Understanding Innovation and Its Impact

This assignment provides an overview of innovation and its significance in business. It discusses various aspects of innovation, including its types, innovation systems, and processes that influence organizational performance. The concept of the innovation funnel is also explored, highlighting how it can shape innovative ways and ideas. Additionally, the assignment touches on the importance of managing change and innovation in public service organizations. By understanding these concepts, individuals can better appreciate the role of innovation in driving business success and growth.

Innovation and
Commercialisation

Contents
INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................4
P1 Innovation and determine its importance to organization in comparison with invention..............4
P2 Organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation..............................................................................................................................6
TASK 2.................................................................................................................................................7
P3 4P’s of innovation and explain the use of the innovation funnel to examine and shape innovative
ideas...................................................................................................................................................7
P4 Developments in frugal innovation...............................................................................................8
TASK 3.................................................................................................................................................9
P5 Importance of the commercial funnel and the application of New Product Development............9
P6 Innovation business case for an organization..............................................................................10
TASK 4...............................................................................................................................................11
P7 Different tools that organizations can use to develop, retain and protect knowledge and
intellectual property.........................................................................................................................11
CONCLUSION..................................................................................................................................11
REFERENCES..................................................................................................................................11

INTRODUCTION
In today’s time, an innovation is considered as an important activity through which
company add new and innovative values within the product to make it more attractive. This
will help in inviting customers which may increase the profitability level of the firm at
market place. As needs of customers are regularly changed as per market trends. Thus, it is
important for firm to adopt as well as implement the innovation concept in order to serve
quality products to larger number of customers (Anderson, Potočnik and Zhou, 2014). In this
the main advantage of using innovation is to capture customers attention which may leads in
developing positive brand image at market. Along with this, it is also important for firm to
arrange adequate funds and resources to implement the innovation concept to established as
well as create strong goodwill. Mr. John Watches is famous as it operates their business in
small level which is based in UK. This report discussed about importance of innovation for
business organization. 4p’s of innovation is also mentioned in this report as it aids in
determining the actual demand of the customers. Along with this, frugal innovation and its
uses is discussed in this assignment. Furthermore, tools are also used by company to protect
the intellectual property is also involved here.
TASK 1
P1 Innovation and determine its importance to organization in comparison with invention
Innovation is one of the important concept for business organization in which they
add new values to make attractive products for its customers with the purpose of provide
them better satisfaction. In addition of this, regular innovation within the company and its
services helps in increasing the goodwill of the company which helps in creating the strong
customers base. With the help of effective implementation of innovation contribute in making
competitive position at market and at the same time also capture larger share for its
competitors. Thus, it is important for company to develop appropriate strategies to execute
the innovation process in company and activities (What is innovation?, 2011). In this there
are some major importance of concept of information for Mr. John Watches are as follows:
Increase efficiency level of the company: Concept of innovation is one of the major
tool for company to enhance their efficiency level as firm easily grab attention of the
customers which directly maximize the profitability level of the company at market place. by
adding features within the product for converting into unique and quality products. This will
help in attaining sustainability within market for longer period of time.

Helps in utilizing available resources at optimum level: At the time implementing the
innovation concept, firm add new features within their product line with the purpose of
producing quality services by optimum utilization of resources. As Mr. John Watches easily
invite larger number of customers towards company products which may enhance the
productivity level at market place (Boons and Lüdeke-Freund, 2013).
Increase the effectiveness of communication process: Effective communication play
vital role in implementing the concept of inn ovation within the company activities and
procedures. Mainly, it is right and major tool by which firm build good relationship with all
the activities which may contribute in attaining set target in an appropriate frame. If company
adopt right communication method then they easily maximize their profitability level.
Increase profitability of the company: By adding new and innovative features, firm
easily make their products more attractive and unique as it helps in increasing the profit
margin of the company for long period of time. In addition of this, by executing innovation
process as per continuous basis helps in accomplishing the set goals and objectives.
As all these are main importance of innovation concept for Mr. John Watches, by
which company make their positive brand image at market place. furthermore, every people
are think that both innovation and invention are same but it is totally different form each
other. This can be understood by following difference:
Basis Innovation Invention
Meaning Innovation process of consider a
specific product by adding new
and features products. With the
help of this company easily
invite larger number of
customers towards its products
and services.
Invention is implement for
first time which carry out for
first time as it never adds
before is called invention.
Concept Innovation is concept of new
values which added in the
product with the purpose of
enhancing the profitability level
at market place.
Invention is implement for
fulfil the customers
requirements which add in
existing products to make it
more attractive (Breznitz and
Murphree, 2011).

