Innovation and its Impact on Business

This assignment delves into the crucial role of innovation in the success of businesses. It highlights how innovation drives changes in business operations, employee roles, and leadership styles. The text emphasizes that innovation is fundamental for achieving long-term goals and attracting new customers and markets through the development of novel products and services. Additionally, it discusses the financial aspects of innovation, including the need for funding to develop and promote new offerings.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explain innovation and its importance..................................................................................1
P2 How organisational vision, culture and teamwork shape innovation and commercialisation
.....................................................................................................................................................2
LO 2.................................................................................................................................................4
P3 Evaluate 4 P's Of innovation and its use................................................................................4
P4 what is frugal innovation and how it is used ........................................................................6
LO 3.................................................................................................................................................7
P5 Importance of commercial funnel and application of NPD of innovation............................7
P6 Developing case for an organisation......................................................................................8
LO 4...............................................................................................................................................10
P7 Different tools business can use to protect knowledge and intellectual property ...............10
CONCLUSION:.............................................................................................................................11
REFERNECES..............................................................................................................................12

INTRODUCTION
Innovation is the base of business to develop new products to survive for long run. These
innovations can be in process or methods. Innovation occurs due to change in taste and
preference of customers or in market condition. It helps business to attract new customer and
increase in sales. It allows business to modify their goals and objectives. Moreover, it improves
business efficiency and creates opportunities for growth. This assignment will throw light on
significance of innovation and how it builds culture and goals in business. Also, what are the 4
P's of innovation and new product development is described. In next section the different tools
that can be used for protecting the intellectual property and knowledge is discussed (Cockbill
2017). For this assignment organisation selected is Qubic Hotel. It operated in London, UK.
LO 1
P1 Explain innovation and its importance
Innovation is a process that creates growth opportunities for organisation by developing
new products or services (Definition Of Innovation And Its Importance, 2015). It changes
process and methods through which products are produced. Innovation is also done by changing
some product features to attract new customers. By developing new products business is able to
survive for long term in the market (Dutta and Folta, 2016). There are several benefits of
innovation, it does not create opportunities but also helps in making something unique.
Qubic Hotel can follow several strategies to developing new product or service. It will
help them to sustain and compete in the market. Also, they will improve service quality and
maintain their brand image and goodwill in the market.
Building a diversified and team work place- By innovating process creative working between
employees takes place. It helps in bringing different employees to work together by
understanding and communicating. They contribute their efforts by giving different ideas. They
help each other by providing creative ideas to complete task (Sengoku, 2015). In this way
innovation allows changing the working environment within organisation.
Providing modern tools to workers- changing process and methods brings in new machines
and tools for working. For using these tools employees are given training that increases their
ability and skills. This changes their way of working and thus leads to improve their
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performance. With this an environment is created that motivates workers to put more efforts in
achieving goals (Do, and et..al 2015). Also, new equipments help Qubic Hotel employees to
complete task in effective way.
Looking to the future- By innovating products or services business looks into the future about
what further changes can be made. This is useful in identifying needs of customer and
developing products to satisfy it. With innovation business goals and objectives are modified and
it helps in shaping business activities. Also, the focus is towards how modifications can be done
to expand business.
For example- Apple launched Ipod as their new product. This helped them to focus on the
future. They identified customer needs and made changes in product features accordingly. It
helped Apple to grow very rapidly (Chen, 2014). As a result today Apple is known as innovative
company.
Innovation- it refers to the implementation of process or idea for the first time. Also, it means
adding value to a thing that already exists. For example- implementing idea to improve quality of
service.
Invention – it refers to idea or product that has never been made before. It means complete
creation of new product. For example – developing of pick and drop service from airport for
customers in Qubic hotel
P2 How organisational vision, culture and teamwork shape innovation and commercialisation
Innovating product or service creates changes in business operations. It changes
employees roles, responsibilities, etc. along with leadership style. It is because mission, goals
and objectives are changed. Innovation changes organisation vision. This highly affects the
organisational culture because entire functions are modified. Employees have to work in new
ways to adopt change. It enhances their thinking ability as they learn new things. It changes
culture as activities are transformed and it allows employees to work in creative way. Goals and
objectives are also modified enabling them to enhance their performance. Moreover, overall
business activities are changed.
