Innovation Project

This project examines the concept of innovation and its importance in business development, using Iceland supermarket chain as a case study. It analyzes the differences between innovation and invention, the role of organizational factors in shaping innovation, and the use of innovation funnels and frugal innovation strategies. The project also discusses the commercialization process, including new product development and intellectual property protection.

INNOVATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P.1 Innovation and importance as compared to invention .........................................................1
P.2 Organizational vision,leadership,culture and teamwork can shape innovation and
commercialization ......................................................................................................................2
TASK 2 ...........................................................................................................................................4
P.3 4's and use of innovation funnel ...........................................................................................4
P.4 Development in Frugal innovation .....................................................................................5
TASK 3 ...........................................................................................................................................6
P.5 Commercial funnel and use of new product development....................................................6
P.6 Business case of Iceland.......................................................................................................8
TASK 4 ...........................................................................................................................................9
P.7 Different tools to retain and protect intellectual property.....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is creating different and unique things so that they can maintain unique image
in the market and in minds of all user (Aarikka-Stenroos and Sandberg, 2012). Through this they
can attract many users. Hence firm can increase their revenues and they can also enhance their
market share. Thus they can easily maintain good and unique position the market by grasping
different opportunities. This helps the firm in attracting many customers in minimum time. Due
to this they can maintain brand loyalty in firm. Project describes about the Iceland company
which is supermarket chain. It was found in 1970 in U.K. Assignment describes about the
innovation and determine difference between innovation and invention. It further explains about
the different types of innovation and process to commercialize innovation. It also explains about
the various methods so that they can protect different ideas and their advantage and
disadvantages.
TASK 1
P.1 Innovation and importance as compared to invention
Innovation is the process in which company uses various methods and techniques to
develop product. Different companies are innovating new and different ideas so that they can
maintain unique position in the market and can attract many customers. Thus as a result they can
maintain good image in mins of all user's (What is innovation, 2017). For this they have to
innovate products in different manner. Sources of innovation in Iceland are:
Unexpected: Organization performs different and unique experiments that they can
attract many user's. This also helps the firm in accomplishing their objectives. For example
company can create healthy products which are not launched by their competitors. Through this
they can capture many users in minimum time.
Process need: In this company changes their processes and methods to create different
products. Through this they change they can create unique and different products in the market.
For example organization is using advanced and latest technologies which creates different retail
products in minimum time. Thus as a result they can easily create various products ion less time
and can deliver to various user's in less time (Bogers and West, 2012).
Change in perception: It tries to create that strategies so that they can easily change the
thinking and attitude of various customer's. For example they deliver very healthy products at
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less costs. As customers are getting items at less costs they can be satisfied and can purchase
products from company.
New knowledge: When they add some features and attributes to their products then they
can directly increase the knowledge of various user's (Chun, and et. al., 2015). For example
company can launch online applications so that they can launch different innovative products.
This is the first company which creates different online applications and can increase the
knowledge of various user's.
Iceland through different technologies and techniques can create different and innovative
healthy products so that they can deliver good and delicious products to various user's. They can
perform creaser and thus they take decision to launch their products through various online
applications. Hence as a result they can easily maintain unique and distinct position in the
market. They can use rewards to employees so that they be motivated and can give best results.
Invention: It is the process in which company can create unique and distinct products. In this
method they crate new product and it is not similar to innovation. Difference between innovation
and invention are described below (Difference Between Invention and Innovation, 2016) :
Basis Innovation Invention
Meaning In this process new featurettes
and attributes are added to
existing product.
In this company creates
different product and new idea
which is not present in market.
Skills required It has various skills such as
marketing and research and
other skills
In this method only scientific
skills are used.
Effect on company Through this process it can
bring many changes in the
firm.
It can bring change in process
and products and may not .
Activities In this process activities and
tasks are spread in firm.
Activities and task are
performed by the research and
development department.
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P.2 Organizational vision,leadership,culture and teamwork can shape innovation and
commercialization
Organization can creates many changes in the firm. Through proper leadership,culture
and teamwork they can create innovation in the organization (Cui and Wu, 2016). Thus as a
Iceland has created unique vision and mission and motivates employees so that they can
perform well and thus can satisfy customers (Cunningham and Porter, 2011). These qualities are
described below:
 Vision: It is called the long term goal of firm. Its main vision is to bring growth in the
company and can increase the level of satisfaction of various customers. Thus as a result
they can easily bring changes in firm. Through this manager motivates and can give
rewards to employees so that they can perform well and can give good results. Through
this they can satisfy the customers.
