Innovation Report

This report examines the concept of innovation and its importance to organizations, using ASDA as a case study. It explores the differences between innovation and invention, the role of organizational factors in shaping innovation, the 4Ps of innovation, the innovation funnel, frugal innovation, the commercial funnel, new product development, and strategies for protecting intellectual property.

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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There are lot many difference between innovation and invention therefore, some of them
are explained below for better understanding:
Basis of Differences
Meaning: Innovation is defines as an implementation of new ideas into a product or
process. Whereas, Invention is completely a different activity in which ideas are generated for a
product which has not been thought before.
Concept: Main concept of doing innovation is to adding value to the products which is in
existence. On the other hand in invention a whole new product is developed or created (De la
Mothe and Paquet, 2012).
Skills required: For innovation multiple skills such as knowledge related to marketing,
strategic and technical skills. Whereas, for making any kind of invention scientific skill is
required so that product can be developed in an effective manner.
Related With: Innovation includes combination of different products and procedure
whereas in invention, single work is performed at a time so that activities can be executed in a
better manner.
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
In a company there are certain factors that plays a crucial role in providing effective
returns and these are vision, leadership, culture and teamwork. All these factors are required so
that company can execute the activities in a better manner. As a result, these elements assist firm
in improving its performance (Gawer, 2011). For instance: a company requires a clear vision like
where they see themselves in next five years. This will aid them in implementing new innovation
in their business activities in order to sustain in the market for a longer period of time. Other than
this, culture also an important factor that is to be looked after by the managers because the
environment which is provided can put a positive as well as negative impact on business
activities. As a result, it will assist firm in delivering effective services to its customers right on
time. Apart from this, leadership and teamwork both are important component as it can influence
the behaviour of employees who are working within the organisation (Gennaioli, Shleifer and
Vishny, 2012). For example: effective leadership quality can boost the morale of workers while
performing any kind of task. Therefore, in relation with ASDA all these elements are important
so to understand the same in an effective manner it has been explained below in detailed manner:
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Vision: This can be linked with the future objectives of a company, thus, with the help of
managers firm set vision like where they can see themselves in next 5 – 6 years. For instance:
ASDA's, vision is to become one of the leading companies in United Kingdom and improving
their brand image. Therefore, with the effective delivery system company will be able to attract a
large number of customers towards their firm.
Culture: In context with business organisation it is also one of the important aspect
because for getting effective result it is crucial that managers maintain an effective culture where
employees can perform their task easily. Therefore, in terms of manager of ASDA, they are
trying to improve or remove all the cultural differences between workers. Other than this,
superiors should provide values, norms and beliefs which can further assist the firm in
establishing ethical work environment (Gunday and et. al., 2011). For instance: effective
communication system, with the help of this superiors are easily interact with their subordinates
and convey their message effectively. Therefore, if a company has a culture of involving its team
members in their various activities than it will not only improve the performance of an individual
but ultimately of the organisation as well.
Leadership: Leaders plays an important role in guiding and motivating its employees so
that they can perform their activities in such a manner that all set goals and targets are achieved
in speculated time frame. Thus, in relation with ASDA, their leaders are using effective
leadership styles according to different circumstances. Although company majorly use
democratic leadership style but when there is a need of increase in sales than they use autocratic
leadership style. Therefore, it can be said that with the help of effective leadership quality
company can implement innovation in an organisation. With the help of this, an individual will
be able to express their views and thought related to the business operations. As a result, workers
will try to provide more creative thoughts in order give better outcomes which can provide
benefits to the organisation. In some situations, the company and the employees face some issue
and problems related to guidances. For example, when the organisation make innovation in its
products and services, the leader of the company does not guide properly to the employees so the
organisation does not achieve its target in set period of time.
Teamwork: In order to achieve targets in a stipulated time frame it is crucial that
company builds an effective team who share the same thought and have mutual understanding.
This will enable company in delivering better services and facilities to its customers. For
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example: ASDA, has a different department of delivering system which will look after the entire
process of delivering goods and services right on time. Proper mutual understanding between
employees will ultimately assist team in working in collaboration for a common goal. This will
bring out lot many ideas which will be very effective for the organisation. In some conditions
and situations, the organisation and its employees do not work properly due to lack of
coordination and its affect the organisational growth.
Innovation, works as a crucial element for an organisation in order to provide benefits
and competitive advancement and meeting customer's needs and requirements. In relation with
invention, it is stated as, introducing new and innovative ideas so as to get radical breakthrough.
