Developing Innovation Model

This document discusses the importance of innovation and invention, how organisational leadership and vision can promote group work, the 4Ps of innovation, and approaches to create innovative ideas. It also covers different ways of funding, innovation business case, and safeguarding intellectual property rights.

Developing Innovation
model

Contents
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
Background of the company & challenges it facing...................................................................3
Difference among innovation and invention along with its importance to Oven-fresh bakery. .4
Discussion of how organisational leadership and vision can promote group work in order to
develop innovative culture for organisation success...................................................................5
4P's of innovation along with how it supports capability & management of innovation...........6
Discussion of approaches that Oven-fresh bakery can take to create innovative ideas,
involving innovation funnel & frugal innovation.......................................................................7
SECTION 2......................................................................................................................................9
Different ways of funding...........................................................................................................9
Innovation business case.............................................................................................................9
Importance of commercial funnel in the new product development procedure to get
commercial success...................................................................................................................11
Explanation of how oven-bakery can safeguard the intellectual property rights of its new
product......................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is termed as a procedure to convert or transform an idea into an innovative and
attractive products as well as service with a view to develop value for customers and sustain in
market for longer time period. It is important for a business entity to bring innovation in its
offerings so that it can maintain performance level and also remain competitive within the
market. On the other hand, commercialisation is basically a procedure which is associated with
how manufacturing & supplying strategies can be applied in order to improve efficiency of a
company (Awni, 2019). For the present report, Oven-fresh bakery is taken into consideration. It
was founded before 5 years with offering of only one type of white bread. The report will cover
difference between innovation and invention. In addition to this, there is a discussion about how
organisational leadership and vision can promote teamwork in order to develop an innovative
culture. 4Ps of innovation and approaches to develop innovative idea along with frugal
innovation and innovation funnel will be cover. Moreover, different ways of funding, innovation
business case, intellectual property rights will be elaborated in context to respective business. In
the last, evaluation of entire procedure with challenges, risk and scope associated with the
innovation is described in a proper manner.
SECTION 1
Background of the company & challenges it facing
Oven-fresh bakery is one of the renowned bakery that provide quality product and on time
service to its customers. The company was established 5 years ago with offering of one type of
white bread. In the present time, company is facing issues because of change in customer needs
as well as preferences of consuming more healthy products. This decline the selling and business
turnover of Oven-fresh bakery as it only offers one type of white bread. In addition to this, the
company also have the pressure of retailers to expand and upgrade its product line as it help in
market retention and satisfaction of customer’s requirement.
For this, Oven-fresh bakery is decided to bring innovation and add something that is
healthy for the customer. The company is come up with offering of whole grain bread that is
made of wheat and oats. The idea of bringing such innovation is come up by conducting market
research and it is analysed that in the present time period, people are more health- conscious and
prefer to consume those product that is good for their health. This innovation help in attracting

large number of people and impact positively on the sales and profitability of Oven-fresh bakery
(Kelly and Kim, 2018). Furthermore, it also assist in dealing with retailers and overcome with
the issues facing by the company.
Difference among innovation and invention along with its importance to Oven-fresh bakery
Innovation: It is basically a way to bring something unique and new at marketplace with an
objective to develop customer’s value and to attain high success at marketplace. In addition to
this, it help in sustaining for longer time at marketplace and also enhance profitability of
company. Oven-fresh bakery is coming with an idea of offering whole grain bread that is made
of wheat and oats so that it can meet with the requirements of customers and maintain its
performance in market.
Inventions: It is basically producing something new that does not exist before in the
marketplace. It is helpful to gain success by enhancing value of the company. for example,
concept of electric vehicles is considered as an invention which is not existing before in the
market.
Importance of Innovation over Invention
Helping in growth of company: With a view point of many professionals and experts, it is
stated that innovation assist a company to attract large number of customers towards brand. In
addition to this, it also help in developing a positive and distinct image at marketplace that
directly leads to increase in sales and profitability of company in an effective manner.
Achievement of competitive advantage: Innovation plays an important role as it help in
fighting with rivals prevailing in market in an appropriate manner. Bringing of innovative idea
attract high number of people due to which an organisation have the opportunity to attain
competitive advantage at marketplace.
Difference between Invention and Innovation
Basis Invention Innovation
Meaning It is a new strategy which is
used by company with an
objective to offer completely
new in market that has never
take place before at
It is associated with the
procedure of adding something
in the existing offerings in
order to develop value for
customers and gain success at

