Enterprise and Innovation: Theories, Proposal, and Implementation

This document discusses the theories of innovation and idea generation in the context of enterprise and innovation. It explores the diffusion theory and Schumpeter theory of innovation. The document also includes a proposal for an innovative product, process, or service for a working organization and provides an implementation plan. The case study of Crave Grocery and their self-stirring mug is used as an example throughout the document.

Enterprise and
innovation

INTRODUCTION
The term innovation refers to an idea which helps them to convert into reality. In
business, the process and procedure that is to develop business process and activities of
organisation in order to gain new profit and success of company (Ali and Soar, 2018). To update
and implement the new as well as existing ideas for the introduction of products or services to
attract customers towards their brands to make purchasing decisions. It is essential to explore
business opportunities to improve process by bringing new goods in market place which
maximize efficiency in enterprise. When any company launch new items then it take less time
and process to compete with the rivals in market. They react to changing business environment
and bring new ideas to foster competitive advantages. Crave grocery store is considered in this
report. They are innovating self stirring mug which is made of stainless steel in the inner part and
have a snap lock lid. It change the style of drinking coffee. This report covers theories of
innovation, idea generation to products or services to develop an innovative idea and proposal
for launching goods for a working company.
TASK 2
Apply theories of innovation and idea generation to products, processes or services to develop an
innovative idea.
The term innovation signifies launch new goods and services in order to meet the
requirement of customers which helps them to satisfy customers need and wants. In addition to
this, it improves productivity, brand recognition and value by reducing costs which lead to
increase in profitability and turnover. There are many theories of innovation such as disruptive,
sustaining, diffusion and Schumpeter theory of innovation. Mentioned below are some theories
which are as follows:
Diffusion theory: This is developed by E.M. Adoption in year 1962 which signifies
about the new idea, attitude or goods which does not continue in a social system. In this theory
explains about the awareness about the new thoughts and technology which is adapted by the
organisation. If company adapt this theory for their launching of items then it helps them to
demonstrate various features who have followed this theory (Grigoryan, Lebedeva and
Breugelmans, 2018). Management of Crave Grocery store can adapt this innovation theory as to
introduce their item in order to build brand awareness and reputation of business which help
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them to increase profitability and productivity. There are five categories of diffusion of
innovation theory which are mentioned below:
Innovator: These are the people who first adapt the innovation process in their business.
The introduce new methods and process for the growth of business activities in order to expand
opportunities in organisation. Crave grocery store is an innovator who produce and manufacture
the self stirring cup in the market which helps them to expand their business and increase
opportunities which lead to maximize sales and revenue (Jiang and Cao, 2020).
Early Adopter: This states that individuals are comfortable to adapt the changing trends
in business environment so that company adapt new ideas and methods. They use the advance
technology and other process before anyone else. These people give feedback to other businesses
about the problems and circumstances which they have faced while launching any goods.
Early Majority: They are cautions about adapting innovative products in market because
they want to identify and analyse that the goods are working and based on the customers taste
and preferences. In addition to this, they have to take the verification of already introduced the
products in market so that they know how their items will launch and make success for their
enterprise.
Late majority: They launch their items when they know that most of the people have
adopted their goods or services in market place which lead to development of their business
venture. This helps them to take feedbacks from the large number of people.
Laggards: These are those process which is very slow for progress and success to their
business. They are the last one who adapt the latest technology in their organisation because they
have to make changeover in their business (Liu and et.al., 2019).
Schumpeter theory: This is the theory which entrepreneur analyse that they gain profits
by innovating goods or services in the form of incentives which is based on their performance.
Manager of Crave grocery introduce goods or services along with the good quality and have new
process by a new source of raw materials. However this theory of innovation has two categories
which are described below:
First category: It involves those methods which minimize the overall cost of production
which include introduction of new method and process as well as production using different
equipments.
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Second category: In include those methods that maximize the need and demand for a
good such as updation and implementation of quality goods along with opening of new market
and adapting various inventory and design of goods in order to gain higher profit from their
competitors (Song, Yang and Zhang, 2019).
From the above analysis, its is evaluate that Crave grocery store has adapted Schumpeter
theory of innovation which determine and understand the functions and process in order to gain
higher profits which help them for growth and success of business. Self stirring mug is a
automatic stainless coffee mug which is to stir the coffee, hot chocolate, milk and protein as this
mug is carried everywhere and is ideal for everyone for school, home and gym.
TASK 3
Devise a proposal for an innovative product, process or service for a working organisation and
produce an implementation plan.
The proposal plan for launching of products or services in market of the Crave Grocery
which helps them to analyse and understand the requirement of end users which lead to increase
