Exploring Innovation and Performance

This assignment delves into the world of innovation and its impact on business success. It examines the various factors that contribute to innovation, including customer involvement, knowledge management, and strategic innovation. The assignment also explores the relationship between innovation and performance in Small and Medium-sized Enterprises (SMEs). Additionally, it touches upon the concept of open innovation and its role in leveraging external sources of innovation. The document is a comprehensive guide for students looking to understand the complex dynamics of innovation and its effects on business success.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation importance and its comparison with invention....................................................1
P2 How companies vision, culture, leadership and teamwork can shape innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................3
P3 Innovation 4Ps and use of innovation funnel for shaping a innovative ideas........................3
P4 Frugal innovation development.............................................................................................5
TASK 3............................................................................................................................................6
P5 Importance of commercial funnel and new product development process for
commercialisation of innovation.................................................................................................6
P6 Business innovation case.......................................................................................................7
TASK 4............................................................................................................................................9
P7 Various tools used by company to develop, retain, protect knowledge and intellectual
property.......................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation means is the process of translating an invention or idea into a new goods
which will create a value within buyers as they are ready to pay for their products and services.
In this innovation of new products will result in implementing of new ideas within the
organisation (Zhou and Li, 2012). In order to fulfil the expectations and requirements of buyers.
Fresh choice bakery is one of North West main manufacturer of bread goods, confectionery and
baked morning products. They give their customers a high range of goods and services by using
latest as well as advance methods of baking. In this report there is a comparison within
innovation and invention and its importance. In this, also discuss about companies mission,
vision, culture, leadership styles and its environment along with that 4Ps of innovation and use of
innovation funnel. Also develop a new product of the organisation and various types of
intellectual property rights.
TASK 1
P1 Innovation importance and its comparison with invention
Innovation
It is referred as a implementing as well as introducing a new procedure, method, concept,
idea and values which are build in the context of organisation. It is a making of new system,
process, product which aid enterprise in replacing of previews as well as traditional methods for
forming a modifies or new goods within the company.
Invention
It refers to establish and discover a new approach, activities, goods and services for a first
time (West and Bogers, 2014). Their are various sources of forming a innovation such as rivals
strategies, team working and market that direct entire entity towards success of new product.
Difference between invention and innovation
Basis Invention Innovation
Meaning It is referred as a discovery of an
goods as well as creation process
which is introduced first time within
a whole market.
Innovation is defined as modification
as well as alternation in existing
products.
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Concerned
department
It is generally linked with Research
& Development department by
using various different ideas within
marketing team.
It is often implied for whole
business.
Skills needed This is important for possesses
concerned with scientific as well as
systematic skills for providing
service.
Their is a low determined skills set
required for innovating a new
product.
Turning invention into innovation
In this, when invention is commercialised successfully then it is turned into innovation.
Some of main steps for transforming a product and services are going through the components
which are disruption, framework, model of infrastructure, approval and timing.
As the organisation relay on the strategies of McDonald and Burger King, Fresh choice
bakery interpret their business structure after that they construct a model framework. Innovation
approval as well as their timing made a final result of new items of Fresh choice bakery (Stokes,
2011).
Sources of innovation
It is require for establishing an entrepreneurial business which is required for an small
company. Their are 7 main sources of innovation which are Unexpected, demographics,
perception change, process needed, incongruities and a fresh knowledge.
P2 How companies vision, culture, leadership and teamwork can shape innovation and
commercialisation
Businesses styles of leadership, vision, teamwork and its culture modify their strategies
of innovation as well as commercialization. Their are several ways by which these components
interlinked along with that impact of each other indirectly and directly (Sawyer, 2011). Some of
elements which shape innovation and commercialization which are given below: Vision: Fresh choice bakery is having a vision of consistency baking of some standards
which help in ensuring a base of customers for a long period along with that their purpose
is to provide highest quality goods by using a best process and ingredients. Vision of the
company directly impact on practices of innovation applied within the firm. Linked to
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this organisation, vision motivate their innovative practices as well as methods used in
fulfilling and meeting the demands of buyers in an unprecedented manner. Leadership: In this term it is find out that one of main measure that lead the whole
incorporated practices as well as innovative methods which is used by the company. For
example: McDonald has introduced their innovative as well as invention products and
services. Therefore, it is confirm that it can end up the policies as well as code of conduct
formulation that encourage innovation activities within he organisation for achieving
various results. Culture: It is an main part of an company as it is accountable for supporting as well as
stimulating innovation (Sartori, Favretto and Ceschi, 2013). Management of Fresh choice
bakery culture depends on experimentation and discovery innovation practices which can
be raised. Culture gave impact on innovation as it will aid the people to believe in using a
modified product as well as processes and operations of company it will help in achieving
results effectively.
