Importance of Innovation in Business Success

This assignment delves into the importance of innovation in business success, highlighting its role in driving growth, creating new products, and helping organizations achieve their goals. It emphasizes the need for innovation in today's fast-paced market, where adapting to change is crucial for survival.

ENTREPRENEURSHIP
AND
SMALL BUSINESS
MANAGEMENT
(Project 1)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Difference between innovation and invention....................................................................1
2. Importance of innovation to organisations with its embedded in organisation culture and
leadership................................................................................................................................2
3. Explain the 4Ps of innovation and how this supports capability and management of
innovation...............................................................................................................................3
4. Approaches that the organisation can take to process innovative ideas.............................4
5. Explain the steps the company should go through to derive a new and innovative
product/service.......................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................1

INTRODUCTION
An entrepreneur is individual which implement different types of new and innovative
ideas in marketplace in order to support employee working in organisation as well as people
living in society (Bhachu, 2017). Entrepreneur put its effort to discover new techniques and
tools of its own rather than innovation. This helps to perform different types of functions of
organisation with implementation of new technology which is not present in marketplace. It
leads to establish strong brand image in marketplace as well as society. This project explain
about to introduce new idea of small scale company that is Purity Soft drink. This company is
UK based company which deals to provide bottled water company. This project defines the
difference between invention and innovation concept. It will also explain the concept 4p's of
innovation, different approaches of the leadership , frugal innovation and determine the
significance of funnel.
TASK
The Management
Purity Soft-drink
Dated – 14th April 2018
Subject: report about the innovation for the functions and task
1. Difference between innovation and invention
Innovation is method to implement different types of modification in existing products
and services and introduce existing the products in new way. It is very important analyses and
determine difference between invention and innovation in order to attain effective result in
proper manner. Invention is related with launching of new products and and service in
marketplace. This helps to generate large number of revenue of organisation. It also aids to
capture large number of marketplace (Clarysse, Tartari and Salter, 2011). Purity soft Drinks is
implementing different types of innovative techniques like carbonated water technique in their
various drinks and management of company determine difference between invention and
innovation.
Basis Invention Innovation
1

Meaning This is the method to produce
new products and services
which is not being produce by
any organisation till now.
It is related to different types
of process by which
implementation of various
types of implement change in
the existing products and
services.
Concept It is new and descent idea
which are never implemented
before by any organisation
(Audretsch, 2012).
It can be determined by
mixing of two existing
products and service to
produce new one.
Focuses on It is performed on single
products and services.
It can be performed on more
than one or mixing of two or
more than two products.
Responsibility To perform different kind of
invention, it is responsibility of
the research and development
of the organisation to perform
any kind of invention.
Innovative steps can be
implemented in the various
department of the organisation
in order to perform different
types of activities in proper
manner
This explains difference between innovation and invention which have to determine by
management of Purity Soft Drink. In order to produce innovative drink management have to
add on various types of ingredient in different product. By implementation of innovative
technology assist to manufacture new type of product whose named as Juice Burst. This
innovative products helps to attain the goals and objectives of the organisation. This helps to
generate large number of revenue in the company (Bruton, Khavul, Siegel and Wright, 2015).
2. Importance of innovation to organisations with its embedded in organisation culture and
leadership
Innovation plays a significant role in order to produce and new range of products and
services. The techniques which aids to produce new range of different products in the
marketplace. It aids to explore the business in effective manner. These innovative technology
2

