The Importance of Innovation and Strategy

This assignment discusses the importance of innovation and strategy in achieving business success. It covers various topics such as value creation in innovation ecosystems, how open is innovation, making innovation work, the future of open innovation, and the financing of R&D and innovation. The document also touches on tourism innovation, open innovation, motivating innovation, information systems innovation for environmental sustainability, and the relationships between innovation and human and psychological capital in organizations. It concludes by highlighting the importance of innovation and strategy as key factors for business success.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation its importance along with comparison with invention...........................3
P2 Role of organisation vision, leadership, culture and teamwork in shaping innovation and
commercialisation.......................................................................................................................4
TASK 2............................................................................................................................................6
P3 4Ps of innovation and use of funnel innovation.....................................................................6
P4 Developments of frugal innovation and its uses within company.........................................7
TASK 3............................................................................................................................................8
P5 Applications of new product development and importance of commercial funnel...............8
P6 Innovation business case along with ways to access funding..............................................10
TASK 4..........................................................................................................................................10
P7 Different tools which assist in developing, retaining and protecting knowledge and IP.....10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation refers to an method of changing activities as well as process so that better
outcomes can be achieved (Adner and Kapoor, 2010). In this enterprise, its purpose is to apply
techniques as well as creative ideas which lead to creative activity of changing goods and also
improved previous goods line up of a business. By this method a business will able to achieve a
growth within a marketplace. It also helps in adopting a changing condition of operative
environment. Hakim group is a small company which was found in a year 2001 as well as give
special concentration in this optical business. This report will concentrate on the importance of
innovation along with that differentiates it with invention as well. The different approaches and
types which are linked to innovation. Also discussed about 4ps of innovation as well as roles of
companies teamwork, culture, vision and leadership is shaping commercialisation and
innovation.
TASK 1
P1 Explain innovation its importance along with comparison with invention
Innovation approaches of the company have helps to identify several kinds of opportunity
at market place. Management of an organisation take action in order to gain sustainability in long
period of time. They analysis current uncertainty and volatile of industry and find out some
factors which are increase chances of survival in an effective way. It is essential to develop
healthy culture with in an organisation to promote innovation among all employees. so that,
creativity and productivity may improve which helps to produce high quality product and
services (Dahlander and Gann, 2010). It is enhancing customer’s satisfaction that improves
market position of the company. Manager of company used innovation as a strategy, system and
technology which can assist in gaining target in an effective manner. The major benefits of
innovation are explain as follows:
Problem solving: Firm is encountered with lot of issues which are effectively solved if a
management wishes to retain it operational task efficiently at market place. The practised
convention planning which are not able to solve or reduce issues form work place. There will be
a need of innovative thing to solve problem in an effective manner. It aim to resolve problem of
company in an unprecedented way.
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Adapting to market dynamics: Current market situation is a dynamic in nature and it is a
continuously fluctuates is create negative impact on an organisation performance. Therefore, it is
important to adopt innovation strategy so that all staff members could be engaged to develop
high quality product and services by an business enterprise.
Responding to consumer demands and expectations: In order to sustain at market place,
management of firm may identify clients needs and wants and develop product accordingly. Its
helps to increase profitability in long period of time. It is possible when company may execute
innovation strategy with in work place among all workers. Through innovation, business may
offer value to their potential buyers. This have create impact on firm performance.
Effective competing: There are numerous activities are completing by an organisation to
offers various kind of product and services. Such situation makes adoption of innovation
extremely important to create high profits through which product and services are perceived
differently (Davila, Epstein and Shelton, 2012). So that, superior market position could be
achieved.
It is very important to identify difference between innovation and invention are explain as
follows:
Difference between innovation and invention
Innovation Invention
Innovation refers as modification in existing
product and services in order to full fill
customer’s demand effectively.
Invention is referred to developing completing
new product and services to enhance needs of
clients in the best possible ways.
There is a need to identify new ideas and
process to completing task or work which are
consider by administration to gain combined
with set of marketing tools and techniques.
It is a scientific approach that provide ideas
through research are development department
and final result is produce high quality product
and services.
Innovation strategy are mostly used by small
firm because it is cast convenient and easily to
implementing at work place.
Invention is done by big organisation because
it is a costly process. For example, Apple
company used this strategy to produce new
technology in their product.
