Innovation and Commercialization in Unicorn Grocery

This report explores the significance of innovation and commercialization in Unicorn Grocery, a co-operative grocery store in England. It discusses the definition of innovation and its importance compared to invention. It also examines how organizational vision, leadership, teamwork, and culture shape innovation and commercialization. The report explains the 4P's of innovation mix and the use of the innovation funnel. It also discusses the development of frugal innovation and the significance of the commercial funnel and new product development. Finally, it presents a business case for Unicorn Grocery and the tools for protecting intellectual property.

INNOVATION
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Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Define the term Innovation and its significance in comparison with invention..................................3
P2 How organizational vision, leadership, team work and culture can shape Innovation and
Commercialization..................................................................................................................................4
TASK 2.......................................................................................................................................................4
P3 Explain 4P’s of Innovation Mix and use of innovation of innovation funnel.....................................4
P4 State the development of frugal innovation........................................................................................5
TASK 3.......................................................................................................................................................5
P5 Significance of commercial funnel and application of new product development..............................5
P6 Business Case for Unicorn Grocery....................................................................................................6
TASK 4.......................................................................................................................................................7
P7 State different tools that help in retaining and protecting intellectual property...................................7
CONCLUSION..........................................................................................................................................7
REFERENCES................................................................................................................................................9
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INTRODUCTION
In context of business, Innovation refers to the process of making business workflows,
product, services or process more effective and efficient. It also means implementing new ideas,
creating dynamic product or services or improving the existing goods or services so as to attain
higher competitiveness level in the market place over other rivals (Baldwin and Von Hippel,
2011). It often act as a catalyst in terms of organizational success and growth and it also assist
business in growing and adapting as per the requirement of market in an effective manner. The
chosen organization for this report is Unicorn Grocery which is a co-operative grocery store in
England. It covers how innovation and commercialization assist the selected firm in gaining high
competitive advantage. It also encompasses innovation mix, application of new product
development, frugal innovation, business case, sources of funding and different tools that help in
protecting and retaining intellectual property rights.
TASK 1
P1 Define the term Innovation and its significance in comparison with invention
The term “Innovation” simply means converting a productive idea into effective goods or
services that leads to create value for target audience or which customer is willing to pay.
Basically it means coming up with creating ideas of doing similar things in unique or innovative
manner. The concept of innovation does not related with invention. Both are different and covers
various aspects that help firm in achieving business objective in a structured and thorough
manner. It can occur in the form of transforming business process and adaptable to
environmental changes so as to provide better product or services to customers that meet their
requirement in an effectual manner. In order to make it successful, every firm needs to consider
innovation as the part of their in-built strategy which often leads to generate culture of
innovation and promotes creative problem thinking and strategic thinking. According to Frank
and Wright “An organization who continually undergo innovation, develops more efficient and
effective work process and chances of attaining higher profitability increases rapidly”. In order to
beat prevailing market competition, it is essential for each firm to come up with unique or
creative ideas that keeps their products, processes or services fresh and distinctive.
Unicorn Grocery has decided to launch its online mobile application so that they can sell
their product through online medium as well. With this innovation, they became the first one
among other SMEs in UK to introduce its own online mobile application. The main reason
behind this innovation is to take the advantage of higher competitive edge in the overseas
market. As a result, their members have come up with an idea of launching online mobile
application that strong their both customer and market base (Boudreau and Lakhani, 2013). They
are also focusing on embedding sheer layout that makes easier for customers to find their product
as soon as possible. Following are some of the advantage of Innovation in terms of Unicorn
Grocery are mentioned below:
 With the help of Innovation, it become much easier for Unicorn Grocery to capture large
market share and gain high competitive edge in overseas market
 Assist in building brand image
 Generates higher profit and revenues
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 Though effective innovation, company can easily develop its unique selling proposition
for specific product, process or services
 Rapid increase in satisfaction level of customer.
 Enhanced overall performance and productivity (Drucker, 2014).
 Improved motivation, employee retention and sales generation.
Difference between innovation and invention
Innovation Invention
It deals with novelty and modernization It is mainly concerned with developing and
creating something exceptionally new
Innovation is a modern idea that can applied
to current or existing situation.