aids to perform different types of activities of the organisation in systematic manner. Innovation
is essential part of any organisation because it helps to create new products and services and also
redesign the existing products and services. It increase rate of sales of different products and
services and also attract large number of customer in marketplace (Wright and Stigliani, 2013).
So it is very important for management of Purity soft drinks to determine importance of
organisational culture and leadership:
 Leadership: It is main part of organisation in order to trained and motivate working in
organisation. The main role of leaders in organisation is to motivate employees to
perform different task as per the blue print of task which given by organisation.
Leaders of company have to monitor performance of employee and take initiative steps
which helps to attain effective result. This will aids to enhance growth and productivity
of organisation.
 Culture: This is important factor of the organisation in order to create effective
environment to perform different types of task in stipulated time period. Effective
environment can be created by implementation of advance technology in proper manner
it helps to attain goals and objectives of organisation. Purity Soft Drinks leads to
establish define culture within organisation it helps to attain aims and objectives of
Purity Soft Drink. The management needs to motivate their employee in order to
perform different types of task in stipulated time periods. This leads to attain
effectiveness in performing different types of activities in organisation. These innovative
technology aids to create coordinative environment which helps to attain effectiveness in
organisation (Fayolle and Gailly, 2015).
3. Explain the 4Ps of innovation and how this supports capability and management of innovation
In order to adopt changes within organisation manager and leader plays a significant
role to motivate employee to adopt new changes. There are different types of innovative changes
which have been carry out by administration of organisation. It leads to attain effectiveness of
system. Although management of Purity Soft drink adopt 4p's of innovation which would play a
significant role in order to perform different types of functions of organisation in proper manner.
The 4p's of innovation is define below: Product perspective : This is the first phase of innovation to understand the perspective
of the products. The management of the organisation implement different types of
3

innovative techniques to produce new and innovative product to the customer in order to
satisfy their demand and desire of the customer. Process perspective: there is define process of implementing different types of
innovative techniques in order to produce new products with the helps of existing
products (Hall, Matos, Sheehan and Silvestre, B., 2012). Before implementing the
process of innovation organisation needs to determine the various aspects of the product.
The management have determine the different condition of the market and analyses the
demand and desire of the customer. Organisation needs to determine the proper time of
implementation of the innovation in the organisation. After this if it is necessary for
organisation to implement different types of innovative technology. Manger of the
company have to consider the different situation of the business before implementation
of process of the organisation. Position perspective: Organisation needs to position different types of products and
services in the marketplace. The position of different type of products as per the demand
made by the customer. The management of the organisation needs to find the appropriate
time for implementation of innovative steps within the organisation. The manager of
company find the different condition and situation of the marketplace. The manager
needs to position their products in the define form so that it is easy find the new range of
products by the customer in proper manner.
 Paradigm perspective: It intimate as a certain working of the particular thing and
company to promote the different products of the company. The management of
company interact with the new and innovative feature in the existing products in order to
increase the products of the organisation. This steps helps to produce new range of
different product within stipulate time period. The management of the organisation
determine various types of activities with in the effective manner (Bruton, Ketchen and
Ireland, 2013).
4. Approaches that the organisation can take to process innovative ideas
Innovation is concerned with the different types of activities as per the requirement of the
management of the organisation in proper manner. Small business organisation needs to
implement different types of the changes in order to modify the organisation. The
implementation of new and innovative technology leads to perform different types of working
4

activities of the organisation in proper manner. The manager of the company perform various
types of research in order to modify the existing products and produce new kind of products
“juice Burst” which are accomplish in different innovative steps:
Step 1: Increasing the mouth of funnel by increasing the base: This process is concerned on to
gathering of relevant information with the help of various resources in proper manner and it
leads to choose the best idea among all the different idea in order to increase the rate of products
in stipulated time period (Flamholtz and Randle, 2012). Organisation needs to determine the
different type of sources in order to implement different types of innovative technology in proper
manner.
Screening stage: this is second phase to perform screening of different products and services
which helps to accomplish different type of products in proper manner. There are different types
of ideas and thoughts which are used to select the products to perform innovation.
Step 3 : Whether idea delivers on expectations: This is the final phase where the management
needs to determine the deliverance the product to its customer according to the expectation made
by the customer. To determine these expectation management needs to determine the feedback
from the customer which leads to know the demand and desire of the customer. It aids to attain
the profit of the organisation in stipulated time period.
5. Explain the steps the company should go through to derive a new and innovative
product/service
For the implementation of the new and innovative techniques in order to produce
different types of new and innovative products. The management needs to follow these finite
number of steps which helps to manufacture different types of products . Purity Soft Drink have
to recognise the different steps in order to implement the innovative techniques:
 Generating new idea: Organisation needs to generate new ideas from the marketplace.
For this the management needs to consider the different facts and alternative about the
implementation of new ideas Purity Soft Drink generate new ideas that people are very
health conscious about the health. Where the management needs to start manufacturing
different types of new and innovative products in proper manner (Desa, 2012.).
 Screening of idea: The idea developed and get executed for the next steps where
organisation needs to examine the products and services in the organisation. Purity Soft
5

