Innovation and Strategy Importance

The provided document is an analysis of innovation and its strategic significance in achieving business success. It delves into various books, journals, and online sources to understand the intricacies of innovation and its impact on organizations. The content discusses how innovation can lead to new product development, improvement of existing products and services, and creation of individual value. It also touches upon the importance of intellectual property tools such as trademarks, patents, and copyrights in protecting innovative ideas. Furthermore, it emphasizes the significance of open innovation, where companies collaborate with external parties to accelerate innovation. The assignment highlights various research studies and papers that demonstrate the positive impact of innovation on business performance and suggests strategies for organizations to foster innovation and achieve success.

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explain innovation its importance along with comparison with invention.......................1
P2 Role of organisation vision, leadership, culture and teamwork in shaping innovation and
commercialisation...................................................................................................................2
LO 2.................................................................................................................................................3
P3 4P's of innovation and use of innovation funnel...............................................................3
P4 Developments of frugal innovation and its use in organisational context........................5
LO 3.................................................................................................................................................6
P5 Importance of commercial funnel and application of new product development.............6
LO 4.................................................................................................................................................8
P6 Innovation business case along with ways to access funding...........................................8
P7 Evaluation of different tools which assist in developing, retaining and protecting
knowledge and intellectual property......................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is referred to an approach of changing process and activities so that better
results could be availed. In business organisations, it aims to implement creative ideas and
strategies which leads to creation of dynamic products and along-with improving existing
product line up of an enterprise. Thought this approach an enterprise will be able to attain a
growth in the market and also assist in adapting to changing circumstances of operating
environment (Adner and Kapoor, 2010). This assignment takes into consideration the working of
Hakim Group. This small organisation was formed in the year 2001 and caters specialised focus
in the optical industry. This report will focus on the importance of innovation and manner in
which it differentiates from invention. The various types and methods which relates to
innovation will be discussed briefly in this report.
LO 1
P1 Explain innovation its importance along with comparison with invention
Innovation approach of an organisation helps in identifying opportunities of the market
and acting upon the same so that sustainability in operations could be developed. It is referred to
only measure to survival in this current uncertain and volatile market(Why are innovation and
strategy most important factors of success, 2015). It is essential to develop a culture of
innovation within organisation so that creative confidence amongst employees could be
developed. Innovation can be utilised as an strategy, systematic and technological measure which
can assist in achieving pre-determined goals of an enterprise. The major benefits which could be
achieved through practising innovation are as follows:
Problem solving: An enterprise is encountered with numerous problems which are to be
resolved if a business wishes to retain its operations in the market. The practised planning and
convention problem solving problem will be insufficient and there will be an need for innovative
thinking so that problem could be resolved. It aims to perceive and resolve problems of business
in an unprecedented manner.
Adapting to market dynamics: It is known fact that market circumstances of a business
continuously fluctuates. Therefore, there is an healthy need for adoption of innovative strategies
so that staff could be engaged, empowered and an improved financial situation could be attained
by an business enterprise (Dahlander and Gann, 2010).
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Responding to consumer demands and expectations: Customers are the prime factor
which help a business in sustaining their operations in the market for longer period. Through
innovation a business can offer value to consumers and become more customer centric. This will
directly impact the experience they avail after using products and services of the company.
Effective competing: There are numerous organisation competing in the market offering
similar products and services. Such circumstances makes it extremely important to adopt to
creative manner through which products and services are perceived differently so that a superior
business position could be availed.
It is very important to different between innovation and invention so that major
differences could be identified.
Difference between innovation and invention
Innovation Invention
Innovation confines to making changes in
existing line-up of products and services so for
their improvement (Teece, 2010).
Invention is referred to creating a product or
services which fulfils demands of people in the
best possible manner.
There is a needs of ideal implementation of
ideas which are considered by the management
which are again combined with set of strategic
and marketing tools.
This is an scientific approach in which ideas
are discovered through R&D and final output
is formed. The ideas which has been formed is
not related to existing products and services.
This approach is mostly emphasized in small
enterprises as it is time and cost convenient.
Inventions is generally a costly process which
is mostly practised by mega corporations.
P2 Role of organisation vision, leadership, culture and teamwork in shaping innovation and
commercialisation
It is an undeniable fact that innovation is a major factors which helps a business
organisation in competing effectively in the market. It defines the level of success and failure
which has been attained by an organisation (Davila, Epstein and Shelton, 2012). Although there
are numerous factors involved which are helpful in forming and uplifting state of innovation in
an enterprise such as leadership, vision, culture and teamwork. A brief description of mentioned
factors in an organisation are as follows:
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Vision: Vision defines purpose of existence of an organisation. If the vision of an
enterprise encourages innovation and creativity than management of a company will definitely
make efforts to form a suitable organisational culture. The vision of Hakim Group opticians
promote innovation in its vision so that competitive edge could be retained and employees are
persuaded to put forward ideas leading to betterment of business.
