Frugal Innovations in Business Management

The report explores various components such as mission, vision, teamwork, and organisational culture that contribute to a product's quality. Frugal innovations are discussed as a means of reducing wastages and costs during production. The report suggests adopting frugal innovation strategies to increase market shares and launch new innovative products.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Importance of innovation and its comparison with invention..........................................1
P2. Organisational vision, leadership, culture and teamwork................................................3
Task 2...............................................................................................................................................4
P3. 4Ps of innovation and use of creation funnel..................................................................4
P4 Development in frugal innovation.....................................................................................5
Task 3...............................................................................................................................................7
P5 Importance of the commercial funnel and the process of new product development ....7
P6 building an innovation case for the company .................................................................7
Task 4 .............................................................................................................................................8
P7 Different tools and techniques to develop, retain and protect intellectual property.........8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
For a business organisation, innovation is used to create value and new ideas in an
effective manner. It includes implementation of new ideas, improving new products and creating
dynamic goods or services (Aarikka-Stenroos and Sandberg ,2012). The process of bringing
those ideas and thoughts to reality is called as innovation. It is used to introduce different ideas
and creative things to make existing products more valuable or build high goodwill in the target
market. This project report is based on EE limited which is a small business organisation and
wants to introduce innovative products and services in target market. This report represents
difference between innovation and invention as well as discusses organisation's vision,
leadership quality, culture or teamwork. It determines 4Ps of innovation and commercial funnel
to get various advantages in organisation's context. At last, it includes innovation tool to develop
or protect the knowledge of intellectual property.
TASK 1
P1. Importance of innovation and its comparison with invention
Innovation is vital because it edge to a company in target market and helps to build a
strong connection to developing market. This is provide a confident attitude to take risk and get
things done effectively. For EE limited, innovative culture helps to grow its business structure
easily and build valuation of their products and services. This is not only used to up valuable
time but also led to waste material that can provides effective outcomes in future. There are
various importance of innovation for EE limited such as -
Create competitive advantages – Innovation helps to identify the most valuable way of
implementing various strategies and techniques in organisation. It provides creative ideas and
thoughts to introduce new products in the target market (Bagchi-Sen, 2010). Through this
process, organisation can easily earn competitive advantages and opportunities to provide
effective goods in the market. Innovation helps to manage time and reduce wastage in
organisation that helps to provide effective outcomes after utilizing them. Innovation is an act to
make changes in an existing products or to introduce the new ways and ideas.
Established best methods for business – Innovation is used to provide a unique idea
and effective objectives by recognising organisation's current resources and various
opportunities. In this, organisation needs to understand customer’s needs and their demands for
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particular products and services. After getting information of customer’s demand, they should
have to create most effective goods to provides them higher satisfaction and get competitive edge
from market (Bogers and West, 2010).
Helps to build creativity in organisation – Innovation is a process to provides creativity
in and uniqueness in existing and new products through different ideas. Through this process, EE
limited can easily adapt various ideas and provides them to their employees to use them
effectively. Innovation and advanced technology is required skilled and experienced employees
to use them easily. This is not used to replace existing products but it provides innovative and
unique look.
Sometimes, innovation and invention; both words sound alike, but after a deep analysis, it
is concluded that there is a fine line of difference between both these factors such as:
Basis of difference Innovation Invention
Meaning
Uses It is used to create new
products.
It is used to add values in the
existing products.
Skills Scientific and technical skills
are required in an individual to
use innovation effectively.
For this, marketing and
strategic skills are required
with specific knowledge of
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Illustration 1: invention and innovation
source: invention and innovation 2018

customer's demand.
Members This is a core process which is
done by a large group of
individuals.
This is done by a single person
who wants to create something
new for market.
Appear Innovation is done when new
ideas strike in the mind.
This is done according to
organisation's needs and
product's demand.
P2. Organisational vision, leadership, culture and teamwork
Innovation for an organisation is used to fulfil their vision and objectives in an
appropriate manner (Cunningham and Porter, 2011)For this, company makes various strategies
and planning to achieve all their future needs effectively. In it, the management of firm uses
various ideas and efforts to motivate their employees towards future objectives and goals. An
organisation's vision, leadership quality, culture and teamwork help to give appropriate shape to
innovation and commercialisation as well as provide future growth and desired success easily.
