Importance of Innovation for Organizations

This document discusses the importance of innovation for organizations and compares it to invention. It explores the role of vision, leadership, culture, and teamwork in shaping innovation and commercialism. The document also explains the 4P's of innovation and the use of the innovation funnel. It introduces the concept of frugal innovation and its benefits. Additionally, it discusses the process of commercialization and provides insights on building an innovation business case, including ways to access funding.

UNIT 8
INNOVATION

INTRODUCTION
Innovation is defined as upliftment of recent activities of production process in order to
maintain and improve present quality of products and services for attaining greater competitive
advantages (Drucker, 2014). Innovation is a effective procedure that determine additional
benefits in already launched products by taking help of latest tools and technologies in
production function. Main reason of innovation process is enhancement in quality of product and
services. Incite Marketing Partnership is a firm which provides solutions to business problems
related to strategies. There are around 160 employees in this venture. Headquarter of this
association is situated in UK and managing director of firm is Matthew Froggatt. This
assignment is also based upon innovation funnel and this is used in development of new products
as well as in hitting targets of venture.
TASK 1
P1 Innovation and its importance for organisation in comparison with invention
Innovation is a procedure of putting additional value in survival product. Incite
Marketing Partnership is a firm which makes tactic building corporation and should aware about
latest techniques and tools so that all info to client companies should be spread in order to
provide solutions to customer organisations so customer firm could execute strategies with most
effective tools and technologies. Innovation should compulsorily be applied in business
operations to create creative products for enhancing more advantageous goods as well as services
to serve clients at marketplace (Bloom, Draca and Van Reenen, 2016). There are some needs of
innovation which are elaborated as beneath:
 Managers of Incite Marketing Planning co. use innovation in providing guidance to their
team members so that all workers could hit their targets in shortest period of time.
 Creativity is a good option to adopt for fascinating larger number of people towards
company.
 Innovation is helpful in providing greater returns.
 Creativity aids in securing broader market share than rivals.
There are some distinctions between innovation and invention which is stated below:
Innovation Invention
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It is an up-gradation in current working style
so as to make products and service's quality
more good.
This is a brand-new introduction of technology
or method which has never been launched in
industry.
A products is developed by taking assistance of
effective strategy so latest tools and
technologies should be upgraded for creation
of unmatched products.
When an association is able in creating new
things which is not only useful for company
but also fruitful for consumers is defined as
invention.
Apart from this, Incite Marketing Planning must develop antique services so that their
business clients could get higher advantages. Competitors are a factor which is rapidly increasing
in market and best way to competing with rivals, innovation is a good option. Reason of using
modifications is to become more competent in marketplace so that larger market space could be
captured. It is concluded as innovation is more fruitful then invention because it uses less time,
cost and innovation process is less complex then invention. Goodwill can be enhanced by
applying innovation in current working procedure. For instance, Incite Marketing Planning is
working on traditional way then they can use latest tools in analysing situations more finely. This
activity is helpful in enhancing working style of association along with services delivery of
corporation (Díaz-García, González-Moreno and Sáez-Martínez, 2015).
P2 Vision, leadership, culture and teamwork can shape innovation and commercialism
For getting remarkable marketing position in industry, it is required from association that
it should set a vision and divide it into missions and these small objectives should be assigned to
all workers according to their capabilities along with time duration. This type of action is helpful
for Incite Marketing Planning company in attaining all targets in allotted time with maximised
efficiencies. Efficiency could be measured when short objectives are set because examination of
these goals will take less time and worker himself can check his abilities at each stage of his
working.
Vision: It is a major goal of company which management wants to attain in a set longer
duration of time. Vision is a goal that motivates association to do more with hard work so that
best services should be delivered in most profitable manner. To attain vision, skilled labour
should be hired so that all business operations could be done with highest efficiency. This point
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is objective which enables a worker's working in organisation (Anderson, Potočnik and Zhou,
2014).
Leadership: All targets should be achieved in most significant manner and it is a
responsibility of manager that managerial personnel should complete all task by taking assistance
of his teammates. A leader is a person who always work in group and motivates his team to work
in most advantageous manner so that association could accomplish all goal. A managers should
always possess leadership qualities for ensuring profit in industry by competing with rivals.
Culture: A hard working culture should be developed so that all work should get done in
fine way. All employees must have some specialisation that is necessary for conducting business
operations and grabbing all market opportunities along with competitive marketplace.