marketplace. marketplace.
Concept It is mainly a concept which is
used in order to provide goods
and services that is better then
others used by some
consumers within in the
society. In addition to this,
invention take place for
various segments of customer
& a specific invention can
posses utility for one segment
and may be for other (Lim,
Darley and Marion, 2017).
It is a procedure which is
mainly associated with
increase value of specific
product and customers as well.
Activities Invention involves limited set
of activities that is mainly
research and development.
It is determined that innovation
spread in all over the company
& can never be limited to a
specific department of an
organisation.
Discussion of how organisational leadership and vision can promote group work in order to
develop innovative culture for organisation success
In every company, long-term survival and growth is the two main motive which has to be
attained in long run by s business entity. There are several factors which assist a business entity
to attain desired goals and is act as s differentiation factors for an organisation:
Organisational vision: It is an action which actually support and assist in developing an
innovative idea for an organisation for attainment of objectives. It is stated that business entities
are using their vision as a tool in order to communicate its objective. Oven fresh bakery has the
vision to offer quality and fresh products to its customers so that it can satisfy and retain in
market for longer time period. It also leads them to attain customer loyalty and trust as well
towards the brand.

Leadership: It is the procedure which deals with instructions & path for attaining objectives
of the organisation. An effective leader is one which possess quality to encourage staff members
& work towards attainment of desired goals (Ma, 2018). In context to Oven-fresh bakery,
transactional and transformational leadership skills were used in order to make staff members
adopt new innovation in a positive manner. It is the duty of leaders to ensure that attitude and
behaviour of staff members towards new product is positive as it help in raising their efficiency
and productivity level.
Culture: It consist of factors like norms, beliefs, language, opinions, background of people
in an organisation. If it is talking about Oven-fresh bakery, it ensure that it offer those product
that meet with requirements of all type of culture. In addition to this, it focuses on employees
satisfaction and ensure that positive working culture is given to them so that it can retain them
for longer time period.
Team work: It is important for a business entity to work in a team as it help in effective
implementation of activities and achievement of objectives on time period. In relation to Oven-
fresh bakery, for bringing innovation it has developed a team to which activities is assigned as
per their interest and skills. This help in successful execution and coordination of all the
activities associated with innovation.
4P's of innovation along with how it supports capability & management of innovation
The 4Ps of innovation is proposed by bessant that is used by business entities in order to
execute activities on time which is associated with innovation. The 4ps of innovation are
position, product, paradigm and process as well. These are discussed below in context to Oven-
fresh bakery:
Paradigm: It is consider as the first element which is used for determination of different
wats that has been developed to enhance functions of the company. In Oven-fresh bakery, it is
analysed that such way assist in gaining understand about the requirement of innovation in the
future period of time.
Product – It is basically the value that is given to the customers in exchange of money. In
addition to this, innovative product which is going to launched by Oven fresh bakery assist in
attracting large number of customers which in turn has positive impact on sale as well as
profitability of the respective company.