 Teamwork: It is in which peoples of the company work together for achieving particular
goals as well as targets. In this team is consists of various experts are working together
for accomplishing the purpose of business. It is important for them to provide with proper
guidelines and terms for enabling as much as ideas are collected for making a product
which they are going to provide their buyers in an effective manner.
TASK 2
P3 Innovation 4Ps and use of innovation funnel for shaping a innovative ideas
Innovation is an art of developing as well as presenting an existing products creativity
into more featured and useful manner. It is having an ability to carry out modifications in society
as well as whole system of working. Innovating a product successfully will cater a positive
modifications (Rosenbusch, Brinckmann and Bausch, 2011). Therefore, unscientific and
inappropriate will gave a negative influence. In the term of fresh choice bakery, it need 4Ps of
innovation which will aid in developing a marketplace which are explained in brief below: Products: It is defined as a preferred method in term of innovation which define the
establishment of new product and services or changes in previews one. It can be defined
as a radical methods that concentrate over disruption of ideal market functioning. Fresh
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choice bakery is considered as a providing a quality products and services to their
customers. It will assist in manufacturing a new dish which will attract a large numbers
of customers. Process: Its main purpose of their product style are providing to their buyers. Process is
an main segments that is analysed again in an effective way by which customers are
providing goods and services. Fresh choice bakery has been emphasised the methods of
automation so that employees can provide a creative items along with that more positive
environment of working.
(Source: 4ps of innovation, 2018) Paradigm: This innovation is linked with a mental model that is associated within a
business. Changing of technology had redefined the mental model of particular person
related to proper use of internet websites and portals. Irrespective size of business will
not depend on traditional measures for running the operations of enterprise and have lean
to the digital measures that provide advantages to whole companies operations (Patton,
2011). Position: This term concentrate over the thinking of reposition of organisation in the
buyers mind. Their perceptions are related to goods as well as services that are provided
by changing companies for delivering a proper financial results. For example: Fresh
choice bakery had provided a various new items in their menu which will reposition of
organisation within customers mind.
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Illustration 1: 4Ps of Innovation, 2018

Various types of innovation
Managing of innovation involve whole process of designing till the applying of ideas
within new products. Manufacturer will make changes as per new trends within a marketplace.
Some of types of innovations are given below:
Descriptive innovation
In this term it look of latest technologies which can meet by the help of changing goods
as well as incremental innovation.
Advantages – Help in enhancing of enterprise as well as seek the growth opportunity.
Disadvantages – There is not having enough insights of customers.
Incremental Innovation
Increment innovation focus over products sustainability by making modifications in it as
well as decline the product cost by adding up of latest features. For example – McDonald had
launch a new product and keep on making changes on their product frequently (Manso, 2011).
Advantages – Enhancing sales as well as more branding.
Disadvantages – Time risk and lack of coordination.
Use of innovation funnel for managing a new idea development
For managing a new product process they use innovation funnel whether they have to
make changes within product or invention of new services. Their are some steps involved in
developing a new product which is undertaken into innovation funnel which assist in effective
management of evolution. It will aid in identify of problems solutions which is trending within
market or buyers expectations. In case of Fresh choice bakery is facing various problems, they
can make a proper use of innovation funnel to solve the problems in which they have to analyse
all the issues firstly, then develop latest technology and evolve changed project which is suitable
as per conditions.
P4 Frugal innovation development
Frugal innovation is also called as reverse innovation which is referred to new forms
which facilitates the solution of technological by producing a product in a cost effective manner.
It mainly defines as a low effect to environment (López-Nicolás and Meroño-Cerdán, 2011). By
reconfigure value of the process of supply, fresh choice bakery design various techniques of
changing as well as alteration in goods in an proper manner which enable products productivity.