Innovation
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From innovation team work is increased as employees are allowed to work together.
They are assigned new duties by managers (Adelowo, Akinwale and Olaopa, 2017). Every level
of organisation implement various strategies to innovate procedures. Leaders role is to motivate
employees and enhance their performance. They guide them to complete task in creative way.
Team are created with diversified people so that ideas and views can be combined together to
achieve goals in effective way. Teams are developed in different departments and business
functions. This helps in giving shape to innovation and commercialisation.
Leadership -
Leadership style is also shaped as leaders have to change their style in order to implement
change. Their positions are replaced and new roles are given to them. Besides this, they have to
apply different leadership styles according to organisational culture. Once, an effective style is
implemented it helps in providing shape to innovation. For example- Steve Jobs applied creative
leadership style that was useful for Apple to continuously innovate new products. This helped
them to grow extensively in the industry (Greenaway and Rudd 2014).
Culture :-
Culture and team work helps in achieving goals effectively. There are different people in
a team, they belong to different caste creed, etc. so they communicate with customers and
helping them. Also, they find out new ways of completing task by bringing different ideas. Qbic
hotel should install new service or ways that creates a better organisational culture. For example
– they can build teams and assign work to them. It will help them to work with each other
effectively. Therefore, it can be considered as an important factor in innovation and
commercialisation in Qbic hotel
Teamwork
In an organisation a team consists of different person. They all work together in order to
achieve common goals and objectives. Different type of people interact with each other. They
respect and help each other in achieving goals and objectives. A effective team work will result n
creating a better working environment. Thus, Qbic hotel can divide the staff and employees in
some teams. This will create an environment of team work. This will help them to achieve their
targets and goals in given time period.
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Vision
The vision of Qbic hotel is to allow cheap accommodation services to people. It involves
different type of services. With this they want to expand in different areas within UK. . Also, this
will help them to gain a higher rate of productivity by satisfying a major rate of customers
Different people brings in different ideas. They help other in completing their task by
implementing their idea,. In this way goals and objectives are achieved. This allows employees
to work in creative way. Thus, an environment of innovation is created.
LO 2
P3 Evaluate 4 P's Of innovation and its use
Innovation in business is done b y taking the help of 4 P's . They create a base for
developing new products or service. These P' s shows that how business will innovate product or
service. Basically, there are two aspects in innovation. They are radical and incremental. Radical
shows the change in thinking of using a product. Usually, new products are developed in this.
But in incremental business operations are changed. In this the quality of service or product is
improved. They both are related to each other. The 4 P's consists of process, product, position
and paradigm. These are explained below:-
Process- It consists of methods or procedure that are used in developing goods or service.
Innovating process helps in reducing cost of goods and increasing productivity of business. It
also includes delivering goods in new ways. Changing process involves overall change in roles
and responsibilities of workers. They are assigned new roles and tasks to enhance their
capabilities. Moreover, training is given to them on how perform tasks or activities. Qubic Hotel
can change its process of delivering service to customers (Tsai, 2015). It will be beneficial for
them to attract new clients and retaining them. Besides this, they can improve service quality by
modifying process.
Position- This means the areas or region where innovation is taking place. Generally, it refers to
developing new markets for providing to customers. It helps business to increase its market share
and customer base. For this research is conducted to identify needs of people in different areas.
With this data and information business targets those areas. Qubic Hotel can increase it presence
in UK and neighbour countries that will help them to attract new people. For this social media
can be used to promote or advertise their product.
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Product- This is the most common innovation that occurs in most of the organisation. It helps
business to develop or create new product or service (Maritz and Donovan, 2015). This has to be
done to meet the frequent changing needs of customers. Also, it is useful in providing the latest
featured goods to people. Business is benefited by this as they can differentiate products on the
basis of its features. It is very risky innovation as it can sometimes lead to failure of product.
Besides this, effective resources and employees are required. It shapes business activities by
developing strategies. For example- Qubic Hotel can create service for low, middle and high
class customers.