Environment of personality development helps employee in becoming up to date with time by
making comfortable them with change that are occurring in technologies so that efficiency could
be maintained (Anderson, Potočnik and Zhou, 2014).
M1
Creative thinking helps a manager in manufacturing good quality products and services
by adding some additional features in items and facilities. There are many resources available
that brings innovation like structure of company, market need, changes in perception of
consumers, process needs etc. Main reason of putting extra efforts in current products is to
maintain and enhance extraordinary quality of products and services. Innovation are introduced
in marketplace for attending specific need of customers in marketplace. Creative thinking is a
better alternate to grab attention of many people who are ready to buy service of association.
Incite Marketing Planning is a small business organisation which provides strategical solutions to
client companies by taking aid of distinctive tools and technologies.
D1
Incite Marketing planning company is a small organisation and having limited resources
like financial sources that is why it is difficult for them to tag funds in those activities which
need high amount of money. Monitoring of innovation procedure is not a simple task because it
itself requires various kind of tools and technologies. This assessment is fruitful in testing rate of
profits whether they are in required number or more or less. In context of this, Incite Marketing
Planning is a firm which is having talented pool of employees whom are efficient in working
even in critical situations (Bloom, Draca and Van Reenen, 2016).
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TASK 2
P3 Explain 4P's of innovation and use of funnel innovation
Innovation is determined as putting extra efforts to add on additional benefits in current
products and services in order to make and maintain uniqueness of items and facilities. Other
than this stated purpose, another aim of launching innovation is alteration in current working
procedure so that all business operations should be updated according to time. For grabbing
competitive advantages in marketplace, it is functionality of corporation that they produce and
deliver their services in most creative way so that nobody could imitate the. There are 4P's of
innovation which is described below:
Product: When innovation is launched for adding some extra features in order to
enhance core value of item so that all customers could get maximum satisfaction and should
ensure their retention within company. In today's era, it is required from Incite Marketing
Planning company that they ensure hikes in their service qualities by introducing innovation.
Paradigm: It means innovation is launched in manufacturing process for improving
procedures of producing a product not to produce novel features but to maintain current
uniqueness of items and services. When discussion is on services than it is hard to copy its
peerlessness and this type of activity is helpful in developing current working pattern of
association (Díaz-García, González-Moreno and Sáez-Martínez, 2015).
Process: It is defined as innovation is not launched manufacturing processes but also
procedure of modification is introduced in whole management functions in order to upgrade
working pattern of organisation for getting higher satisfaction of clients. This type of innovation
is been seen in research methods which is launched in investigation of taste and preferences of
consumers.
Position: Innovation is a publicity tool to make popular current working pattern and to
get know new ideas of popularising business activities of firm. How venture would be placed in
market is a question and position innovations is an answer of this.
Innovation Funnel: This is a tool which is used in reducing complications of installation
of innovation process. When procedure is easy then manager of association can convince his
workforce to adopt latest tool for enhancing quality of products and services so that servings of
company could get increased quality wise. This point comprises several steps and foremost stage
is collection of information that which point can be diminish which would not effect innovation's
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efficiency very much and other step is analysing feasibility of info to apply these know-how in
present working pattern. CEO of Incite Marketing Partnership should hire those personnels who
are having specialised skills for attending innovation function more adequately (Freeman, 2013).
Major reason of utilising innovation tool by Incite Marketing Partnership firm is to meet
all market demands in most satisfactory way. Innovation funnel is a best technique which makes
small sized corporation more competitive and enables moderate organisations that venture could
get rival's benefit and should secure a prominent marketplace. Major reason of applying
innovation funnel is that small size companies are not having proper resources like finance,
manpower etc. that is why these firms could not invent novel products and services (Edquist,
2013).
P4 Development of Frugal innovation
Frugal innovation is determined as it is a procedure of diminishing unwanted as well as
irrelevant factors like placental from products and services to make items more capable in getting
higher satisfaction in marketplace. This actions aids reductions in unnecessary cost and by
default profit gets increases in same price of goods and services.
As per this model, it is quite clear that all ventures have problem of lack of resources and
managers have to utilise them in optimised manner. This type of tool is helpful in utilising all
resources in adequate manner so that company could get higher economic returns with broader
market portion in industry. This action aids management of Incite Marketing Partnership firm in
hitting entire targets in most significant way while grabbing attention of many people,
simultaneously.