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P2 Role of organisation vision, leadership, culture and teamwork in shaping innovation and
commercialisation
Innovation is a major factor which helps to rise quality of product and services within an
organisation. It defines level of failure as well as success which has been attained by company.
Although there are numbers of component like leadership, mission, goals, objectives, culture and
teamwork etc. involve in developing of innovation working environment in an enterprise. A brief
description of these factors is explained as follows:
Culture: An organisation internal culture is directly affect performance and productivity of
employees. It’s also change behaviours, attitude, perceptions, motivation and many more.
Leaders assist in formation of working climate which are leads to cultivation of creativity in the
company (Drucker, 2014).
Teamwork: It is stated to be analysis in which distinct members of firm collaborate their
endeavour and create synergy. There are several elements which is inculcated in group working
are cohesion, communication, mutual support, coordination and many more. It can be said that
strong team able carry out whole business activities in a innovative way in order to forming
competitive edge for the company. Different types of opinion and experience of employees turn
into strengths of an organisation. They are accountability for leading formation of ideas which
assure modification of existing product and services.
Vision: It is a purpose of the company, why they are doing this kind of work. This provide
path to run whole business activities in an effective manner. If vision of an organisation
encourages innovation then management develop plan to implementing this strategy at work
place. They make effort to make suitable firm culture which is support changes and creativity in
working process. Vision of Hakim group is opticians promote modernization so that competitive
edges are retained effectively. All employees are persuaded to carry out innovative ideas in order
to betterment of enterprises.
Leadership: Through effective leadership style, firm are able to implementing innovation
among all employees. Leaders are able to influence workers behaviours, attitude, perception,
thinking about surrounding as well as company. Through this, they are capable to make
innovation is a part of organisation working process. Leaders build strong relationship among
team members to provide shaping innovation in context of enterprises. The modus operandi of
firm is challenged management to run entire business in an creative ways. The chief executive
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officer of Hakim group is famous for their innovative ideas for completing task, they are catalyst
in nature for innovative measures which are included by an organisation
TASK 2
P3 4Ps of innovation and use of funnel innovation
Innovation means to develop which assist in construction something new so that
expectations as well as needs of customers would be fulfilled. The issues which are faced by
customers are solved by changing services as well as goods. Main categories of innovation
method are carried out on grounds of radical as well as incremental innovation. Radical
innovation is a method of disruptive which tends to sale market situations and again it defines
that in their own way. Incremental method of innovation practices small positive modifications
in working which assist in major changes for a long term. This innovation mix includes 4
components like as promotion, place, price and product. These are main elements which innovate
enterprise goods as well as services so that business growth can entertain. These components are
explained in detail below: Product: It is most preferred method when they are looking for innovating a goods and
services. They improved offerings of business so that they can fulfil customers’ needs as
well as wants in an effective way. Operations of Hakim groups in an optical enterprise
along with importance on giving modified services to customers in a qualitative way. It is
a method of incremental as it adds a marginal positive modification in products. Process: It consider a method by which services as well as goods are provided to buyers.
When it is linked with firms, it revolves in optimising of technologies which make sure
those quality products and services are given to buyers or not (Gassmann, Enkel and
Chesbrough, 2010). The operational and equipment are emphasized efficiently so that
results are improved in a better manner. Position: This component of innovation mix purpose is to target a segment as well as it is
segmented in a way which service and goods are perceived. Hakim group is known as
innovating emphasis and brand on creating small positive continuously changes so that
others needs of persons can be fulfilled. By the method of positioning market segments
which are untapped can be capitalised and consider upon.
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 Paradigm: It is a most basic form of innovation. In which they made efforts in alternative
dominant paradigm within a marketplace. The mental innovation model is working upon
so that consumers are recognize favourable within a marketplace. It means what
enterprise do along with that in which way its activities are carried out. i.e. Lomb as well
as Bausch are a main player in a optical business have defined again from 'eye care' to
'eye wear'.
Concept of innovation funnel
It is defined as a starting journey from an developing idea of particular service or goods.
Innovation funnel acts as a works which make sure that which are not possible are eliminated
along with that best are maintained till the end. This concept is mainly categorised on 3 levels
which are discussed below:
First level concentrates on wide research on funnel which purpose is to collect ideas from
workers. Large numbers of innovative idea increase chances of developing a goods and services
of enterprise (Hall and Lerner, 2010).