Paradigm- It shows that how new product or market will be expanded. It provides a blueprint or
roadmap that shows how the overall process of innovation will be implemented. Paradigm is
useful in determining roles and duties to employee according to new process (Ahn, Minshall and
Mortara 2015). It also shows that what goals will be modified and how task will be performed
by employees. Qubic Hotel can creates short term goals so that it easy to achieve, then
accordingly long term goals can be developed.
Innovation funnel – It refers to developing process or product so that it can meet economical or
marker needs. It describes the steps through which new product or process is developed. Qubic
hotel can start pick and drop service from airports for customers. It is also known as NPD
process. It helps in refining the early stages of process so that it can be improved.
The most important part in innovation funnel is to develop a strategic plan. It helps in utilising
time and cost effectively. Also, it describes the concept through which innovation will be done.
The product innovation consists of steps that are strategic thinking, concept, plan, develop,
qualify, launch and life cycle.
Awareness: it will help in generating the awareness about its products or services. It helps in
identifying needs of people.
Interest: It is applied in marketing, the customers will look after the effective measure to get
more knowledge about the services
Decision: In this customer decides whether to buy service or not.
Action: In this stage the customer either drops the idea to make the purchase or buy the product
or the services.
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P4 what is frugal innovation and how it is used
Business gets successful only by innovating product or service. It helps organisation to
achieve long term goals in effective way. In this new ideas and strategies are developed.
Innovation provides a base for business to compete in the market with unique product or service.
It makes firm habitual to continuously innovate product to attract new clients. Thus, it enables it
to meet the demands of people and increases profits. With continuous innovation business grows
at slow rate but is able to survive for long run. Frugal innovation is related to developing
products or service for poor and middle class people. They focus of developing countries where
needs of these people are not met. The main purpose is not to earn profits but to provide product
at low cost. Moreover, mostly changes are done in production process to cut down cost. Business
aims to increase its market share in developing economies. Fugal innovation is based on several
principles that are frugality, flexibility, intuition, etc.
The targeted people needs are satisfied in order to improve their living standard. For this
marketing strategies are developed to deliver goods to them (Dutta, and Folta, 2016) Qubic
Hotel can focus on markets like India where large proportion is of middle class people. This will
help them to increase profits and sales. Hence, Qubic Hotel will be able to sustain for long run.
Frugal innovation – qubic hotel can improve their structure so that process of delivering service
can be reduced. It will also help in reducing cost and increasing customer' satisfaction. Funnel
development helps in lessening cost , unpredictability and its generation and make imaginative
thoughts of items and administrations.
Example- Qubric hotel can use technology in order to improve their process. They can
implement housekeeping software that will help in managing and controlling of day to day
operations. Also, it will help in better coordination between staff. This will lead to increase in
their efficiency.
Apple Inc.- Apple used frugal innovation for developing Ipod.. They launched this product in
2001 in developing and developed countries to attract middle and high class people. It
transformed the market as people were highly attracted towards it (Cockbill, 2017). The main
purpose was to provide a tool for enjoyment to people. Moreover, with this product Apple was
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given name as Innovative company. This helped Apple to grow at large extent covering entire
electronics industry.
Virgin group- This group expanded their market in various areas such as travel and tourism,
finance, etc. Besides this, they used frugal innovation to enter into mobile industry. It helped
them to attract middle class people and thus leading to grow and develop. For this managers and
leaders developed strategies.
Example – Renault uses frugal innovation in producing cars. They produce low cost cars that
allows people to buy them. Also, with this they are able to gain effective market share in
different markets.
LO 3
P5 Importance of commercial funnel and application of NPD of innovation
New products are developed to attract new customers and markets. New product
development (NPD) creates a base that can be used by business to grow very rapidly. It creates
opportunity to grab market share and earn huge amount of profits. (Dutta, and Folta, 2016 ). For
this data and information is analysed that provides what new features must be added in the
product. This allows business to create new product. In NPD various steps are followed, it
ensures that product is developed in correct manner. These steps involve idea generation, idea
screening, business analysis, etc.