their need and demand. Mentioned below are the proposal which are as follows:
Executive summary: Crave Grocery is introducing product which is as a hot mug as the
interior of the mug is of stainless steel which helps them to drink hot coffee and drink. While
starting stirring the upper part of mug shows some pictures which looks beautiful and attractive.
They introduce their products to remain in competitive market and develop their success in
business. This items is very useful in winter because every individuals want to drink hot in the
season. It is the company which generate the idea of manufacture and produce this type of things
in their store in order to gain high profit (Wang and et.al., 2019).
Objective: The main purpose of this mug is that people want hot drinks in winter as it
gives them benefit of carry their mug anywhere in the other areas without having hot water.
Product description: Self stirring mug is made of better quality stainless steel and food
grade plastic as it is very safe and secure to handle. This hot mug is auto mixing of everything
whether coffee or tea. It works as it have snap lock lid which have to start and afterwards it start
to make hot water or drink. In this type of mug they handles and have a huge amount of fluid
from the other type of cups. To poured milk and coffee into mug person has to just press button
to swirl the liquids in a cup which automatically make the cold to hot milk and tea.
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Impact and benefit of product: This product is beneficial to introduce in market for
drinking hot coffee, tea as well as hot chocolate which helps them to attract customers to buy the
products for themselves or for gifts. It has a camera lens which shows the pictures to look
attractive. In addition to this, it increase profitability and performance of business. They provide
good quality of products or services at the affordable price to its consumers.
STP: Segmentation, targeting and positioning refers to a method that summarize the
activities of market segmentation. On the other hand, targeting is to identify the segments which
helps them to attract individuals through different approaches. However, the positioning signifies
that right message is given to right person. In context to Crave grocery, self stirring mug is
segmented in the different localities across world. Crave grocery targets the young people
because they like these types of products as they give to their friends and relative as a gifts and
use their own to drink hot water, coffee, chocolate and tea (Zhen and Yao, 2021).
Market analysis: It helps to boost the performance by knowing the need and
requirement so that they can handle and analyse all the situations which will arise in their
product. They will handle by implementing and updating their products based on the preferences
of customers. As the users wants new innovation in market such as mug to develop the
performance of business and growth. The advertise their goods by different marketing channels
and campaigns.
Sales plan: the sales plan of crave grocery is to sell their products in local shops and in
superstore in the state. The main purpose of selected organisation is to distribute their goods in
the shop for the first six months in order to expand the range of distributions in other states.
Cost: This is the process by which they take cost benefits as it helps them to have new
ways to offer audience. It helps them to make budget about the charges which assist management
of Crave grocery to introduce in market place. The estimated cost of Crave grocery is launch
their item which is self stirring mug will be approx 150000. The is explained below:
BASIS AMOUNT
Material Cost 15000
Production Charges 55000
Packaging Cost 10000
Marketing Cost 20000
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Distribution and logistic charges 20000
Implementation: The implement their products in market with all the instruction and
arrangement to launch goods or services which helps them to introduce self stirring mug in
marketplace and observe that it make good impact on their business. This is to analyse to initiate
the launching the process in market which result in increase profitability and performance.
Therefore, there are many problems in innovation as the employees are not aware about the
goods and they are not motivated to do the process. Lack of collaboration and diversity affect the
innovation process in business because when there is no training and development and decision
making process for the success of long term (Zhuang, 2020). In addition to this, they have
innovation solutions use various tools and techniques which help them to manage and organize
which result in business efficiency and achieve better outcomes. There are various innovation
techniques which are adapted by Crave grocery such as eliminate the hierarchy and build a
culture of innovation.
CONCLUSION
From the above analysis, it is concluded that innovation is the best approach to attract the
ultimate users and meet the needs and wants of them. It is crucial to expand their business
operations and process by this they develop their performance of organisation. This helps them
to gain trust and interest of people in order to build brand image and reputation in the
marketplace. This increase the market share, size and growth of organisation which lead to
maximize sales and revenue. Crave grocery has innovated self stirring mud and they follow
Schumpeter theory of innovation to bring new ideas and process to meet the requirement and
fulfil the needs of ultimate users. In addition to this, innovation theories is an important
framework to develop the industry growth and stay in competitive market because company
adapt advance technology and build strategy which lead to growth of business. Innovation also
have many issues related to launching of goods or services such as when organisation has no
proper strategy to develop and expand their business.
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REFERENCES
Books and Journal
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and attitudes toward innovation. Journal of cross-cultural psychology. 49(2). pp.336-
352.
Jiang, H. and Cao, Y., 2020, April. Research on enterprise quality innovation of VE and DMAIC
tool integrated application. In 2020 International Conference on E-Commerce and
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Liu, D. and et.al., 2019. Do more subsidies promote greater innovation? Evidence from the
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