Leadership: Leaders are known to be most important part of an organisation as they set
the course of innovation which are to followed by the employee. The leadership approaches such
as long term vision and trust building helps in shaping innovation in context of a business
enterprise (Yin, Shi and Yan, 2014). The modus operandi of a business is challenged so that
more efficient and creative means of carrying out a task are discovered. The chief executive
officer for Hakim Group, Imran Hakim known to be a catalyst for innovative measures which are
undertaken by the company.
Culture: Culture are effect of shared behaviour and attitude which are practised within an
organisation. The leaders with business assist in forming a climate which leads to cultivation of
innovation in an enterprise. The elements of building collaboration, motivation and speedy
behaviour tend to shape innovation in an organisation. The employees when provided with right
climate tend to be shape innovation which leads business to greater heights.
Teamwork: it is stated to be an measure in which distinct members of an enterprise
collaborate their efforts and create synergy. The various elements which are inculcated in team-
working are communication, coordination, mutual support and cohesion. It can be said that
effective teams carries a capacity to innovate and ends up forming a competitive edge for the
organisation (Drucker, 2014). The distinct opinions and experience turn into strengths of an
enterprise and accountability of firms leading to forming of ideas which assure modification of
existing products and services of an organisation.
LO 2
P3 4P's of innovation and use of innovation funnel
Innovation is defined to be development which leads to building something new so that
needs and expectations of consumers would be fulfilled. The problems which are persistent by
consumers are resolved through modified products and services. The major categorisation of
innovation approach are carried out on grounds of Incremental and radical innovation.
Incremental innovation practices small positive changes in the working which leads to major
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modification in the long run. Radical innovation is an disruptive approach which tends to shale
circumstances of market and redefines that in its own manner. The innovation mix consist of 4
elements such as Product, price, place and promotion. These are grounds on which a business
can innovate their products and services so that growth of an enterprise could be entertained. The
brief description of elements are as follows:
Product: This is referred to most preferred approach when looking to innovate products
and services. The offerings of an enterprise are improved so that needs of consumers are fulfilled
in an improved manner. Hakim group operations in the optical industry and emphasises on
providing customised services to visitors in an qualitative manner. It is an incremental innovation
approach as it adds a marginal positive change in offerings.
Process: It takes under consideration approach through which products and services are
being offered to consumers. When related to undertaken enterprise, it revolves around opting for
technologies which assure that quality services are being delivered to consumers. The equipment
and operational efficient is emphasized upon so that better results could be improved.
Position: This element of innovation mix aims to identify target segment and manner in
which products and services are perceived. Hakim group is already known to be innovating
brand and emphasis on bring small positive frequent changes so that altering needs of people
could be fulfilled. Through positioning approach untapped segment of market could be
considered and capitalised upon (Gassmann, Enkel and Chesbrough, 2010).
Paradigm: This is most radical form of innovation under which efforts are made to alter
dominant paradigm persistent in the market. The mental models of innovation are worked upon
so that they are perceived favourable in the market. It defines what a business does and manner
in which its functions are carried out. Example: Bausch and Lomb is an major player in the
optical industry have redefined their paradigm from 'eye wear' to 'eye care'.
Concept of Innovation funnel
An Innovation funnel defines the journey beginning from an idea to development of
concerned product or service. The innovation funnel acts as a refinery which assures that ideas
which are not viable are eliminated and best ones are retained till the end. The concept of
innovation funnel is generally categorised on to three levels which are mentioned below:
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The first level focuses on wide mouth on the funnel which aims to collect ideas from
employees. Higher number of ideas enhances chances of a business developing products and
services.
(Source: Innovation funnel, 2018)
The second level starts where funnel began to narrow down which means that ideas
critically examined on the basis of risk and returns so that decision could be formed. The final
stage focuses on ideas which are selected on the end of the funnel. Prior to selection of ideas
developed products and services are rendered to market.
P4 Developments of frugal innovation and its use in organisational context
It can be said that there is an enlargement of middle class people along with rise in
economic prosperity in the country. Therefore it is extremely important to produce products and
services which are customised for the mass market. This lead to development of frugal
innovation which lead to development of various issues and challenges which are encountered by
engineers. The concept of frugal innovation is relatively newer in the market and have gained
immense importance in the recent market. It is defined to be an approach in which functions and
characteristics are minimal to their bare essential feature so that these are presented to the middle
class segment (Hall and Lerner, 2010). The major characteristics which are considered in this
approach is Price and are make sure to attain external cost advantage. Frugal products are known
to be appropriate, affordable, adaptable and accessible and are often characterised by their
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Illustration 1: Innovation funnel

sustainability features. There was a desperate needs to develop frugal products as existing
products have emerged to be more complicated, aggressive and most importantly expensive.