 Mission: Company main mission to deliver superior quality of products at lesser cost to
various customer's. . If this goal is achieved then directly they can achieve their long term
objective. Through this they can sell healthy products. Through their mission all
employees can give ideas so that attractive applications can be created and thus they can
easily accomplish their goals.
 Culture: This also impact the innovation process. Hence they can select employees from
various and religion. Through this they all can give different and unique ideas related to
creation of unique applications and thus they delivers products to various user's. Hence
through this culture they can bing innovation in the firm. Thus they can easily attract
many consumers in minimum time.
 Leadership: Effective leader is very crucial in the firm so that they can guide and
motivate all employees. Through this it can increase the zeal and enthusiasm of staff
members and thus they can give unique and distinct ideas to create various applications.
This directly they helps them in selling and promoting their healthy products. They are
also give monetary incentives and different rewards so that they are motivated and can
perform well in firm. Through these methods it can directly brings innovation in
company.
 Teamwork: It is very important in company. For example there is effective team and
there are talented and trained employees then they can give unique ideas and suggestions
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to the company and thus they can give distinct ideas related to attractive applications
which can directly capture many user's in minimum time (Drucker, 2014). Thus through
creation of good and efficient team it can bring innovation in firm. Hence as a result firm
can easily accomplish their vision and mission.
TASK 2
P.3 4's and use of innovation funnel
4P's are invented by the John Bessant. Through this they can evaluate the innovation in
the company. Hence firm can determine those areas where they needs improvement (Eesley,
Hsu and Roberts, 2014). Thus they can easily make changes in their processes and technologies.
4P's of innovation used by Iceland is described below:
 Product innovation: In this process it changes different and unique products so that all
customers are attracted towards it. For example they launches different and unique with
attractive applications through which they can launch various healthy products to various
user's. Thus as a result they can attract many customer's. Hence they can earn more
revenues and they can increase the market share. Through this they can easily satisfy the
user in minimum time. Through this they can increase the market share and can maintain
good position in market as well in minds of all customer's.
 Process: It's main vision is to satisfy the customer's in a better dan effective manner.
Thus as a result they can maintain unique and good position in the market. For example
company changes their process and uses different and attractive applications. It also uses
different techniques and methods so that they can create unique and healthy products and
they can be created in less time. Through this they can easily deliver the products in
minimum time to various user's. Hence as result they can easily maintain good image.
 Positioning innovation: It is mainly target to youths so hence they try that they can
maintain good position in minds of all people. Thus as a result they create various pricing
strategies in which they can launch healthy products at lesser costs. So hence they can
attract many user's in less time. Thus as a result they create attractive applications and
sell products at less time to various user's. Thus they can maintain good reputation in the
market as well as in minds of all customer's. Hence it leads to successful running of the
firm.
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 Paradigm innovation: This is the process through which company can create various
applications. They can consider factors and evaluate factors such as competitor's plans
and policies (Herath, Cranfield and Henson, 2010). Thus they can create unique plans
such as use of unique technologies which can create superior quality of products in less
time. Hence as a result they can maintin good image in the market.
Commercial funnel is the process in which company selects best ideas and they can
screen among all the ideas. Through this they can reduce complexities in process and this can
create unique positioning in the firm (Aarikka-Stenroos and Sandberg, 2012). Hence firm selects
idea that is use of superior technologies which can create different technologies and create
advanced healthy products and they can be sold to unique applications. Thus they can easily beta
the competitor.
P.4 Development in Frugal innovation
Frugal innovation is the process in which there are no complexities. Hence as a result
they can create processes and technologies which can create unique and attractive applications
and thus they can easily sell their products. Hence as a result they can sell different products in
less time.
For example there is example of Iceland in which they can sell different products through
online applications. So hence as a result they can remove the unnecessary features in their
products. They can save costs and time by selling various healthy products through online
applications. Thus they can easily satisfy many customer's.
There is another example in which 4.Com uses a different business phone in which they
had removed the unnecessary ringtones and they can increase the speed of this process. Hence as
a result they can they can increase the process of sale. They can earn more revenues and increase
the sales.
Principles of frugal innovation:Through this firm can develop sustainable product at
lower prices. Principles used by Iceland are:
Engage and literate: In this process company can easily use past ideas and suggestions.
