing the
problem of yellow teeth at this will become the most demanded product of a company if company
use it wisely. Increase customer will also increase the moral of the employees within the
organisation as well as moral of researcher department employees.
2. Explain the role of one member of the management team in getting organisational knowledge
and experience
Project Leader is an individual who directs or guides the project in the right direction in
sequence to achieve the objective of a project (Wang and et.al., 2019). The project leader plays an
essential role, project leader is the only person who motivates or encourages and provide right
direction to team members. Project leader also create or develop progress report of project and
maintain focus of team on the project to reach a goal also test the prototype of project time to time
to get effective project outcome. They also help in defining roles to team members, scope of a
project and also take care of budget and documents related to a project. They also resolve conflicts
and identify risk then develop appropriate plan to reduce the risk. In context of this report there are
various leaders who play an important role in order to get effective result. Michael glass is the
Research & Development leader, Bernard bring he is a product development manager, Stefan boch
is licensing manager for the company, Maria Klaus is the marketing manager.

Michael Glass - He is Research & Development leader. He paly an important role to get
effective result of the research, He done the experiment on pig’s teeth and give remarkable result to
company. Role of Michael Glass is discussed below –
Planning – First and foremost role of any leader is starts with planning. Michael glass done
planning in sequence to start R&D by taking small-small steps towards the project goal (Liu,. and
et. Al 2016). Michael done planning in such way which show the basis for future project decisions
involving, in particular, the criteria used to determine that research or project has been completed
successfully. He prepares written planning statement to attain the project objective. First Michael
done planning to start the R&D project in effective manner. He is a leader so he is accountable for
project plan so he done planning with the help of other team members. Michael prepare plan for
budget, process plan and schedule of the project.
Defining Scope – After making effective plan then it’s time to defining scope. Michael sub-
divide the major project of R&D in sequence to improve the accuracy of budget, time, and resource
estimates. With this Michael facilitate clear responsibility assignment to team members. Michael
done scope definition in such way which reduce the final project cost with this they get effective
results of R&D and morale of other team members (Zhao, ., Hwang. and Lee, 2016). He sub-divide
the main Research and Development deliverables into smaller and more manageable tasks to
achieve project goal in successful manner.
Time Management – A project or research should be complete on fix time to achieve the
goal or objective of project on time. Michael glass created a sequence and schedule for producing
the R&D project deliverables. Michael and his time management process team required throughout
all the process of their project lifecycle (Polonsky, . and Waller, 2018). This provide a frame to the
project in sequence to iterates between project planning, implementation and monitoring phases.
Project time management include six processes and Michael manage their project time by managing
all the processes such as activity sequencing or planning, activity resource estimating, activity
duration estimating, schedule development, schedule control by maintaining these processes
Michael and his team is able to achieve their project or research goal on time.
Activity Planning - After defining scope then Michael done activity planning, He reviewing
all the activities related to their Research and Development and also identify the relation between
activities and classified all the dependencies because they indicate the order in which activities
occur (Brownand Mason, 2017). Michael done activity planning or sequencing to arrange those
activities in logical order for completion of a project. With this he enables to determine the order of
activity completion which best mange the time and available resources for completing the R&D
project.
Resource Estimation – Resources are the important element of any project, so it is also

important for the project leader to identify what resources will be used on project. Michael glass
done resource estimation to determine what resources will be used on a project and in which
quantity it requires. The most important resource of project is project team members. For Michael it
seems challenging to manage and coordinate often competing resources (Nen, 2015). But Michael
manages all the resources in effective manner in sequence to get the favourable outcome.
Activity Duration – Michael’s main motive is to complete the project on time and on
schedule, key function of project is estimating project duration. Michael divides the activities in
small parts and then set a particular time to complete those activities on time. The accuracy of the
Research and Development project is depending on accuracy of estimates. Michael glasses use
various tools to get the estimate time duration of project. Michael first makes lists of activities and
then focus on requirement of resources then assessment of project process and then in final step
estimate the activity duration of project (Doitchinova, ., Stoyanova, . and Harizanova-Bartos, 2019).
Michael use Analogous estimating tool to calculate activity duration in this technique he uses
information and data from past projects to estimate activity duration. This might help the team in
adjusting the estimate based on the complexity of the project. Michele use this method because
team have limited information is available for the project. Michael also use Expert Judgement in
sequence to get the estimate activity time duration, Michael take help of expert or person who
already performed this kind of project or already worked on this type of project. Expert can provide
realistic and achievable estimates; experts knowledge and experience help the Michael glass to get
the accuracy in project estimate activity duration. Expert judgement is the best technique in parallel
with business process assets and consideration of activity environmental factors. Both the
techniques used by Michael glass in order to get the estimate activity duration are best and efficient.
Schedule Development – The schedule of project direct or guide the team and also help in
identifying the number of resources required in a project. Michael and their team members develop
effective and successful schedule to get the result in effective manner (Monda. and Alakonya, .,
2016). They develop a schedule to establish a baseline for project controlling and tracking. The first
and foremost aim to develop project schedule is to complete project on time and get best outcome.
Project schedule development includes all the above mention roles, all the above mention process of
project or research complete the project schedule. Michael glass identifies and arranges project
activities in order of events that manage a Research and Development project plan. Project schedule
also help Michael and their team to identify risk points and understand proper linkage of activities,
it also assists in resource planning and allow team to establish benchmark for project. This is the
technique which assists Michael glass in reaching the desirable result and provides means to
measure performance of team members.