Commercialization- A process that involves launching of a new product or service in specific
area or region. It provides new tools or equipments for marketing or promoting the product in
that area.
Business analysis- An analysis that is done to identify the cost, profits margin of product., etc.
This is done by top management (Sengoku, 2015). In this employees also identify that how it
will help in satisfy customer needs.
NPD is important for business in various ways. It is because of these reasons that is described
below :-
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New value for customers- It provides a new value to customers. It is because it consists some
new or extra features that generates extra value of product. This attracts customers towards good
to buy them.
Improved society- New products helps in improving the lifestyle of people. It gives them extra
benefits to fulfil their needs. This helps in improving their quality of life. Moreover, with this
their desires increases (Do, and et..al 2015). Also, it encourages other people to use that product.
This results in improving the entire societal status.
Continued existence of company- By using NPD company is able to remain sustain in the
market for long period. It helps in continuous growth and development of company. Moreover,
by identifying change in people taste and preference company develops products accordingly.
With this it becomes easy for business to provide variety of new products to people. This leads to
improve their living standard. Furthermore, Qubic Hotel can is based on innovating goods. It will
be difficult for them to compete with rivals if they do not create new products.
For example- - Qubic Hotel can provide new services by segmenting the markets. They can
identify needs of people and then provide services accordingly. It will help Qubic Hotel to
increase sales and expand in new markets. (Chen, 2014). In this way Qubic Hotel can expand
their business through innovation.
Commercial funnel will help in providing the feedback regarding the quality of services.
The process of NPD contains eight steps that will help in developing services and finding out
weak areas. Also, before implementing service it will help in ensuring whether that particular
service will be beneficial for Qubic hotel or not. Qbic hotel can provide new services to people
by doing proper planning. For example they can provide free Wi fi service to them. It will help in
attracting customers . Such features helps in maintaining the interest of the customers and that is
a very good factor for Qbic hotel.
P6 Developing case for an organisation
For developing and promoting new products business requires funds. It is very important
because without having sufficient funds business will not be able to develop new product. Also,
it will affect their operations and productivity. Funds are required to purchase raw materials,
machinery, promoting products. There are many sources through which business can acquire
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funds. (Cockbill, 2017).First option can be bank loan, but it can be a burden for them as they
have to keep some security for that. Also, it affects balance sheet of company. Second can be
venture capital, Qubic Hotel can borrow funds from there (Adelowo, Akinwale and Olaopa,
2017). This will help in performing business activities and functions. Qubic Hotel is developing
new product that will help in attracting new customers. In this case Qubic Hotel will implement
market development strategy along with product development. For this different tactics can be
used to manage business activities. It will help in achieving goals that has been set by managers.
Also, funds needed by Qubic hotel will improve their financial strength. With this they will be
able to make develop new products continuously. Moreover, according to fund borrowed
strategies are developed on how to attain set goals and objectives. The cited organisation is going
to develop new service that will help in attracting more customers and increasing efficiency. This
is done to increase sales and profits so that firm can gain more competitive advantage in the
market. This will also help in achieving goals and objectives that has been determined. The hotel
needs to develop new services so that it can grow and expand in new markets. For this they have
to innovate their services.
Qbic hotel can provide organic products such as soaps, food, etc. that will help them to
attract large number of customers. For this the hotel can look for different ways like dealing with
suppliers and distributors of organic products and food. This will be an innovation in their
products. Also, it will help hotel to increase customer satisfaction. With this they will be able to
retain them and compete in the market. By developing new process or products hotel can
increase its efficiency.
But in order to renew process they require funds. This can be acquired from either banks
or financial institutions. This will help hotel in developing effective product and gaining
competitive advantage in the market.
Budget
Expenses Cost (Rs)
Development of the business case 18000
NPD 9000
Manufacturing 3500
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Advertisement 5500
Employee training 700
There are several steps of creating business case that is as follows :
Define case subject
Research subject
discuss with stakeholders
get multiple solutions
review company mission statement
so possible solutions
Funding can be access from various sources such as banks, relatives, financial institutes, etc. It
will help in implementation of solutions that has been mentioned in business case.