It is advised to organisation that they should launch frugal innovation for utilising all
resources in most economic manner. In order to make implementation of this idea in the real
working of the organisation, it is important to provide workers with relaxation which had worked
for the completion of business operations in profitable way. The following type of task helps the
company to get trustworthy workforce along with dedication from staff member's side. There are
few steps which necessarily be followed by management of Incite Marketing Partnership
company.
1. Identifying ideas and paths of executing it in working.
2. Calculation of cost that would be occur while implementing idea.
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3. All literature should be assessed properly so that corrective cations should be taken for
diminishing complications.
4. At last, produce world-class products and services (Goldberg, 2013).
Frugal innovation is used in subtracting complexities from present procedure of operating
business operations. This term is using by selected marketing firm and it has been analysed that
association is doing their task in adequate manner and this action is generating higher profit
which got hiked by around 25%.
M2
Frugal innovation is necessary in reducing irrelevant and unwanted factors and elements
from products and services and as result cost gets reduced and ultimately profits goes higher.
This term is utilitarian in attaining all targets in coveted time span. Major goal of this term is to
diminish complexities of product innovation procedure by evaluating each step (Huberman and
Miles, 2013).
M3
Major objective of Incite Marketing Partnership firm is to provide most feasible solutions
of their client's business problem and to hit this goal association firm attends all customers in
most appropriate manner. Effectual completion of task and activities depend upon use of
effective methods and tools. This type of Woking increases goodwill of firm in market.
TASK 3
P5
The use of various types of tools and technologies is done which is helpful for creating of
high choice goods and services in order to match all demands of all present and future consumers
in marketplace. It is the duty of manager that he should eliminate all sort of issues from
workplace otherwise problems hamper performance of employees as well as associations and
reduces quality of products and services. Commercialisation must be applied in all kind of
companies so that selling of adequate number of goods and services could get enhanced.
Commercial funnel is useful in bringing domestic products into international marketplace
to grab all opportunities that are present. Mostly, this term is used to attract higher number of
customers towards association. Commercial funnel is useful in getting more financial earning
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from presented opportunities by making products globalise. There are certain phased which are
involved in new product development and discussed:
1. Idea Generation: It is a thought that is related with that product which is never been
launched market.
2. Idea Screening: This section is about examining feasibility of generated idea.
3. Testing Concept: In this segment, management checks demand associated with newly
developed idea whether it is saleable or not and if answer is yes then idea would be
converted into reality (Wolin, 2016).
4. Analyse Product & Service: In this phase, company assesses future development and
success of product so that launch of product could be fruitful.
5. Commercialisation: If company is growing very fast then it can think about development
of new idea into final product.
6. Product Launch: In this phase, association launches the item in marketplace for real
profit and business expansion.
P6 Building of innovation business case including ways to access funding
Business case : It is a complete and well-structured written business file that facilitate
details for introducing a venture or task. It gives the explanation for originating a planned project
by examining the commercial benefits related to the project. Incite Marketing Partnership can
exercise a business paper to approximate the costs associated to evolving the project so that its
execution can be done by studying all the dangers along with expectation of commercial
assistances of the project. To launch new products in global marketplace, financial resources are
compulsory for continuation of entire working process. To accomplish this aim, main necessary
element is money and this should be allocated properly with activities. All business factors
should be analysed by association and apply them in operations. There are some steps which are
discussed further:
Executive summary : It is a short-term overview of the business plan that defines about
its business, target market, stages taken by it to resolve its problems including an overview of the
financial status of the company so that investors can be concerned towards their business.
Needs satisfied by the innovation: Incite Marketing Partnership firm is an interactive
agency solution that provides content and visual solutions to help the business for stand out,
develop and transform. Under this, company wants to launch an application which is able in
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attending and solving some important but short size problems and it can be operated from
anywhere.
Mission statement- The mission of Incite Marketing Partnership firm is to solve issues
and conduct business activities successfully.
Opportunities in the market: Increasing short size issues and demand of solution.
How will the product meet that need: Through launching the new and unique
application that is used to solve essential but small size problems and it satisfies the customers
needs in the market because it can be operated from anywhere.
Competitive advantage: As this kind of innovation facilitates competitive edge over the
new application developed as customers can be given with the appropriate solutions of small size
problems with easy to access and operated from anywhere.
Resources- In order to launch an application, company needs to arrange more resources
such as financial, technological and manpower.
Market analysis- It is necessary for firm to measure market in significant way to
determine competitors.
