Innovation Driven Organizational Success

This assignment focuses on the critical role of innovation in driving an organization's success. It emphasizes the importance of understanding and adapting to customer interests and buying behaviors through research to gain a competitive advantage and enhance profitability.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Difference between innovation and invention and importance of innovation to
organisation.................................................................................................................................1
P2: Contribution of organisational vision, leadership, culture and teamwork in innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................4
P3: Analysis of 4P’s of innovation and application of innovation funnel in development of
innovative ideas...........................................................................................................................4
P4: Development in frugal innovation........................................................................................5
TASK 3............................................................................................................................................6
P5: Use of NPD for innovation and commercialisation and importance of commercial funnel.6
P6: Development of innovation business case............................................................................7
TASK 4............................................................................................................................................9
P7: Evaluation of the tools which are used by the organisation to develop, retain or protect
knowledge and intellectual property rights.................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Innovation is the process of changing something into new and innovative which attracts
and influences interest and buying behaviour of large number of customers. Therefore, it is
important for every organisation whether small, medium or large to bring new innovative
changes in their organisational structure and exiting products and services in order to survive in
competitive environment for longer period of time. It also makes positive impact on their
profitability as well. Ensoft Ltd, a small sized UK company which deals in providing computer
related services and consulting is taken for the purpose of preparing this report. The project
includes the benefits of innovation and its comparison with invention. The project report also
covers the contribution of company’s vision, culture, leadership and team towards developing
innovation and commercialisation. Analysis of 4P’s of innovation along with the application of
innovation funnel in development of innovative ideas is also discussed under this report.
Importance of commercial funnel and adoption of NPD is also summarised under this report
(Antonelli, 2014).
TASK 1
P1: Difference between innovation and invention and importance of innovation to organisation
Innovation and invention both are different aspects and its own importance on the
operation of an organisation. Both these concepts help management of an organisation to achieve
competitive advantage market and sustain for longer period of time. Ensoft Ltd, a small sized
UK company which deals in providing computer related services and consulting. Thus,
implementation of innovative technology in development of software maximises the satisfaction
level of customers as well (Baily and Chakrabarti, 2011).
Difference between innovation and invention
Innovation Invention
Innovation refers to bring changes in
something with a motive of enhancing their
effectiveness and efficiency.
Invention refers to create something new
which are introduced in market for the very
first time
Its main motive is to get better possible
outcomes through adding value to existing
products and services.
Its main motive is to make typical task easier
through creating new ideas and methods.
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Any department can introduce new and
innovative changes in their business
structure,
R&D team of Ensoft Ltd are only liable to
create new ideas for the betterment of an
organisation.
Importance of Innovation to organisation
Innovation is an activity which performed to develop existing products and services
according to the needs and requirements of customers. This will help organisation in competitive
with their rivals though providing value added product in market. This, it is important for
management of Ensoft Ltd. to identify the wants and demands of their targeted clients and
accordingly develop software so as to bring easiness in execution of work. Generally innovation
brings both internal and external benefits. Internal benefits refer to the development of skills and
capabilities of workers through providing them an opportunity to work on using innovative
technology. It brings motivation and self confidence among them which ensures commitment
with company for longer period of time. External benefits include competitive advantage, higher
profitability, strong brand image etc.
Importance of innovation:
Application of best methods: Adopting of innovative technologies in different
department of an organisation help in achieving desired goals and objectives within limited
period of time. Innovation can be implemented in any business operations such as production,
marketing process etc. which helps in bringing efficiency in their work. For example, developing
existing software with the help of employees efforts and knowledge through which the Ensoft
Ltd. can able to shift customers from their rivals to their products and services (Brettel and
Cleven, 2011).
Competitive advantage: The main benefits an organisation gathered after adopting
innovative changes in the business activities is achieving competitive advantage. As Ensoft Ltd,
a small sized UK company which deals in providing computer related services and consulting
Thus, to provide computer related services and developed software which makes easy for them
to connect with the world. This will help in achieve huge profitability as well.
P2: Contribution of organisational vision, leadership, culture and teamwork in innovation and
commercialisation
Organisation vision, leadership, culture and team work all contributes valuable efforts
and role in building innovation and commercialisation in company. Therefore, it is important for
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management of an organisation to define vision and objectives to their employees which help
them in giving direction and guidance to perform as per the standards. As the there are number of
employees working in Ensoft Ltd. which comes from different backgrounds and cultures thus,
sometimes if becomes difficult for them to work with different employees at workplace.
