Importance of Innovation in Business

This report focuses on the importance of innovation in business and its impact on entity growth. It discusses the relationship between organization innovation and its leader, culture, and teamwork. It also explores the 4Ps of innovation and the concept of frugal innovation. The report further highlights the importance of the commercial funnel and the application of New Product Development (NPD) processing for commercialization of innovation. Additionally, it discusses different tools that organizations can use to develop, retain, and protect knowledge and intellectual property.

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TABLE OF CONTENT
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................4
Describe innovation and its significance to entity as compare with invention...........................4
P2 Relationship between organization innovation and its leader, culture and teamwork...........4
P3 4Ps of innovation....................................................................................................................5
P4 Explain frugal innovation with example that can be used within the context of firm.........6
P5 Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation..............................................................6
P6 Development of innovation business case for an entity including various ways of funding 7
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.....................................................................................................................8
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10
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Introduction
Innovation can be termed as process to develop new ideas as it is consider as vital factor
that can be required through an entity to be focused so that competitive benefit can be gain
within marketplace. Innovation aids an entity to create new ideas by introducing new features
within products (Ardito, 2018). Mostly innovation can be done to attract consumers and fulfill
the demands of the consumer. Present Report focuses on Describe innovation and its significance
to entity as compare with invention, Relationship between organization innovation and its leader,
culture and teamwork, 4Ps of innovation , Explain frugal innovation with example that can be
used within the context of firm, Development of innovation business case for an entity including
various ways of funding . Report focuses on the Amazon.com which is an American
Multinational firm focuses on digital streaming, cloud computing and many more. Founded by
Jeff Bezoz on 5 July 1994 and headquarter within Seattle, Washington, United States.
Main Body
Describe innovation and its significance to entity as compare with invention
Innovation is consider as a process through which there is a chance of making something
new within existing products of the firm. Within the business sector innovation is also
implemented for creation of new development as well as ideas of various services sp that attract
a huge number of people. To becomes an innovative firm , it requires to be implement new ideas
within such a manner that it can aids them within replacing their existing products as well as
services at economic cost. By implementing innovative ideas results within creativity that aids an
entity to introduce new products in their products (Dincer, 2017). It increases the product’s
quality and various other things also. Mostly people sees innovation as a process that aids value
of firm, its products and services is enhanced within much better as well as appropriate manner.
Innovation is vital because it fulfilled the needs of the buyers and also aids the firm to enhance
the overall satisfaction level of their consumers.
Innovation is more vital for any firm that aids to accomplish their goals and objectives as
compare to invention. Invention is quite different from innovation as in invention products can
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be created first time. Mostly innovation can be done so that attract consumers as it can be
successful and failure both. Innovation aids an entity to attract all kinds of advantages from
invention within more better as well as appropriate manner. Amazon has introduced an electric
foot warmer that can be share with other people also. It is called as Serta Ultra Plush Foot
warmer. This huge warmer gives warmth as well as relief for tired as well as cold feet. This
warmer is made from ultra soft fleece and also large enough to fit two pairs of feet as well as
keep it all night long in order to save money on energy bills. It has also led light so one can
easily adjust setting according their convenience especially in nights. This warmer has fiberfill
center for bonus cushioning (Brix. and Jakobsen, 2015).
P2 Relationship between organization innovation and its leader, culture and teamwork
Leadership, culture and teamwork plays vital role in innovation. This is because these all
provide direction and create roadmap to implement innovation. The type of leadership style
which is adopted by Amazon plays an important role is shaping innovation. It may result in
change in the organization in processes, methods, procedures, etc. along with roles of employees
as well which impact on business operations (Medase. and Barasa, 2019). So, it is leaders of the
organization which can help the company in bringing and establishing this change in a workplace
that can help in shaping the innovation. Leaders play a vital role in encouraging employees while
shaping the innovation and type of leadership style adopted help in successful innovation. With
leadership another important factor in shaping the innovation is effective teamwork if there is no
teamwork then innovation cannot be implemented. The employees of firm have to work in
collaboration with each other and share their ideas. So, when there is effective team work then it
becomes easy to bring in change through innovation. Herein, staff work together and attain
goals. Besides that, leader also support by providing them direction on how to implement
innovation. This all result in creating a positive culture and change.
Similarly, culture is also linked to innovation as having a strong culture means staff is
engaged in working in creative way. Furthermore, there is culture where new ideas are shared
and it results in moving in new direction. Thus, innovative environment is developed where staff
likes to work in new way. Other than this, there is diversified people who are working together to
achieve common goal. In addition, staff easily adopt new ways of working. Thus, it enhances
their productivity and goals are effectively achieved (Dincer, 2017).
