Comparison and Importance of Innovation in Organizations

This assignment discusses the comparison between innovation and invention and the importance of innovation in organizations. It also explores the impact of organizational factors on commercialization and innovation. The assignment further delves into the innovation mix and the use of the innovation funnel for generating innovative ideas. It also covers the concept of frugal innovation and its development. Lastly, it discusses the importance of the commercial funnel and the new product development process.

ASSIGNMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 Comparison and explanation of innovation with invention with importance of innovation. 1
P 2 Ways in which organizational factors impact commercialisation and innovation................2
LO 2.................................................................................................................................................3
P 3 Innovation mix and innovation funnel use for innovative ideas...........................................3
P 4 Frugal innovation development.............................................................................................5
LO 3.................................................................................................................................................6
P 5 Commercial funnel importance and NPD process................................................................6
P 6 innovative business case development..................................................................................7
LO 4.................................................................................................................................................8
P7 Tools to protect intellectual property and knowledge............................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is a process of formulating or developing new ideas for development of a new
or existing products or services. Today innovation is one of the most important factors which is
required by the organizations to be focused upon in order to gain competitive advantage and
sustain within the market (Arora, Cohen and Walsh, 2016). Innovation helps an organization to
develop creative ideas which can further helps them to bring innovation within their products and
services by introducing new features within their existing products or services or introduce new
products or services as per the needs and demands of their customers. Adopting innovative
processes within an organization also helps an organization to attract a greater number of
customers and enhance their overall customer base. It is one of the best ways that helps
companies to enhance growth of their business and fulfil current needs and requirement of their
customers or introduce new products that can help in making their customers daily routine
processes much easier. Every innovation dome within an organization is required to be
commercialized so that it can be made available to their customers in a much better manner. this
assignment will lay emphasis upon introduction of new product i.e. biodegradable water bottle
by Tesco into the existing market. Tesco is a British multinational retailer that was founded in
1919 whole main headquarter is in England, UK. This assignment will also focus upon invention
and innovation difference, importance of innovation, different forms of innovation, frugal
innovation and steps that are required to be focused upon to derive a new and innovative product.
LO 1
P 1 Comparison and explanation of innovation with invention with importance of innovation
Innovation is a kind of process with the help of which something new or some new
chances within existing products or services of the organization. In business sector innovation is
implemented for creation of new ideas or development of dynamic products or services in order
to attract a greater number of customers and gain competitive advantage. In order to become an
innovative organization an organization need to implement their new ideas in such a manner that
it can help them in replacing their existing products and services at economical cost. Useful and
innovative ideas are result of creativity which further helps an organization to introduce new
features within their products, enhance its quality and many more (Hannen and et. al., 2019).
Most of the consumers sees innovation as a process with the help of which value to organizations
products or service is increased in a much better and appropriate manner.
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Innovation is one of the most important things which is required to be focused upon within
an organization and is extremely important for business. It helps a company to fulfil needs and
requirement of their customers in a much better and appropriate manner. it further helps an
organization to increase overall satisfaction level of their customers. there are two major types of
innovation and both of them are equality important for an organization to be focused upon as
both type of innovation is important in different manner for the organization. First type of
innovation is evolutionary innovation which comes upon continuous innovation category. This
type of innovation helps an organization to bring positive changes or improvement within their
current products or services or advancement within their current or existing products. It is one of
the most important type of innovation which is required to be focused upon by the organization
to sustain within the market in which they operate, gain competitive advantage and attract a
greater number of customers (Grafström and Lindman, 2017). without this type of innovation, it
can become difficult for the organizations to sustain within the market. Tesco focuses upon
evolutionally innovation as they majorly focuses upon sustaining within the market in which
they operate. Another type of innovation is revolutionary innovation which is sometimes also
known as disruptive or discontinuous innovation. This type of innovation can help an
organization to achieve their target in a much better manner.
As compared to invention, innovation is more important for an organization which helps
them to achieve their main aim and objectives in a much better and appropriate manner.
Invention is creation of any kind of good is done first time. Invention can be successful or failure
both whereas most of the time innovation is done to attract more customers. Innovation helps an
organization to run their invention into a marketable and useful product for their customers.