Both invention and innovation requires certain kinds of skills but are slightly different from one
another. In context with organisational point of view, it is required that a proper vision and
mission statement is developed and formulated. Such as ASDA wants to improve the market
share by 15 percent by the duration of 1 year. Along with this, if organisation have effective
leaders with leadership styles than attaining goals and objectives becomes more easier to
achieve.
TASK 2
P3 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
In a business organisation creativity is an important component because it improves the
chance of getting success at market area. Thus, it can be said that a creative idea can aid
company in getting maximum benefits from market area. The phenomenon of 4Ps comes under
this category. Therefore, it has been explained for better understanding:
Product: Although it is a new concept of implementing such system in delivering
process but company, by setting their own model they can improve the creative ability such as
in-built scanning system with the help of which address and information of the passenger can be
feed. Thus, there will be no requirement of feeding information manually. Therefore, it will
reduce time consumption of the entire process.
Person: In this the person is one who takes an initiative of developing a new and creative
idea and for this, managers analyse the market environment so that customers needs and
requirements can be identified. For instance: from quite long period of time, ASDA was facing
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problem related to delivery system. Thus, they have initiated an idea of delivering products
through drone system. This will save time and deliver the products to customers at door steps.
With this, innovative idea company can attract large number of customers as they don't have to
visit the stores and product will be delivered right at home.
Process: Developing and implementing innovation is a long process and it requires
adequate funds as well. Thus, implementing in-door and out-door drone delivery system will
provide ASDA with advantage. For instance: company is thinking of developing this products
therefore, it will required a quality workforce who are good in information technology and for
this it will be needed that company hire eligible candidates who are good in this job
(Kleinknecht, 2016). Furthermore, company will have to provide effective training to its
employees so as to make them eligible.
Press: This is also one of the crucial factor as it includes elements that are related to
environmental and climatic components that can puts an impact on business activities or
innovation. For suppose bad weather condition can hamper the activity of delivering products to
its respective customers.
Innovation Funnel:
Wide of mouth: This is the first step under which informations are gathered related to
innovation so as to increase the customer base. Here, ASDA will collection data from different
sources such as primary and secondary source. Therefore, it is required that company have set
objectives which can be achieved. In this stage there are many ideas that can be many ideas
which are generated and company has to select one out of them. For instance: managers of
ASDA might have many thoughts such as implementing new payment system, innovative
delivery system etc., Therefore, with the help of this step managers of the company will gather
different ideas so that best can be selected.
Narrowing segment of the mouth: In this all the ideas goes through a screening so that
best thought can be implemented for getting effective results and outcomes. Furthermore, in this
step ideas are tested on customers as well so that its outcomes can be understood (Lundvall and
et. al., 2011). By coming onto this stage superiors of the company try to refine their ideas so that
best can be selected. Thus, after having proper information, managers will refine from ample
number of ideas so that better results can be gained.
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Source: Innovation funnel,(2018).
Narrow segment of the funnel: This is the last step in which the funnel become even
more narrow as selected idea which is anticipated is further analysed before implementing in
business activities. Therefore, by this time effective idea is selected so that benefits can be
achieved. For example: in this final stage ASDA has chosen the idea of having a innovative
delivery system i.e. performing the activity of delivering with the help of drones. Thus, this is the
last stage in which company gets the idea of delivering items with the help of drone.
P4 Developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation is incorporated by most of the companies to lower down the cost of
manufacturing process even after maintaining the value of the commodity which can be further
given to customers. With the help of frugal innovation company tend to grab large number of
opportunities from market area. Therefore, in context with ASDA they are following principles
of frugal innovation and these are explained below for better understanding:
Find opportunity in adversity: In this, issues an problems are analysed so that
opportunities can be created. For example: ASDA, after identifying issues related to delivery
process company though of doing innovation i.e. in-door and out-door delivery system.
Do more with less: In this it is prime with information and collected data and
information tend to make out possible outcomes and results (Manso, 2011). For example: in
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Illustration: Innovation funnel

order to make drone system ASDA instead of using new tools for making a drone company can
use reusable items or they can use products that can be recycled for developing a structure.
Think and act flexible: While thinking and implementing ideas it is required that a
researcher is flexible in nature so that it any kind of changes is required than modifications can
be done. For example: ASDA, can first think of resources that are needed for developing a drone,
then evaluate whether firm have sufficient amount of money or not in order to do the same.
Keep it simple: Solutions for any problem should be simple and effective so that better
outcomes can be gained and availed. For example: solutions can be time and cost effective.