3. Explain one closed and open model of innovation, suggesting which can be applied in the
present scenario
The innovation management has changed dramatically over the years from the traditional
understand to the present scenario there has been a complete shift in the way innovation is
perceived both by the organisation and the society. R & D department has the most important
responsibility for innovation in respect of all industries. Innovation in the present scenario can be
described as a opening to the external world for meeting up demands of the understand of the tow
basic approaches such as closed innovation and open innovation.
Basic difference:
The basic distinction that can be seen in the two models of innovation is that open innovation
is a incorporation of the external knowledge in the innovation management process of the
organsuiation and is determined by way which innovation is created. On other hand, closed
innovation is determined with help of way which innovation is self contained in the environment of
a company. In case of the present scenario of Stockholm the innovation for this organisation can be
explained as below:
Closed Innovation:
Closed innovation is a basic approach in which there is a development made by companies in
which there are development of various ideas with the help of innovation taking pale coin the
marketing and development. Innovation process is taking place exclusively in the company or is
determined with the organisation with help of various internal factors that are affecting and helping
the development of innovation in a positive manner and is supporting it in such a manner that the
officials and inside stakeholders are involved in the process of innovation.
In case of closed ended approach of innovation there is use of certain approaches such as their
presents know how, processes, technology and the intellectual property that can be part of the
innovation of the organsuiation. The overall function of this approach can be compared to
innovation that is made with the help of innovative or the research and development departments of
various organisations’. There are certain aspects of the close ended innovation that can be seen with
the help of this model and can be regarded as a close ended or a open ended innovation that are
given below:
 Companies are making and investing large amount of money in the research and

development department for establishment of the centre of knowhow and in detail
understand of the various projects that are part of the organisation. In the present given
case study of Stockholm it can be said that there is a special R & D department in this
organisation where there are large number of employees working and the major part of
the overall workforce is working in this department (Di PietroPrencipe,. and
Majchrzak,., 2018). This department ahs going and working on 100 projects in present
scenario. There is an annual budget of £ 100 million each annual year as they feel that
it one of the most important department for this organisation that can help this
organisation in having more number of innovations in the present scenario.
 The R & D department is continuously involved in making technological innovations
so that it can help them in leading towards more innovation in products and more
solutions for problems faced by individuals in the organisations.,
 Resulting the innovation process is supported by a closed system in which there are
fixed boundaries in which the company has to build and make products with the help
proof internal activities and functions that are part of the R & D department of an
organisation.
 In the case of In Stockholm, it can be seen that there was a exploring of the
application that can be used for plasma as an agent for cleaning purposes. Plasma is
basically an ionised gas that is capable of conducting the electricity and then
absorption of energy from the supply of electricity. While a gas is being absorbed in
the electrical energy. When the temperature is increasing the ions are vibrating faster
and it leads to “scrub”. The University of South California claimed that plasma can be
sued for purpose of whitening of teeth for this purpose there is a requirement by this
company to make a detail research in the idea if it can be converted into a viable
business opportunity. For this there is a time period of 12 months have been allotted to
make a detailed research into a detailed analysis of the idea.
Open innovation:
Open innovation is related with the opening of the innovation apart from the company’s
internal boundaries so as to increase the potential of the innovation with the help of some
strategic opportunities that are present in the external environment (Sein-Echaluce, .,
Fidalgo-Blanco, and Alves, 2017). Innovation is a process in case of external innovation
when it takes place with the interaction of external technologies, ideas, innovate products
and more innovation n the process of innovation for development of innovative products
or making innovations in the existing products by use of certain business models. There