Innovation helps n organization to attract all kinds of benefits from invention in a much better
and appropriate manner. Such as one of the innovations done by Tesco was Biodegradable water
bottle. It is an innovative product which is required to be introduced by Tesco for their customers
in order to enhance their customer base and sales. They provide various kinds of water bottles to
their customers but they worked upon them and introduced biodegradable water bottles for their
customers a completely new product.
P 2 Ways in which organizational factors impact commercialisation and innovation
There are various kinds of factors that can influence overall organizational performance in
both positive and negative manner that can influence both innovation and commercialization of
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products and services of an organization. Some of the main factors that can influence innovation
and commercialization are leadership, vision, teamwork and culture.
Organizational vision is one of the main factors because of which organizational
performance, innovation and commercialization can get impacted (Taylor, Santiago and Hynes,
2019). Every organization need to develop an effective organizational vision so that they can
ensure efficiency and effectivity of innovation and commercialization. It also helps in providing
a vision or target main goal to their employees so that they can focus upon shaping innovation
and commercialization. For example one of the main vision of Tesco is to provide high quality,
environment friendly products and make them available to their employees. This vision heled
their employees to focus upon development of biodegradable water bottle product.
Teamwork is another factor that can influence organizational performance, support and
encourage their employees. Teamwork provides a cumulative support to all the team members
which further helps them in providing support so that they can think of development of
innovative ideas. But for effective teamwork it is important for an organization to have effective
leadership.
Effective leadership helps in encouraging their employees or team members so that they
can participate in innovative thinking, developing new ideas and share their passion within their
team members so that work together on shaping their innovative ideas and commercialize their
products and services (Parahoo, Mumtaz and Salem, 2017). Tesco has an effective leadership
framework in developing the qualities of leadership needed at every level in the business
But out of all of these cultures is one of the most important factors that can shape
innovation and commercialization within an organization. Effective and positive culture helps in
supporting and encouraging employees so that all the employees can share their ideas with each
other which will give rise to innovation and commercialization.
LO 2
P 3 Innovation mix and innovation funnel use for innovative ideas
4P’s of innovation are innovation mix that are majorly used by organization for
understanding ways in which innovative process can be used by them for bringing innovation
within their products and ser ice for business development. 4P’s of innovation mix are:
Paradigm, Position, Product and Process which helps an organization to identify area in which
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they need to innovate and generate ideas with the help of which they can bring innovation within
chosen products and services of the company.
Paradigm: Paradigm innovation focuses upon bring change within current model which is
adopted by the organization (Lee, Lee and Garrett, 2019). It helps the organization so that they
can improve the manner in which they do business. With the help of changes within current
model that organization follows it can help the organization in increasing their overall
productivity. For example, current Tesco manufactures most of their food products or items
within their organization itself, they can tie up with another organization who only manufactures
food products. This will help them to reduce their overall operational cost and increase
profitability.
Product: This innovation focuses upon bring changes or adding additional features or changes
within their current products or services that are offered by them. It helps an organization in
making their product better (Fernandes and Brandão, 2016). For example, Tesco recently
focused upon bring chances within their current water bottles and introduced biodegradable
water bottles. They have focused upon using bringing changes within their water bottles and
focused upon manufacturing biodegradable water bottles that are made up of eco- friendly
material.
Position: this innovation focuses upon the context in which initially that particular product or
service was introduced i.e. ways in which people sees that, ways in which it was communicated
to the customers.
Process: this focuses upon the way in which the product was created or delivered. In this all the
steps though which product or service is created and delivered is focused upon such as:
supplying, workflow, hiring people, and training.
Innovation funnel
It is a kind of mechanism that helps an organization to enhance constant streaming of
ideas that can help an organization to development of product or service. The main purpose
because of which it is used within an organization so that they can create a product or a process
in order to meet their market needs in a proper and appropriate manner. it is one of the best ways
with the help of which innovative ideas can be shaped (Siakalli, Masouras and Papademetriou,
2017). Innovation funnel consist of three main processes: investigation, development and
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delivery of the product: Tesco uses product innovation from innovation mix and with the help of
innovation funnel they focus upon development of new product.