(Source: Innovation funnel, 2018)
Second level is when it starts developing when it funnel start to narrow downward which
defines that innovative ideas are typically analysed on the bases of returns as well as risk so that
they can form a decisions.
Final level is of commercialization which concentrates on innovative ideas which are
chosen at a end of innovative funnel. Proceeding to idea selection are developing a services as
well as products which are provided within the market.
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Illustr
ation 1: Innovation funnel, 2018

P4 Developments of frugal innovation and its uses within company
It is said that increasing in prosperity of economic within country as well as expansion of
middle class persons. Hence, it is mainly important for Hakim group to manufacture services or
products which are modified for the collective market (Yin, Shi and Yan, 2014). It aid in
developing of frugal innovation which help in growth of different challenges as well as problems
which are encountered by someone. This concept is mainly new within a market along with that
increase huge important in current market. It defines to be a method in which characteristics as
well as functions are minimum to their bare important dimension so that they can represent to a
segment of middle class. Main characteristics which are considered in this method is cost as well
as ensure to achieve advantage of external price (Hjalager, 2010). Hakim group products of
frugal are called to be accurate, accessible, adaptable and affordable as well as some more
characteristics by their sustainable dimension. There was a desperate requirement to develop the
frugal goods as previews once have come out to be highly aggressive, complicated and most
necessary is expensive.
Concept of frugal developing starts with organising a market research which help to find
out expectations as well as demands of customers. Analysis of market help in finding out prices
which consumers is ready to pay for their requirements. For example: Hakim group are well
known for their quality of services by particular experience perception to provide their services
in practice sector. These optometry practices mainly charge high hence pass by affordability of
collective market.
The methods will consider this innovation is that were goods are designed. The
development as well as research is conforming as per needs of market which create various
goods which are enjoyed by many of peoples. Supply chain of Hakim group can configuration
can help in developing of giving a frugal value. It is important to think of this innovation as an
main opportunity to enterprise along with that perceiving it as a constraints. In this method, it is
very different from previous driven of market innovation. Population of economic development
are open to constraints in terms of business as well as resources which lead in success of same
job. It became an ultimate to decline price of manufacturing which is adverse in today's direction
of innovation within a marketplace. Importance on strong aspects of Hakim group helps to
innovation which concentrates on reducing cost instead of marketplace.
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TASK 3
P5 Applications of new product development and importance of commercial funnel
It is known that without commercialisation innovation stands for nothing. Their
companies transfer operations within medium as well as small domain are known to innovate
during market promotion (Teece, 2010). But issues lies mainly lies them in measuring them up
as well as fashionable so that it can be capitalised upon. Their are reasons for this condition like
firstly, they are not aware of being patents and secondly, small and medium enterprises do not
posses proper finance which aid them in collecting advantages of innovation. Hakim group
control a optician network practices which will commercialised in future for improving practice
services which are offering in an affordable as well as convenient way (Huizingh, 2011).
Process of commercialisation which help to establish a relative new product by adding
new features within a market. It also state in a way which is delivered within a marketplace along
with that barriers are measure so that it can be countered. It stands important for enterprise as it
means journey of a customer starting from awareness is retained within company. It also aid a
enterprise in organising an enterprise analysis which help in finding out of areas which can be
improved.
Process of developing a new product which help in providing a modified goods within a
marketplace as well as small companies it is having a higher risk as it help in breaking a
enterprise. Steps of new product development are as follows: Iterate and Engage: This kind of innovation claim to again innovate in an same manner
without making modifications as well as techniques in innovation. It states that business
can achieve targets result by innovation. Asset Flex: In order to use better as well as proper techniques along with its solution of
idea, Softwire can divert certain innovations for supporting in sustaining business for a
long time. Sustainable solution: This purpose in the case of problems for identifying a appropriate
problems of solution (Why are innovation and strategy most important factors of success,
2015). Shape Consumer Behaviour: By assessing purchasing behaviour as well as customers
preferences, Softwire can adopt several requirements of modifications in their services
along with its products. It can assist in achieving a positive result.
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 Creation of customer value: It is proper as well as regular process of communication
along with the help customer evolution of firms in various distinct processes.