Vision – For business organisation, it is very important to create their future targets and
objectives which help to gain effective success easily. In this process, manager plays their own
role to create future objectives and goals for the organisation (Ettlie and Rosenthal, 2012).
According to this report, vision of EE limited is to provide innovative products and services in
the market as well as landscape their size in target market. Basically, vision and goal of
organisation is stand for proving them purpose and objective which is they want from future.
This is the only thing which is providing dedication to organisation's employees towards their
working approaches.
Leadership – This is a unique quality of an individual that helps to motivate other
employees towards organisation's objectives and their on task. Leader should have to prove itself
by achieving some objectives and set an example in front of all. After setting some particular
goals for others, they need to provide effective ideas and strategies to work out on it. Leadership
style determines different approaches of a leader in which they provide direction, planning and
motivation to their fellow workers. So, for EE limited, their leader will helping them to achieve
organisation's objectives and providing them effective outcomes easily.
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Culture – This is environment of organisation that helps to motivate their employees to
getting future objectives easily. For an organisation, it is very important to create a positive
culture before adapting new ideas because in this process employees relation provides their own
contribution effectively. For EE limited, it is essential to build positive culture, employee’s
relation and their dedication toward various working approaches. This culture helps to build
organisation's goodwill high in market and provide competitive advantages over others.
Teamwork – Employees are the strength of organisation who provide their services and
contribution to achieve their future objectives easily. For EE limited, it is very important to
create a team because innovation requires group of employees who create different ideas and
innovative approaches for organisation. In a team of employees, company get more advantages
to accomplish the tasks effectively. In this process, workforce of organisation provides their
contribution and effective ideas to create something unique in the target market.
Task 2
P3. 4Ps of innovation and use of creation funnel
Innovation is a process which is used by various organisation to create quality products
and services for customers. In this process 4Ps of innovation will help of EE limited to getting
success in future.
Product – For EE limited it is very important to create various products with innovative
ideas for target market and customers. Through this they can easily improve quality of their
existing products and new services (Gambardella and McGahan, 2010). For EE limited it is very
important to adapt innovative ideas and techniques to make their products more valuable and
attractive for customers. In a market where lots of organisations provide same product a newly
established or small business organisation need to introduce different produce with advance
technology to attract more customers toward them.
Process – This is step between manufacturing and selling a particular product. In this
process innovation play a most important role to reduce extra workload and minimise wastage
from the manufacturing process. Innovation also require a specific process to use it effectively as
– create new idea, build workforce, hiring skilled candidates and employees, provide them
specific training to innovate new product easily. After this manager of organisation need to
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understate how can all this process helping them to achieve future goal easily and build their
specific goodwill in target market.
Position- This is third step of innovation to recreate their brand image in target market. It
is all based on market need and their demand for particular product and organisation's services.
Through this process EE limited can evaluate products position in market and their desired
exception where they want to see this in future. In this process innovation will helping for them
to achieve desired outcomes and provide higher satisfaction to customers easily. For a small
business organisation their products make their own value in target market so innovation provide
them batter opportunity to get higher advantages easily.
Paradigm- This process is all based on various changes that done by organisation to
recreate their existing products and services. These changes are needed to be based on new and
creative ideas because organisation can nit fulfil their customer’s unique demand easily. All the
business organisation established to providing their products and services according customers
demand but sometimes it is important to avoid them if it will not provide specific conclusion for
them. Some innovation can be impossible for EE limited, so they need to provide different
product from the exiting one that helps to provide higher satisfaction to customers.
Innovation funnel is a structure which is used to create new ideas for
organisation. This is used to take all the information thorough external
sources of organisation like target market, customers and cultural. This is
includes three step and in last step organisation get final results to innovate
new product.