The concept of frugal development began with the conducting a market analysis which
leads to identifying demands and expectations of consumer. The market analysis identifies prices
which is to be paid by consumer for fulfilling focused need. For instance: Hakim group is known
to offer quality services through experienced individual looking to cater their services in
optometry domain. The optometry practitioners generally charge higher therefore passing
through affordability of mass market.
The another approach which takes into consideration frugal innovation is that product
design is considered. The research and development conforming to market requirement create a
distinct product which can be enjoyed by masses (Hjalager, 2010). The configuration of the
supply chain can further assist in development of providing frugal value. It is essential to think of
frugal innovation as a major opportunity to business rather than perceiving it as a constraint. It
can be said to an approach which is very different from the existing market driven innovation.
The masses in developed economies are exposed to constraint in terms of resources and
enterprises which have been successful in catering the same leads to success. It has become
supreme to bring down cost of production which is inverse to latest trend of innovation in the
market. The emphasis on strong engineering aspects leads to innovation which focus on cost
reduction rather than being market driven.
LO 3
P5 Importance of commercial funnel and application of new product development
It can be said that innovation without commercialisation stands for nothing. The
organisations carrying out their operations in the small and medium sector are known to innovate
during their tenure in the market. But the problem majorly lies in scaling them up and
popularising so that they could be capitalised upon. There are reasons for this situation such
primarily they are not aware about being patented and secondly SME's do not possess adequate
finance which helps them in reaping benefits of innovation. Hakim Group possess a network of
optician practices which could be further commercialised so that improved optometry services
are offered in an convenient and affordable manner.
Commercialisation is a process which leads to introduction of a new of relatively
modified product to the market (Huizingh, 2011). It also states manner in which product will be
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delivered to market and measurement of barrier so that they could be countered. The commercial
funnel stands crucial for a business organisation as it defines journey of a consumer beginning
from awareness to being retained with the organisation. It also assist a business in conducting an
analysis of business which leads to identification of areas which are to be improved. For instance
it could be identified that there is lower people turning up for optometry services which means
they are not being aware about the services in the ideal manner.
New product development is an sequential process which leads to delivering new product
to the market and for a small organisation it is a big risk as it leads to making or breaking a
business. The major steps of new product development are mentioned below:
Product idea brainstorming: The employees are persuaded to come up with ideas which
can assist a business into growing. Along-with it surveys are to be conducted so that new
innovative ideas could be formed.
Evaluation of ideas: The ideas which have been generated are classified upon basis on
their viability and benefits which could be availed by a firm. The potential ideas are to be
retained and rest eliminated.
Market Evaluation: it assists in identifying trends and preferences of target consumers so
that suitable products and services are offered (Leiponen and Helfat, 2010).
Analysis of competitive situation: This steps aims to determine demand of the problems
relating with various costs involved so that a broad view of the situation could be identified.
Development of product: Keeping in mind demands and expectations of consumers
product is to be developed so that an enterprise comes up with right product or service.
Commercialisation: This approach takes into consideration promotional and marketing
strategies which are undertaken by an enterprise so that reactions of consumer could be
identified.
Launching: The analysis determines quantity and quality of offerings of an enterprise
and produced and launched in the market with a suitable programme. Therefore it can be said
that Hakim Group also relies upon commercialisation process and introduces latest optometry
services keeping in mind requirements of consumers.
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LO 4
P6 Innovation business case along with ways to access funding
Hakim Group is a group of opticians who are known to deliver quality optometry services
to people in the country. The company have recently identified that there is an huge scope in
being an investment firm as it a win-win situation for both business owners and consumers.
There was an extreme need to deliver quality optics services to people in the country and present
generation is more prone to eye related infections and diseases due to heavy use of digital
platforms.
Executive Summary The undertaken organisation is known to provide quality optics
solution to people. This organisation is aiming to provide
innovative the manner in which optical glasses and lenses are
offered to people with the help of incorporation of new
technological tools and methodologies will definitely help in
provision of services in an improved manner fulfilling with the help
of addition funding which is availed.
Target Segment With this approach organisation is aiming to enhance the manner in
which optical glasses are perceived. The target segment for this
innovation are mass market however there is a reliance upon the
corporate sector as they are enforced to spend more hours staring
computer screen.
Solution The commodity is inclined to offer solution to problems which are
experienced by people who wear specs. The anti-glare and anti-fog
optical glasses which have been focused will make sure that they
perform in the crucial circumstances such as fog or excessive
sunlight.
Why approach is
innovative
This approach is innovative as there are no cuts or holes in the
lenses and there is an enhancement in the vision quality as well.
Customer Research Before implementation of ideas it is essential to conduct a market
analysis along with financial forecasting so that they could be
arranged (Manso, G., 2011). The customer have identified to be
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appreciating this innovation and are looking forward to avail
glasses that are anti-glare and not bothered by fog as well.