Therefore, it is the duty of a leader to maintain culture and provide them healthy environment at
workplace which maximises their working behaviour in an organisation. Determining all such
aspect helps management of Ensoft Ltd. to implement innovation and commercialisation. It is
important for manager and leader to identify the needs and requirements of employees as well as
targeted clients so as to bring innovation for their betterment. Such aspects are briefly described
as below:
Vision: It refers to an objective of an organisation which they want to achieve in future to
attained strong brand identity in market. As Ensoft Ltd, a small sized UK company which deals
in providing computer related services and consulting thus their main vision is to provide latest
and upgraded software to enable their targeted clients to connect with the world. It will help
them in attaining strong position in market for longer period of time. For this, the management
need to first forecast the situation related with changing needs and requirements in near future
and accordingly make an effective decision and plans with new ideas and methods in order to
make required changes in their computer related products and services.
Culture: Every employees working in an organisation are having different cultures and
backgrounds that perform business activities all together. This may causes conflicts due to
having differences in their thought and views thus it is important for manager and leader to
resolve all such conflicts as quickly as possible through creating proper communication channels
and organise different programs. This will help in creating healthy atmosphere at workplace
which makes positive impact on the performance of employees (Filippettin 2011).
Leadership: Leaders plays a valuable role in growth of an organisation as they are the
one who motivates employees to work allotted task in an effective manner that will help in
achieving best possible outcomes. Thus the leaders of Ensoft Ltd. need to encourage their
workers to think and work freely and develop new ideas and innovative methods in order to
complete activity in more profitable manner.
Team work: Contributing combined efforts guarantees success thus it is important for
manager and leader of Ensoft Ltd. to allocate their employees into team after identify the
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strengths and weaknesses in order r to achieve desired target within given time frame. It
improves the performance of employees as well as removes communication gap which makes
healthy relation with one another. Supporting each other in bringing new and innovative ideas
and concepts helps in overall performance of organisation.
TASK 2
P3: Analysis of 4P’s of innovation and application of innovation funnel in development of
innovative ideas
4P’s of innovation:
Process of innovation: It refers to the changes implemented in the process of production
and marketing which help in producing and promotion quality products for the target customers.
It helps in attracting and influencing interest and buying behaviour of customers towards
purchasing their products and services. This will enhances the profitability of company as well.
Therefore, it is important for management of Ensoft Ltd. to make changes in their existing
software or bring updated version (Flowers and et. al., 2010).
Product innovation: It refers to the changes implemented in the features and
characteristics of products according to the needs and demands of customers. The management
of Ensoft Ltd. need to focus on changing in their products in terms of colour, design, pattern etc.
which maximises the satisfaction level of customers.
Position innovation: It refers to the changes in interest and perception of people towards
company’s product. It is related with how customer recognised company’s product and how they
feel after consuming product. Therefore, Ensoft Ltd. need to make change in their logo, symbol
and quality as well which help in identifying themselves in market by the customers.
Paradigm Innovation: It includes the changes in the business structure so as to create
healthy environment at workplace. This will help in bringing motivation and increase confidence
as well as working behaviour of employees. It can be done through creating proper
communication channel and adoption of innovative technologies so as to maximise the
performance of employees as well as an organisation (Furukawa, 2010).
Innovation funnel
It is the process through which the management of an organisation can implement new
and innovative changes in their existing products and services after identifying the needs and
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requirements of customers. There are three steps which includes in this process are listed as
below:
Wide of mouth: It includes the changes made in existing products through developing
new ideas and concepts which enhances the quality and other features of products. It can be done
by management through conducting research on competitor’s product, employee’s needs,
customer’s requirements etc.
Selection of idea: It includes the process in which the management need to select best
ideas and methods among various alternatives which ensures in getting profitable outcomes. An
effective decision regarding changes should be made after analysing the effectiveness of
implementing changes which contributes maximum in profitability of company.
Implementation of ideas: In this final step, the management need to decide to adopt new
changes in their existing products with a motive of attracting large number of customers and
generating huge revenues.
