Analysis of Innovation and Open Innovation

In this assignment, we delve into the concept of innovation and open innovation in business settings. The analysis begins with an examination of innovation's role in product development, highlighting its impact on market share, profitability, and customer attraction. Furthermore, it explores the concept of open innovation, which involves collaborating with external sources to develop new ideas. Key references from books, journals, and online sources are provided to support the arguments made in the assignment. The findings of this analysis can be applied to businesses seeking to innovate and remain competitive in their respective markets.

INNOVATION
AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovations and its importance to organisation in comparison to invention.....................1
P2 Organisational teamwork, leadership, culture and vision can shape innovation and
commercialisation...................................................................................................................2
TASK 2............................................................................................................................................4
P3 Innovation 4Ps and use of funnel innovation for developing innovative ideas................4
P4 Analysis of developments in frugal innovation.................................................................5
Frugal innovation.............................................................................................................................5
TASK 3............................................................................................................................................6
P5 Importance of commercial funnel and application of NPD for commercialisation..........6
P6 Building of innovation case...............................................................................................8
TASK 4............................................................................................................................................8
P7 Application of different tools to protect knowledge and intellectual property rights.......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation and commercialisation is important concept which helps small organisations
to attain sustainability in their operations (Adner and Kapoor, 2010). It is the obligation upon the
management is to continually innovate their products and processes to maintain their position in
market. In this regard, organisation is need to adopt best commercially driven approach which
provides maximum return as result. To bring innovation in organisational process need to
provide power employees to use their own ideas in production process. All such processes have
large importance in organisation. Unicorn Grocery is small organisation which sells fresh, dried
and processed food and drink.
In the present report explain about, importance of innovation in comparison to invention,
importance of organisational vision, culture, leadership and teamwork to bring innovation in
organisation, 4P's of innovation and innovation funnel and contribution of frugal innovation.
Also, process of NPD and importance of commercial funnel in organisation and the different
tools which helps to secure their intellectual property rights.
TASK 1
P1 Innovations and its importance to organisation in comparison to invention
Innovation Invention
It includes the process which helps in
improvement of the existing features of
products by application of new ways and ideas
It helps in development of the new products,
service and process which is not exist in
market right now
It is considered as the practical implementation
of new idea (Dahlander and Gann, 2010).
It is considered as original idea which is yet not
implemented in real scenario
For innovation strategic, marketing and
technical skills are required
For invention scientific skills are required
It is concerned as combination of the various
products and process
It is related to single product and process only
Example: Unicorn grocery provides food and
drink items, innovation in techniques helps in
improvement of quality and features of
Example: Invention process helps in
development of new drink which helps to
attracts new customers
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existing products
Importance of innovation in organisation
To sustain their position in market, Unicorn Grocery is need to adopt innovative
technologies which helps in attraction of the large number of customers. It provides the
opportunity regarding maintenance of competitiveness in market. Innovation also helps in
improvement of the existing skills of employees (Davila, Epstein and Shelton, 2012). It helps in
building of good structure in organisation which contributes in timely accomplishment of
objectives. Through all such changes in organisation, employees feel motivated and provides
their best to organisation. The different benefits are mentioned below:
Adoption of new methods of working: To understand about the innovative techniques
management of organisation is need to conduct proper research of market. Through such
research manager is able to knew about the innovative techniques used by their competitors. So,
it provides the opportunity regarding use of such technologies to improve their existing products
and services.
Competitive advantage: One of the major change which is noticed after implementation
of innovation is development of new features among existing products. It helps in improving
background, beliefs and culture provide competitive advantage to unicorn grocery.
P2 Organisational teamwork, leadership, culture and vision can shape innovation and
commercialisation
Companies team work, leadership, culture and vision contributes higher in doing
innovation and commercialisation within the firm. Each firm is having their own goals and
visions on the basis of which regular activities of enterprise have to be done. Hence, it is needed
for management to state objectives as well as visions to their workers which give effective
direction as well as guidelines for achieving them in a span of given time limit. Differences in
culture are also one of an important issue which give growth to disputes within workers.
Therefore, it is necessary for company to maintain culture which aid in eliminating gap of
communication and promotes them to give new methods as well as ideas for performing a given
tasks in a efficient and effective way (Drucker, 2014). Team work and leadership also contribute
much in raising workers performance along with firm.