 Innovation stakeholders: In order to conduct as well as coordinating better stakeholders,
company can improve evolution as well as development approaches in different styles
(Leiponen and Helfat, 2010).
P6 Innovation business case along with ways to access funding
Hakim Group is one of the optician group who are popular for delivering high quality
services of optometry to the country's people. The organisation currently recognised that there is
wide scope of enterprise to investment by rendering consumer and owner win-win situation. The
company identified an extreme requirement to render more quality service of optics to individual
of country's people as well as show generation is more prone to eye associated with diseases and
infections cause of more utilisation of digitalised tools and platforms. Incorporation new more
advanced methodologies and tools of technology will certainly assist in the service provision in
the developed style to fulfilling this through the assistance of added funding i.e. availed. Before
execution of the presented ideas, this is required to conduct a proper analysis of market with
financial forecasting in order to arrange this (Manso, G., 2011).
This is required to have make the funding in order to commercialised as well as benefits
the availed benefits of finance. Innovation consist of conduction of research, designing, tactics
marketing that are needed to be accomplished through organisation in more significant manner.
Here are mentioned major three approaches by which resources of finance can be assisted:
 Venture Capital are one of fundamental approach that assist in increasing funds. This is a
sort of strategic partnership that assists in collaborating of financial asset or resources.
 Councils of research are another extrinsic method by which funding can be assisted.
 Global innovation can be considered as the final finance's external sources that render
help in deploying from 30,000Euros – 10million Euros to SMEs.
Executive Summary Hakim Group is a small company it was found
in 2001. To develop and sustain, organisation
require to make a plan of business case.
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Requirement Organisation is able to earn goodwill within a
marketplace but they have to develop their new
goods for sustaining within competitive
industry.
Solution To retain and develop buyers, Hakim Group
require to understand the market. They can
evolve new category of kitchen appliances to
incur innovation.
Market Research New trends, demand and market environment.
Buyers expectation need to be analyse before
making of new goods. Hakim Group spend
20% of its revenues on market research .
Designing and development In order to develop a new market, organisation
require to develop and deign as per buyers
demands.
Financial requirements Organisation need to gain investments and
funds for monetary assets for proper
innovation and development. Funds can be
raised by bank loans, family or friends for
making a innovative product.
Expected Benefits After the process of budgeting and planning,
by analysing employees feedback and buyers,
organisation can control expected result to
actual outcomes.
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TASK 4
P7 Different tools which assist in developing, retaining and protecting knowledge and IP
Intellectual properly can be defined as the mind creation that cater their values in
commercial domain and morals. The state have structured various laws linked with protection of
property rights for safeguarding invention and innovation of creator, narrator and property
producer. Hakim Group need to safeguard their creative services and products in the recent
marketplace through the assistance of IP rights such as trademark, copyright, patent, design
rights etc. which are mentioned here briefly:
 Patent: This helps in protecting invention of some individual from unauthorised use. It
contains the tenure of approximate 20 years (Melville, 2010). It conserves or protects the
invention which is accomplished by anyone. It gives protection to the right holder for
preventing others from selling as well as use it for particular time period.
 Trademark: It can be defined as sign, language, distinct rights that can optimised through
an organisation i.e. often paid to state government. It is a unique or identifiable symbol
which is used for differentiate services and goods of Hakim group from others. It is
closely linked with brands of company.
 Copyrights: It refer to the human mind creation and their safeguarding. This helps in
distinguishing the service of certain brand from other. It secure the aspects of writing,
artistic work or literary. It resist other people to make changes in previews copy right
services and goods.
This play very crucial role in the creation and protection of innovation of individual,
business or organisation so as Hakim Group. This render less risk of misuse of their discoveries
as well as provide financial benefits as well. IP rights need to be followed by each and every
organisation in the national and international markets which is mandatory to follow (Sartori,
Favretto and Ceschi, 2013).
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CONCLUSION
From the above report it is concluded that management develop strategies in order to
implementing innovation with in working place. Through this, they are able to achieve goals and
objectives in an effective manner in specific period of time. Thus helps to produce differentiated
product as compare to their competitors which provide competitive advantages at market place.
Its provide opportunities to sever demand of clients in an improved manner. Keep market basis
innovation which is essential to focus on accessibility as well as cost so that gain high market
share avail it in best way.
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