Developing Innovation Model

This report discusses the background and challenges faced by Oven-fresh Bakery in terms of innovation. It explains the differences between innovation and invention and their significance to the company. The role of organizational vision and leadership in developing an innovative culture for commercial benefits is also explored. The 4P's of innovation are discussed, along with approaches that the bakery can take to develop innovative ideas. The process of innovation is outlined, along with the importance of protecting intellectual property rights.

Developing Innovation
Model

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Section 1..........................................................................................................................................3
1. Background of the company and challenges...........................................................................3
2. Explain the differences between innovation and invention and their significance to Oven-
fresh Bakery.................................................................................................................................4
3 Role of organizational vision and leadership to develop an innovative culture in the company
for the commercial benefits.........................................................................................................5
4 Explain the 4P’s of innovation.................................................................................................6
5. Approaches that Oven-fresh Bakery can take to develop innovative ideas.............................7
6. Process of innovation...............................................................................................................8
Section 2..........................................................................................................................................9
Scout new idea for innovation.....................................................................................................9
Innovation business case............................................................................................................10
Importance of commercial funnel..............................................................................................11
Protection of intellectual property right.....................................................................................11
Critical evaluation of process....................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is defined as channelizing new idea or working practice to achieve the overall
goals and objectives of organisation. This report is based on the case study of Oven fresh bakery
in respect to innovation practices. Mr. Wilbur is the founder of the organisation. This project is
all about evaluation in respect to company’s approaches in respect to innovation. Henceforth,
report will emphasis over background in regards to the challenges company is facing for
innovation. Difference between innovation and its significance for the organisation. Vision and
leadership of organisation will also discuss for assessing the innovation in the company. On the
basis of the 4 P analyses in respect to innovation proper evaluation will be conducted.
Approaches Company can use to develop and grow innovative idea will also discuss in this
project. Furthermore, this project will discuss about the new idea in respect to product
development for the organisation. Planning will be conducted in respect to innovation.
Significance of commercial funnel in the new product development will also define in this
project. What are the ways to protect the intellectual property right will also define in this
project. Critical evaluation will also do at the end to analysis the entire process.
Section 1
1. Background of the company and challenges
Oven-fresh bakery limited is a UK-based small scale private limited type organization. It posses’
wide product line i.e. cakes, chocolates, greeting cards, macrons, smoothie, gift boxes and
flowers. It has great specialization for the cakes because it posses’ wide category in the particular
product segments like anniversary cakes, birthday cakes, festivals cakes, couple cakes along with
wide variety of flavours & tastes at different sizes. The company is manufactured bread i.e.
manufactures fresh cakes and pastry (Bigliardi and Galati, 2018). The main goal of the company
is to serve unique product and services to the customer so that they get values of their money.
This company was established five year ago with only one type of white bread. It offers online
and offline home delivery services to the customers. But currently organization is facing big
challenges in the context of diversify product line because people has become more health
concern so that they want to buy only those products which improves their health wellbeing and

keeps them safe. So, company is facing huge pressure from existing players due to limited
product line that directly impacts on it’s turnover. Recently, company has got financial loss in
it’s business.
2. Explain the differences between innovation and invention and their significance to Oven-fresh
Bakery
Comparison points Invention Innovation
Definition Invention can be defined as the
occurrence of an idea or thought for the
process or product that has never been
made before it. In other word, the act of
developing, designing a device, process,
method etc. which is not existed before.
It is a novel scientific idea that
conceived through research and
experimentation which turns into the
tangible object. Invention supports
company to develop a new idea through
it enables to bring innovation in it’s
existing product line or processes.
While innovation indicates
the implication of the idea
or thought for the process
or product at the first time.
In other mean,
transformation of a new
idea into reality.
Innovation supports
company to fulfil needs of
the customers.
Concept It creates a new product or service. It is
a kind of original idea and it’s working
as theory.
Innovation means adding
values in already existing
one. The main concept of
the innovation is to
implement new idea
practically.
Skills required Invention needs scientific skills. While innovation requires
set of skills such as
marketing, technical and
strategic one.
Concerned with It is always concerned with single
product or process.
As compared innovation is
concerned with the