Leaders who are having adequate capabilities and skills to apply new way of
accomplishing work from other in a much profitable way. Hence, it is necessary for management
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of Unicorn Grocery to consider all elements on the basis of which they need to take a proper
decisions regarding both innovation as well as commercialization. It will aid in producing stylish
and quality product which lead in giving higher satisfaction of consumers. By this, organisation
can bale to provide strong competition to large firms like as H&S, Marks and Spencer etc. Their
are some points which need to consider by management while applying innovation in enterprise
structure of an company which are discussed below:
Vision: It refers to goals and objectives which is decided by an company for achieving in
future. Unicorn Grocery are having their mission to increase sales of their goods or products as
well as earning a higher revenue for beating a competitor and accomplish huge market share as
shortly as possible. For achieving this, they have to define vision of organisation as well as make
a new plan for giving new innovation and ideas in its goods in a form of patterns, colours, design
etc. which grabs more consumers attention towards its commodity which lead organisation easily
to meet their visions without facing problems.
Culture: Their are various workers in an company which comes from various culture and
backgrounds. Workers sometimes hesitate while communicating with others. It give rise to
disputes as well as issues (Gassmann, Enkel and Chesbrough, 2010). Hence, management have
to concentrate in improving differences of culture by organising various programs which aid in
bringing all workers together along with that help in interacting with one another. Sometimes
workers fail to understand morals, values, norms, rules and regulations which require to
undertake management along with that adopt corrective programs for educating them about
environment and culture of an company.
Leadership: They are having a maximum contribution in innovators. Leaders who are
having capabilities and skills to encourage workers to think in a new as well as innovative way
for performing a given task very efficient and effective manner. Unicorn Grocery require to
provide freedom to workers.
Teamwork: Working with a team members help to know their weaknesses as well as
strength. It will help in supporting each other while accomplishing a provided task within a
period of time. Knowledgeable and skilled workers work with each other which aid in making
innovative and new ideas regarding product quality, features enhancing while concentrating in
attracting huge numbers of consumers (Yin, Shi and Yan, 2014).
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TASK 2
P3 Innovation 4Ps and use of funnel innovation for developing innovative ideas
4Ps of innovation are paradigm, position, process and product help in increasing product
quality. It allow workers to work with more passion and efforts for meeting objective and desired
goals. They are explained in detail below: Process innovation: It contains modifications in process of marketing, producing etc. of
goods which aid in raising higher revenue and sales to a organisation. Unicorn Grocery
need to develop its marketing, technology process so it will give impact on consumers
behaviour as well as interest of consumers towards purchasing its products by ensuring
maximum satisfaction level. Management have to concentrate on improving its process
of manufacturing by applying proper equipments and others methods for declining
manufacturing cost and improve its level of efficiency. Product innovation: It contain modifications in designing as well as quality of products
with a motive of attracting huge quantity of consumers. They provide various patterns as
well as design of goods by Unicorn Grocery which aid in consumer to feel comfortable
and look professional. It will lead to attract consumers which directly raise sales of
goods and improve organisation revenue (Hall and Lerner, 2010). Position innovation: It refer to make modifications in perception of commodity and how
it can used as well as perceived. For this, they can decide to modify symbol, product
quality and logo which help in grabbing higher buyer attention as well as it will increase
chances of attracting consumers to purchase organisation goods. Paradigm innovation: It refer to modified in the structure of enterprise for maintaining
good or healthy environment which give confidence as well as motivation within
workers. Hence, organisation can easily meet objective along with its desired goals.
Unicorn grocery is a small sized enterprise which attains less numbers of consumers. It is
necessary to provide shape to all over company structure and apply strategies and
innovative methods with a motive of doing a activities of project more nicely.
Innovation funnel
It is a process of growing previous products by converting innovation as well as
innovative ideas into actions for achieving needs of markets in a more economical manner. It
include three steps which are given below:
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 Wide of mouth: Organisation products and services are developed by using new
ideas from various sources. Management have to collect new ideas and conduct
research from various ways like as previous members, competitors etc. which aid in
acknowledging and require needs of markets. Organisation need to decide the
changes which are applied within a product in a economical and proper form.
 Idea selection: In this, management of company are having different ideas among
all they select best ideas which assist in meeting success (Hjalager, 2010). Before
making a decision, they require to test effective modifications need to apply in
previous products. According to that choose profits ides which help in increasing
organisation revenue.
 Implementing ideas: In this stage, organisation decide to apply chosen concepts or
ideas into actions with a expectancy of getting higher profits results in near future.