Drink have to determine the every idea which are used in manufacturing of products and
services.
 Testing and analysis: the products or the idea leads to examine the products in the
marketplace in proper manner. The company needs to gain the feedback of the customer
that they prefer the products of not . As per their response it is easy to determine the
choice of the customer and implement innovative steps to determine the products.
 Commercialize: The products are preferred by the customer it helps to commercialise
the products in the marketplace. This will helps to support the business venture to
expand and maximise the profit of the organisation (Marlow and McAdam, 2013).
Organisation needs to follow these steps in order to implement different types new and
innovative idea in proper manner.
CONCLUSION
As per the mention report it has been assumed that the entrepreneur always in search of
new opportunity for creation of new and innovative products in the marketplace. Implementation
of new and innovative methods it leads to accomplish the different types of the activities of the
organisation in proper manner. It leads to attain goals and objectives of the organisation in proper
manner. It helps to accomplish the target which is assigned by the organisation in stipulated time
period.
6

REFERENCES
Books and journals
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
Bruton, G. D., Ketchen Jr, D. J. and Ireland, R.D., 2013. Entrepreneurship as a solution to
poverty. Journal of Business Venturing. 28(6). pp.683-689.
Bruton, G., Khavul, S., Siegel, D. and Wright, M., 2015. New financial alternatives in seeding
entrepreneurship: Microfinance, crowdfunding, and peer‐to‐peer innovations.
Entrepreneurship Theory and Practice. 39(1). pp.9-26.
Clarysse, B., Tartari, V. and Salter, A., 2011. The impact of entrepreneurial capacity, experience
and organizational support on academic entrepreneurship.Research Policy. 40(8).
pp.1084-1093.
Desa, G., 2012. Resource mobilization in international social entrepreneurship: Bricolage as a
mechanism of institutional transformation.Entrepreneurship Theory and Practice.
36(4). pp.727-751.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management. 53(1). pp.75-93.
Flamholtz, E. G. and Randle, Y., 2012. Growing pains: Transitioning from an entrepreneurship
to a professionally managed firm. John Wiley & Sons.
Hall, J., Matos, S., Sheehan, L. and Silvestre, B., 2012. Entrepreneurship and innovation at the
base of the pyramid: a recipe for inclusive growth or social exclusion?. Journal of
Management Studies. 49(4). pp.785-812.
Marlow, S. and McAdam, M., 2013. Gender and entrepreneurship: Advancing debate and
challenging myths; exploring the mystery of the under-performing female entrepreneur.
International Journal of Entrepreneurial Behavior & Research. 19(1). pp.114-124.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal. 31(1). pp.3-22.
Online
Difference Between Invention and Innovation. 2016. [Online]. Available through
:<https://keydifferences.com/difference-between-invention-and-innovation.html>.
Purity Soft Drinks. 2018. [Online]. Available through :<http://puritysoftdrinks.co.uk/>.
IMPORTANCE OF INNOVATION TO THE SUCCESS OF YOUR BUSINESS. 2018. [Online].
Available through :<https://blog.optus.com.au/business/importance-innovation-success-
business/>.

2