Innovation Funnel and Frugal Innovation

The assignment discusses the difference between innovation and invention, and how Facebook used various strategies to innovate and become profitable. It also explains the concept of innovation funnel and frugal innovation, and provides recommendations for Facebook to improve its products and services. The study concludes that innovation and invention are distinct concepts, and that Facebook's use of innovation funnel and frugal innovation helped the organization increase sales.

INNOVATION
AND
COMMERCIALISATION

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Difference between Invention and Innovations.......................................................................1
3.4P's of innovation.....................................................................................................................2
4. Innovation Funnel and Frugal Innovation...............................................................................3
TASK 2............................................................................................................................................3
Covered in PPT............................................................................................................................3
CONCLUSION................................................................................................................................4

INTRODUCTION
Innovation is the action or process of innovating and it is very essential for continuing
success of organisation. The process of translating an idea or invention into good and services
that creates values for which customers. Organisation which continuously focus and come up
with innovations are one of the successful organisation. In this present report, Facebook
Company is being chosen for assessment. It is an American online social media as well as social
networking service company based in Menlo Park, California. The website of the Facebook was
launched by Mark Zuckerberg in 2004 There are two parts in this project which are Business
innovation report which explains the entire process and importance of innovation and second
part is presentation which will be on innovation plan.
TASK 1
1. Difference between Invention and Innovations.
Innovation is the very important for the success and retention of company in the business
world and it is the key concern of the company. Innovation is the creation of new ideas or
methods which are not just represented by introducing or implementing new ideas and processed.
In simple words, it can be defined as the process which includes multiple activities to uncover
new ways to do things. For example-:digital payment methods (Osoro, Kirama and Vermeulen,
2017).
Invention is different from innovation as many people think it is same but both are
entirely different. It is something which never been made before. It is process of creating
something that has never been made by anyone before. For example invention of mobile phones,
vehicles for the first time.
Difference between Innovation and Invention
Innovation Invention
Innovation is bringing improvement in
something which already exist.
Invention is creating things which are entirely
new which never been used and seen by
anyone (Yin, Shi and Yan, 2014).
Both marketing and technical skills are
required in innovation.
Technical Skills are required for doing
invention.
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Innovation remain for short period. Invention remain for longer period.
Innovation is born from the constant need to
make things better as well as to gain a market
advantage for an existing product along with
invention.
Invention is born from an idea that inventor
gets or pictures to produce something.
3.4P's of innovation.
This is the model which is developed by John Bessant and Joe Tidd. There are Four P's of
innovation which are product, process, position and paradigm. This model is very helpful for the
all the company in order to discover the process of innovation which can improve as well as to
bring in the business. Facebook Company also used this model to bring improvement in the
products. Here are the explanations of 4P's of innovation which are as follows-
Product Innovation- This step focused on bringing innovation in the product that
already exists. Redesigning of the product is done in this step. Facebook company used to bring
some changes in their products so that they can bring improvement in the products. Facebook
company is going to bring innovation by implementing new feature called Video call with chat.
Process Innovation- This step focuses on bringing improvement or changes in the
process of delivery or manufacturing of products and goods to the customers. Facebook company
can use Just In Time method of delivery (Ke and et.al., 2016). This is one the best method of
bringing improvement in the system of delivery.
Position Innovation- This third step of innovation model where the change in the
context in which products and services are introduced. It is very important that the products of
company should be effectively communicated to the customers. It is very essential that company
should know what customers think about the product. Facebook company can use social media
and by lunch events for communicating the products and services to the customers,
Paradigm Innovation- This is last element in innovation model which is somewhat
specific category of innovation. It is bringing radical change in the manner done in the company
and it can be anything. This is one of the best elements that Facebook company can bring radical
change in the soft drinks in order to raise the market share in the market. In addition to this
company should engage in making organic drinks as well as in digitalisation of the business,
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4. Innovation Funnel and Frugal Innovation.
It is fact that company survives in the competitive environment by generating profit by
sales and revenue. In order to survive for longer time in the market, Facebook is focusing on
raising the sales as well as market share through innovation. They can also adopt innovative
ideas to bring effectiveness in the process of business.
Frugal innovation means to reduce the cost along with its complexity of the goods.
Frugal innovation is used to emphasise on removing unnecessary or extra features in the older
products. The fundamental purpose is to redesign the entire process of the manufacturing. It is
recommended that Facebook Company should focus on implementing frugal innovation in the
operations and function of from to bring innovation in the products and services and process. It
resulted in increasing of profit by eliminating extra cost. For example- TATA NANO which
comes up with the drastic innovation and make a cheap car which proves innovation to be cost
effective.
The purpose of development of any product or process is to take an idea from the idea to
reality by converting to a special product which can meet the demand and expectations of market
in an economical and manufacture form (Innovation Funnel, 2017). Innovation Funnel is
converting idea into actual development of products. The thought of development in process and
product is taken from the concept of development and applying it to the process which will able
to meet the demands and expectation of customers. Facebook company is planning to implement
some changes in vidio call system in order to growth and develop more in the market (Tanev,
Rasmussen and Zijdemans, 2015). Facebook should use innovation funnel and brink
improvement in the products and services that can meet the needs and expectation of customer's.
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Here are some recommendations for Facebook
 They should conduct effective and efficient market research to identify the needs and
demands of customers.
 In order to bring innovation on continuous basis, Facebook should invest some fund in
Research and Development.
 They should use the best promotion tools in order to attract number of customer's.
 They should maintain and try to build effective relationship with customers such as
employees, customers, suppliers etc.
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Illustration 1: Innovation Funnel
(Source: Innovation Funnel, 2017)

CONCLUSION
From the above study it has been summarised that innovation and invention both were
different things. Facebook which had used different strategies for the innovation and made the
organisation profitable. Scoping of ideas to develop the new product and used innovation funnel
in it. The organisation used this strategy to increase the sales. This file has summarised the
overview of the organisation and role of innovation funnel and frugal innovation in it.
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TASK 2
Covered in PPT.
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REFERENCES
Books and Journals:
Tanev, S., Rasmussen, E.S. and Zijdemans, E., 2015. Product innovation and commercialization
in lean global start-ups: the challenges of turning uncertainties into risks. In 22nd
Innovation and Product Development Management ConferenceInternational Product
Development Management Conference. Proceedings. European Institute for Advanced
Studies in Management.
Ke, W., Xiao, C., Wang, C., Saparov, B., Duan, H.S., Zhao, D., Xiao, Z., Schulz, P., Harvey,
S.P., Liao, W. and Meng, W., 2016. Employing lead thiocyanate additive to reduce the
hysteresis and boost the fill factor of planar perovskite solar cells. Advanced
materials.28(26). pp.5214-5221.
Osoro, O., Kirama, S. and Vermeulen, P., 2017. Factors Affecting Engagement and
Commercialization Of Innovation Activities of Firms in Tanzania. Tanzania Economic
Review.4(1-2).
Yin, W.J., Shi, T. and Yan, Y., 2014. Unique properties of halide perovskites as possible origins
of the superior solar cell performance. Advanced Materials.26(27). pp.4653-4658.
Online:
Innovation Funnel. 2017. [Online]. Accessed through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>.
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