combination of wide range
of product and processes.
Activities Invention is properly dependent on
R&D department.
On the other hand,
innovation spreads around
the company.
Innovation and invention both are essential for the company like Oven-fresh Bakery success
because it helps to improve it’s brand image in the business market as well as supports in gaining
competitive edge. With the support of innovation company i.e. Oven-Fresh Bakery can enable to
differentiate itself in the market in respect of existing marketing players. In addition, if company
uses innovation approach then it will save time, money as well as other resources and provides
competitive advantage over the existing competitors in the market (Akgun and et.al., 2017).
While invention supports company to introduce idea or process completely new in the market
which never exist before. This invention helps to get unique position in the market. Oven-fresh
Bakery needs to focus on innovation instead of invention because it helps to gain commercial
benefits while invention can be failed or needs high investment.
3 Role of organizational vision and leadership to develop an innovative culture in the company
for the commercial benefits
Organization vision plays vital role in leading commercial benefits such as it provides a focal
point that supports to align individuals with the company, thus ensures that everyone working on
common goal of the company. It also enhances productivity and efficiency of the business in the
business market. With the support of organizational vision, company enables to develop
innovative culture at the workplace that environment stimulates individuals to create some
creativity or explore new ideas through which company achieves commercial benefits. Thus,
organization vision is act as key milestone of the company that keeps everyone on common track
through which company become enable to gain positive aspects in the business. While leadership
plays vital role in the company such as it promotes employees to work in a team in order to
maintain their wellbeing in the workplace (Garud and et.al., 2016). In addition, leaders create
vision for the staff so that individuals can work on right track and provides desirable outcomes
by achieving number of short-term goals within timeframe. They provide innovative working

environment to the staff and inspires them to explore some valuable creative ideas for the
company which can be implemented at practical level so that it can achieve profitable results.
Organizational vision and leadership are acting as stimulated factor for the company which plays
vital role in developing innovative culture. When a organization has productive innovative
culture that ultimately promotes individuals to do something extempore in it’s job performance
that will ultimately bring commercial benefits in the business (Ortiz-Villajos and Sotoca, 2018).
The same case implements for the Oven-fresh Bakery such as it is required to develop a vision
and it’s manager requires to follow good leadership style then it can encourage employees or
workers to bring some new changes or idea in their working and can promote them to work in a
team. When different personality workers work in the group then it will create innovative culture
in the company that will profitable for the company in term of commercial benefits as well as
increases brand image in the UK’s market.
4 Explain the 4P’s of innovation
4P’s of innovation model is proposed by Tidd and Bessant that is used by company to
build capability and manage innovation in order to gaining achievements. 4P’s stands for
product, process, position and paradigms. The model is mentioned below in following manner:
 Product innovation
It is one of the prime things that comes in the mind when usually talks about innovation and
wants to bring some changes in existing one i.e., product & services that a company offers to the
customer in order to give values of their money and gains competitive edge over the competitors.
 Process innovation
This element indicates that bring changes in such a way that things are developed and delivered.
 Paradigms innovation
It is a specific innovation category that concern with change in such way something has done in
the company. For example, the bakery it may be in the way the products are sold from the
counter but it can imagine to sell it’s product through internet platform. Radicle change does not
mean to do better business that means shifting product selection from healthy food would not
work well in the health concern customer then offers them organic food.

 Position innovation
While position innovation refers as a change in the context of product or services that are
launched. Position is quite similar to promotion in the marketing mix, but bit different in term of
innovation. Position is completely related to company’s perception (Chen, Yin and Mei, 2018).
For example, customer’s perception about the bakery, employees’ services, company’s brand
image, working culture etc. affects people’s behaviour and perceptions. Position plays significant
role in the marketplace and it is considered everything. For example, if company has good
position in the market that means and customer’s gets perceived values from the company in
term of satisfaction level that will support organization gain commercial benefits (Witell and
et.al., 2016).
These 4P’s of innovation plays vital role in building capabilities such as each p of the
innovation model supports company to bring some innovative change in it’s business activities
or products through which company can develop such product or services which cannot imitate
by competitors. These capabilities will support company to gain competitive edge and maintains
it’s uniqueness in the business market. On the other hand, it also helps in managing innovation
for example position innovation supports company to build unique brand image in the business
market in term of innovation then it can compete with local players in term of innovation which
ultimately builds good brand image in domestic as well as provides opportunity to expand
business at international level. As same paradigms innovation helps company to bring some
innovative change in it’s infrastructure that will create innovative culture in the company and
helps in meeting customer’s need. Thus, different parameters of the 4P’s innovation model will
support company to manage innovation and builds capability in the company. Oven-fresh Bakery
requires to adopt paradigm innovation in it’s business because it has good product line but it is
facing pressure to diversify it’s product line from existing players and market trends
(Schoemaker, Heaton and Teece, 2018). So, it is best approach for the company to use this
innovative form that will help meet new customer’s trends and leads competitive advantage from
the competitors effectively.
5. Approaches that Oven-fresh Bakery can take to develop innovative ideas
There are the two approaches of innovation that company can be taken in the busines sin
order to explore new ideas through which it can deal with current challenges effectively. For