Position – This innovation factor deals with the target segment where the new product is
going to be positioned. Oven-fresh bakery is launching new product as it help in developing of
brand image and enhancement of market performance as well (Rasli and Kowang, 2017). The
overall procedure of development of a various position within external market of new product is
different of the existing product, so it is important for Oven-fresh bakery to focus on positioning
its new offerings in its target and potential market as well.
Process – It is the responsibility of an organisation to focus on analysis as well as adoption
for developing of new goods and services. The overall procedure which will be used for
launching of new product that is whole grain bread will also be use offline and online channels.
This will enhance the customer base level of company that impact on productivity and
profitability as well.
Discussion of approaches that Oven-fresh bakery can take to create innovative ideas, involving
innovation funnel & frugal innovation
It is important for an organisation to make use of an effective approach in order to develop
an innovative idea. This help in proper implementation of activities and ensure growth and
success at marketplace. The Oven-fresh bakery make use of innovation funnel and frugal
innovation which are as follows:
Innovation funnel
It is termed as a mechanism which is adopt with a purpose of constant flow of information in
order to implement activities in an effective manner. This approach is used by many companies
with a view to launch innovative idea at marketplace appropriately and timely as well.
Innovation funnel includes three major steps, which are as follows:
Investigation – It is the initial stage of innovation funnel that consist of analysis of situation
which is beneficial for development of innovative plan (Rasmussen and Eliason, 2017). In
addition to this, it also include in-depth study of macro environmental factors that impact directly
on the operations and performance of a product. With reference to Oven fresh bakery, it has
hired a research team that help company to gain insight about the market trends and customer
requirements in an effective manner. This help company in both customer satisfaction and
customer retention as well.
Development – Herein, the target market is decided by the company wherein the innovative
product is launched by the company. if it is talking about the Oven fresh bakery, the target

market remain same for the new product that is whole grain bread.
Product Delivery –The last and final stage of innovation funnel that involves development
and execution of new product at marketplace. In addition to this, it is important for Oven-fresh
bakery to analyse the level of risk associate with the innovative so that it can bring in market
with an effective strategy.
Frugal Innovation
It is defined as the process which help in reducing the level of cost as well as complexities
associated with the production and development of new product. In addition to this, it is basically
a procedure to remove out unnecessary activities from the process of production so that cist is
declined and high profit is attained by company. By using frugal innovation approach, it is
becoming easy for business entities to decline the cost of product process in an effective manner.
The top level authorities of Oven-fresh bakery make use of frugal innovation approach so that
they can decline overall cost and earn high profits from its new product. Oven-fresh bakery is
decided to bring whole grain bread that is made of oats and wheat at marketplace. This will help
business to attract large number of customers and enhance its market performance and share as
well.
There are so many competitors of Oven-fresh bakery which make use of such concept in
order to bring innovation in an appropriate manner. It is determined that it is more about
providing high customer value to customer at a reasonable price as it impact positively on mind
set of customer towards the brand and also improve market performance. With the help of frugal
innovation method, there is improvement in living standard of people living in the societies. It
also help in developing new, innovative and unique business model that is long-term and
sustainable as well (Stojčić, Hashi and Orlić, 2018). Innovation practices as well as process is
undertaken as frugal that mainly focuses on the core activities of business entity and contribute
directly towards the raise in performance and profitability of company. There are many
principles of this approach which is act flexible, maintain things balanced, gaining with more
less and so on. All of these principle is undertaken by senior authorities for launching new
product at marketplace effectively. The steps involve in frugal innovation approach for creating
and innovative idea is given below:

Idea generation: It is the first step and herein the idea is developed by proper market
research and analysis as well. In relation to Oven fresh bakery, it is bringing a new product that
is whole grain bread by analysing the challenges and to deal with them in an effective manner.
Feasibility: Herein, the idea which is developed by company is checked as per its
feasibility. In addition to this, external environment factors is analysed by Oven-fresh bakery in
order to gain insight about feasibility of its new product in externa marketplace.
Capability: At this stage, the overall capability, features and potential of new product is
analysed which is based on optimization of product.
Launch: The last and final stage of frugal innovation wherein the actual idea is launched
at marketplace by considering its target market. It is important for Oven fresh bakery to focus on
bringing innovation in more attractive and effective way so that it get high acceptance at
marketplace.
SECTION 2
Different ways of funding
There are various sources of funding that help company to perform and implement its
operations and activities in a proper manner. The sources of funding is given below:
Bank loan: Bank provide loans to companies associated with a legal agreement and
documentation process. It is consider as one of the common as well as secure method in order to
take loans. Bank grant loans to business entities and in return charge some percent of interest
with principal amount.
Government assistance: Government provide funds to business entities which has presence
in their own country. In addition to this, government set standards which is followed by
organisations for taking loans from them. Moreover, it is analysed that government charged less
amount of interest as compare to the other forms of funding.
Innovation business case
Steps Description
Summery This case shows development of Whole grain bread that is made of
wheat and oats.