LO 4
P7 Different tools business can use to protect knowledge and intellectual property
Innovation brings in new technology, formulas, methods, etc. So these have to be
protected in order to ensure that competitors do not use if for their benefit. These all are refereed
as intellectual property of company. Thus, it protects the sensitive and confidential information
of company. For this company has to use different tools to protect their IP. An IP includes four
rights such as patents, copyrights , trademarks and trade secrets (Greenaway and Rudd 2014).
First of all organisation must create policies to protect IP. It contains of rules and
regulation that describes how these formulas will be used. Besides this, they can legally register
their IP rights with government so that no other company can use it. This will give them a proof
of their IP allowing them to own it.
Qubic Hotel can protect its IP in a database. For this they can install anti virus and
firewall. Also, they can keep track records of data and information that is shared over the
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network. It will help Qubic Hotel to identify what data is been shared. The systems can be
secured with cloud computing.
Employees can be provided training on how to use systems and machines. This will help
Qubic Hotel to maintain knowledge within the organisation. Besides this, it will make sure that
worker do not disclose any information to others.
Example- Qubic Hotel can use different IP rights to protect their innovation. This will ensure
that no other company can use that formula, process or methods for producing products. Also,
they can install certain security measures in systems to protect it. Besides this, training can be
given to employees for keeping the IP confidential.
Tools are as follows :-
Patents – It is an invention that allows patent holder to exclude others from making, selling , etc.
of invention.
 Pros – It helps in reducing the competition among companies in the market.
 Cons – The process of registering a patent is very complex and incurs a lot of cost.
Trademarks- It is a word, symbol, design, etc. that distinguishes products or service of one
business from another.
 Pros – company can use the symbol worldwide. It becomes a common symbol for a
particular brand. This makes it easy in selling products.
 Cons- It is the weakest form of intellectual property as it is related to concept and not
product.
Copyrights- It helps in protecting works related to music, paintings, art work, etc. the holder has
right to create, copy, work under copyright protection.
 Pros- It helps in protecting creators of new works from unauthorised duplication.
 Cons – it makes it difficult to know what exactly constitutes copyright infringement.
CONCLUSION:
From this report it is concluded that innovation is a process that creates growth
opportunities for organisation by developing new products or services. It changes process and
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methods through which products are produced. Innovating product or service creates changes in
business operations. It changes employees roles, responsibilities, etc. along with leadership style.
Innovation in business is done b y taking the help of 4 P's . They create a base for developing
new products or service. These P' s shows that how business will innovate product or service.
Business gets successful only by innovating product or service. It helps organisation to achieve
long term goals in effective way. New products are developed to attract new customers and
markets. New product development (NPD) creates a base that can be used by business to grow
very rapidly. For developing and promoting new products business requires funds. Innovation
brings in new technology, formulas, methods, etc.
REFERNECES
Books and journals
Adelowo, C.M., Akinwale, Y.O. and Olaopa, O.R., 2017. Innovation and knowledge transfer in
Nigeria. International Journal of Research, Innovation and Commercialisation.1(1). pp.57-
73.
Ahn, J.M., Minshall, T. and Mortara, L., 2015. Open innovation: a new classification and its
impact on firm performance in innovative SMEs.
Chen, Y.L.A., 2014. Medicine innovation and commercialisation models: The plan, reality and
future. Australasian Biotechnology. 24(1). p.33.
Cockbill, L., 2017. Turning point: An eye to success. Nature.545(7653). pp.255-255.
Do, H., and et..al 2015. SME owner-managers’ anticipated returns to commercialisation: the
influence of organisational factors.
Dutta, S. and Folta, T.B., 2016. Venture capital increases a startup’s chances of issuing stocks or
finding a buyer. LSE Business Review.
Greenaway, D. and Rudd, C.D. eds., 2014. The Business Growth Benefits of Higher Education.
Palgrave Macmillan.
Maritz, A. and Donovan, J., 2015. Entrepreneurship and innovation: Setting an agenda for
greater discipline contextualisation. Education+ Training.57(1). pp.74-87.
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