In investigation phase analysis of current competition within the market is done and different
types of products present in the market. Tesco has various kinds of competitors who provide
similar products to their target customers. Investigation phase can help Tesco identify their target
customers they want to focus upon,
In development phase as per the market condition and needs new product is developed that can
fulfil market needs according to market analysis there is a need of environment friendly products
by the customers and very few organizations that develop this kind of product (Pisoni, Michelini
and Martignoni, 2018). This helped Tesco in identifying need and requirement of biodegradable
products.
Last process is delivery process in which after development of the product it is made available to
their customers. After developing biodegradable water bottles, Tesco will make this product
available to their customers.
In all the three processes four main criteria are focused: first is generation of idea on the basis of
market analysis, second is setting of criteria for filtering ideas, third is testing by making product
available to their customers.
P 4 Frugal innovation development
Frugal innovation is a kind of a process that helps an organization to reduce their overall
manufacturing and production cost in order to avoid complexities within manufacturing and
production process. It is one of the most suitable features that helps an organization to remove all
kinds of non- effective features within production and manufacturing process (Weyrauch and
Herstatt, 2017). This Frugal innovation process helps an organization to enhance their overall
effectivity of manufacturing and production process which further helps them in reducing overall
cost associated with this process. This process is also known as Frugal engineering process in
which following things are focused upon: low cost designing of the product or process, capital
engineering, increase product development efficiency, simplifying manufacturing process,
optimizing customer interest features and reducing or eliminating all kinds of non-valuable
features. Tesco has also focused upon adopting Frugal innovation for removing all kinds of
unnecessary cost associated with manufacturing and development of biodegradable water bottles.
With the help of this process Tesco has successfully eliminated their production, design and
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manufacturing cost which has only helped them to increase efficiency of their product
development (Hossain, 2018). Not only this, with the help of this process their scope of
development of introducing new features within biodegradable water bottles was also increased.
For this, their requirement of additional capital was also resolved and in fact overall production
cost associated with the project was also resolved. This has further helped them to introduce the
product in a much effective and lower price.
LO 3
P 5 Commercial funnel importance and NPD process
Commercial funnel is a process with the help of which more leads are generated for the
organization and enhance their overall customer base. Commercial funnel consists of following
steps or process with the help of customers base can be increased and business growth can be
focused upon. Each step consists of some actions or approaches that can help an organization to
attract a greater number of customers. Some of these steps are as follows:
 Awareness: At this point main attention and attraction of customers is captured. With the
help of this step organization generate awareness about their products and service upon
which they should focus (Manzini and Lazzarotti, 2016). At this step Tesco grabbed attention
of their customers and identified that their customers majorly focus upon environment
friendly products and services and prefer buying such kind of products and services.
 Interest: At this step some entities are published that helps an organization to influence their
customers, generate their awareness about their customers so that they can make informed
decision (Relich and Pawlewski, 2017). By introduction of biodegradable water bottles and
publishing some important entities can help Tesco in grabbing attention of their customers.
 Decision: At this stage best offer is provided to the customers so that they readily accept the
offer and purchase the product. Biodegradable water bottle can be offered at lower prices as
compared to normal water bottles so that customers can readily accept it and purchase these
bottles.
 Action: At last stage customers purchase the product and become an important part of the
organization.
 Delight: at this step customer satisfaction level about the product which is purchased by them
is focused upon so that their satisfaction level is maintained and is always high.
New product development process of commercialization of innovation
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NPD is a kind of process in which process though which new product is developed and
launched within the market (Rooderkerk and Gallino, 2019). This process not only helps in
introducing and developing new product but also helps in introducing the mew product or
making it commercial in the market. NPD is one of the most effective process that can be used
by Tesco for development of new products and services. This whole process consists of five
main processes:
 Idea Generation: At this stage market analysis is done in order to identify needs and
demands of the customers. this analysis helps in initiating generation of new idea for product
development. Market analysis heled Tesco in identifying that need of environment friendly
product or services by the customers. this helped the organization in providing a scope for
idea generation.
 Concept definition: After idea generation company identifies, product specification for the
customers is identified. Tesco can showcase their new product specification or features for
their customers.
 Market analysis: Before new product introduction within market it is important to for
organizations like Tesco to analyse the market condition first and after this analysis, they
found that such kind of biodegradable water bottles are not present in the market.
 Product development: After analysis of market Tesco can focus upon developing the
product in order to attract more customers.
 Commercialization: Last, is after development of new product it is commercialized and
launched within the market (Salgado and et. al., 2017).
