Importance of Innovation in Business PDF

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and determine its importance to organisations in comparison with invention1
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation...................................................................................................................3
TASK 2............................................................................................................................................5
P3 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas......................................................................................................................5
P4 Developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................6
TASK 3............................................................................................................................................7
P5 Importance of the commercial funnel and the application of New Product Development7
P6 Innovation Business Case for an organisation, including ways to access funding..........8
TASK 4............................................................................................................................................9
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation can be defined as a process in which ideas and thoughts are converted into
reality so that value can be added to product and commodities. While doing any kind of
innovation it is required that idea is adjustable to economic cost and also satisfying the needs and
demands (Anderson, Potočnik and Zhou, 2014). Thus, it can be said that procedure of innovation
includes application of different information, resources which are required for converting things
into a use products. ASDA, which is one of the largest supermarket in United Kingdom and was
found in the year around 1949. Present report will include the concept of innovation and how it is
different from one invention which means differentiation will be done between innovation and
invention. Other than this, various kinds of innovation is mentioned in this assignment. Along
with this, process which is required for commercialise innovation is included which means steps
for new product development, business innovation case. Lastly, various range and methods
through which ideas and other components can be protected so that advantage can be sustain by
the company is mentioned in this assignment.
TASK 1
P1 Innovation and determine its importance to organisations in comparison with invention
Overview of the organisation- ASDA Stores Ltd is a British supermarket retailer which was
founded in 1949 by Peter and Fred Asquith, Sir Noel Stockdale. This company offers grocery
products like fresh and chilled, food cupboards, frozen food, drinks, health and beauty product,
news and entertainments and other goods and services. In 1963, the first store of this
organisation opened in the old indoor market at Edlington, near Doncaster. But currently the
company operate its business worldwide and have total of 631 ASDA retail units in the UK in
339 of ASDA superstores. This organisation also provides a number of other services including
financial services and a mobile phone provider also that uses the existing EE networks. Currently
there are 165,000 employees are working under it and the revenue of the firm is £21,666 million
and the operating income is £791.7 million (Overview of Asda Stores Limited, 2019).
In simple terms, innovation refers to as implementation of ideas in order to develop a
whole new product or making modifications in existing commodity. Innovation can be further
classified into two categories i.e. evolutionary: this is continuous such as advancement in
technology and revolutionary: these are basically disruptive and new (Boons and Lüdeke-
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Freund, 2013). Therefore, in relation with business sector, innovation is done so as to fulfil the
needs and requirements of customers by providing goods and services accordingly. In context
with ASDA, they are one of the leading supermarket in United Kingdom. Main products which
they are serving is grocery items, general merchandise and financial services. Moreover, in order
to provide effective services company is planning to implement innovation in their business such
as in-store and outdoor drone delivery this will reduce the time which use to be taken while
delivering process. This will provide security to warehouses against getting theft.
Importance of Innovation
Innovation always plays a crucial role for enhancing performance level of an organisation
because it provides firm with a wider perspective of giving services and facilities to its customers
(Brynjolfsson and McAfee, 2012). In this context, ASDA in its business is thinking of providing
in-door and out-door drone services. As a result, it will ease the process of delivery system and
reduce the flaws of delivering product to different person other than one who is specified. A
computerized chip will systematically scan the details of the product and the purchaser so that it
could be delivered right on time. This will not reduce the time taken in delivering process.
Further some of the importance of innovation are mentioned below through which ASDA can be
benefited:
Competitive advantage: Innovative ideas always provides competitive advantage to the
organisation who has implemented the same. The process of introducing the in-door and out-
door drone delivery came into the minds of managers of ASDA considering delay in delivery
process because of road congestion. Therefore, the entire procedure is enabling company in
providing effective services to its customers.
Meeting Customers needs: For a company, customers are their valuable assets because
they are the one who purchase goods and commodities according to the needs and wants (Cross,
2011). By fulfilling all the requirements of consumers firm can easily increase its profitability in
a speculated period of time. Thus, ASDA in its store has kept all the necessary items that are
needed by the customers. For example: consumers by ordering their products online they can
easily get the stuffs at home in quick time.
Invention: Invention is a unique process that can provide a radical breakthrough. Before
getting success in invention a person has to go through many losses. Thus, while doing invention
specification in a particular field is required.
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