Size and growth possibilities: This innovation can increase Incite Marketing
Partnership’s market by 30% even as new application can be made available to customers. Also,
its sales will increase by 40%.
Target market : Population of UK belonging to all ages, gender, income groups etc. are
targeted by Incite Marketing Partnership.
Strategy : Economic pricing policy will be used by Incite Marketing Partnership.
Promotional strategy : Promotions will be done by marketing through TV, digital media
etc.
Cost and benefit analysis- It can be analysed after examining situation of marketplace.
Financial projection- It is a duty of managers that they provide adequate funds to their
staff so that financial resources could be tagged where it is needed most. This type of action
makes launch of new product more successful. In context to launch innovative application at
marketplace, there will be requirement of £50000. Different ways of funding mention below:
Financial institution- This is new way of the funding to launching application. Under
this, firm can take the loan from banks and need track record.
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Crowdfunding- In this, there are more groups which permit to pitch ideas to different
investors through internet. The many investors will be contributing the funds to idea.
Under this, Incite Marketing Partnership firm can use the financial institution to arrange
funds because it gives proper security about funding.
M4
Innovation is helpful in developing a systematic pattern of producing goods and services.
If managers want to assess benefits associated with steps of production function then this action
is done by taking help of latest innovative tools and technologies (Strayer, 2012).
D2
It is an important task of organisation that novel ideas and thoughts must bring in venture
in order to eliminate all barriers from the path of association's success.
Modification: It should be a regular process in firm and it is launched in corporation for
adding some extra features in current product and services. This action is done to grab
advantages which is generated by competition.
Conduct Improvement Programs: Training and Development sessions should be done
for making workforce able in accepting future challenges so that their performance could get
enhanced.
Change in Existing Policies: Managers Should make effective tactics to make business
activities smoother and easy and this action will ultimately bring attainment of targets in required
period (Ariga and et. al., 2013).
TASK 4
P7 Different tools that an organisation can use to develop, retain and protect intellectual property
Intellectual property: It refers to the exclusive and creative concepts that assists in
originating something entirely new which has never happened in the marketplace before. It is
crucial to safe guard the intellectual property by the company so that the thoughts, techniques or
procedures which helps it in manufacturing innovative products as well as services in the
marketplace can be threatened from their rivals. It is significant for Incite Marketing Partnership
firm to keep safe their knowledge as well as innovative ideas that are used in making an
application that is able in attending and solving important but short size problems. This avoids
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imitation of the concepts by rivals so that the uniqueness of idea remains undamaged with the
company. Several tools which can be utilised for this purpose are : Patents : It is a form of legal right that is granted to the company that has launched some
innovative and creative products or services in the competitive marketplace. It means that
the limited right of exercising the innovative concept remains with the original business
and cannot be copied by others or competitors. Patents are valid for a definite time period
as well as expires when the time period becomes over after that the patent requires to be
transformed. Advantage of using patent as a tool for protecting intellectual property is
that it can aid in defensive the innovative ideas of the company from being copied by
others. However, the disadvantage of this tool is that the charges of reintroducing the
patent right is expensive that maximise the cost of company.
 Trademarks : These are typical and identifiable designs, signs or strategies that assist in
separating the products or services of one company from the another companies. The
trademarks provide companies a unique character among all the products of different
companies. This also links with the brand value of the company. Advantage of using this
tool is that it distinguishes company’s products from their rivals. However, the
disadvantage is that high fees is to be remunerated by the company in every 10 years for
enduring the usage of that trademark.
Incite Marketing Partnership firm can practice patents as the tool in order to safe
guard their intellectual property so that the innovations carried by the company in it
making an application can be threatened from its rivals. This assists the company in
taking a competitive edge in the marketplace and also the vision as well as mission of the
company can be capably accomplished.
M5
To solve purpose of getting higher revenues, company conducts research programs by
taking help of professional personnel. Main motto of these investigations are recognition of taste
and references of consumers in order to produce required number of products along with
development of new idea for business expansion. As resultant, it is clear that this action is
helpful in securing improved profit in marketplace. Apart from this, there are so many tool and
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technologies which are helpful in attracting numerous number of consumers (West and Bogers,
2014).
CONCLUSION
This project is summarised as that innovation is a process of adding extra benefits with
existing products and services and innovation funnel is a process which is used for reducing
complexities of innovation procedure and frugal innovation is a tool which is helpful in
eliminating irrelevant factors from products and services. Commercialisation is a tool which is
complementary to innovation and useful in business expansion and new product development.
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