P4: Development in frugal innovation
Frugal innovation: It includes the unwanted changes which the company need to be
removed from their product as per the customer’s preferences. Sometimes, the customers are not
much satisfied with the functions available in the existing software by Ensoft Ltd. due to which
the sales figure of product goes down. To handle such situation and maximise the customer’s
buying behaviour, the management of Ensoft Ltd. need to focus on avoiding unwanted features
while producing products which helps in reducing cost of development process (McAdam and et.
al., 2010). The profitable outcomes received by company after adopting such frugal innovation
are briefly mentioned as below:
Minimisation of production cost: The management of Ensoft Ltd. need to first identify
the changes which restrict customers to buy their products and accordingly modify them in order
to attract large number of customers. Thus, the features of product which do not attract interest of
customers need to be removed by the production department which reduces cost of production as
well.
Development of new feature: An organisation needs not only to eliminate unwanted
features from their products and also add some value to product through developing new features
which ensures in maximising the satisfaction level of customers. Taking such step help
organisation in increasing sales figure of their products and services and generate huge revenue.
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Application of new technologies: Elimination or adding features from existing products
require company to adopt an effective and advanced technology which brings motivation and
confidence among workers in order to improve their performance as well. Working on using
modern technology increases efficiency of employees through which they can perform as per the
standards (Ripolles Meliá, Blesa Pérez and Roig Dobón, 2010).
TASK 3
P5: Use of NPD for innovation and commercialisation and importance of commercial funnel
Commercial funnel: It is the process of changing the interests and perception of
customers at the time of purchasing company’s products and services. Thus, to identify
customer’s needs and preferences the management of Ensoft Ltd. need to conduct research and
collect feedbacks from the customers in order to know what they think while buying products
and services. The management need to allocate amount on adding extra value to product after
analysing the information collected from research. This will help in retaining loyal customers for
longer duration.
Importance of commercial funnel
Ensoft Ltd. can achieve various benefits after application of commercial funnel which are
mentioned as below:
Improvement of quality: There is big opportunity and challenge as well for of an
organisation to manipulate the mind of customers while buying their products. And it can
possible only when the company offered good quality products with demanded features which
helps in grabbing attention of large number of customers and thus influences their buying
decision as well.
Increases in profit: Application of the concept of commercial funnel also helps company
in achieving huge profit through bringing buying decision of customers in favour of purchasing
their product. The management always need to focus on finding ways and methods to change
buying behaviour of customers which brings them profitable result (Saunila and Ukko, 2012).
Improvement in goodwill: Providing quality products to customers enhancing their
satisfaction level which brings trust and loyalty among them. It also helps in increasing goodwill
which becomes biggest advantage for small company such as Ensoft Ltd..
New product development
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It is the process of bringing new product into market with a motive of fulfils customer’s
needs and requirements and achieves competitive advantage in market. Introducing new product
with new features can easily grab an attention of large number of buyers through which they can
achieve huge profitability. To attain all such advantages, the management need to introduce new
valuable product through following steps mentioned below:
Generation of idea: In the first, the manager need to think critically that which type of
product maximises the satisfaction level of customers and accordingly develop ideas in order to
achieve benefits to them as well as customers.
Screening of idea: In this step, the manager needs to select the best idea among various
alternatives which ensures them in getting success.
Defining concept: In this step, the managers should communicate selected idea to their
employees with the purpose of getting sufficient support from different departments in an
organisation.
Business analysis: This step includes the evaluation of outcomes of introducing new
products. The manager needs to determine the chances of achieving growth of product.
Product development: At this stage, the management need to make decision regarding
implementation of new and advanced technologies in the production process so as to produce
quality product without facing amount of wastage (Toivonen, 2010).
Test marketing: In this stage, the management focuses on adopting marketing strategies
in order to promote their new products in market and attract large number of customers.
Commercialisation: At this last stage, the management reviewing all the above steps and
on the basis of which they can implement corrective plans and actions in order to make new
product more successful in new market.
P6: Development of innovation business case
Ensoft Ltd, a small sized UK company which deals in providing computer related
services and consulting. Thus, it becomes difficult for them to achieve strong position in market
where lots of competitors are operating their business. The management is held liable to analyse
the essential aspects through application of business case. For an example, Ensoft Ltd. is
launching existing software of updated version which are compatible with all versions of
Window operating systems. The major steps of business case is determined as under:
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Executive summary: Ensoft Ltd, a small sized UK company which deals in providing
computer related services and consulting. To expand business, the management always updating
their software and sent to the existing customers for a nominal charges. The main objective of
organisation is to enable everyone to connect with the world through using their software.