P4 Development in frugal innovation
Frugal innovation is useful for any organisation because it support in providing ability or
capacity for taking any kind of risk. It also known as cost reduction process in which company
plan and make strategies for minimising expenses as well as attracts more customers towards
organisation. EE limited also focus on offering innovative and new technology of products and
services with affordable price that customers can easily buy the product. Apart from this, frugal
innovation is defined as mindset as well as flexibility approach that helps in providing growth
opportunities.
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This is the essential tool and technique which provides various opportunity for develop
economies for many reason. Every business or firm generally adopt new ideas and innovation for
selling their goods and services (Godin, 2012).
There are several principles of frugal innovation which helps in making good brand
image in the competitive market and these are as follows:
Improving power of purchasing: In this, it helps in improving and enhancing the power
of purchasing which can be possible through attractive price of products and services. EE limited
company generally focus on their product's prices as they make strategies of pricing according to
competitors and cost of productions. Organisation can earn more money as well as generate
profits through improving purchasing power and they also consider quality of products and
services.
Resource management: Frugal innovation is very useful in managing available resources
which helps in getting maximum outputs through limited inputs and utilise these resources in
effective manner. Company can use this process for better allocations of materials among various
activities for the purpose of increasing productivity.
Redesign: Every organisation adapt new technologies and innovative ideas for improving
their existing products and services as well as its quality that support in attracting number of
customers. Company conduct market survey or research for analysing the customer's demand
and needs and produce a particular products to meet their expectation level. So it can support to
the organisation in creating goodwill among competitors and achieve competitive advantages.
Role of frugal innovation:-
Frugal innovations generally use for improving existing products within the organisation
and make cost effective that customers can buy easily. So it is beneficial for creating consumer
awareness as well as attract them towards organisation's products. This process if effective that
increase purchasing power of consumers and also provide better opportunity for generating
higher profits and enhance productivity (Hoque, Chishty and Halloway, 2011). This innovative
process play various roles in the organisation such as:
Shaping the consumer behaviour: EE limited provides good quality of products and
services to their customers and also focus on increasing satisfaction level through cost effective
products. Company provide new and featured products to the consumers at lower cost which
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helps in attracting them towards company and make loyal. This process is supportive in
improving customer's purchasing power as well as their demand for a particular product.
Iterate and Engage: It is important to engage with customers for knowing their special
demand and needs which helps in maintain long term relations with them for achieving future
growth. EE limited can reach at potential customers through attractive pricing and quality
products and services.
Beneficial for sustainable solutions: Frugal innovation support in achieving sustainable
growth within organisation by finding best solutions regarding any problems or issues. So
company can launch new products with adding some values and features in the market and use
effective tool for promotion to attract more individuals.
Task 3
P5 Importance of the commercial funnel and the process of new product development
Commercial funnel is defined as the process for identify potential consumers and study
about their behaviour regarding buying any products and services. Company can find their
buyers through effective study through segmentation which helps in analysing buyer's choice,
genders, income status, religions etc. there are various elements involved in this as activity,
demands, new market trends, curiosity, wants and awareness. Commercial funnel play important
role in providing informations to the mass or huge audience regarding any products and services
so it is helpful for the EE limited in modifying their existing products as well as launch new
products and services. Here are some importance which helps in achieving achieving goals and
objectives such as:
Cost minimisations: Company can reduce their production cost by utilising resources in
effective manner. They make strategies and policies for adoption which helps in getting best
outcomes. So proper scheduling required for reducing wastage and increase more profits.
Improve quality: It helps in improving the quality of products and services by identify
several ideas and innovations. EE limited company can enhance their product's quality for
satisfying customers (Huizingh, 2011).
Increase profitability: Company can maximise their revenue through increasing sales
volume which support in building good brand image among competitors and also make strong
financial position. It can support in attaining future growth and objectives of an organisation.
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P6 building an innovation case for the company
There should be a systematic and appropriate case of innovative business which help to
understand regarding various policies and activities for effective organisation. It includes several
plans such as:
Identify objectives of an organisation: For adopting any new or innovative ideas, it is
must to identify organisational goals and objectives that helps in making effective plan and
implementation of strategies according to plan.
