Innovation Management: Strategies and Challenges

This assignment delves into the multifaceted realm of innovation management. It examines various strategies employed by organizations to foster innovation, including open innovation, frugal innovation, and the four Ps of innovation. The assignment also explores different models of new product development and analyzes the challenges associated with commercializing innovations effectively.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation vs Invention........................................................................................................1
P2.Organisational vision, leadership, culture and teamwork in innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................4
P3.4Ps of Innovation and the use of Innovation Funnel.............................................................4
P4.Frugal innovation...................................................................................................................5
TASK 3............................................................................................................................................6
P5.Importance of the commercial funnel and application of New Product Development(NPD)
.....................................................................................................................................................6
P6.Innovation Business Case......................................................................................................7
TASK 4............................................................................................................................................8
P7.Different tools that chosen organisation can use to retain and protect knowledge................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
“Creativity is thinking about new things. Innovation is doing new things.” Hence, in
context with business there are many new ideas which come up and some of which are
implemented. As it is known that APPLE is considered for innovation as it introduces many new
products into market. Likewise, it introduced IPOD in 2001 which brought a huge boom in the
technological world and due to this many other MP3 players came up. Sustainability in a market
is very crucial for every company to earn profit and revenue. Simultaneously, VIRGIN GROUP
is another leading organisation which have diversified operations. Money penny is a company
which is heading over its operations from UK as an SME which is ranked 4 for its business
development in telecommunication sector. This report consist of details regarding innovation and
commercialisation which Money Penny can adopt from APPLE and VIRGIN GROUP.
TASK 1
P1. Innovation vs Invention
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Source 1: Innovation vs Invention

Innovation is a process of developing a product in terms of modification, up gradation,
changes etc. Whereas invention is a process of developing a whole new product for an
organisation according to its functions (Anokhin, Wincent and Frishammar, 2011). Innovation do
not costs much to a company as compared to invention as it involves relatively less cost for
development of existing product as compare to creativity where a new product is made. Further,
innovation and invention can be compared as follows:
Basis Innovation Invention
Meaning Introduction of new product
service or process into market
place.
Creation of new product,
service or process.
Commercialisation It is for commercialisation. Might not be commercialised.
Motive Specifically for economic
purpose.
Can be for non economic or
economic function.
Change Brings changes in
organisation.
Relatively few changes are
introduced in company.
Processed Succeeds invention. Proceeds innovation.
Scope Spread across all over the
organisation.
Restricted to only E&D
department in a company.
Importance of innovation to employees in Money Penny:
 Enhances Growth
When there is development of new ideas company grow and develop on a rapid pace. As
it will help in building an environment in Money Penny where people will work for its
development and growth. Innovation enhances new ideas which leads to a path for improvisation
which automatically contributes to development.
 Individuals Development
As an employee of Money Penny an individual will automatically develop in terms of
knowledge and experience (Bagchi-Sen, 2010). This will help it to deal with various situations
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which might arise in their career. When an individual works in an arena where there is scope of
creativity automatically its mind opens and its personality develops.
 Coordination
Innovation is sharing of ideas and thoughts which brings an integration and harmony
among employees. This will lead to an environment in Money Penny where there is coordination
which will lead to accomplishment of goals on time.
 Creation of New Ideas
There is a generation of various new ideas when there is innovation. Money Penny with
help of this can create some new and interesting way of working for workforce participating in
which will be enjoyed by employees.
Apple and Virgin Group considers that their employees are assets for the company, for
workforce they contribute a lot from company's side (Davila, Epstein and Shelton, 2012). Hence,
they thinks that by innovation employees get a platform to learn something new which will lead
to development of them. Likewise, Money Penny as a SME can have in its premises for
development of innovation and commercialisation.
P2.Organisational vision, leadership, culture and teamwork in innovation and commercialisation
Money Penny is an SME which is dealing in telecommunication and every SME aims at
growing in market by its business so that it can become a large international company. Likewise,
every organisation aims at earning maximum profit and revenue which is done by formation of
plan on which it will work and its people will act. Hence, this plan consist of a vision, leadership,
culture, team which gives shape to generation of new ideas. A detail regarding this for Money
Penny telecommunications with a light to Apple and Virgin group is given below:
 Vision
In an organisation, vision relates to the ability of thinking about its future with regards to
imagination and wisdom. Its is very important while a company aims to achieve its goals and
objectives. Hence, Money Penny wants to be a globalised company in its near future by
providing quality services to its customers (Godin, 2012). This can be supported in company by
developing new ideas upon which workforce can act and goals are achieved. Automatically when
operations are developed than there will be enhancement in commercialisation of services of
Money Penny.
 Leadership
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It is a process in which there is a social influence on one person by another so as to
accomplish a given task. In other words, it is about creating a way for people to contribute for
making something extraordinary happen. Motivation and support to employees will lead to many
new and easy ways of performing activities in Money Penny which will help it to develop.
Likewise, there will be innovation and commercialisation of companies services in a more better
way when workforce is provided with guidance and support.
 Culture
Every organisation have a culture where it have an environment or a manner too behave.
Some of which are very formal and some are informal. This states the expression of ideas which
a person working over there have (Guha and Yang, 2010). In Money Penny it must have an
environment where there is a compulsory need for innovation which will lead to growth and
achievement of position which the company vis-ionise.
 Teamwork
A team develops ideas by sharing them to do a task which is automatically a result of
creating something new which could be very much beneficiary for Money Penny to lead to its
growth.
Hence, all the above factors are directly related to innovation and commercialisation in a
company like- Apple and Virgin and it is good for implementing in Money Penny.
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TASK 2
P3.4Ps of Innovation and the use of Innovation Funnel
4Ps of innovation consists of elements which are involved while processing it in an
organisation. Money Penny is a SME which is on its path to develop and create new ideas in
order to excel success which needs to implement innovation in its operations (Hemmelskamp,
Rennings and Leone, 2013). A description to innovation mix for Money Penny is given below
with consideration of Apple and Virgin Group:
 Product
This includes the offering of company which it makes to its customers. A change in its
products implies that product is innovated or developed. In innovation sometimes company
develop its product like- Apple launches series of IPHONE which is an innovation. Likewise
Money Penny can use it for development and creating its services more attractive than others.
 Process
5
Source 2: Four Ps of innovation 2016