Required skills Overall concept of innovation is
based on specific knowledge as
it does not required huge skills
for implement.
As invention required
technical skills and knowledge
to execute the process of
invention as it helps in
producing unique products.
Activities Innovation is consider spilt
between entire department of the
company. As it leads in
effectively implement
innovation within the company
in order to attain various
benefits.
Invention activities are limited
as firm undertake an effective
research to evaluate the
operational activities in
effective manner.
P2 Organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Innovation concept is wider process as it directly affects the overall performance of the
company. Mainly it impacts on decision making process of the company. Thus, it is
important for company to determine all the factors before implementing the innovation within
the business as it helps in reducing the negative impact on company and its activities. Along
with this, it also affects the company vision, leadership, culture and teamwork can share
innovation which h helps in achieving desirable outcomes. For attaining the same,
formulating and implementing appropriate strategy is important before manufacturing new
services in front of customers.
 Innovation and leadership: Leaders are important for company to set target and
support workers to perform their responsibilities in systematic manner. With the help
of this workers effective implement the innovation within the company. Leader also
provide right direction to workers as they think creatively and attain better success at
market place.
 Culture and innovation: every business organization having their specific culture in
which manager define all the roles and responsibility by communicating with workers
(Brown and Osborne, 2012). With the help of this form easily execute the concept of
innovation for making quality products services. For establishing positive image, firm

should ser healthy and positive work environment for workers so that they perform
their task effectively and also put positive efforts to attain their targets.
 Teamwork and innovation: For attaining better success in marketing, working in a
team play vital role in executing and completing business activities in effective
manner. Team is important for implementing the concept of innovation within the
company. Along with this, manager also responsible for providing as well as
encouraging workers to perform best in a team and easily attain set objectives.
 Innovation and vision: It is important for business organization to set their vision to
attain better success by implementing the innovation process. In this, the main vision
of Mr. John Watches is to produce as well as manufacture feature watches to
customers so that they easily attain sustain in market. By retaining customers for
longer period of time.
Therefore, these are major elements that largely affect the entire process of the innovation
so that it is important for firm to effectively evaluate the factors which helps in improving the
chances of attaining better results. With the help of this firm established positive brand image
at market place as compare to its rivals.
TASK 2
P3 4P’s of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
Innovation is a model which used by every business organization to enhance their
productivity level at market place (Brynjolfsson and McAfee, 2012). It includes 4P’s which
may help in increasing the sales which directly contribute in making successful brand in
market place. Along with this, it is an effective technique through which Mr. John Watches
easily invite larger number of customers towards company products and services. This will
enhance the performance level of the company by gaining competitive advantage form its
rivals. All these elements of 4P’s of innovation are as follows:
Product innovation: It is one of the important element which used by the company
through which firm add some features within their products to provide customers in order to
satisfy their needs and wants. Thus, management required to utilize all the available resources
in effective manner as company easily manufacture quality services as per customers needs
and wants which helps in increasing the profitability level at market (Cross, 2011).