example, innovative funnel is a mechanism that enables individuals a continuous stream of ideas
which can be screened for practicality. It is a type of tool that supports organization and
individual to innovate in the market successfully. Innovation funnel generate various new ideas
in a large proportion that is further refined and converted into practical plan. It is considered one
of the best excellent tools that priorities only innovative ideas (Crupi and et.al., 2020). It is one
of the best approaches for the Oven-fresh Bakery because it helps to build brand image in the
local market as innovative company. In addition, with this approach company will never face
competition or pressure from opponents’ sites in term of diversify product line or something.
Another approach of innovation is frugal innovation. It is procedure of declining the complexity
as well as cost of a good and it’s production. Frugal innovation is mainly concerned with
delivering more valuable product or services at lower costs to the people. Such innovation is
known as frugal because individual needs to adapt mindset simplicity and extremely lower costs
without compromising quality of the customer’s experience. This innovation approach is also
good for Oven-fresh company but it is not much effective as compared funnel innovation
because it requires strong financial source. So, company should adapt innovation funnel
approach in it’s business then it can gain more benefits and can differentiate it’s brand among
others in the business market.
6. Process of innovation
There are four phases of the process of innovation i.e. idea, concept, solution and market.
This process of innovation supports company to successfully embed and develop new and
innovative product or service. for example Oven-fresh Bakery will use first phase of innovation
that is idea. Company needs to bring change in it’s product line instead of introducing new
products segment such as it requires to manufacture some low calory and natural sugar cakes for
those people who are extremely concern for the health and avoids highly sugar food items.
Especially in UK most of the young generations is more concerned for their health so they
always want sugar free and low calories chocolate cakes so that they do not get any negative
impact on their health. So, Oven-fresh Bakery can use this innovative idea.
Second phase of innovation is concept that is deal with solution, implementation and marketing.
Company can take this phase in the process and aware it’s customer about it’s new innovative
products that creates excitement in them for buying product and puts pressure over the

competitors. When company manufacture new low fat, sugarless cakes with good flavouring
taste then it can use third phase of innovation that is solution (Coccia, 2018). With this phase
company can evaluate testing measure over the finished product like flavour test, quality and
outlook of the cake. Market is the last phase that can use by the Oven-fresh Bakery to promoting
it’s new product segment in the market and can meet targeted customer’s need effectively.
Thus, Oven-fresh Bakery can easily gain sustainable competitive advantage in the
business market after implementing overall innovation process in it’s practice.
Section 2
Scout new idea for innovation
Oven fresh bakery is looking to channelize its innovation practices. Company deals in
different bakery products that can serve the best taste to all the potential customers associated
with the organisation. New idea for innovation can be customised bakery products. In this
service company can provide the products on the basis of the choices and demands of the
customers in market. This idea is all about producing the bakery products on the basis of the
needs and demands of the target customers. All the buyers of company can place the product
order by fetching all the needs and demands what they wish to have against the services of
company. This would allow the Oven fresh bakery to improve its level of customer satisfaction
against the services of company. This is the best way to deliver all the products on the basis of
the needs and demands of the customers. Customers can fetch its order online on the website of
company and take the advantage of free home delivery in this service (Boon and Edler, 2018).
This would improve the scale of business of company as it will allow the organisation to serve
such customers that are not able to come to the Oven fresh bakery in order to enjoy the best level
of bakery services. Customers bakery this idea would support the company to innovate new
products also. Many times customers get some idea in bakery and this idea would allow the
company to execute such an idea. Innovation is immensely depends upon the demands and need
of the society. This idea would support the Oven fresh bakery in fulfilling such need and demand
of society in order to achieve the best level of service Excellency by delivering the best level of
bakery products.
Ways to get funding