When a company changes or modifies the way it do its work than it is considered as a
change in its process. Operations are sometimes changed by adoption of new technology which
is a kind of innovation in company (INNOVATION AND 4Ps OF INNOVATION. 2016). Like-
Virgin group is having airlines department which works completely on technology hence,
process keeps on developing. Similarly, this can be adopted by Money Penny in its process of
telecommunications.
 Paradigm
This is switching to a new business or shifting to a new diversification with relation to
current business of company. Apple have innovated IPOD other than phones which is a
paradigm innovation and Money Penny can also initiate this in its operations by developing a
diversification related to its business.
 Position
It relates to image of company which its customers or people in general public have. For
example-m APPLE is considered as a mobile company but it have switched its business to IPOD,
IMAC etc. which changes people's mind that company is a hardware and software manufacturer
along with mobile phones (Hoque, Chishty and Halloway, 2011). Likewise, money penny can do
this in order to have paradigm shift.
Innovation funnel is a process of generating and developing new ideas in a firm with the
help of which ideas are sharpen into reality (Innovation Funnel. 2016). Employees with the help
of this in Money Penny can gather new ideas, evaluate the, chose best among them, test the
chosen idea and can launch it for company. This will support them to bring their ideas into
reality which will lead to development of Money Penny.
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P4.Frugal innovation
Frugal Innovation is a technical way of cutting down necessary features from product of a
company as it is not important for launch in a market which it is targeting. It enhances cost
reduction by removal of unnecessary features which are not required in a market of a product. In
case of Apple it launches various phones and Mac Book which have some changes in them
according to diversified markets it operates in (Jagoda and et. al., 2011). Money Penny deals in
telecommunications services which have to deal with various clients of various backgrounds so it
will lead to frugal innovation. As company will develop various ways to deal with its varied
clients.
Virgin Group also operates in various countries as it is an international organisation
which implies that company have to make some technical changes in order to cut down cost and
features which are not required to operate in various nations. Following is a brief description
which can be initiated by Money Penny through frugal innovation:
 Adding new features
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Source 3: Frugal innovation 2017

The SME can add some creativity or new features to its existing services. Like it can add
some benefits and discounts to its customers for using its services. New features relates to adding
some new innovation to its existing services so as to attract more customers for same services it
is providing in a new market.
 Removal of features to cut down cost
Whereas it can cut some cost of production by removing some features which are not
required in products and services (Kutvonen, 2011). This will be cost effective for company.
 Reduction in complexity for usage
There are various kind of people who cannot use every feature in a product which are
given so a company can reduce complexities in those so that everyone can use them with a
normal knowledge.
TASK 3
P5.Importance of the commercial funnel and application of New Product Development(NPD)
Commercialisation is a process which is performed in order to boost sales of Money
Penny so that it can earn profit. Commercial funnel is a way of choosing best way to enhance
commercialisation in a company (Lee, and et. al., 2010). It is a step by step procedure to develop
ideas for operations of company so as to attract more and more customers. It is a process which
completely relates to economical development of a business which is necessary for its
sustainability. Importance of commercial funnel is listed below: Enhances sales of a company. Develops new ideas for commercialisation. Assists in generating revenue for company.
 Effectiveness in operations of a company.
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NPD(New Product Development) relates to creation of a new product in a firm like
Money Penny which is at its growing stage. For example- Money Penny introduces a new
product in market. There is a long procedure for development of a new product and that is
justified as follows:
 New Product Strategy
Development of a plan and procedure which is to be proceeded. A complete structural
presentation for the idea of new product that have to be launched.
 Idea Generation
Company have to generate an idea on which it can act. There is a need to have suitable
idea for manufacturing the product. Idea Screening
Than after that idea is screened in terms of its scope and nature whether it is suitable or
not. It is being compared with all the other ideas available in market.
 Business Analysis
Further there is a need to analysis of business in regards to idea which have been
developed (Snow and et. al., 2011). Business position and its ability to implement the idea is
ascertained.
 Development
Than execution of plan has to be generated how it will be implement what will be
resources etc.
 Test Marketing
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S
ource 4: New Product Development 2014