They do not have to create new ideas. Thus they can easily increase their sales. For example
company is selling old products with healthy products. It is beneficial for firm to choose this
option.
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Flex your assets: In this Iceland has invested their amount of their money in profitable
activities and tasks. They can save their money as retained earnings so that they can create
attractive applications (Bagchi-Sen, 2010).
Sustainable solution: In this company majorly focuses on the problems and thus they
can give solution to issues and problems in the company. If customer faces any problem
regarding the details then company can has mentioned every detail of product and firm in their
application's (Bogers and West, 2010) .
Shape behaviour of customer's: In this company can change the attitude and behaviour
of various customer's. They can create unique and different applications through which they can
create unique applications and can sell healthy items to various customer's.
Creation of value with customer's: They regularly interacting with various customer's
by taking they suggestions and by solving their problem and issues. They can receive
suggestions that increase their discounts so hence Iceland can increase their discounts facility
and can also give gifts to capture many user's. Thus they can directly change the attitude and
behaviour of all user's.
Innovative stakeholders: Company has to create unique and distinct policies so that they
can increase the level of satisfaction of various user's. Thus as a result they cam give monetary
incentives and rewards to all employees so that they can give unique and creative ideas to
company. Through this they an easily attract many customer's and can maintain unique position
in market.
TASK 3
P.5 Commercial funnel and use of new product development
Commercial funnel is process through which form can choose the best option among
various options. Company can select the best channel of distribution which is costly. So hence
firm can select online applications to sell various products. Thus they can use this process in an
effective and efficient manner. Through this firm can easily increase their profits and can easily
increase the market share. This also helps the company to maintain good and positive image in
minds of all customer's and in the market.
Importance: This funnel is important so that it can promotes creativity on firm and
improves the quality of product. Through this it leads to growth and development of company in
market.
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So hence Iceland uses this concept and method to sell different products in the market.
Thus as a result they can easily increase their sales and revenues (Bogers and West, 2012).
New product development: In this process there is development of new product.
Company can follow the process to develop new product in the market. Process is described
below:
 Idea generation: In this process company creates new products. It can be created
through developing an new idea. Idea can be creative and innovative so that firm can
easily survive in the market. For example Iceland has created an new idea that is to sell
healthy products at less costs. Through use of online applications they can increase their
sales (Ettlie and Rosenthal, 2012).
 Idea screening: In this step manager selects appropriate and suitable idea so that they
can sell good quality of products. Hence they reject other ideas which are not important
in the firm. They think that with use of advanced social media techniques they can only
increase their sales and nit by any other method.
 Concept development and testing: In this step healthy products are sold through online
applications are being tested. So they test that through online applications they can
increase their sales or not. Hence they they give healthy products to various customers
through these applications. Thus is done to test the process.
 Market strategy development: In this process company tries to create unique position in
the market. So hence they take various steps to create unique policies and plans and thus
they can create different steps. They take steps so that more customers can be attracted.
They create various positioning strategies and thus they can crate unique position in the
market as well in minds of all user's. They have created a strategy that they can sell
products through online applications.
 Business and financial analysis: In this step company can evaluate the different steps so
that it an take necessary steps. For example Iceland has evaluated different factors such
as market size,profitability and costs of creating product and applications. They can
evaluate profits through break up even analysis and thus they can create methods and
steps to invest in healthy products. Through this they can increase their profits and can
earn more revenues.
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 Test marketing: In this step company evaluates and create different methods and
strategies to test products in the market (Gambardella and McGahan, 2010). Hence as a
result they can sell various products. They test various healthy products in market so that
they can generate more revenues. Through this they create various policies so that they
can easily improve products and online applications.
 Commercialization: In this step product is ready and ten it can be sold in the market.
Thus company creates various marketing strategies and plans so that they can easily sell
the product. Thus they take different steps so that firm can easily sell the products. They
use online applications to sell healthy products (Godin, 2012).
P.6 Business case of Iceland
Innovative business case is the case in which company innovates a product. It is crucial
so that firm can easily sell the products and can maintain unique position in market. Thus it leads
to increase in reputation and firm can earn more revenues.
Executive summary: Iceland belongs to the retail industry so hence it can create unique
and different products in market. So hence company uses many innovative techniques and
techniques so that it can create various products. For example company launches new and
distinct applications through which it can launch various applications and can sell the products.
Target: It's main target customer is the young people and women so hence as a result
they creates different policies and strategies to sell various products. Hence they can use many
strategies such as online applications to sell healthy products.