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P3 4Ps of innovation
It has been analyzed that there are 4 Ps of innovation in which it can be done. These P’s
are related to bringing change. Along with it, incremental and radical are two innovation as well.
in incremental it means small changes that is made in existing products of company. For
example - Coca cola, etc. and radical innovation means new business model is implemented
instead of old one. For instance- Netflix. So, the 4 Ps are as follows
Product- It is most common innovation that is made. As name depicts it means development of
new product or service. In this it need to conduct market research so that needs are identified. On
basis of that product is developed (Razak. and Murray, 2017). Amazon developed new products
such as alexa, Amazon prime, etc.
Process- In this innovation there is change in operation or process of company. It is done to
bring efficiency or to increase it. This is implemented by finding out weak areas where
improvement is required. Then, innovation is done to improve it. it results in increase in
efficiency as well. For example- E commerce platform
Position- The innovation where Amazon finds out new market where they can expand. This is
done to increase sales and profits. Moreover, company tries to position itself in new way in
minds of customers. Thus, innovation is done. For instance- Amazon expanded in India.
Paradigm – Here, company develop short and long term goals of innovation. In this many things
can be included such as process, product, etc. in which innovation is to be done. It is not
commonly used by Amazon as there are no set goals. The purpose is to draft proposal for future.
Hence, there is shift in business model via innovation.
P4 Explain frugal innovation with example that can be used within the context of firm.
In order to reduce the whole manufacturing process as well as production cost so that
avoid complexities in production and manufacturing process. It is consider as one of the most
suitable features that aids a firm to remove all types of non effective features in the production
and manufacturing process (Medase. and Barasa, 2019). The frugal innovation aids the firm to
increase the whole cost associated with such process. Such process is called as Frugal
engineering process that can be focused on capital engineering, enhance the product
development efficiency, low cost designing of goods, simplying manufacturing process,
optimizing costumer interest feature as well as decrease all types of non valuable features.
Amazon has focused on adopting the frugal innovation in order to reduce all types of the
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unnecessary cost relied with development and manufacturing process of Serta Ultra Plush Foot
warmer. By the help of such process Amazon has eliminated their design, production as well as
manufacturing cost that has only aids them to enhance efficiency of the product development. In
addition to this aids this process their scope of development so that introduce new features within
foot warmer was also enhanced. For such , their need of the additional capital was also resolved
as well as whole production cost associated with the project was also resolved. This help to
introduce product in lower price.
P5 Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnels refers to a marketing concept that maps out the journey a customer
goes through when making any kind of decision of purchasing. Commercial funnel is also known
as sales funnel and there are four stages in this journey are-
Awareness- This stage is one in which prospects learns about existence of a product or service
Interest- This is another stage in which prospects is actively looking for solutions to their
problem and ways to achieve their goals (The Beginner’s Guide to a Sales Funnel, 2020).
Decisions- In this stage prospects are making decision that they want to take advantage of
available solutions
Actions- In this stage prospects of Apple become its customers
New product development processing for commercialisation of innovation
This is concerned with a process through which organisations develop new products and
innovation is commercialised by organisations. Process of this involves following stages-
Idea generation and screening- this stage involves generation of idea and screening, in this
ideas are collected from different sources. Idea generation involves collecting several ideas and
screening is done to know good ideas and reject ideas that are not good.
Concept Development- This is another stage in which organisation develop detailed description
of the ideas that they have selected for developing new product.
Business Analysis- This is concerned with developing business strategy to introduce new
product in market successful. In order to do this organisations perform marketing and financial
analysis.
Product development- This is a stage in which product is developed by Apple and idea is
transformed into physical product.
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Test marketing- This stage involves that product developed is introduced for further research
and feedback so that company can understand customers by their reaction and feedback.
Commercialisation- This involves launching of new product of Apple in market. This is
introducing new product to target market and involves application of marketing mix.
Commercial funnel and processing of new product development both are important for
commercialisation of innovation (Cooper, 2019). Commercial funnels depicts customer journey
and sales process and this process helps in understanding customers and what are the elements
that make prospects, customers and consumers of Apple. Further new product development helps
in understanding what are steps and process that organisations can utilise in order to develop new
product. And this process is used for creating innovation and through understanding of
commercial funnels Apple can take right decision to reach to target market and ensure that
maximum prospects can be converted into customers (Razak. and Murray, 2017).
P6 Development of innovation business case for an entity including various ways of funding
Nowadays Amazon is focusing on the development of new products such as Serta Ultra
Plush Foot warmer. There are several brands that provides a tough competition to Amazon but
also development of the new innovative business also needs to focus on ways where one can
access funds for same. Innovation business case for Amazon for Serta Ultra Plush Foot warmer
are.
Executive Summary - Amazon focusing on the development of an innovative product an
electric foot warmer which is large enough to fit two pairs of feet as well as keep it all night long
in order to save money on energy bills.