An proper strategies as well as plans are made to obtain changes in an proper
manner. So, that higher numbers of consumer will easily attract towards
organisation products.
P4 Analysis of developments in frugal innovation
Frugal innovation
It is a procedure of declining products features which decrease product sales. Some times
because of clothes pattern, design, colour etc. are not satisfying through that they doesn't show
their willingness in purchasing a product (Teece, 2010). It will help in declining organisation
profits. Hence, Unicorn Grocery have to use frugal innovation for decreasing price of their
grocery products. It will lead in declining price of manufacturing and able to give quality goods
at a cheap cost. Some of advantages of organisation will get after obtaining frugal innovation
which is explained below in detail:
 Minimum manufacturing cost: Unicorn Grocery management have to find out non-
important features which restrict customers to purchase their goods and as per that
proper strategies and plans to decrease such features as soon as possible. It will lead to
decline manufacturing cost and it will aid in charging low cost.
 Developing a new feature: Declining unwanted features of goods are not sufficient to
attract consumers. Management need to concentrate on adding new features linked
with pattern, quality, design as per their consumers preferences and needs. So that it
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can aid in capturing huge share of market as well as revenue. Modifications in
manufacturing process will assist organisation in adding some extra value of goods
which maximise customers level (Huizingh, 2011).
 Use of new technologies: It includes adopting new technologies while producing
goods by which firm can able to give quality goods to their buyers. It bring working as
well as interest behaviour of workers which encourage them to introduce new ideas of
declining cost incurred in manufacturing process. Hence, modifications in previous
technologies will bring profitable and beneficial results to firm.
TASK 3
P5 Importance of commercial funnel and application of NPD for commercialisation
Commercial funnel
It refer to a process of manipulating of consumers mind during buying a specific services
and products. Hence, organisation have to understand buyers behaviours and perception. So, that
they can modify features of goods. Firm have to add up extra value to their commodities which
modify their goods from other in a different as well as it will also help in meeting competitive
advantages (Leiponen and Helfat, 2010).
Significance of commercial funnel
Improve quality: It will assist in promoting organisation to concentrate on improving its
quality by undertaking proper strategies and tools which ensure in declining wastage.
Reducing losses: Applying modifications in technology used in manufacturing process
which decline chances of mistakes and errors which lead in saving price of organisation. By
which organisation can able to give quality goods at a cheaper cost.
Improves goodwill: Proving grocery products for the purpose of home appliances which
help in grabbing attention of women which will give interest to buy a new product for their home
as it will help organisation in achieving strong market image.
New product development
It will help organisation to introduce new goods into a market after finding out
requirements as well as needs. So it will assist in grabbing consumers which indirectly make
revenues. While establishing new commodity into market is not easy for from as they have to
follow the steps for making a new product in a market successfully which are discussed in detail
below:
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 Generate idea: In this first step of developing a new product organisation have to bring
new ideas for developing their grocery stores after analysing advantages which are
received by firm in future. Time and cost incurred in applying ideas into real situation. Idea screening: In next step after idea generating, organisation management have to
decide which idea may give profits which are the outcomes to organisation. Define concept: In this step, management required to define concept or idea in front of
workers and gets properly use of solutions for applying in products. Marketing strategies: In this stage, they have to provide information to their targetted
consumers about applying changes in previous products (Manso, 2011). Business analysis: In this, organisation managers have to acknowledge and analysed
effectiveness of launching new goods within a market. Product development: In this stage of new product development, they have to decide
proper methods as well as techniques which may lead to decline price of manufacturing.
It will ensure in manufacturing quality goods at a lower price. Test marketing: In this step, they have to decide strategies of marketing which have to
adopt as it will help in providing attention at a higher quantity of customers. Commercialisation: It is a last second step of developing a new product, it will help in
managing reviews of all above steps and take future actions to launch a new product
within a place of new market with a hope of meeting future success.
 Launching: It is a last step of new product development process, it help in analysing
quality as well as quantity of offerings of an business. Launching a product in a market
with a suitable program. Hence, it can be said that Unicorn grocery also replay of the
process of commercialisation and establish new services by keeping in mind about their
buyers (Melville, 2010).
Hence, by using the above mentioned process in more disciplined as well as organised
way. PPR can adopt innovate and opportunities their products as well as services. Manufactured
good are more accurate and proper leaving an influence over customers.
