Innovation Business Case for Smart Garbage Bin

This innovation business case focuses on the development and implementation of a smart garbage bin with AI capabilities for automatic waste management, optimizing the collection process and reducing costs.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
The major difference between invention and innovation along with the explanation of
innovation...............................................................................................................................1
Types of innovation................................................................................................................2
Importance of innovation in Big-Belly...................................................................................3
Analysis of different sources of innovation............................................................................3
4Ps of innovation....................................................................................................................4
What is meant by frugal innovation.......................................................................................5
PART 2............................................................................................................................................5
Importance of commercial funnel and application of New Product Development (NPD)....5
Innovation Business Case.......................................................................................................7
Evaluation of Different Tools for Protecting Intellectual Property........................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The set pattern of using different elements and alternatives to perform the specific tasks
and job is considered as the innovation that is effectively implemented in the workings of
organisation. Thus the innovation can be used in the confines of an organisation to introduce any
existing product with a enhanced level of potential to increase sales and profitability by it. The
respective organisation implements such a level of innovative ideologies in the manufacturing of
current product and services to promote the said brand as well as to compete efficiently with the
influential market rivalries. Thus such use of the innovation within the organisation directly
interrelate it with the commercial policies. Thus the effects of both the factors innovation and
commercialisation hold the respective significances in terms of the growth and survival of the
business.
The report here is presented in relation to the big industry of waste and recycling
management Big Belly. Thus the report paper comprises of the significant differentiations
between invention and innovation. The importance and need of innovation in the said
organisation are also discussed in this project. It combines the 4 P of innovation and innovation
funnel whereas it also throws light on the sources of innovation. The overview of frugal
innovations and funnel of commercialisation is also given. Along with all these essential
information the project does also signify the tools and cases for the securing the intellectual
property.
PART 1
The major difference between invention and innovation along with the explanation of innovation
Innovation: The process of combining the certain operations and tasks with the fresh and
unused criteria of working and performance to modify the respective products and services and
their functions is can be understood as the term innovation. The nature of innbovatio0n is to
emphasise more and more on to the creativity and unique ideologies and implementing the useful
changes in the procedures.
Differentiation between innovation and invention
Basis Innovation Invention
Aim The innovation is aimed at bringing more While invention has the main goal to
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values and certainly optimizing the
efficient use of resource to get the most
favourable outcome from the procedures of
existing goods and services.
create and introduce afresh product for the
consumer segment of respective
organisation.
Presen
ce
It takes place only when the operational
processes within the company are prove to
be less impact full to beat the competitive
rivalry of organisation, as well as it can
also be implemented when the said
innovative approach is evaluated as more
effective and efficient in comparison of the
existing procedures and elements.
The presence of invention cannot be
determined according to the plan of action
in the respective company. It does takes
place when a new thought or idea hits
directly to the management of the
organisation, thus the invention is only
applied when the organisation gets
ensured by its quality to satisfy the market
needs and demands on given standards. .
Types of innovation
The need of innovation in the management and operation for the growth and development
of the particular organisation is classified in certain groups which are evaluated timely to use the
right set of innovations within them. These classified parts are considered as the types of
innovation, and majorly there are only types of innovation which are as follows:-
Incremental Innovation- This is the first and foremost type of innovation it seeks to
incur less expenses for the overall process. Besides that it focuses on the current product and
services in the market and it optimize their technology and variations that ultimately enhances
the value of the products towards its respective consumer base.
Disruptive Innovation- Another name for this process is stealth innovation, it is known
as to apply effective and new techniques into the market procedure of company. It is more cost
ans time incurring as to operate such new technologies in the market, the management of the
company is compiled to make certain plan of action and it is essential to understand the need of
the market and analyze the competitive strengths.
Architectural Innovation- This is the type of innovation in which the whole procedure
is based on learning and adapting the skills and certain technologies in different marketplaces.
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The risk to introduce existing skill and technologies to new customer is quite low as these
patterns are already successfully practised by respective organisation.
Radical innovation- The last and the extensively used type of innovation is the radical, it
is certainly considered as generating new industry or technological department that act as an
efficient mode to develop the business and its stakeholders. It can also be classified as the
introduction of a new commodity sector to the market that is totally new and efficient for the
existing business procedures.