Objectives The objective of Oven fresh bakery is to enhance profit level by
10% within 8 months by offering new product which is goof for
the health of people.
Mission The mission of Oven fresh bakery to bring this innovative product
is to attract large number of customers and meet with their
requirements and market trends as well.
Vision The vision is to overcome with the challenges and develop an
effective brand image at marketplace.
Solution For achieving objectives, it is significant for respective entity to
create an effective strategy so that its new product is easily and
effectively accept at marketplace.
Innovation in product The innovation within the product is offering of whole grain bread
that is made of oats and wheat.
Funding For increasing the number of offerings and to launch new product,
Oven fresh bakery requires funds that can by both internal and
external resources. Herein, the funds is taken from bank that is one
of the easiest and secured form to borrow money for businesses.
Benefits With the help of this new product, Oven fresh bakery is able to
attract large number of health conscious people that impact
positively on its sales as well as profitability. In addition to this, it
help in overcoming with the challenges in an effective manner.
Furthermore, it help in developing a unique image at marketplace
due to which it is able to attain competitive advantage in market.
All this will help respective entity to strengthen its market
performance and reaming for longer time period.
Monitoring and
controlling
The higher authorities of Oven fresh bakery evaluate and monitor
activities of staff members on continuous basis so that pits
performance and productivity level is maintained associated with

innovative product.
STP Segmentation: In Oven fresh bakery, the market is segment on the
basis of demographics.
Targeting: The customer segment belongs from the age group 17-
35 is targeted by company as it is determined that this people are
more concerned towards their health.
Positioning: Oven fresh bakery is able to develop a distinct
position at marketplace as it make use of social media applications
in order to promote and create awareness of its new product in
market.
Importance of commercial funnel in the new product development procedure to get commercial
success
Commercial funnel is defined as the process which target market in a way that directly leads
towards using of products as well as services provided by organisation at marketplace. For
making use of this concept, it is significant for company to analyse customer requirements as it
help in developing innovative product accordingly. With the help of commercial funnel, oven
fresh bakery will be able to create awareness in people about its new product along with its
benefits and ingredients involved in it (Thakur, 2018). Moreover, it also assist in identifying
target market and potential customers due to which there is increase in customer base level as
well as profitability of company. It is analysed that identification of customer needs and market
conditions help business entities to deal with the uncertainties and overcome with the challenges
in an effective manner. All this will assist Oven fresh bakery to bring its innovation effectively
and strengthen its market performance within short period of time that leads to higher growth
and success as well.
Explanation of how oven-bakery can safeguard the intellectual property rights of its new product
It is significant for oven-fresh bakery to protect and safeguard its innovative idea from its
competitors. The company is going to add new offering that is whole grain bread that is made of
oats and wheat by considering the health-conscious preference of customers. The various tools
that can be used by Oven fresh bakery is given below:

Patent: It is an intellectual property tool that is used by business entities to safeguard new
process, methods and device as well. With the help of such tool, patentee protect their new idea
of Whole grain bread in a proper manner.
Copyright: In this, the right is given to the innovator for its new idea associated with
specific time period. The main objective here is to protect idea to be copied by the rivals. Oven-
fresh bakery can make use of this method for bringing new idea in a protective and proper
manner at marketplace.
By analysing the above tools, it is analysed that the most appropriate way for Oven-fresh
bakery is patent as it assist in protecting new idea with more than 20 years (Zhou, 2018). This
will help company to strengthen its market performance and gain success as well as growth at
marketplace.
CONCLUSION
From the above discussion, it has been concluded that innovation plays an important role for
an organisation as it help in long-term sustaining at marketplace and also assist in remaining
competitive within the market. It is significant for a company to focus on developing unique and
innovative product so that it can attract large number of people which leads to raise in sales and
profitability of an organisation. Moreover, there are various approaches that is used by company
in order to develop an innovative idea and these are frugal innovation, innovation funnel and so
on. It is analysed that adoption of an appropriate source of funding help in gaining best returns.
In the last, it is determined that it ii significant for business entities to protect their new and
innovative by intellectual property rights that is patent, copyrights, trademark and many more.

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