[SOLVED] The Importance of Innovation and Invention in Business

This assignment discusses the importance of innovation and invention in business, highlighting their role in market expansion and diversification. It also explores the 4Ps (product, price, promotion, and place) as an innovation mix for companies to easily innovate and expand their concerns using original ideas. Furthermore, it evaluates intellectual property tools like trademarks, copyrights, and patents that The Pretty Dress Co. Ltd. must use to achieve long-term success.

Innovation and
Commercialisation

INTRODUCTION
Innovation is defined as the process of generating and innovating ideas into concern that
acts as a advantageous for a particular enterprise (Chand and et.al., 2018). Commercialisation is
the process to introduce new products into existing market. Thus, in the following report, The
Pretty Dress Co. Ltd. has been taken into consideration. It is a small scale business in United
Kingdom. Nature of the chosen business is that they deal in different range of dresses that
tailored for refined finish. Furthermore, it also provides source of income to the society to gain
positive business results into generation.
In this report, importance of innovation has been described along with organisational
vision and culture that helps in shaping innovation. Furthermore, comparison is done between
innovation and invention has been done. In addition to this, this report also describes the use of
4ps of innovation mix in development of frugal innovation. Moreover, different tools has also
been discussed that helps in protecting intellectual property.
LO 1
P1. Explaining innovation and determining its importance to organisation in comparison with
invention.
Innovation is a term that has been defined as that activity in order to translate ideas into
finished goods and services (Desmet, 2018). Innovation is also termed as application that helps
in meeting requirements or existing marketing needs. In addition to this, it also means to improve
the products and services that are already existed in The Pretty Dress Co. Ltd. .
The term invention is defined as a new idea in order to create new product or services for
the first time that has not been made before.
Importance of innovation
Innovation is extremely important for the success of a business. It helps in achieving
huge margin or profits for products that has been innovated. It is also essential for advancement
of society. Thus, new and innovative products helps in increasing standard of living of a people
and also increase opportunities in terms of improving their life. Hence, innovation takes place
when people think that old ideas in terms of products has been outdated or giving limited profits
(Differences between Innovation and invention, 2018).
Comparison between innovation and invention in terms of The Pretty Dress Co. Ltd.

Bases of Comparison Innovation Invention
Meaning It is something when someone
tries to improve the old
product or makes external
contribution on product or
services that is existed in a
particular market where The
Pretty Dress Co. Ltd. works.
Invention means to create new
products for first time.
Process The process of innovation is
easy as it requires modifying
the existed idea.
The process of invention is
hard as it requires totally new
ideas.
Handed over Innovation improves the
product that is invented and
handed to them.
New product is invented and
later it is handed to innovation
for further changes.
Skills required Technical and marketing skills
are required in order to
improvise products or services.
Technical skills are required in
order to invent new products or
services and bring it into
market.
Dependency Innovation mainly depends on
invention.
This is the first step in terms of
producing product so it doesn't
have any kind of dependency
on others.
In-charge It needs technicians and
designers that helps in
improving product constantly.
The in-charge of invention are
R&D departments that comes
up with new and unique
product.
Step It is a step in order to present
existing product with different
and unique ideas.
It is a first step in order to
bring out a new product.