P 6 innovative business case development
Tesco is focusing upon development of new product i.e. a biodegradable water bottle.
There are various kinds of organization that give a tough competition to Tesco but development
of new product innovative business case and also require to focus upon ways in which they can
access funds for the same. Innovative business case for Tesco for biodegradable water bottle are:
Executive Summary: Tesco is focusing upon development of an innovative product a
biodegradable water bottle which is made up of completely biodegradable materials and is non-
toxic.
Vision: the vision of Tesco is to provide environment friendly high- quality products and
services to their customers.
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Mission: the main mission of the organization is to introduce biodegradable water bottles for
customers who prefer environment friendly products.
Objectives: Some of the main objectives of Tesco for development of new innovative products
are:
 To increase their overall sales by at least 25 percent within 1-year time period.
 To increase market share by at least 50 percent within 12 months
 Provide training to their employees in order to increase their productivity and manufacturing
of the product can be done effectively.
Sources of funding: In order to develop new innovative product as per the need and demand of
the market it is extremely important for organization to identify source of funding. Some of the
main sources of funding for the organization are: funding from investors, revenue from overall
sales, private equity and many more.
LO 4
P7 Tools to protect intellectual property and knowledge
It has been analyzed that Tesco can be engaged in making use of various different tools so that
they can retain and protect their new innovation which is biodegradable water bottles. They can
make use of these, it includes the following:
Copyright: Copyright is a type of intellectual property that gives its owner the exclusive right to
make copies of a creative work, usually for a limited time. It has also been analyzed that there
are also various limitations that are been placed on copy right and these limitations are based on
public interest. In this Tesco is provided with the rights that they can be engaged in claiming
legal damages if there rights related to the property have been violated. It has also been analyzed
that copyright also provided economic rights to Tesco that will be based on their new innovation.
There are various advantages related to copy right which can be explored by the company if they
are making use of copy right to protect their new and creative innovation. In the copyright Tesco
will also be provided with the right to authorize (Schilling and Shankar, 2019). These rights
include the right to permit other production, reproduction and the right of broadcasting your
business. They also have the benefit to protect their new and innovative product from the theft or
any kind of stealing. These are the benefits which can be explored by the company by making
use of copy right so that they can protect their products and services. There are also some of the
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dis-advantages which are associated with the copyright, in this there are chances that company
might not get ownership of the products and services that are been supplied by them. Tesco
products their products and services with the help of copyright tool. They have in fact protected
their website by copyright and with other intellectual properly tools.
Patent: In this Tesco can be provided with the right that no other individual or company can be
engaged in making use of their new and innovative product without their permission. These
exclusives right is been provided with the firm if they are been involved in making use of patent
so that protection can be provided to their new creation. It has been analyzed that Tesco can get
protection for their product for the pre-determined period. Once the period is been over, the
product is not been protected.
Trade-mark: In this the protection can be provided to the assest and new innovation of Tesco
for at-least a period of 10 years. These rights can be enjoyed by the firm when they are making
use of trade mark to protect their asset. It will also help the consumers in recognizing the quality
of product through analyzing the trade mark. It will be beneficial for firm to make use of trade
mark as in this the price for protecting the product is also very low. This will help the company
in saving their cost and also it will help them in protecting their new innovation (Nambisan and
et.al., 2017).
CONCLUSION
It has been concluded that company has brought down new innovation so that their brand
reputation and good will increases. This has also assisted them in creating a new consumer base
and also they have been able to enhance customer satisfaction which is really necessary for the
growth of firm. It has also been analysed that in order to promote the sales of new products and
services, they have been made use of various marketing channels such as social media
marketing, digital marketing so that they can attract large number of consumers. This has
assisted them in enhancing their profit as well as revenue. It has also support the firm in
increasing their business performance. They have also been engaged in making use of new
product development process so that they can be able to provide consumers with new and
creative innovation. This has assisted them in increasing the quality of their services. It has also
been analysed that company has also been nagged in protecting their new and creative
innovation. They also have the benefit to protect their new and innovative product from the theft
or any kind of stealing. These are the benefits which can be explored by the company by making
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use of copy right so that they can protect their products and services. This has assisted the firm in
protecting their new and innovative products.
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REFERENCES
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Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining criteria. Journal
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