P6 Building of innovation case
Unicorn grocery provides products of grocery. in UK. It wants to bring some changes in
the features of their existing products through application of innovative techniques. The different
policies which directs in implementation of innovation is mentioned below:
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Executive summary: Unicorn grocery is small organisation provides food and drinks. To
capture large market share, management build new marketing strategies which helps in focusing
upon target customers only. For ex,. Segmentation of the market helps in determination of the
preferences of different customers. It helps to produce new flavoured drink in market.
Need: Production of new food items and drinks after determination of the needs of
different segments of customers (Sartori, Favretto and Ceschi, 2013).
Solution: To achieve this objective need to conduct survey of different market segments.
This will provides the opportunity to formulate different pricing strategies which helps in
attraction of the customers of each segment.
Research on customers: This process proves important for an organisation. It helps is
collection of their feedbacks and views about their existing policies of prices, quality of products
etc.
Designing and development of plan: Under this process, framework is developed by the
organisation on the basis of research. This will guides the employees to implement such changes
in real scenario to achieve objectives (Innovation of small medium enterprises for sustainability,
2011).
Investment requirements: Last step in which organisation need to arrange the adequate
amount of funds which helps in effective use of such new innovative technologies and ideas.
TASK 4
P7 Application of different tools to protect knowledge and intellectual property rights
Through application of the approach of innovation new inventions are developed in
organisation. It is the duty of the management of cited company is to protect their intellectual
property rights through use of different tools like copyright, patents and trademarks etc. It
provides the opportunity to prevent outsiders from the copy of their inventions. Such different
tools are mentioned below:
 Patent: It is effective tool provided by the government to protect the new inventions
which are made by organisation. To attain patent, organisation is need to apply to
government.
 Copyright: This tool provides the exclusive right to the organisation about their use and
distribution to some other parties(The Law of Recipes: Are Recipes Patentable?, 2012).
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 Trademark: It is considered as sign or specific logo taken by the organisation for easy
recognition of the products in market and between the customers
CONCLUSION
It has been concluded from the above report that, huge role is played by innovation in the
development of small organisation. Unicorn grocery is small organisation which considers
innovation in their technologies which helps in development of quality of existing products. The
different benefits which are gathered by organisation are high market share, higher number of
sales, attain good position in market, higher profitability etc. Organisation culture is the
important concept which helps in development of communication and coordination among
different team members. It helps in building good teams in organisation. Innovation helps in
developing new features in existing products which provides opportunity in attraction of large
number of customers.
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REFERENCES
Books and Journals
Adner, R. and Kapoor, R., 2010. Value creation in innovation ecosystems: How the structure of
technological interdependence affects firm performance in new technology
generations.Strategic management journal.31(3). pp.306-333.
Dahlander, L. and Gann, D.M., 2010. How open is innovation?.Research policy.39(6). pp.699-
709.
Davila, T., Epstein, M. and Shelton, R., 2012.Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation.R&d
Management.40(3). pp.213-221.
Hall, B.H. and Lerner, J., 2010. The financing of R&D and innovation.Handbook of the
Economics of Innovation.1. pp.609-639.
Hjalager, A.M., 2010. A review of innovation research in tourism.Tourism management.31(1).
pp.1-12.
Huizingh, E.K., 2011. Open innovation: State of the art and future
perspectives.Technovation.31(1). pp.2-9.
Leiponen, A. and Helfat, C.E., 2010. Innovation objectives, knowledge sources, and the benefits
of breadth.Strategic Management Journal.31(2). pp.224-236.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Melville, N.P., 2010. Information systems innovation for environmental sustainability.MIS
quarterly.34(1). pp.1-21.
Sartori, R., Favretto, G. and Ceschi, A., 2013. The relationships between innovation and human
and psychological capital in organizations: a review. The Innovation Journal. 18(3). p.2.
Teece, D.J., 2010. Business models, business strategy and innovation.Long range planning.43(2).
pp.172-194.
Yin, W. J., Shi, T. and Yan, Y., 2014. Unusual defect physics in CH3NH3PbI3 perovskite solar
cell absorber. Applied Physics Letters. 104(6).p.063903.
Online
Innovation of small medium enterprises for sustainability. 2011. [Online]. Available through:
<https://www.slideshare.net/togar/innovation-of-small-medium-enterprises-for-
sustainability>.
The Law of Recipes: Are Recipes Patentable?. 2012. [Online]. Available
through:<http://www.ipwatchdog.com/2012/02/10/the-law-of-recipes-are-recipes-
patentable/id=22223/>
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