P2. Explaining organisational vision, leadership, culture and teamwork shaping innovation and
commercialisation.
The main objective of innovation is boxing of ideas and invention in new way leads
towards actualisation of innovation and decoding new thinking (Galli and et.al., 2017). The main
need of both innovation and invention is in order to change products and services that has been
produced by The Pretty Dress Co. Ltd. Ltd. Furthermore, commercialisation is a term that has
been defined as the process of introducing new products and services into general market
(Reckwitz, 2018). Production, distribution, marketing, sales and customer support has been taken
into account which is basically required for achieving commercial success of upcoming products
or services. Thus, it plays unique role in terms of grouping to all innovation and invention,
marketing and communication to customers.
In order to commercialising product into market, different factors change operation of
innovating and commercialising. Culture of a particular organisation is nothing other than
encompassing all areas that aids in determining upcoming objectives and goals of the cited
company.
The main vision and purpose of The Pretty Dress Co. Ltd. is providing business with
cost-effective, innovative solutions and also implement towards the best possible quality in terms
of service. For this, they will have to introduce fresh and specific ideas in terms of products and
services that has been offered by them. Thus, they will also have to commercialise products into
market with innovated goods by incoming into industry with that. Thus, vision has the most
essential part in inventing and innovating process of a particular enterprise.
In addition to this, leadership is termed as method in order to achieve objectives and
targeted goals that has been identified by The Pretty Dress Co. Ltd. . These objectives help in
achieving long term success. There are different leadership methods that can be used which
includes autocratic, democratic, participative and laissez faire. But among all this, Autocratic act
as the best one as leaders that are available in The Pretty Dress Co. Ltd. are assertive in terms of
obtaining required qualities. Therefore, this method will help them in achieving success for the
cited enterprise and company may reach the boost.
The culture that is been involved in enterprise includes values, norms and attitudes of
employees those who are working in a company. It is that process that helps in doing various

things in a quoted company. It also has great impact on process of innovation and
commercialisation.
Team is that which leads in achieving targeted objectives and goals and also leads in
completing task that has been set up by The Pretty Dress Co. Ltd. Ltd. This team also helps in
formulating process of innovation and commercialisation.
LO 2
P3. Explaining 4ps of innovation and use of innovation funnel to shaping innovative ideas.
Innovation is the process that involves deliberate application of content, vision and also
opening so that they can gain greater or various values from the resources that includes all that
process that leads in generating new ideas and also converting those ideas into the useful
products (Homburg and et.al., 2017). Thus, 4ps of innovation has been discussed as per below
context-
Paradigm- This is the process that has been planned through which The Pretty Dress Co.
Ltd. face changes in terms of been taken advanced ideas and process as per thought process of
doing all jobs by the organisation buy facing situation and terror in new manner. The company
also has to plan regarding business as per changing situation and conditions. In order to provide
new products and services in market, The Pretty Dress Co. Ltd. will have to face false calls.
Product- Product plays important role in terms of increasing the value of the product and
the company offering that particular product to customers that are targeted by them as the
potential one. If new products and services are been launched by The Pretty Dress Co. Ltd. then
they must be able in order to add maximum value by adding the competitive advantage.
Process- Process is that way through which the customers gets the product easily. It is
being termed as an important issue because it takes longer time for delivering products and
services that possibility of reaching success is decreased (Reiter-Palmon ed., 2017). Thus, if
delivery process is short, the possibility of success increases.
Position- this is the one which the cited company wants to accomplish by process of
innovation and commercialisation. It has also been termed as the targeted content in context of
The Pretty Dress Co. Ltd. Ltd. Thus, the cited company wants to achieve the point that has been
dreamed by them with help of supplying the top-quality goods and complete work to potential
customers of The Pretty Dress Co. Ltd. .

Innovation Funnel
Innovation Funnel is the model that is common in every company and is used by them in
order to evaluate ideas and conceptualise products. There are different types of funnel by which
opinion can be further driven or featured. Further, it is also important in terms of achieving
objectives and targeted goals.
The first step of innovation funnel includes collection of information and also dealing in
analysing the uniqueness of ideas that easily fits or meets the demand of the customers.
The another one is Screening the best ideas that help by supporting the consequences and
also the opportunities that comes into mind. Thus, the best and most perfect idea that The Pretty
Dress Co. Ltd. Implements into action is decided by them that leads in achieving long term
success of the quoted company.
Thus, with the help of 4ps, it has been analysed that The Pretty Dress Co. Ltd. has to
follow them in order to achieve long term success.
P4. Explaining developments in frugal innovation and providing examples of using it.
Frugal innovation is defined as the process that helps in reducing the complexity and
price of a particular products and also its production process (Kalish and et.al., 2018). It also
means to remove the features that are not important from durable goods for selling it in
developing countries. This innovation also depends on various factors which includes political,
environmental and social that acts as the dynamic unit in terms of frugal innovation. This factors
assist in defining the innovation process. It also leads in reduction of cost in products that are
being produced in very down level. Further, it also helps in catering value for particular products
by moving towards the lower level in terms of buyers and also acts as the process of reducing
cost offered by the cited company.
Thus, The Pretty Dress Co. Ltd must try to reduce their cost of production of a cloth by taking
cheap materials and must sell them in developing countries. They must design in same way as
that of high cost product but remove some features that are not actually important. This will help
them in selling products in developing countries at low cost which in turn leads in high return.
This frugal innovation process will help in reducing cost of production and may earn high return
on investment on a particular product.
For Example-