Importance of innovation in Big-Belly
The implementation of innovation is the most essential part in performing the operations
of organisation. Thus with the help of innovation the respective business gets certain
opportunities to attain its goals and objectives in the most effective and efficient way. The
innovation duly achieve the set targets of business by involving more and more of fresh factors
to the process of its operations, the innovation can significantly take place in any of the working
element of Big Belly, thus it can vary from manufacturing , marketing, distribution to packaging.
The detailed importance of innovation in context of Big Belly is as given below:
Continuous Improvement:
The innovations in a company help it to work continuous in a straight growing upward
motion. In relation to Big Belly the innovation that is used within its procedures would help it to
maintain the balance among effective productivity and organisational management. Thus the
innovations would also lead to the profitable actions and enhance the capabilities to win the
market share from its competitive rivals.
Unique Selling Point (USP):
The unique selling point is the most effective way to beat the extent of competitive
rivalry. Thus the Big Belly can introduce certain new innovation in the practice of waste
management that could lead to get the optimum shares of market. Thus implication of all such
remarkable innovations within the organisation would help to create a unified value and
recognisance of its offerings
Analysis of different sources of innovation
The source and rationale for the occurrence of innovation in the confines of an
organisation are needed to be evaluated for the effective control and monitoring of these
resources. This helps a company to deeply understand the thought and all other concerning
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factors responsible for the implementation of innovation. Thus such aspects are presented here in
relation to Big Belly.
Vision:
The ultimate goals and objectives which are determined by the organisation for the long
time period are called as its vision. The pattern of working and priorities to perform the
operations and organisational culture is all significantly adjusted in a way to attain the vision of
the Big Belly.
Leadership:
The leadership is the countable source as it maintain a significant balance among all the
workforce of the organisation as well the other factors of the business. Leadership is regarded as
the driving force to facilitate achievement of any task or activity in due course of time. This is
responsible for applying the innovative process in the operations of Big Belly.
Culture:
The certain ideas and thoughts that implemented in the organisation is called as the
culture. The culture within Big Belly is determined as the most systematic and formal in nature
that is used to develop the ideas and innovative format to make the company' s procedure more
efficient and effective in terms of achieving higher goals and objectives.
4Ps of innovation
The firm is enabled to explore and evaluate its surroundings and its effective position in
the market, this can be analysed by the performance of innovation mix that is consists of 4p of
innovation. This model was devised by John Bessant and Joe Tidd (Haron, H. and et. al., 2018).
These 4 p s of innovation seeks to promote the idea and generation of creative thought within the
procedures of the organisation. Thus all these Ps are here described in relation to Big Belly are as
follows:-
Positioning innovation: This innovation technique is based on the positioning of current
market. The change in market ideologies is considered widely as the positioning innovation. For
example: Big Belly can do positioning innovation by making the garbage bin commercially
available which will result in steep reduction in production costing of such bin.
Process Innovation: This innovation type follows the pattern and procedure to
implement the new working styles in them. For example: Big Belly executes this type of
innovation by reducing the overall cost of production through elimination of human resources
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involved in the operations. This will take place as the innovation in the garbage bin is to install
AI capability within the bins for the facilitation of automatic waste management.
Product Innovation: The certain new and fresh changes in the product to get the
optimum outcome from all the current offerings within the marketing. For example: Big Belly
incorporates product innovation by launching garbage bins having AI capabilities.
Paradigm innovation: it is based on the change of the models of alternative that the
respective company or its competition is doing. For example: Big Belly facilitates
transformation of its business model for faster incorporation of innovation and new technologies
within the waste management procedures.
What is meant by frugal innovation
By the term frugal innovation, it can be easily stated as the implementation of innovation
and new changes that the company does within its current offerings. In this relation, it has been
identified that some of the prominent examples of frugal innovations are Ryanair in the form of
frugal service innovation along with TATA Nano in the form of frugal product innovation.
Thus the frugal innovation is currently applied by Big Belly and its key factors that help in to
simplify the process of this frugal innovation are as follows:
Investigation: the first key step is to investigate, it includes the factor such as evaluation
of the innovative plan regarding the launch of new offerings by the organisation.
Development: after the investigation it became necessary for the management to develop
the overall procedure in terms of new product or services according to the need and demand of
the situation.
Shipping of products: it includes the important aspects of distribution and transportation
of the respective products. Thus the shipping of product is most crucial to complete the overall
process of frugal innovation.