Ways to access funding
It is essential to have access to funding so that innovation could be commercialised and
significant financial benefits could be availed. Innovation involves research, planning and
marketing tactics which are to be fulfilled by an enterprise in most suitable manner. The major 3
approaches through which financial resources could be availed are:
 Capital venture is used by the organisation who start up their business with a potential
growth require some amount for investing within their firms. Wealthy investor mostly
prefer to invest capital in such enterprise for a long term growth perspective. Accel
partners are investing multi stage in internet technology firms.
 Family, friends provide loans for starting their own business. While borrowing from
friends is a easy alternative to deal with bankers because dealing in a professional way
they have to follow all rules.
 Loans from banks give medium and long term finance. They set a fixed time which loan
is given, timing, rate of interest and repayment amount. Banks doesn't provide loans
easily to small organisation because of not having credibility. HSBC provide loans to
small organisations.
P7 Evaluation of different tools which assist in developing, retaining and protecting knowledge
and intellectual property
Intellectual property is referred to an creation of a mind which carries its value in the
moral and commercial domain. The government have formed legislation related to awarding and
protection rights to use that property according to his wishes. Through protecting their creations
a creator can exercise his rights over the property and can gain financial benefits from his
creation. Small organisation such as Hakim Group opticians can make best use of their creativity
which is registered to uplift their stature in the current market. There are major tools which are
associated with protection and retention of intellectual property such as copyrights, trademarks,
design rights and patents. An overview of following tools is mentioned below:
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Patents: Patents provides an individual with rights to protect his intellectual property
against unauthorised usage. The individual can defend their rights over a property for an tenure
of 20 years. They are said to be one of the most crucial approach through which innvoation could
be encouraged (Melville, 2010).
Trademarks: Trademarks are referred to be an distinct sign, symbol and language which
can be employed by an organisation. It is a major feature which distinguishes product of a brand
to another. These valuable assets can be protected for over a period of 20 years however there is
an annual fees which is to be paid to government.
Copyrights: These are referred to creations which are formed with human mind and their
protection. The original piece of work is protected against its use without taking permission from
the creator. They are aimed to enhance creativity of an individual and financial benefits which
could be availed through it.
The branding plays a crucial role in protection of an creation carried out in form of
innovation. The use of IP will assure that there is lesser risk involved in misusing of product and
can avail financial returns (Sartori, Favretto and Ceschi, 2013). It assist in leading an innovative
product to the market and reap financial benefits from the same. It can be said that there are
certain limitation to IP as they are territorial, it is essential to take into consideration the regional
aspect before going international. The another limitation is that the power is granted to a single
person who can exercise the same in an monopolistic manner.
CONCLUSION
It can be concluded from the above report that innovation is a paramount feature in small
organisations. It provides them with opportunity to serve needs and desires of consumers in an
improved manner. Innovation is different from inventions and comparatively cheaper as it
involves modification of existing products and services. Keeping with the market based
innovation it is essential to focus on costs and accessibility feature so that mass market is able to
avail it in the best manner. The creation of an individual can be retained and protected with the
help of intellectual properly tools such as trademarks, patents and copyrights.
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REFERENCES
Books and Journal
Adner, R. and Kapoor, R., 2010. Value creation in innovation ecosystems: How the structure of
technological interdependence affects firm performance in new technology
generations.Strategic management journal.31(3). pp.306-333.
Dahlander, L. and Gann, D.M., 2010. How open is innovation?.Research policy.39(6). pp.699-
709.
Davila, T., Epstein, M. and Shelton, R., 2012.Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation.R&d
Management.40(3). pp.213-221.
Hall, B.H. and Lerner, J., 2010. The financing of R&D and innovation.Handbook of the
Economics of Innovation.1. pp.609-639.
Hjalager, A.M., 2010. A review of innovation research in tourism.Tourism management.31(1).
pp.1-12.
Huizingh, E.K., 2011. Open innovation: State of the art and future
perspectives.Technovation.31(1). pp.2-9.
Leiponen, A. and Helfat, C.E., 2010. Innovation objectives, knowledge sources, and the benefits
of breadth.Strategic Management Journal.31(2). pp.224-236.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Melville, N.P., 2010. Information systems innovation for environmental sustainability.MIS
quarterly.34(1). pp.1-21.
Sartori, R., Favretto, G. and Ceschi, A., 2013. The relationships between innovation and human
and psychological capital in organizations: a review. The Innovation Journal. 18(3). p.2.
Teece, D.J., 2010. Business models, business strategy and innovation.Long range planning.43(2).
pp.172-194.
Yin, W. J., Shi, T. and Yan, Y., 2014. Unusual defect physics in CH3NH3PbI3 perovskite solar
cell absorber. Applied Physics Letters. 104(6).p.063903.
Online
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