Funding is always a key aspect of innovation. As every innovation seek immense amount
of funding requirement than only organisation can proceed for innovation. Customer’s bakery is
a service that do not need much investment of company’s resources. Even company can
approach certain funding sources like bank finance, private investors, reserves, partnership and
strategic alliances and different other funding sources. All these sources are the prominent
sources that can allow the Oven fresh bakery to meet all their funding requirements in order to
channelize this new business idea.
Innovation business case
Goals
 To increase the market share by 30%.
Objectives
 To attract new customers in the existing market.
 To improve the products of company.
 To improve the level of customer satisfaction.
 To meet the customers’ needs in the best way possible.
Resources
Oven fresh bakery carry the resources like different funding sources that can allocate
potential funds to the organisation in order to channelizes the strategy in different manner.
Company also contain the skilled and professional team of chefs that can match up the
expectations of the customers in market (Khotamov and Avazov, 2020). With the support of
marketing team Oven fresh bakery can easily promote this new innovative idea in the market.
The Oven fresh bakery also contains the high and effective brand value which will also
contribute in the overall growth and success of this new innovative idea.
Capabilities
Oven fresh bakery carries the huge experience and high brand value. All these factors
will allow the organisation to achieve all its goals and objectives against this innovation
business case. Experienced and skilled human resources of the organisation are among the
major capability it holds to meet all its various objectives.
Risk involved
Every innovation also comprises with the risk along with immense growth and
development opportunity. This innovative idea also contain the high risk of losing the

customers of the company (Saridaki and et.al., 2019). As the new business idea is all about
delivering the products on the basis of their demand. Many times the order remains carry bad
taste that can put a negative and wrong impression of the Oven fresh bakery in front of the
customers. This idea carry the huge risk in form of business failure and company can also
lose its existing brand value.
Value analysis
The innovative idea call as customised bakery will be highly successful on the basis
of the frugal innovation model. This idea is simple as it contains the simplicity, integrity as it
is the organisations idea for innovation, individuality and flexibility. All these four elements
are involved in the business idea.
Importance of commercial funnel
Commercial funnel is all about analysing the innovation plan in commercial terms. This
is an effective method to assess the profitability involve in the project. As every time innovation
occurred it never assure the guarantee to gather success against the innovation idea. Commercial
funnel is all about measuring the idea in the corporate term as how effectively it can get the
success in the market and many such factors that can denote the success of the new idea
(Weyrauch and Herstatt, 2017). In majority of the cases success and effectiveness of the idea is
denoted with the potential of the idea and plan to gather commercial success in market.
Protection of intellectual property right
Oven fresh bakery can patent the idea in order to protect the right over its intellectual
property. This is the best way to legalises the idea. Innovation becomes safe only once the
organisation get the legal right and ownership over the idea. In the entire practice if something
good comes out in form of products than company can patent the same idea to get the legal right
and authority over such a product (Morabito, 2017). This is a best way to reserve the respective
idea of innovation and gain the success in the market. This practice would allow the company to
restrict any other organisation to deliver the same idea in order to gain the success in the market.
This practice would protect the intellectual property in favour of the organisation.

Critical evaluation of process
Oven fresh bakery is planning to innovate in form of customised bakery. The entie
practice is effective and can support the Oven fresh bakery in achieving the high level of
business growth and success. The idea denoted as customised bakery is also effective. Even if its
contain the risk but it also support the company in launching new products based on the
customers’ expectations. This would enhance the overall growth of the company. This new
innovation idea also does not require heavy investment of company’s financial resources which
also make it more feasible in context to the organisation. This can be delivered by the Oven fresh
bakery in order to gain heavy success in the market. The funding requirement is minimum and
also it is effective and attractive and company can entertain success in the market with the
support of this innovative idea (Richardson and et.al., 2016). The innovation company entertain
always contain the risk factor along with serving the huge growth opportunities. It can be
projected that company can achieve all its objectives and aim behind the innovation idea with the
support of this practice. Company also require technological development in order to make it
more convenient to channelize this idea in favour of the organisation.
CONCLUSION
This report has been discussed about significance of innovation for the company in order
to survive in the market and gains commercial benefits. It has summarized about 4p’s of
innovation that it’s application in developing capabilities and management of innovation in this
report. Frugal innovation and innovation funnel used for the Oven-fresh Bakery has been
concluded in this report. It discussed about commercial funnel in the new product development
process for the company’ success. It has explained Oven-fresh Bakery that can protect the
intellectual property rights of new product has been summarized in this report.

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