If Deliveroo is taking procedure of frugal innovation into circumstance, they will have to take
into account various factors in crucial and significant way.
Samsung company noted and produced different smartphones for customers of India and UK.
This also comes under operation of such innovation. This is because of the customers have
different sensation, liking, request and selection. The UK people are refined and have knowledge
in high manner. This made Samsung companies to plan and launch the product in terms of smart
phones in UK. This was planned by featuring new and tangled functions and consumers of UK
try to spend more than of these products as compared to India.
Thus, it is the best if done in countries that has huge volume of poor people and where
products must be produced in such way that they have less functions complexity and which are
easily accessible for using phones.
Return on investment
Particulars 1st year 2nd year 3rd year 4th year 5th year Total
Total
benefits
£15120 £15,574.00 £16,041.00 £16,522.00 £17018 £80,275.00
Total
expenses
-4320 -4250 -4500 -4500 -4450 22020
Investment -6400
Net cash
flow
£4400 £11,324.00 £11,541.00 £12,022.00 £12,568.00 £51,855.00
Interest rate 9.00%
NPV 47573
Payback period 5 months
ROI 643%

LO 3
P5. Explaining importance of commercial funnel and application of New product Development
processing for commercialisation of innovation.
The term commercial funnel is outlined as the activity in terms of purchasing that is lead
by company to customers while buying product (Kong and Ko, 2018). Commercial funnel is also
known as stage of business process and neutral.
Importance of Commercial funnel
Commercial funnel is of key light and is also essential for concern in any business or
size. It also plays essential role in terms of building flourishing human relationship of business
and also helps in engaging with people that later assist in order to generate inquires, eligible
leads, possibility, income, etc. There are a good deals of other importance that has been included
in following context-
 Helps in reviewing new business opportunities.
 Helps in nurturing qualified leads.
 They also keep focus on the inquires. Also, helps in projecting goals that are reasonable and also obtain them from internal and
external sales team.
New Product Development application
To develop new product is that process which leads in order to bring new and innovative
commodity into the market (Li, Li and Lin, 2018). Thus, the cited business requires engaging in
this process because of the changes in taste of customers, increasing competition and advances in
technology or also capitalising new opportunity. Thus, entrepreneur of The Pretty Dress Co. Ltd.
Ltd. Knows that the productivity of a particular product is the only key that helps in developing
product in successful manner. Thus, the stages that are included in order to develop new product
are discussed as per below context-
 Generating- The cited company must generate the ideas to develop the new and best
product that can meet the needs and demands of the trendy customers. These ideas can be
generated with help of utilising both internal and external analysis of the enterprise
situation and also by analysing the present-day direction of market. This is key and
important stage for the company because in this stage innovative ideas has to be
generated.