Need: At this stage, Ensoft Ltd, analyse the current issues which can affect their existing
customer strength. For an example, software sold by Ensoft Ltd are not compatible with
Window Operating system which brings dissatisfaction among their clients.
Solution: At this stage, the management of Ensoft Ltd tried to find out an optimum
solution to resolve issues and maintain trust and loyalty of customers. For example, upgrading
software and sell it to the existing customers who are facing issues related with compatibility at
free of cost.
Why it is innovative: After solution has been framed by the management, the next step is
to analysing the effectiveness and reliability of innovative ideas so as to make assure that it will
bring profitable result to company in near future. As Ensoft Ltd. Is launching a updated version
of existing software which are easily compatible with all window operating systems. Therefore,
it assist their clients to connect with the world through installing such software in their computer
system.
Research on customers: Before en-grafting innovation and advancement, it is mostly
important to conduct mini research for estimating what are the current needs and wants of
customers, so that firm can produce products accordingly. It can happens through focused group,
interview, survey, questionnaire etc.
Investment requirements: Upgrading the existing software require funds to incur due to
which Finance department of Ensoft Ltd. is liable to arrange funds from different sources such as
financial institutions, banks etc. so that it supports an organisation to launch upgraded software
into market more successfully. (Tushman and et. al., 2010).
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TASK 4
P7: Evaluation of the tools which are used by the organisation to develop, retain or protect
knowledge and intellectual property rights
The management of Ensoft Ltd. are liable to develop, retain and protect their knowledge
and intellectual property rights. For this, following are the different tools which must required to
use:
Patent: It is an effective tool used by Ensoft Ltd. which helps them in preventing others
to copy software programs. To use such tool, the company need to provide an application to
government in which they attained all rights to legal action against others to illegally use their
innovations.
Trade mark: It is the process through which an organisation registered its symbol, work
line or tag so that no one can able to use these without their permission.
Copyright: It is also one of an effective tool which helps an organisation to prevent other
to use their brand name in order to sale their own product. The company may give permission to
others as well after getting some amount of payment (New Product Development Stages. 2017).
CONCLUSION
It has been concluded from the above project report that innovation is the source of
getting success of any organisation. Thus, every organisation whether mall, medium or large
should focuses on creating new and innovative ideas in order to implement on their business
operations in order to gain competitive advantage. Identification of interest and buying behaviour
of customers through conducting research always brings beneficial result to company and
improve their profitability as well.
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REFERENCES
Books and Journals
Antonelli, C., 2014. The economics of innovation, new technologies and structural change.
Routledge.
Baily, M. N. and Chakrabarti, A. K., 2011. Innovation and the productivity crisis. Brookings
Institution Press.
Brettel, M. and Cleven, N. J., 2011. Innovation culture, collaboration with external partners and
NPD performance. Creativity and Innovation Management. 20(4). pp.253-272.
Filippetti, A., 2011. Innovation modes and design as a source of innovation: a firm-level
analysis. European Journal of Innovation Management. 14(1). pp.5-26.
Flowers, S., and et. al., 2010. Measuring user innovation in the UK: The importance of product
creation by users.
Furukawa, Y., 2010. Intellectual property protection and innovation: An inverted-U relationship.
Economics Letters. 109(2). pp.99-101.
McAdam, R., and et. al., 2010. Developing a model of innovation implementation for UK SMEs:
A path analysis and explanatory case analysis. International Small Business Journal.
28(3). pp.195-214.
Ripolles Meliá, M., Blesa Pérez, A. and Roig Dobón, S., 2010. The influence of innovation
orientation on the internationalisation of SMEs in the service sector. The Service
Industries Journal. 30(5). pp.777-791.
Saunila, M. and Ukko, J., 2012. A conceptual framework for the measurement of innovation
capability and its effects. Baltic Journal of Management. 7(4). pp.355-375.
Toivonen, M., 2010. Different types of innovation processes in services and their organisational
implications. The handbook of innovation and services: A Multi-disciplinary Perspective,
pp.221-249.
Tushman, M., and et. al., 2010. Organizational designs and innovation streams. Industrial and
Corporate Change. 19(5). pp.1331-1366.
Online
New Product Development Stages. 2017. [Online]. Available through:
<http://productlifecyclestages.com/new-product-development-stages/>.
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