are many stakeholders who are related with this process of innovation such as customers,
LEAD users, suppliers, universities, goevrment and various other competitors who are
willing to help in the process of innovation.
PLACE of innovation= may be inside or outside of a company
 There is exchange of innovation and knowledge that is taking place in the typical
innovation as there is free access to technology and knowhow of a company, this term
is related with collaborative networking and open innovation involves higher cost
because of usage of license and various other intellectual property rights.
Open innovation and closed innovation:
The importance of open innovation is increasing with time it can lead to increase in the
importance of closed innovation there is growing importance of the closed innovation which
can be understood with the help of following mentioned points:
 Complex innovation: If the technologies are closely interrelated with each other open
innovation cosmist of high amount of risk and there are many inappropriate elements
that are part of the innovation process and can posses a negative impact on the overall
product range (Masucci, ., Brusoni, and Cennamo, 2020). So, many times
organisations are most willing to adopt open ended innovation instead they prefer
close ended innovation is it is not much affected by the external factors that are part of
the external environment. This is the reason why organisations such as Stockholm are
more inclined towards usage of close ended innovation.
 Unique innovation: A closed innovation can be preferred when a innovation is
offering products that are fundamental to the technological improvements and can
help a organization in having more advantage over their other competitors. Open
innovation is not working best increase where there is already going on process in the
internal structure and functional departments of the organisation (Gascó, 2017). It can
help in generation of more cooperation towards it. On other hand, close ended
innovation can lead to higher possibilities of success the process is already going
inside the organisation that can lead towards higher rates of success and more benefits
of success can be generated through cooperation amongst the internal stakeholders of
the organisation that are involved in the overall process of innovation.
 Highly competitive: In case of industries that are dealing or are part of highly
competitive environment there can be use of closed innovation that is suited to make
exploit advantage for the company themselves.
From the above made discussion it can be said that open innovation consist of the high amount of

innovation potential that can contribute towards improvement of their own entrepreneurial
knowledge for the organsuiation (Martinsuo, ., 2019)
In case of Stockholm it can be said that there is more in vase of Stockholm there is usage of
close needed innovation as the plasma cleaning project si based in the continuous research
that is being done by the organization itself and as a result of that process of continuous
research there has been a generation of the innovation that this substance can be sued fir
purpose of cleaning agent for teeth.
4. Making recommendations to Board related to the ,Munich gases must make investment of
10million in the new product project or not.
It is good to invest 10 million euros in that product this is because it will help company in
increasing the market share and brand value within the market place where organisation is working,
it is also useful for the company to expand expressions different field. The innovative product
which is research by xyz can serve as a great opportunity for the organisation this is because this it
can derive number of benefits from this but there are some recommendations which can be used by
the organisation while implementing this product in market this is because there are some
complication which may be considered by the organisation which are recommended below:
 The first recommendation to the company is that it have to identify the risk associated with
the product this means that there are number of other outcomes which can be derived from
this gas. It is important to identify all other possible outcomes which can be arise in future
and can it negatively on the performance of product within the market as the teeth whitening
is a side effect of this plasma gas, what is the probability that where is presence of other side
effects which are not favourable as teeth whitening. So, these all must be identified by the
company by a critical research and evaluation before investing a huge amount in the product
and production of this gas. The risk can be related to the threat of life which can I write a
legal liability in future which have to be identified by the organisation.
 It is also recommended to the organisation that it have to take proper patent rights of the
product for generating maximum revenue this is because there are a number of competitors
within the market who can copy the product and process of the organisation and can take
advantage of product prior to the organisation so it is compulsory for organisation to adopt a

proper patent right where no other competitive can produce the same product cannot be able
to use the similar innovative gas which innervated by the company.
 Company have to specifically define the use of the plasma gas or the product as in which
category it will use the product like it will supply it as a raw material to dentist and
industries to use it as a base in their toothpaste material. it established its own toothpaste
plant where use it this plasma for material as a core ingredient of their toothpaste weather
prime use of whitening teeth.
 It is also recommended that company have to take a proper licence about what the product it
is going to manufacture and deliver to the market where it is it want to trade its product. The
licensing policies are depending on the complexities and negative impact of the company’s
innovative plasma product. For taking licence company have to make proper research on
their product that there is no side effect on the human body of this product this is because
teeth are the internal part of the human body and by the use of the plasma gas teeth
whitening it is important for company to identify the negative impacts of this because of its
direct consumption.
 It can also be recommended from the above discussed points that the most suitable type of
innovation that has been adopted by Stockholm is the close ended innovation and it has
actually help them in enhancement of their overall effectiveness and value in terms of
profitability for their organisation.
 There has been a comeoplet yes on the amount and the decision whether to make the
investment on the launch of this new innovation because this innovative plan has been
analysed from various prospective for a time period of one year and it has come out that it is
going to prove very profitable for Stockholm in getting a competitive advantage in long run.
 The meeting by R & D manager in which there has been clarity about to make investment or
no has a clear decision that Yes there must be investment with complete surety. All the
various managers such as licensing manager. Marketing manager, the project leader and the
product development have clearly highlighted the overall benefit of launching of the
innovation and from each pint it can be clearly identified that the amount that is proposed to
be invested will clearly bring out positive results in future.

CONCLUSION
After making a detailed analysis of the above discussed point and models it can be
summarised that innovation is a very necessary tool for surviving for an organisation for in market
for longer period time. Stockholm gases innovation is very helpful for them to get higher success in
the market. To examine their new innovation company create a team to calculate the accuracy of
their new innovation in market for this company conduct research project with company’s staff
members all the members have define role their is research and development leader, product
development leader, licensing manager and marketing manager play important role and help in
getting effective outcome of a project. Closed and open innovation method changes the present
senior. Open innovation is based on external knowledge and whereas closed innovation is determine
through self-contained environment of company but the end result is that the Stockholm gases
consist open innovation because it has high amount of innovation potential.

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