 Screening- After the process of generating ideas, The Pretty Dress Co. Ltd. must set up
specific criteria and finalise the idea that has to be continued.
 Testing the concept- This step comes after screening ideas. in this step of new product
development, all ideas are being passed and testing is done that will lead the quoted
company in order to analyse about the working of a product and also its importance in
market.
 Business strategy analysis- In this process, The Pretty Dress Co. Ltd. has to analyse the
strategy that will lead them in deciding different methods for promoting new products
into targeted or suitable market for the product.
 Product development- After analysing the strategies or methods, product is developed.
Here the idea of producing particular product is transformed into concrete products.
 Test marketing- As development of product is done, prototype is been introduced in the
market that later helps in testing and taking answer of the new invented product. This will
help The Pretty Dress Co. Ltd. for further improvements and innovation.
 Commercialisation- In the stage of commercialisation, the product is finally ready and
later final decision is taken in terms of introducing new product in the market.
 Introducing- In this stage, new product is introduced in the market with help of
promotion and advertisement that includes true information. This will help The Pretty
Dress Co. Ltd. in attracting large number of customers towards the brand.
P6. Building an Innovation business case for organisation and ways for accessing fund.
Business case is a approach that involves process of various steps in systematic way. It
also leads in order to build or expand business into next level where the success actually lies (Li
and Yang, 2018). It is the most essential and modern method that is actually provided to all the
stakeholders in The Pretty Dress Co. Ltd. . This involves the following concept-
 It offers way with different creativity and also helps in opening bran-new process of
business.
 It also helps in furnishing different hints and also guidance that later aids in terms of
powerful and effectiveness of a particular case.
 The different step is formulating of case and cost profit investigating where workers of
The Pretty Dress Co. Ltd. clear up state of mind and misunderstanding.

 The other step is to develop new marketing strategy that helps in outlining tactical moves
that is absolutely different. The last but not the least step in this is to check the information entirely and also needs
USP to translated into case for fetching technical chance.
Access Funding ways
 Bootstrapping- Bootstrapping means the cited company uses private saving that is saved
for individual purchasing. This is the most easy and double-quick method.
 Friends or family- in this method, The Pretty Dress Co. Ltd. can invite their friends and
family for investing some amount for expansion and diversification.
 Crowd funding- in this method, people from various range are enclosed through net. It is
considered as the most joint way to access stock.
 Angel investors- this method involves those people whose main objective is to provide
help those who actually requires for expanding and diversifying business.
LO 4
P7. different tools that can be used to create, retain and assist knowledge and intellectual
property.
Intellectual property is a word that is defined as a concept of holding which basically
includes papers, patents and trademarks. This kind of place helps in inspiriting conception of
very large mixture of goods which are intellectual (Nguyen, 2018). Thus, to achieve this, the law
of a specific company provides assorted governing for The Pretty Dress Co. Ltd. and this are
been discussed as per below context-
 Patents- the precise of patent is granted for opening commodity and is given to those
who introduce products and also helps in terms of offering solution in technical way to a
particular difficulty. It also helps in proving owners right in order to except others to
make, use and also sell that specific product. Thus, if the cited company has right of
Patent than the company and also its logo and commodity will be protected by extra
activity. In majority of countries, this rights fall under civil law and the bearer will have
to take the action if any different person tries to infringe it. This law plays critical role
and leads in order to gain competing benefit.

 Copyrights- This law defend literacy and liquid work. The main aim of this is to protect
the annual report, broucher and many other important documents of a country. Thus, it is
also important for the cited company for using this as intellectual property that later help
them to protect brochure and many other things that are necessary. In addition to this, if
anyone uses this, than it will be against the law if they use it for achieving benefits.
 Trademarks- This law is extremely common that is utilized by company which aids in
terms of protecting names, words, symbols and devices which is used further in
connecting with goods and services which also helps in distinguishing the source. With
help of this law, the company can defend reputation of their brand and logo from any
mischiefs that may occur. In addition to this, if the cited company The Pretty Dress Co.
Ltd. uses this for protecting logo, labelling and also making them use trademarks in their
working environment.
CONCLUSION
From the above report, it has been concluded that, innovation and invention both has
essential role in market and making the company to reach the boost. It has also been analysed
that both these terms of innovation and invention helps in easily expansion and diversification of
The Pretty Dress Co. Ltd. In addition to this, it has also been analysed that 4ps are the innovation
mix that helps company for easily innovating and expanding their concern by using the
originative ideas. Further, this report also evaluates assorted intellectual property tools that
includes trademarks, copyrights and patents which The Pretty Dress Co. Ltd. must use to
achieve long term success.

REFERENCES
Books and Journal