Innovation: Concepts, Types, and Importance for Companies

Table of Contents
1. Introduction..............................................................................................................................................2
2. Discussion of invention and innovation ...................................................................................................2
3. Importance of innovation for companies.................................................................................................3
4. Types of innovation..................................................................................................................................4
5. The 4 Ps of innovation ..............................................................................................................................5
6. New Product Development (NPD) and innovation funnel .......................................................................8
7. Frugal innovation ...................................................................................................................................11
8. Conclusion..............................................................................................................................................13
Reference list .............................................................................................................................................13
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1. Introduction
The current discussion aims at identifying some of the main concepts of innovation. There is a
critical discussion of the advantages and drawbacks of the various approaches to innovation.
Based on findings, some relevant ideas for future developments are suggested to YOYO Drinks.
2. Discussion of invention and innovation
The analysis starts by explaining the nature of the term invention. The act of inventing means to
generate, to develop or to discover brand new device, process or practice. Each invention aims to
find out a unique scientific concept that has been accomplished after complete and intensive
researches or examinations. This also can be a recent method related to manufacturing, some kind
of improvement or new, modern product (Surbhi, 2017).
There is another term – patenting, that oftentimes is being associated with the inventions. This is
a kind of protection applied to the human intellectual property rights and it brings security of the
founder. There are certain requirements that should be met, so that a new product or practice
could be patented – on a first place it must be original, also surprising, exciting and beneficial
from a commercial point of view (Surbhi, 2017). This comes from the fact that the existing
copyright laws are all different across the nations and normally the privilege of patenting is being
pretty expensive.
Here is a simple explanation of the other term “innovation” – the concept is related to some
positive modifications or improvements of an existing product or particular service, so that their
value and profit could be reinforced (Surbhi, 2017). All aiming to satisfy the client’s needs better
and provide clearer solutions in various perspectives. The essence of innovation could be
expressed by providing updated products and services of high quality that would definitely meet
the constantly changing customers’ needs and requirements (Surbhi, 2017).
Innovations could have various interpretations. On the one hand, innovation refers to a
performance or establishment of an original production, some new procedures, facilities,
technologies etc. However, on the other hand, the innovation itself could be a part of particular
process improvement or evolution in terms of improving particular techniques. These changes
aim to bring fresh air in the current business needs. In a broad sense, innovation should be
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considered as general term that covers different ways of development, all leading to a better value
performed at the marketplace (Surbhi, 2017).
Innovation: According to Gross, it refers to the procedure which is useful in bringing he
creative and unique which is related with the products and services which impacts the success and
growth of company. It also has many factors which are useful in carry forwarding the process of
innovation as it include courage and uniqueness which are useful in driving the force of
innovation.
Invention: According to Mckeown, it defines the process of developing new product and
also put it into action. It also considered as the another step to develop a new product. It only
happens when new idea occurs and arrives in the mind of individual and also convert it into final
product. In addition to this, it also include lot of research to determine the market area because it
is a lengthy process.
Difference between innovation and invention
Basis Innovation Invention
Aim Its aim include values and
productivity in the existent
products and services.
Meanwhile, its aim consider
the launch of something new
and unique and also developed
by fresh talent for their suitable
customers.
Occurrence It happens only when company
describe and analyse that they
fails in order to provide
suitable things and developing
relations with competitors.
It happens when the new and
creative idea arrives in the
mind of person and for this,
they shape it according to the
requirement of customers.
3. Importance of innovation for companies
Innovations take considerable role in the biggest part of the modern companies, due to the fact
that the industrial and external environments are regularly altering and influenced by the need of
constant business improvements. The rapid changes in the working environment are crucial
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nowadays. Happily, this process seems much more accessible by the growing technological
progress and fundamental innovations that break the obdurate existing models (Mckeown, 2014).
The key to a successful, long-term production and business activity include the striving of the
companies to be more flexible, receptive to changes and open-minded. In this way, the rivals of
such innovated organizations will be also willing to focus on the idea of internal improvements.
The competition itself and the original ideas for high-quality production have extremely positive
impact over the common productior more comments, check presentation uploaded on
moodle. vity (Mckeown, 2014). But most importantly, all this deliver better services to the
customers and create a considerable group of loyal and satisfied clients (Mckeown, 2014).
The sources of innovation that could be applied by companies may vary depending on the
organizational characteristics, on the individual field of industry and the desired achievements.
Statistics show that the most impressive results in business improvement are due to reliable
partnership, collaboration and common efforts where enterprises are active in gaining knowledge
and skills to increase entrepreneurship (Tont and Tont, 2016). Such kind of activity is extremely
important for bigger manufacturing organisations, like auto companies, for example.
Technological upgrade and progress are one more crucial element of the overall development.
Based on it, the production capacity of the individual businesses to provide products and services
of greater quality, consistently grows. Innovation usually focuses on analysing and classifying of
the constantly changing external conditions (Tont and Tont, 2016). The significant trends of the
market and the altering customers’ needs, moods and believes are rather significant variables that
should be carefully considered by the companies’ management. All of the described elements
encourage the organisations to act more creatively and to follow new, innovative approaches as a
successful way to survive in the today’s challenging environment of the businesses (Tont and
Tont, 2016).
The recent market success of YOYO Drinks has been driven by the perfect orientation to the
customers’ needs and ability to satisfy them. As a part of the innovation progress, the company
appears to constantly gather, handle and examine the essential information included in the
customers’ feedback. Another important tool that the company uses is the information from a
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