Although, developing a drone is quite a complex method but during the initial processing
company can keep it simple so that later handling and monitoring the same can be done easily.
Include the margin: This is kind of principle in which identifying problem is crucial but
at the same time employees must also included in the process so that better solutions can be
obtained. Therefore, it is an effective principle for gaining better outcomes. For example: there
might be a possibility that developing a drone requires ample amount of money so, it is prime
duty of manager that before start making a drone company should mention a margin so that
whatever changes are being done it may not exceed budget.
Follow your heart: This states that a person should be very passionate about the work
he/she is performing because it will give them effective results (Metcalfe and Miles, 2012).
TASK 3
P5 Importance of the commercial funnel and the application of New Product Development
Commercial Funnel is mostly used by an organisation in order to influence behaviour of
customers while making perception regarding product purchase (Process of New Product
Development, 2018). Commercial funnel helps in attracting new consumers, guide them and turn
them intro buyers of company. It is an systematic process which starts from attracting customers
through the process of marketing and advertising and offering them products in effective way
with the aim to make them, potential buyers of company. Therefore, to attract large consumer
base it is essential for companies to provide qualitative services and produce new and innovate
products and services to keep their customers happy and delighting. Commercial funnel is
structured in pyramid from which can provide great effectiveness to firms when are
implementing in upside down format. Thus, commercial funnel is determined as a process
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through which company tend to find out ways from which company can increase its profitability.
Application of new product development includes certain steps and all these are explained
below:
Process of new product development
Idea Generation: While developing a product there is a possibility that a numerous ideas
are come up into the mind. Thus, this action helps company in developing a whole new
commodity. In context with ASDA, as they have generated an idea of implementing new process
of delivering system.
Idea Screening: In this ideas which is formulated undergoes a screening like whether the
thought is effective or not (West and Bogers, 2014). On the basis this effective strategies and are
formulated so that employees can work effectively. In this company will choose one from
numerous ideas that was generated. For suppose: ALDI, chose to implement drone system for
delivering goods to its customers easily.
Concept development: Under this step, the idea which is generated is written into a
paper so that thought can be transformed into reality and it can be further delivered to customers
for obtaining competitive advantages. This is the step under which further concepts are being
polished so that it can be taken further to get a valid conclusion.
Development of strategies: This is the stage in which managers and superiors develop
effective strategies considering their innovation. A lot of planing and plotting is done so that best
services and facilities can be delivered to its customers. For example: ASDA is thinking of
making some kind of changes in delivery system this will made the same more easier and
effective in nature. For example: strategies are formulated in order to develop a drone such as
technologies required, resources needed etc.,
Examine business conditions: In order to remain in the market for a longer period of
time it is important that company have proper understanding of market area. For instance:
customers were facing delay in delivery system so to improve this company thought of
developing a system which can automatically deliver the products to its customers within quick
time (Ambec and et. al., 2013). Finance is the biggest factor that is responsible for executing
plans and actions in an effective manner. If company doesn't have sufficient money than it can
hamper business activities. Therefore, first ALDI must make sure that whether they have
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sufficient amount for implementing drone system within the organisation or not . Thus, as this is
a big organisation so they do not have such issues in doing the same.
Product development: In this stage product is developed and company tend to collect
resources that will be required for doing the same.
Marketing Test: Under this stage, idea which is developed will be first tested for
instance: ASDA will first check whether drone is capable of delivering goods and products to its
customers in an effective manner or not. Along with this, is success will also be evaluated
whether it is assisting company in gaining effective benefits or not.
Commercialisation: It is determined as the last stage in which company after testing the
product successfully commercialise the so that maximum number of people can be attracted.
With the help of this drone service one can easily gets it products late at night as well because it
will doesn't require many power (Battistella and Nonino, 2012).
P6 Innovation Business Case for an organisation, including ways to access funding
Each organisation implement innovation in their businesses so that they can gain benefits
from market environment. As ASDA, is a supermarket that works with the motive of providing
better services and facilities to its customers. Therefore, for effective processes a business case is
being developed which is stated below for better understanding:
Executive summary: ASDA is a British multinational company in United Kingdom and
provides grocery items and other related products to it customers. In relation with ASDA, new
delivering system through drone is the new product which will be incorporated by the company.
This will help them in delivering goods and products in quick time without any complications.
This will not only improves the performance of the company but also enable them in providing
better services and facilities to its customers. As a result, it will help them in sustaining the
loyalty of customers for a longer period of time.