Solution: Healthy products do not cause any complications among all buyers so that they
can easily sell the products. Thus it can solve all problems and issues of all people. Thus they can
satisfy needs and wants of all customer's.
Reasons of product innovation: Many customers have thought that they can get
innovative and unique products. Thus it uses different and innovative applications so hence they
can easily sell different products.
Customer research: Iceland has research a customer research in which they can identify
the need and wants of all buyer's. Due to many changes in technology and needs and wants of
people company has to create new products and process so that they can sell products in
minimum time. Thus as a result they can attract many user's (Huizingh, 2011).
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Funding: Iceland has to take the funds from different banks. Bank can give loans but
company has to pay interest on monthly basis. Thus as a result they can receive funds from
various sources. They can also take funds from the angel investors and investment groups thus
they get funds at lower rate of interest. But they have to give their share then only they can
receive their funds.
Expected benefits: They can determine their revenues and profits through the past
records and statements. Thus as a result they can easily take steps to invest in profitable activities
(Kim, and et.al., 2011).
TASK 4
P.7 Different tools to retain and protect intellectual property
Intellectual property can increase the innovation in the company. Company creates many
different tools so that they can easily protect the ideas and suggestions of the firm. This is crucial
so that other competitor cannot steak the idea and can use it. Hence Iceland can maintain good
position in the market. So hence tools and techniques used by Iceland to protect intellectual
property are:
Patents: It is a different technique so that company can protect their idea and can protect
new product. Through this firm can protect their new and attractive applications. Through this no
other competitor can use these application's. Patent is given for 20 years. It can be extended if
company wants to extend it. Main advantage is that they can protect their idea but they had to
invest huge money to take the patent.
Trademarks: In this process Iceland can protect their signs from other rivals in the
market. Company can protect their symbols, pictures and other characters and diagrams which
are using in applications. Through this they can easily protect the symbols. Thus as a result they
can easily protect their ideas. Trademarks are allotted for a period of 10 years. Advantage is that
they can protect symbols but disadvantage is that they had to invest huge amount for taking
trademark.
Copyrights: It is the right which can protect the artistic and literary work. Iceland can
easily protect their poems, paintings and pictures which they are using for promotion. So hence
through this they can generate more revenues and can give huge competition to other firm's.
Advantage is that they can protect their artistic work and unique poems to promote healthy
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products. They can give huge competition to other companies. Disadvantage is that they had to
invest money to take the copyright (Walsh, 2012).
Help from professional: There are many experts who can give different advices to the
company. So hence Iceland can get advices and suggestions from professional and accountants.
So thus they can easily get solution to their problems and issues. So hence they can get solution
of their products an can have knowledge of promoting their products in a unique manner. Thus
they can receive suggestions from experts. Advantage is that they can get solution in very less
time. Disadvantage is that they had to invest huge amount of money to get solutions as they
charge huge fees.
CONCLUSION
From above report it can be concluded that innovation is very crucial in every company.
Through this they can bring innovation in products or methods. This helps the firm in generating
more revenues. Innovation and invention are different from each other. Different types of
innovations are used in the company. Unique and distinct process is used so that form can easily
promote various products. Different techniques and methods are used so that they an protect the
ideas and intellectual property. It includes patent, trademark etc. Through this firm can give
competition to other companies.
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REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
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Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1).pp.61-75.
Chun, D. and et. al., 2015. Labor union effects on innovation and commercialization
productivity: An integrated propensity score matching and two-stage data envelopment
analysis. Sustainability. 7(5).pp.5120-5138.
Cui, A. S. and Wu, F., 2016. Utilizing customer knowledge in innovation: antecedents and
impact of customer involvement on new product performance. Journal of the academy
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Cunningham, S. W. and Porter, A. L., 2011, July. Bibliometric discovery of innovation and
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Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
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Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
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Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.
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Kim, S. K. And et.al., 2011. The effect of R&D, technology commercialization capabilities and
innovation performance. Technological and Economic Development of Economy. (4).
pp.563-578.
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Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Online
What is innovation?. 2017. [Online]. Available through:
<https://www.merriam-webster.com/dictionary/innovation >. [Accessed on 1st November
2017].
Difference Between Invention and Innovation. 2016. [online]. Available
through:<http://keydifferences.com/difference-between-invention-and-
innovation.html>. [Accessed on 16th May 2017].
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