It can only be assessed or felt by potential
buyers
It is a consolidation of different product,
services or process.
It only deals with single product or process.
It requires technical and managerial skills It requires scientific skills
P2 How organizational vision, leadership, team work and culture can shape Innovation and
Commercialization
Vision: The vision statement of Unicorn Grocery is “to delivered high value product to
customers that satisfy and retain them for longer period of time". According to their vision
statement, it can clearly interpreted the main objective of company is to effectively satisfy
customer requirement and retain them for longer period. In today's era where nothing is constant,
needs and wants of customers are also changing that creates an urge for the company to fulfil
customer requirements accordingly. Employees of unicorn grocery have analyzed that nowadays
customer often buy product through online shopping websites which becomes the main reason
for company to launch its own mobile application.
Leadership: Earlier, the leadership style followed by Unicorn Grocery was mainly autocratic.
But now the company has decided to embed participative leadership style in their business
practices. The reason for choosing this particular style of leadership is that it help in making
stronger employee employer relation and by involving employees in decision making process
makes them feel important and valued. As a result, overall productivity and performance of
workers and company increases.
Culture and teamwork: The Company is mainly controlled, managed and run by its member
only which signifies that entire performance and functioning of business is depend upon their
members and their efforts towards it. The strength of employees is 70 and still the company is
managed to position themselves as "best independent retailer in UK". This is mainly possible
because of their supporting management and open and healthy working environment that allow
each and every employee to come and share their opinion (Goldberg, 2013).
TASK 2
P3 Explain 4P’s of Innovation Mix and use of innovation of innovation funnel
The concept of innovation mix was proposed by John Bessant and Joe Tidd. The
framework is often taken into account by organization so as to analyze innovation in product,
process, position and paradigm. Following are the brief description of all P's cover in innovation
mix:
Product: It refers to the change in product or services that has been made by company in order
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to meet customer requirement in an effective and efficient manner. For example: Unicorn
grocery can do innovation with their product line. They can stop selling organic drink, food and
vegetables. Product innovation basically means changing the existing features of the product or
adding extra elements as per the requirement of potential buyer (Huizingh, 2011).
Process: It defines the manner by which good and services are normally delivered among target
audience. Companies usually sell their through their physical outlet or stores. But now with
advance technology and strong competition, organizations have find out another way to sell their
product i.e. through online platform. According to statistics, almost 45% of consumers prefer to
purchase product or services through online website which creates an urge for Unicorn Grocery
to develop its own online mobile application so as to gain high competitive advantage of arrivals.
With the introduction of online application, the company become the first one among other
SME's to do such kind of innovation. Moreover it become much easier for customers to purchase
product buy just one click.
Position: It defines the way in which good or services are communicated among customers. In
other words, it describe the manner in which products are actually being perceived by potential
buyers. Earlier the company was selling their product through their outlets but now with
increased competition they have introduced its own online mobile application.
Paradigm: It defines the change in business model that gives shape business in terms of earning
higher profit and revenues. With the introduction of online mobile application, perception of
customer regarding the purchase of particular product changes tremendously.
Innovation funnel: It describe the series of steps that has been taking into account while
developing a process or a product. The main purpose of all innovation is to develop product or
processes that fulfill market needs in economic or manufacturable forms.
Use of innovation funnel: It is mainly used by businesses in order to evaluate their innovative
product and ideas. It also assist in effectively handling and controlling the process of new
product development. Nowadays it has become much easier for organization to assess diverse
marketing opportunities that prevails in the market for future or upcoming product or services. In
addition to that, it also assist in identifying what are the current needs an expectation of target
audience and how a company can fulfill it in a cost effective and efficient manner.