Objectives: Prime motive of making such kind of innovation is to reduce the time taken
for delivering these kinds of products and goods. As a result, it will give company with the
opportunity of sustaining in the market for a longer period of time (Boudreau, Lacetera and
Lakhani, 2011). Therefore, the main objective of ASDA is to made the process and experience of
shopping more effective and appropriate. Thus, they are implementing innovative idea of door-
to-door services for its customers.
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Source: Technology Commercialisation
Why the product is important: This will change the entire process of delivery system as
customers need not have to wait for their product for a longer period of time. As this process was
developed in order to reduce the delay in delivery process because of congestion on roads. Thus,
it will enable company in delivering their items right on time.
Customer's Reach: Reason behind developing this service is to give effective facilities
to its customers. With the help of the application customers can track their drone in order to
know where their product is and by what time it will be delivered. In order to do the same,
customers will just have to download an application with the help of which they can track down
their items purchased. Thus, it will provide proper information related to the products. In order to
commercialise their innovative idea of delivering goods and services through drones, ASDA will
use different sources such as social media websites, newspapers, magazines. Other than this,
company is conducting campaigns in which firm will show demonstration of the delivery system.
Funding: It is a crucial factor that is to be considered because for executing any kind of
plans adequate funds are required. As ASDA, is one of the leading company so for them
arranging sufficient amount is not a big deal but for more funds they can take loans from
financial institutions such as bank (Breznitz and Murphree, 2011). Therefore, banks can be
considered as one of the easiest way of getting funds so that business operations can be executed.
Apart from this, company can move on to some investors for fulfilling the scarcity of funds and
money.
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Illustration 1: Technology Commercialisation

Expected Benefits: With the help of this, company can see an increase in sales and
probability as looking at this comfort customers will place their order in large number. Other
than this, it will help company in providing effective services and facilities to its customers
which will further assist firm in sustaining a better position at a market area.
TASK 4
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property
Intellectual properly, is determined as a right that is given to a person or an organisation
over the ideas and though which was to developed. There are certain rights that can be
undertaken by most of the firms. Therefore, some of the intellectual property rights are explained
below for better understanding.
ASDA is one of the leading company in United Kingdom and known for providing
effective services and facilities to its customers. They have a large number of market share and
with its services they are attracting large number of consumers.
Trademark: In the market environment many substitutes are available so, trademark
assist a firm in making themselves unique from others. For this, they use different kinds of
symbols, logos, images etc., therefore, it aid customers in easily identify goods and products
provided by the specific companies (Díaz-García, González-Moreno and Sáez-Martínez, 2015).
Thus, ASDA has its own trademark with the help of which customers can easily recognise the
brand and purchase goods according to the choices and preferences. This will ultimately increase
the sales and profitability in a speculated time frame.
Copyright: This assist company in safeguarding their ideas and products and it is
generally provided government of a nation. Thus, it gives right to company for sustaining their
authenticity but it has some limitations such as it allow firm in protecting idea instead of process.
Generally, it is given for the activities such as books, brand names, logos etc., Copyright can be
registered by an individual voluntarily if they want to protect their goods and products from
getting copied by other organisation.
Patent: This is provided by regulatory bodies for a limited period of time. As a result, it
protects product form getting copied. Thus, patent will assist ASDA in protecting its innovative
ideas from being copied by any other company. Therefore, it will ultimately increase the sales
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and profitability in a speculated time frame. Basically, patent of a product is given for a specific
time period that is of around 10 years.
Trade Secret: It is a process through which business information are kept secret so that
rival companies cannot take advantage from this. For example: ASDA can have a trade secret
related to computer algorithms, survey results, customer's list etc., Therefore, unlike other
intellectual property, this is also one of the crucial factor that must be considered by the
organisation in order to protect their data and information.
Design rights: This helps in protecting how a product looks like or its overall design,
thus, with the help of this company can keep its product different from one another in terms of
look, structure etc.,
CONCLUSION
From the above report it can be evaluated that, innovation plays a crucial role in
providing benefits to a company as it provides a wider area to firms for operating their business
activities. With the help of this report, difference between innovations and invention like former
is done for increasing value to the product whereas latter one is done for providing ease to the
community. Other than this, concept of commercial funnel is also included which is basically use
for enhancing the quality of products. Furthermore, for developing a products there is a
requirement of following certain steps like idea generation, idea screening etc., with the help of
this, company can capture bigger market area. funnel
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REFERENCES
Books and Journals
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