PART 2
Importance of commercial funnel and application of New Product Development (NPD)
Commercial funnel is regarded as the journey that a customer undergoes during the
tenure of making a purchase of product or service offered by company at market place (Olson, D.
and Cohen, M.S., 2019). By leveraging commercial funnel, Big Belly can significantly attain the
attention of more number of individual and thereby influence their purchase behaviour and
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characteristics in an effective manner. A number of stages are associated with this process such
as opinion, preferences, awareness, purchasing, considerations etc. All of these elements are
taken into consideration by a firm in order to persuade the customers to make a purchase of the
organisational offerings. Through this, Big Belly can get assistance in devising strategic
marketing practices and initiatives, thereby aiming to develop effective networking with the
customers so as to retain them in the long run.
New Product Development can be defined as the procedure through which development
of a product or service having unique characteristics, take place. It is a process through which an
entity can facilitate increment in its sales figures along with its profit margins. In this regard, it is
ascertained that Big Belly is coming up with smart garbage bin for which it has to implement the
new product development procedure. Thus, the various stages through which the same will take
place are explained underneath:-
Idea Generation: This being the first stage of the process is associated with emergence
of ideas for the development of new product. In this relation, to get idea, the concerned waste
management executes brainstorming sessions whereby a number of effective ideas were
collected from the employees.
Idea evaluation: The next stage marks the evaluation of all the idea collected as a result
of idea generation procedure. The evaluation by Big Belly is done on the basis of aspects like
feasibility of idea and the capability to fill the market gap.
Development of Concept: This is the stage whereby efforts are taken up by a company
to convert the selected idea into a product concept. Big Belly hereby devises a plan through
which it would convert the idea of development of smart garbage bin into reality.
Marketing Strategy: It is the stage which marks the creation of strong and robust
promotional strategies through which the entity can gain the attention of large number of
customers towards the new product or service. With respect to this, the respective company has
decided to leverage social media as the strategy to create awareness among the public regarding
the smart dustbin produced by Big Belly.
Business analysis: Hereby, Big Belly makes analysis regarding the cost, sales price and
profit margin for the smart garbage bins.
Development: In this stage, the efforts to actually develop the product take place. In
relation to Big Belly, it can be said that the smart bins would be developed here.
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Test Marketing: In this stage, market testing is done by the firm by introducing the new
product within a small section of society. Through this, Big Belly intends to gain knowledge of
the reaction of customers towards smart garbage bin.
Commercialisation: Hereby, the new product developed by the company is introduced
into the market. Thus, Big Belly herein introduces smart garbage bin within the whole audience
to fill the market gap and also duly meet the demands of customers.
Innovation Business Case
Executive Summary: Big Belly is an organisation functioning in waste management
industry and engaged in developing smart solutions for waste disposal.
Problem: This organisation is encountering a decline in sales with the passage of last
some years. To counter this, Big Belly requires generating a smart solution through which the
revenues as well as profits margins of the entity can enhance.
Goal: To enable development of smart city by coming up with smart waste solutions.
Solution: Cost leadership is ascertained to be one of the best ways through which entity
can balance the high cost structure of the company. By implementing this strategy within the
confines of Big Belly, the corporation can cut shot its overall cost of operations and thereby
enhance the profit margins simultaneously. Further, Big Belly is also considering the option of
automating some of the operational procedures so as to eliminate the cost spent on providing
salaries to human resources engaged in carrying out such activity.
Innovation: The problems identified in context of Big Belly are being solved by
execution of automation within the operations of the respective company. This will result in a
sharp decline in the overall cost of production and other operational activities for the entity.
Further, the entity is developing smart garbage bins with the help of New Product Development
procedure. Such bins would be instilled with AI capability owing to which the capacity of such
bins would get enhanced by 5 times. Thus, in this manner, through the effective management of
waste, Big Belly will be able to achieve its objective of developing a smart city.
Sources of Funding: Finance is regarded as the life blood of a business. There are
various alternatives available to a business for the purpose of procuring funds. While choosing
the right time of finance, many factors are taken into consideration such as time period,
ownership, control and their sources of generation. Below is the analysis of some of the sources
of finance:-
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Bank Loan: Loan is an amount of money borrowed for a set period of time within a repayment
schedule. The amount of repayment depends on the size and duration of a loan and the rate of
interest. It is provided to meet the needs of businessmen, partnerships or sole proprietorship.
Today, Bank loan has become very important part of business.
Advantages: Bank loan provide cheap rate of interest as compared to loan from financial
institutions such as NBFC's. One of the biggest advantage is that it provide tax savings as interest
is deducted from taxable income. Also, loan does not prove any burden for business as it is paid
in instalments and at a fixed period of time.