Research and survey of market: This process helpful in analysing market trends,
customers and competitors. So it is essential for conducting research which support in identifying
consumer's needs, wants and demand in appropriate manner.
Evaluation: It is very important to review about plan executions as the manager of
innovation plan review and evaluate the particular activities and ensure that it will bring best
outcomes. So company can obtain their tasks and objectives in sufficient manner with the help of
innovation.
Organisation requires various funds for implementing their plan and strategies so it is the
best opportunity of EE limited to adopt structure of panning as well as develop the new ideas
innovative ideas. Investors can helps in providing financial facilities to the firm for implementing
their ideas. Investors can be as follows:
Venture capital funds: Investors do not take risk as well as not interested to bear any
risks or uncertainties so that they ask company regarding partial ownership for investing their
money.
Banks: They play vital role in providing funds for developing of an organisation so they
support to both industries small as well as large corporation. Company can execute their new
innovative plan and ideas through loan facility but they have to reveal their plan to the bank so
that they will decide for investment.
Task 4
P7 Different tools and techniques to develop, retain and protect intellectual property
Government provides some rights and legal authorities to the company when they launch
any products and services as these support in protecting their firm from external companies and
any persons (Inauen and Schenker-Wicki, 2012). Organisation can make restrictions in
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exchanging and sharing business entity in producing same products and services using different
ideas and techniques in the marketplace. So government grant permission to the company for
particular products and provide legal authorities and rights so that no one can use this name as
well as substitute of goods and services. There are some legal authorities which helps in
providing protections such as:
Copyrights: This method is useful in better protection which is provided by law of the
nation. These types of protections provided for tangible things such as painting, films,
photography, novels, books, software and biopic whether those published as well as not
published. So company can protects themselves from copiers who copy or steal ideas of the
organisation (Jagoda and et.al., 2011).
Patents: This is also helpful for protecting from other copiers and it grant by the
government to the company for innovative products and services. So they authorised some rights
for preventing anyone for inventing same products and sell it without any permission. So
organisation generally take grants from government regarding their products and services for
protecting from external companies.
Trademark: This generally use for company's tags , logos and brands so it is consider
various tag lines, labels and captions on a particular products. According to companies act, they
provided or granted a particular licenses so that no one can copy or steal company's logo, name
and any other sign (Hoque, Chishty and Halloway, 2011).
CONCLUSION
From above the report, it has been concluded the concept of innovation and
commercialisation is very important for developing the business and achieving future growth as
well as competitive advantages. In this report, EE limited adopted various strategies for
improving their product's quality. Various components are discussed in this report such as
mission, vision, teamwork and organisational culture etc. Frugal innovations is helps in adopting
many changes for reducing wastages, costs during production process. EE limited can follow and
adopt various strategies to increase their market shares and launch new innovative product in the
markets.
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REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
commercialization through networks. Journal of Business Research. 65(2). pp.198-206.
Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Cunningham, S.W. and Porter, A.L., 2011, July. Bibliometric discovery of innovation and
commercialization pathways in nanotechnology. In Technology Management in the
Energy Smart World (PICMET), 2011 Proceedings of PICMET'11: (pp. 1-11). IEEE.
Ettlie, J.E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp.440-454.
Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2).
pp.262-271.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.
Griffin, A., 2010. New‐Product Development Innovation and Commercialization
Processes. Wiley Encyclopedia of Management.
Hoque, M., Chishty, M. and Halloway, R., 2011. Commercialization and changes in capital
structure in microfinance institutions: An innovation or wrong turn?. Managerial
finance. 37(5). pp.414-425.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Inauen, M. and Schenker-Wicki, A., 2012. Fostering radical innovations with open
innovation. European Journal of Innovation Management. 15(2). pp.212-231.
Jagoda, K., and et.al. 2011. Development and commercialization of renewable energy Hoque,
M., Chishty, M. and Halloway, R., 2011technologies in Canada: An innovation system
perspective. Renewable Energy. 36(4). pp.1Wonglimpiyarat, J., 2010266-1271.
Online
invention and innovation 2018. [Online]. Available through:
<https://cmsdsquires.wikispaces.com/Big+Idea>
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