Process innovation: It is important for company to produce new and innovative
features within existing products. By which company easily produce their quality products
and services. In addition of this, firm also analyse the impact of changes before producing
unique products by reducing the risk factors. Along with this, manager also prepare an
effective plan which define various steps such as arranging, designing, assembling and many
more. With the help of this company easily established their positive brand image at market
place.
Positioning innovation: Under this element, products of the company finally introduce
in market by modifying necessary changes which may helps in making it more useful. Thus,
manager is make alternative techniques to implement the innovation concept (De la Mothe
and Paquet, 2012). For this company also take customers views and opinion to repositioning
in market. In context of Mr. John Watches make their products attractive as number of
customers are easily attracted and consume.
Paradigm innovation: This element is also considered as an important in which firm
required changes for modify the products with the aim of increasing the customers demand.
Through which selected company easily established their competitive brand image at market
place.
Use of innovation funnel in shaping innovation
Innovation funnel is main process which helps in developing entire stages of
marketing mix as it helps in enhancing the quality products and services. Along with this, it
defines various ways and techniques to modify the products in systematic manner. In context
of Mr. John Watches, they also use 4P’s model within their activities. As the main purpose of
this model is to eliminate the negative impact due to changes and any kind of activities.
Under the first step, manager collect and gather data towards the customers needs and wants
to ensure about what the specific needs of the customers. In another step, firm modify their
services as per customers views. On the other side, company formulate an effective plan to
analyse the changes within the process. With the help of all these, company easily analyse the
overall quality of the new products in order to fulfil customers requirements which may leads
in attaining higher profitability.
P4 Developments in frugal innovation
Frugal innovation is an important concept which play vital role at the time of
producing the new products to larger number of customers as per their needs and wants. The

main purpose of this concept is to reduce the cist and enhance the quality of products by
adding new and innovative features (Gawer, 2011). As one of the main advantage of using
this concept is to develop the brand image by delivering quality products at affordable cost.
In the context of Mr. John Watches, they also manufacture quality and unique watches to its
customers. By this they easily invite larger number of customers towards its services and at
the same time also influence them to consume its products. In this context, there are some
specific principle which can be understood by following points:
Determine opportunity in adversity: It is more important for company to determine all
the issues in order to resolve issues in most effective manner which may leads in improving
the chances of attaining positive outcomes (Gennaioli, Shleifer and Vishny, 2012).
Do more with less: Under this principle research put their strong efforts to complete
the study in systematic manner.
Think and act flexible: It is important for researcher to think flexible at the time of
determining the solution.
Keep it simple and attractive: Under this method, research have to make their services
attractive and also determine the solution of issues.
Include the margin: In this company maintain the profit by offering quality services to
its customer and also provide them solution of the issues.
Follow your heart: Under this, both manager and workers required to focus on their
roles and responsibilities to attain goals and objectives.
TASK 3
P5 Importance of the commercial funnel and the application of New Product Development
Commercial funnel refers the important ways through which company increase their
profitability level. It defines various strategies to reduce the negative impact of changes
within the overall activities of the company. By this company generate larger portability. In
this context there are some steps which are as follows:
In first step all the thoughts and ideas are determined to generate the profits. This will
help in determining the overall cost, strategies and various aspects are consider by the
company which may help in developing new products (Gunday and et. al., 2011).
Process of new product development

It is not easy task for company to manufacture and offer new products to its customers
which includes various steps to develop the new products. This will help in attaining positive
brand image at market place. in this context, all these steps can be understood by following
steps:
 Idea generation
 Idea screening
 Concept development
 Analyse business situations
 Product development
 Test marketing
 Commercialisation
P6 Innovation business case for an organization
It is important for every business organization to adopt innovation concept within
their organization to make quality products with the purpose of attaining higher success at
market place (Jiménez-Jiménez and Sanz-Valle, 2011). As it defines various opportunities in
which firm invite and attract larger number of customers towards unique products. As Mr.
John Watches is operate their business at small scale which needs to adopt concept of
innovation which may help company to attain competitive advantage by establishing their
positive brane image. In this context, the business is also framed by Mr. John Watches which
can be understood by following points:
Executive summary: Mr. John Watches is small business as they operate their
business in UK market. As they offer their services in local areas to satisfy customers
satisfaction by providing them quality services this will helps in attaining competitive
advantage at market place and at the same time also capture customers attention.
Objectives: Under this, the main objective of Mr. John Watches is to adopt new and
innovative technologies to produce quality watches to its customers at affordable cost.
Solution: For attaining positive outcomes, it is important for firm to bring major
changes within existing products to invite number of customers as per current market trends,
this will help in satisfy their needs in order to enhance profitability (Kleinknecht, 2016).
Why products are innovative: It is important for company to make innovative and
quality products according customers’ needs and wants.