P4 State the development of frugal innovation
The concept of frugal innovation refers to the process by which organization tries to
eliminate or reduced the complexities related with cost of goods sold and production. Available
resources must be considered as an opportunity by Innovators instead of treating them as a
liability. However, it is not associated with the concept of selling classy product or services,
rather it deals with developing better quality solution for target audience that delivers high value
at economical cost (Jain and et. al., 2013). There are many companies exist in the market that
change their both business and mental model radically. Following are the stages of frugal
innovation:
Find opportunity in adversity: At this stage, employees reframe the existing or current problem
prevailing in the work environment. For example: In Unicorn grocery, members have effectively
convert the possible threat into opportunity so as to attain high competitiveness level in overseas
market. Their members knows how to take the right advantage of particular situation. They have
already analyzed that almost 45% of customers purchase product through online websites sites.
As a result, they came up with their own online mobile application and also become the first one
among other SMEs for introducing own mobile application.
Do more with less: At this stage, managers needs to first assess the available resources and tries
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to utilize it effectively and efficiently.
Think and act flexible: This stage defines that it is better to be improvisational instead of being
rigid.
Keep it simple: Any complexity or disruption may hamper the overall performance and
functioning of an organization which is not a good sign. Thus, it is family important for
companies to have fewer choices that are better and best rather than having several choices
(Jiménez-Jiménez and Sanz-Valle, 2011).
Included the margin: It is essential for every company to identify the actual needs and wants of
target customer so that company can fulfill them in an effective manner. They can start taking
feedback or suggestions from customers which help them in determining what are their current
likes and dislikes and what is their expectation from respective product or services.
TASK 3
P5 Significance of commercial funnel and application of new product development
Commercial funnel: It can be defined as a cost effective process by which companies tries to
identify various sources that help them in offering innovative product or services to target
customer in a structured and thorough manner. The role of employees or members is crucial as
they have to select appropriate channel of distribution that help them in generating higher profits
and revenue. In case of Unicorn Grocery, the company has decided to establish its own online
mobile application that makes easier for customer to buy their products by simply sitting at
home. They have to undergo the process of new product development as they are introducing
new innovative business process or product in the market that enable them to fulfill customer
needs and wants effectively. The process of new product development compromises of series of
steps which are discussed below:
Idea generation: This is the first and the foremost step where idea is actually generated or
originated. Idea can developed or come from anywhere. Everyday manager of Unicorn Grocery
deals with plethora of ideas.
Idea screening: Ideas are many but very few among them actually good and practically feasible.
Therefore the main responsibility of workers of Unicorn Grocery is to select those good and
feasible idea and neglect the remaining.
Concept testing and development: This is the third stage that mainly deals with testing and
development innovative product, process or services. It mainly outlines the entire innovative
idea. It generally taken into consideration those ideas that has been passed through the screening
stage and will now convert into concepts for testing purpose. Managers of referred firm select
some customer from the target group so that they can check or test their product on them.
Information is given to them that help them in visualizing the innovative product. In addition to
that, their feedback also play key role as it signifies whether innovation embedded by company
proves to be successful or not and it also determines whether the product has been like by
customer or not (Rosenbusch, Brinckmann and Bausch, 2011).
Market development and strategy: After attaining positive or satisfactory result of testing, if
manager is to frame effective business strategies that help them in gaining high competitive
advantage over other competitors. At this stage, profitability of innovative product is forecasted
along with marketing mix and branding strategies also.
Analysis of Business and financials: This is the stage where manager actually examine the sales
of innovative product in the market and compare it with its predefined sales objective.
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Commercialization: This is the last step in which organization finally introduce their innovative
product or services in the market.
P6 Business Case for Unicorn Grocery
Business Case are mainly used by companies so as to determine the risk associated with
investing in innovation. It ensure that company and its member must think practically and
logically regarding each and every aspect of innovation (Strayer, 2012). In the given report,
Unicorn Grocery has decided to launch its online mobile application in order to maximize their
overall profits and sales. It includes series of steps that are states below:
Executive summary: This is mainly the last page that outlines company overview and provide
snapshot of the entire business case.
The need: This is the first stage that mainly lead deals with identifying the need for innovation in
companies. Basically, it illustrate the reason for which company wants innovation or change in
their existing product or services. However, this can only be possible is company is aware about
prevailing issues or problems in the workplace. For example: Manager of Unicorn Grocery has
figured out that sales of their products are mainly falling because now a days people prefer to
buy through online website where they can see the detail or description of product as well. This
is the main reason why company wants to launch its own online mobile application.