Disadvantages: It is difficult for a small business to obtain loan because they don't have
the track record of the business. Generally, bank lends loan carefully to the business after seeing
the solvency capacity of a business.
Peer to Peer lending: Peer to Peer lending is also known as P2P lending, means to provide
finance through online by matching lenders and investors. It has become one of the attractive
investment options across the globe. In this, lenders get high rate of return n their investments
and they can see all details of investors before lending them.
Advantages: One of biggest advantage is that P2P lending is fast and convenient source
of financing as it is online based. It provides more flexibility as it provides less interest of rates
to borrowers as compared to traditional form.
Disadvantages: There is no involvement of government in peer to peer lending and no
guarantee in case of borrower's default. Some legislative jurisdictions do not allow lenders or
investors to invest in peer to peer lending.
Angel Investors: Angel investor can be defined as an investor with high net worth that is
engaged in provision of financial aid to start ups and ventures.
Advantages:
It is relatively less risky and involves lower monthly fees. One of the most prominent merits
linked to usage of this source of finance is the experience held by these individuals which
provides assistance in decision making process.
Disadvantages:
In an instance whereby the entity runs in an effective manner, angel investors demand profit
share from the company, creating difficulty for the entity.
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After analysing the above different types of alternatives, Big Belly has decided to obtain
funds via loan from bank. This source has been selected looking upon its secure nature. In
addition to this, it is determined that the interest of bank loan can be claimed by Big Belly as
deduction under the section 80(c).
Monitoring and Control: It is important for an organisation to conduct monitoring and
controlling in an instance whereby a new product is created and introduced it market. For this
purpose, Big Belly leverages 2 effective techniques named Benchmarking and Key Performance
Indicators. These techniques provide aid in determination of the extent to which the new product
(smart garbage bins with AI capability) became successful in catering to the demands of
customers and filling the market gap.
Evaluation of Different Tools for Protecting Intellectual Property
The intellectual property right have multiple tools in terms of securing the intellectual
content of an individual or a group. These tools are registered by the governing authorities to
protect the respective articles these tools are here analysed as follows.
Trademark
A Trademark is a symbol of intellectual property that derived and focuses on symbols,
tags, recognizable sign, design or expressions that help to identify the product and services from
the preferences to others. Trademark is also known as a service mark.
Advantages - Trademark used to consists of a one individual owner. It does contain the
legal entity without any involvement of illegal activities. Proper trade mark provide the authentic
or official symbol. Having a trademark provide the protection of owner's product and services
that no other company can use that.
Disadvantages - Trademark only registered by big companies ownership it is not for
smaller companies. It consumes more time and money in context of having weather it doesn't
allow to other company use the same trademark when it is officially used by other company.
Copyright:
The Copyright compresses the legal entity of intellectual property to their creator,
copyright it comes to derived from the word 'copy', that means its only driven or responsible of
copyright to those who are original owner of the particular their product and services.
Advantages - A copyright provides a solo produce and reproduce their work in terms
creator's intellectual property such as Media and Content work. It provides the protection to
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stolen and uninterrupted from others. Copyright permit the creator of copyright with the aim to
uses their work where it reflects morally objectionable. Proper registration of copyright
certificate work as full proof evidence to claim the creator of copyright in case if any other uses
as in illegal way.
Disadvantages - To acquire copyright it will lot of consuming the time and money
required, Moreover copyright doesn't permit of ownership it only able to access of exercise the
right granted. Having a copyright is a risk while other can use it for profit motive or other illegal
activities.
On the basis of above discussion, it can be said that Big Belly should make use of trademark to
protect the innovation done by it as this will provide the innovation with a unique symbol after
which it cannot be copied by any other company.
CONCLUSION
On the basis of above discussion, it can be said that innovation is a procedure which
when executed within a company intends to inflate its strategic positioning by effectively
appealing to the customers prevailing in market. Further, it has been analysed that
commercialisation is crucial as it helps in bringing the innovation among the people. Through the
commercialisation of innovation, an entity intends to enhance its revenues as well as
profitability. In addition to this, it has been acknowledged that new product development
procedure is one of the most important parts of innovation as it results in creation of an
innovative offering through which the company fills the market gap. Besides this, it is recognised
that it is important for a company to develop an innovation business case so that the development
as well as launch of innovative product in market can easily be planned and managed. This
ensures the derivation of favourable results as a result of execution of NPD and
commercialisation procedures.
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