Fresh choice bakery is using this method for declining a expenses of producing as well as
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delivering. In this, organisation is able to supply less cost goods with higher quality. There are
some influence f frugal innovation are given below: Low producing cost: Main help of frugal innovation provide low cost of manufacturing
of goods by using modified as well as better technologies which aid in raising
competitive advantages and its merits. McDonald are giving high quality of goods at
high prices. But Fresh choice bakery is using a frugal innovation as well as supply
similar technologies by adopting producing strategies of the organisation. It will aid in
adding up of latest features to Fresh choice bakery along with that it will create a
potential customers for developing an organisation (Jaffe and Lerner, 2011). Resources in beginner additional evidence: It is an important assisting resources in
manufacturing of products of Fresh choice bakery organisation for developing as well as
improving their quality of goods. Fresh choice bakery give latest quality products as per
buyers taste and preferences. These things are possible by frugal innovation which will
assist organisation in expanding their business within United Kingdom.
 Expend enterprise: Fresh choice bakery create their image of brand by facilitating
modified and latest gadgets as well as technologies within market at less price. By
developing a brand, organisation can enhance their sales as well as customers which can
assist in developing enterprise in various markets. It can meet by proper marketing
strategies and innovative promotional used by firms (Huberman and Miles, 2013).
For example: Fresh choice bakery is using a frugal innovation by providing better quality
of their products and services in an very innovative manner. It will aid in providing happiness to
the customers who are visiting in their restaurant.
TASK 3
P5 Importance of commercial funnel and new product development process for
commercialisation of innovation
Commercial funnel is used by Fresh choice bakery in term of selling their goods and
services to buyers. The purpose of this process is establishing a creative goods and masses
offerings. In this process, marketing approaches, productivity and sales are undertaken in
reaching a typical companies decisions. Fresh choice bakery is optimising the process of
promotion as well as advertising of its core goods and services along with that establishing of
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latest goods within the market surrounding. Sales funnel of business purpose over goods
information dissemination as well as aware customers new items and exotics plans given by
firms. By the help of this organisation can easily reach their goals as well as recognition form
within workplace.
(Source: Sales and Commercial Funnel, 2018)
Fresh choice bakery is using a commercial funnel for introducing a new items which play a very
main role in sustaining of company within rivals marketplace. New product development steps
are given below: Idea generation: In this first step, company will establish a new product plan for giving
consumer best quality of products (Gunday and et. al. 2011). Screening Concept: In this, firms will concentrate over sustainable as well as higher
profitable enterprise planning by screening whole ideas of team. Testing: This is important step of experiment a innovative product with the previous
organisation customers for knowing the chances of new product success. Business Analysis: In this step they analyse the environment as well as market situations
for developing a new goods within a marketplace. Commercialise: In this process, promotion as well as marketing process is used for
advertising of goods.
 Development of Product: According to customers response, customers launch the
product within marketplace and also maintain the base of their buyers.
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Illustration 2: Sales and Commercial Funnel, 2018

P6 Business innovation case
For having any problems linked with certain goods and services. In this case of
innovation is being made to apply techniques within marketplace by using proper process as well
as steps. In the case of Fresh choice bakery which is based in United Kingdom by small business
giving quality products and services to their customers. Their are some of main steps in
developing a enterprise innovation case are given below:
Executive Summary
Fresh choice bakery is an small organisation of United Kingdom which provide quality of
goods and various products to their customers. They are also using an innovative strategies for
developing their business within a marketplace.
Need
Demands within market of new development product as well as services in behalf of
existing one. They will establish a new goods with new way for repositioning od company in the
customers mind (Drucker, 2014).
Solution
Solution of issues is establishing of new dish by using latest technology in an low cost for
attaining buyers.
Requirement of Innovation in Services
It is important for developing as well as betterment of organisation for attaining and
attracting of potential customers by using advance technologies. Fresh choice bakery is
implementing a frugal innovation to decline manufacturing cost as well as proper use of
resources within organisation in an effective manner. Market has establish various new
technologies so that buyers is expecting Fresh choice bakery for launching.