Your solution: This stage defines that whether the solution framed by company is effective or
not. The manager of referred firm evaluated the reason for the declining of sales and thus
decided to introduce its own online mobile application that assist them in beating the competition
exist in the market place.
Why it is innovative: In order to attain high competitive advantage over rivalry firms, the
solution framed by company must be innovative i.e. it creates higher value for customers and
enable them to pay more for the particular innovative product.
Customer research: At this stage, company will conduct mini-research so as to determine the
current likes and dislikes of target audience. This can mainly be done through interview, focus
group, survey and questionnaire.
Investment Requirement: At this stage, company determines the various sources through which
they can get or arrange adequate funding for the innovation. Normally there are two sources of
funding, one is external and other is internal. Internal source of funding means fund are available
within the organization only in the form of retained earnings, profits etc. On the other hand,
external sources of funds are available outside the organization and it includes international
organization, banks, creditors, angel investors, individual donor etc.
Expected benefit: This stage interprets the benefit of innovation on society, customers and
environment (Wolin, 2016).
The Ask: This is the last stage that mainly deals with taking appropriate feedback from
customers after implementing innovation. It help in determining whether the innovation
undertaken by company comes out to be successful or not.
TASK 4
P7 State different tools that help in retaining and protecting intellectual property
Intellectual property rights are normally given to the owner or creator for their work so
that they can protect their invention or discoveries from others. It basically means giving
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exclusive rights to the owner or creator for their innovation work or idea. With the help of these
tool, creator can gain monetary benefit and recognition for their inventions. Following are the
various tool mainly used by owner in order to retain protect or secure their intellectual property
are as follows:
Patent: Such types of rights are mainly given to person for their invention. This tool allow
Patent holder to remove or eliminate others from making, selling and using their invention
without their knowledge.
Copyrights: This tool provides exclusive rights to the inventor or creator for their artistic,
literary, musical and dramatic work. With the help of this tool, create can exclusive rights
concerning modify, perform, copy, display or distribute their work (Wilson, 2014).
Trademark: It is in the form of word, symbol, design or phrase that help in distinguishing
particular product or services from that of competitor's product or services. The selected sign,
mark or word must be distinctive. Its main objective is to establish the brand image in the mind
of customer so that they can easily distinguish them from other competitors who are selling or
offering similar product or services in the market.
CONCLUSION
According to the above mentioned report, it can be concluded that innovation is the key
for organizational growth and success. In today’s competitive era, strong competition prevails in
the market place which enables businesses to distinguish themselves from rivals by keep
innovating or upgrading their product or services. There are various tools and strategies that have
been taken into consideration while embedding innovation within an organization. Intellectual
property tools have also been used in order to protect and retain them for longer period.
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REFERENCES
Books and Journal
Baldwin, C. and Von Hippel, E., 2011. Modeling a paradigm shift: From producer innovation to
user and open collaborative innovation. Organization Science. 22(6). pp.1399-1417.
Boudreau, K.J. and Lakhani, K.R., 2013. Using the crowd as an innovation partner. Harvard
business review. 91(4). pp.60-9.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Goldberg, D.E., 2013. The design of innovation: Lessons from and for competent genetic
algorithms (Vol. 7). Springer Science & Business Media.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Jain, A., and et. al., 2013. Commentary: The Materials Project: A materials genome approach to
accelerating materials innovation. Apl Materials. 1(1). p.011002.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Manyika, J., and et. al., 2011. Big data: The next frontier for innovation, competition, and
productivity.
Rosenbusch, N., Brinckmann, J. and Bausch, A., 2011. Is innovation always beneficial? A meta-
analysis of the relationship between innovation and performance in SMEs. Journal of business
Venturing. 26(4). pp.441-457.
Strayer, J.F., 2012. How learning in an inverted classroom influences cooperation, innovation
and task orientation. Learning environments research. 15(2). pp.171-193.
Wolin, S.S., 2016. Politics and vision: Continuity and innovation in Western political thought.
Princeton University Press.
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