Vision- The vision of Amazon is to give energy saving Electric Heated Foot Warmer that keeps
warm without taking a toll on the environment or on electricity bill. With this foot warmer one
keep their feet toasty all of time. There’s no need to be miserable in the cold anymore.
Mission- The main mission of the firm is to introduce electric foot warmer that saves electricity
bill and save from miserable cold.
Objectives- Mention below are objectives of Amazon for innovative products such as
 To enhance their overall sales by at least 30 percent within 1 year of time period.
 To enhance market share by 40% in 12 months.
 Providing training to the staff members so that enhance their manufacturing as well as
productivity of the product can be effectively done (Amponsah. and Adams, 2017).
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Source of funding- To develop innovative products as according to the requirements and
demands of the marketplace can be extremely vital for firm in order to identify the founding
source. Various sources of funding are revenue from overall sales, funding from investors,
private equity, funding from investors and many more.
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property
Intellectual property can be defined as category of property that involves creating
intangible human intellect. These set of intangible assets owned and legally protected by
Amazon so that it can be protected to be used by others without consent. This is considered
under category of non-physical and intangibles assets.
Intellectual property rights are concerned with rights that are given to individual or organization
over creation of their minds. There are several tools that organization can use to create
knowledge this involves knowledge search and content management system, enterprise content
management system are examples of this (Olsen and Hosler, 2018). Communication tools are
also used for this, social software, knowledge visualization and decision supports are also used
for creating knowledge .
This right ensures that exclusive use of the knowledge that they have created. In order to
retain and protect knowledge and intellectual property Amazon can utilize several tools that are
as follows-
Copyright- Copyright is a tool with which individuals and organizations can utilize to retain
their exclusive rights to reproduce, sell, and publish of their original work of authorship. This
work involves literary, musical, dramatic, artistic and architectural work. Amazon can utilize this
tool to protect literary or artistic work that it produces. This will give rights to Amazon to
reproduce work, prepare derivative works, distribute copies, perform work publicly, and display
work publicly.
Patent- Patent is another tool to be used by Apple, this is a right that permits Apple to exclude
others from making, selling and using inventions for a certain period of time (Joyce and et.al.,
2016). Mainly patent rights are of three types that are Utility patents, Design patent and plant
patent. Apple company has been granted thousands in which between July 2019 to June 2020 it
was granted 1996 patents.
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Trade mark- Trade mark is another tool to protect intellectual property of Apple. Trade mark is
available for certain names, symbols, devices and words that can be used in connection with a
good or service (Amponsah. and Adams, 2017).
Conclusion
From the above it had been concluded that Innovation increases the product’s quality
aids the firm to enhance the overall satisfaction level of their consumers. Leaders encouraging
employees while shaping the innovation effective team work and bring in change through
innovation. Amazon reduce all types of the unnecessary cost relied and there are four stages in
Commercial funnels such as Awareness, Interest, Decision and Actions. Report also focusing on
the development of new products such as Serta Ultra Plush Foot warmer which is electric foot
warmer which is large enough to fit two pairs of feet, keeps warm without taking a toll on the
environment or on electricity bill and its Source of funding investors, private equity, funding
from investors and different tools Amazon utilize such as Copyright, Patent and Trade mark.
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REFERENCES
Books and Journals
Amponsah, C.T. and Adams, S., 2017. Open Innovation: Systematisation of Knowledge
Exploration and Exploitation for Commercialisation. International Journal of Innovation
Management, 21(03), p.1750027.
Ardito, L., 2018. Markets for university inventions: the role of patents' underlying
knowledge in university-to-industry technology commercialisation. International Journal of
Technology Management, 78(1-2), pp.9-27.
Brix, J. and Jakobsen, H.S., 2015. Business model pretotyping: exploring pre-
commercialisation opportunities in practice. International Journal of Innovation and
Learning, 17(1), pp.98-110.
Cooper, R.G., 2019. The drivers of success in new-product development. Industrial
Marketing Management. 76. pp.36-47.
Dincer, I., 2017. Importance of research, innovation and commercialisation for
technological success. International Journal of Research, Innovation and
Commercialisation, 1(1), pp.8-22.
Joyce, C and et.al., 2016. Copyright law (p. 542). Durham, NC: Carolina Academic
Press.
Medase, K. and Barasa, L., 2019. Absorptive capacity, marketing capabilities, and
innovation commercialisation in Nigeria. European Journal of Innovation Management.
Olsen, P. and Hosler, L., 2018. The United States Patent and Trademark Office's
Partnership with the National Inventors Hall of Fame. Technology and Innovation. 19(3).
pp.639-643.
Razak, A.A. and Murray, P.A., 2017. Innovation strategies for successful
commercialisation in public universities. International Journal of Innovation Science.
Online
The Beginner’s Guide to a Sales Funnel. 2020. [Online]. Available Through: <
https://www.mailmunch.com/blog/sales-funnel/ >.
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