After that product is tested by marketing it to customer like sample distribution etc. so as
to attain the response of people.
 Commercialisation
Than after getting a good acceptance while testing it the company can start sale of it by
developing ideas to do so.
 New Product
Hence, result of this is that a new product is developed in market for the company which
is ready to be produced and sold in market.
Hence, Money Penny with the help of above product development process can launch its
innovation into market to its potential customers.
P6.Innovation Business Case
Business Case is a structured list of steps which a company forms to implement a new
idea in its premises (Thore, 2012). A business case for Money Penny in order to implement a
new innovation in its operations is listed below:
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Source 5: Business Case

 Access market
The company first have to access the market in which it is aiming to operate and
introduce new innovation. This relates to researching of the area in which company is aiming to
target so as to do business. Like- Apple and virgin first have an idea for its area where it Is
aiming to do its business. Money penny have to access the market in order to develop its product
according to that.
 Objective of plan
Targets of plans has to be established so that the company have a base about direction in
which it have to move. Like- Apple and Virgin Set there objective of innovation into market
where it is operating (Hemert, Nijkamp and Masurel, 2013). Money Penny can set the objective
which it have to do while innovation of a new product so that its employees work for the same.
 Setting standards
Standards in regards to performance have to be set so that company can have measures to
compare performance. For Example Apple have set standard of quality for its products in which
its employees contributes. Actual performance in relation to standard performance will be
compared so that results can be obtained.
 Investment sources
Funds are required in order to have new idea implementation. There is requirement of
financial resources. For instance- Apple earns a lot of revenue by its operations so it can fund its
innovation by this. Money Penny must build a plan to attract various investors in the new idea. It
can involve shareholders, financial institutions or it can fund its innovation by its retained
earning and profit.
 Increase productivity
Than the innovation have to be implemented in the production of company to develop
new product. E.g. Apple increases its productivity according to demand of its product (Walsh,
2012). This way the productivity of Money Penny's process will be changed and developed.
TASK 4
P7.Different tools that chosen organisation can use to retain and protect knowledge
Knowledge and information can be retained and protected by an organisation by various
tools. There are a lot of reliefs available in order to implement in business of a firm. A company
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have a duty of protecting and storing information which it collects from its employees and
customers so that it is not misused. In case of innovation a company have to protect it from
copying and theft of the idea which have been developed by it (Wong, 2011). There are many
tools for protecting data which have been used by Apple and Virgin to protects its innovation and
these can be used by Money Penny as well in its operations:
 Patent
Rights which have been allotted to a firm or individual to make use and sell its innovation
in a market and excluding it from others. Money Penny can restrict people from copying its idea
by getting its innovation patent.
 Copyright
A firm can protect its data from any misuse by this right like- books, novels, music is
protected under this law. After Money Penny acquired copyright of its content than no body can
use the idea to represent it anywhere else.
 Trademark
This is adopted on logo or symbols a firm uses to depict itself. After registering its logo
no body can coy that and use it. Money Penny can restrict people by trademarking its logo so
that nobody can copy.
 Intellectual property
This is a right which is given by government of a country so that the new invention or
innovation can be protected and people feel safe while creating new ideas. Money Penny can use
it to protect its new ideas from copying by other people. Data Protection Act
This act was formed to regulated fair practices on share of information which have been
there with anyone of anyone (Wonglimpiyarat, 2010). Like- corporates have data of its ideas,
employees, customers etc. which have to be stored properly so that it is not interrupted by any
kind of theft which may cause problem for a person.
 Storage Software
Companies can adopt software's where it can have proper storage of information this will
help in protecting data through passwords, firewall or any other authentication program to have
the data protected and safe with it from any kind of internal or external threat.
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Hence, these are the various tools which are also utilised by Apple and Virgin as well as
it can be used by Money Penny for its innovation and commercialisation of new idea. This will
help firm to protect, retain and store data carefully with it of various associated people.
CONCLUSION
It has been concluded from the above report that Apple and Virgin Group are two very
well known companies for innovation and commercialisation of there product. Money Penny is
SME which is developing its operations and will lead to success by following the steps of these
two big giants. There are many tools and supports available to the company in order to innovate
and protect its data which have been result of this report. In order to aim as retention and
sustainability in a business environment a company have to keep on inventing and innovating
new ideas for attracting more and more people. A complete framework of innovation of a new
product is a result of this document which Money Penny can adopt.
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REFERENCES
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