User Analysis
Analysing a customer will aid in finding out buyers expectations as well as needs
segmenting buyers into various sections. It will aid in making a commercialization process more
effectively (Cui and Wu, 2016).
Creation and Advancement of Strategy
In this, organisation require to form a new creative as well as innovative techniques as
per customers and market needs. It is been designed in an more innovative for completing
customers by providing latest features in their products.
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Demand of Funds and Investors
Fresh choice bakery are raising funds for accomplishing organisation goals are bank
loans, bootstrapping, business investors, Venture capitals, loans from friends and family etc.
Expected Outcome
Enterprise is applying techniques of market goods, expectations of advantages as well as
competitive advantages is being controlled by leaders. They are expecting 20% aggregate
advantages out of whole expenses are made over entire process of manufacturing, taxation and
distribution.
TASK 4
P7 Various tools used by company to develop, retain, protect knowledge and intellectual
property
Intellectual property is an legal idea which is implemented effectively by professionals.
Fresh choice bakery is an small enterprise which develop and improve goods as well as protect
minor revolutionary invention as well as their initiative towards innovative goods by Intellectual
property rights (Boons and Lüdeke-Freund, 2013).
Role and rights of intellectual property
In this modern times of economy knowledge, components of producing less investing
returns on return of knowledge. It will aid in assuring knowledge by raising profitability along
with that it will save as well as protect from being exploited, government have given some of
professional rights and company use signs of copyrights, patents etc. will aid in saving their
companies credit by any innovation.
Tools of Intellectual property rights
Fresh choice bakery are protecting their innovative products by using various signs are
given below: Patents: It is made to help new process, product and techniques as well as using of new
product. The organisation also follow patent policies and rules. Copyrights: It will assist in protecting any dishes, product, music, painting and many
more inventions which are needed a proof as well as registration. Trademark: it is an identification of representing it in a graphical as well as sign of
presenting a reliability over organisation goods (Ansell and Gash, 2012).
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Applying of growth of open source and open innovation Open source: It is refer to alteration within existing products by fresh choice bakery.
 Open innovation: In this, fresh choice bakery use external resources as well as
approaches for commercialise and develop their services and goods.
Advantages of creative and innovative ideas that made higher profits as well as growth of
Fresh choice bakery (21 Tips When Renting Your First Office Space, 2015). Their is having a
various links within IP a well as open innovation. It will assist in dealing with defending as well
as governing corporation rights along with that others linked problems by enhancing companies
growth.
CONCLUSION
As per above report it has been concluded that comparison within innovation as well as
invention both are very important part for organisation that are useful in developing as well as
growth within market place along with that it will aid in achieving objectives. It consists careful
use of information, various values from resources or initiative as well as imagination in deriving
greater, involve all process by which fresh products are generated as well as convert it into a
useful goods. It will aid in managing the approach which is used in increasing profits by
implementing plans and techniques. By this, company can increase their profits revenues as well
as balancing of allocating resources effectively. Buyers prefer higher quality as well as low cost
of goods combination. It will aid organisation in manufacturing a low expensive goods with high
as well as new access of technologies which is famous trick in producing in modern era.
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REFERENCES
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impact of customer involvement on new product performance. Journal of the academy
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Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gunday, G., and et. al. 2011. Effects of innovation types on firm performance. International
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Huberman, A. M. and Miles, M. B., 2013. Innovation up close: How school improvement works.
Springer Science & Business Media.
Jaffe, A. B. and Lerner, J., 2011. Innovation and its discontents: How our broken patent system
is endangering innovation and progress, and what to do about it. Princeton University
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López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
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Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Patton, M. Q., 2011. Developmental evaluation: Applying complexity concepts to enhance
innovation and use. Guilford Press.
Rosenbusch, N., Brinckmann, J. and Bausch, A., 2011. Is innovation always beneficial? A meta-
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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.
Sawyer, R. K., 2011. Explaining creativity: The science of human innovation. Oxford University
Press.
Stokes, D. E., 2011. Pasteur's quadrant: Basic science and technological innovation. Brookings
Institution Press.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management. 31(4). pp.814-831.
Zhou, K. Z. and Li, C. B., 2012. How knowledge affects radical innovation: Knowledge base,
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