Research of the customers: In this, manager of the company undertakes a research for
identifying the targets and customers taste which largely contribute in capturing larger market
share form its rivals (Lundvall And et. al., 2011).
Funding: For executing as well as bringing changes within the company products
proper funds is important in which firm keep and arrange funds to attain better results.
Expected benefits: Under this, business organization define the benefits by
implementing concept of innovation which may helps in evaluating the positive brand image.
TASK 4
P7 Different tools that organizations can use to develop, retain and protect knowledge and
intellectual property
Various type of tools is there which used by the company to protect their intellectual
property in appropriate manner. As Mr. John Watches is famous company in UK market and
also offer quality products and services to larger number of customers. Along with this, for
attain higher success in market place, it is important for company to gather as well as collect
relevant data towards the regulation and laws set by the government to protect the company
intellectual property. This will help in establishing positive brand image at market place.
important tools are there which used by the company are as follows:
Trademark: This tool is one of the major and important through which company make
quality products and offer in market to enhance their profitability level. It is considered as a
symbols and signs which make specific and unique products in front of customers.
Patent: It is also an important right which used by the company for particular time
frame as it helps in protecting the company products so that no body can copy it. This will
helps in enhancing the positive brand image at market place (Manso, 2011).
Copyright: This tool is important which established by government bodies to protect
as well as safeguard the company products and services.
CONCLUSION
As per given report, it has been summarised that an innovation is one of the important
procedure for every business organization to improve their performance level ta market place.
It helps in producing quality products and services to its customers to fulfil their needs and
wants. Thu, it is vital for manager of the company to consider all the elements before

implementing the innovation concept. This will lead in attaining higher success at market
place for its rivals. Along with this, innovation funnel concept is also providing various
opportunities through which firm shape innovation ways and ideas. As it contributes in
enhancing the positive brand image of the company. Different development is also take place
in fugal innovation to develop the quality products. In addition of this, various sources are
also used by company to gather as well as collect funds to operating business activities in
effective manner.

REFERENCES
Books and journals
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globalization, and economic growth in China. Yale University Press.
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organizations. Routledge.
Brynjolfsson, E. and McAfee, A., 2012. Race against the machine: How the digital
revolution is accelerating innovation, driving productivity, and irreversibly
transforming employment and the economy. Brynjolfsson and McAfee.
Cross, J., 2011. Informal learning: Rediscovering the natural pathways that inspire
innovation and performance. John Wiley & Sons.
De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol.
14). Springer Science & Business Media.
Gawer, A. ed., 2011. Platforms, markets and innovation. Edward Elgar Publishing.
Gennaioli, N., Shleifer, A. and Vishny, R., 2012. Neglected risks, financial innovation, and
financial fragility. Journal of Financial Economics. 104(3). pp.452-468.
Gunday, G. and et. al., 2011. Effects of innovation types on firm performance. International
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Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Kleinknecht, A., 2016. Innovation patterns in crisis and prosperity: Schumpeter’s long cycle
reconsidered. Springer.

Lundvall, B. Å. And et. al., 2011. Handbook of innovation systems and developing countries:
building domestic capabilities in a global setting. Edward Elgar Publishing.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Metcalfe, J. S. and Miles, I. eds., 2012. Innovation systems in the service economy:
measurement and case study analysis (Vol. 18). Springer Science & Business
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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.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of
research on open innovation. Journal of Product Innovation Management. 31(4).
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Online
What is innovation? 2011. [Online]. Available through:
<http://www.innoviscop.com/en/definitions/process-innovation>.