Innovations and Competitive Advantage

This report discusses various elements of innovations and their role in achieving competitive advantage in business markets. It highlights the importance of learning new techniques and implementing them in organizations to stay ahead in competition. The report also touches on frugal innovation, which is gaining popularity in the current business era.

INNOVATION

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Innovation and its importance in comparison to invention.......................................................3
P2. Organisational factors shaping commercialisation and innovation...........................................4
TASK 2.................................................................................................................................................5
P3. 4P's of innovation and use of innovation funnel.......................................................................5
P4. Development in Frugal Innovation............................................................................................6
TASK 3.................................................................................................................................................7
P5. Commercial funnel and application of new product development process...............................7
P6. Innovation business case of Professional placement sources ...................................................8
TASK 4.................................................................................................................................................9
P7. Organisational tools used to retain and protect intellectual property .......................................9
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
Innovation can be defined as a process in which something new is added in the market on
continuous basis. It is like an addition to an existing product or a service so as to make it more
better. This process is very essential for every company as through this they will be able to maintain
their place in the market and in the minds of the customer as well because customers generally
prefer to use those kinds of goods and services which is updated to which are in trend (Adner and
Kapoor, 2010). These types of changes are only bringing change in the market and developing the
expectations of the customers. So, management of each organisation should make sure that their
products are innovated on time so that they do not loose their market share. The organisation which
will be referred in this report are Professional placement Resources which is a recruiting company
who generally hires candidates for different companies. This report will deal with various elements
of innovation and its comparison with invention. Its types will be covered and process will also be
discussed. Here, several methods for protecting ideas and their advantages and disadvantages will
also be covered.
TASK 1
P1. Innovation and its importance in comparison to invention
Innovation can be termed as a process of introducing changes into an existing product or
service so as to make it in a more proper manner. These are the changes which are trending in the
market or are being suggested by the consumers who are buying their products in the market. In the
current business environment, innovations are taking place in a very fast manner because the
changes which is happening here. Through these innovations changes are happening in the business
environment as well. Therefore, it can be said that innovation is having a very impact on the
business activities of the company. It can be in the form of an idea which can be later on converted
into a service. It is a very effective process as it helps in developing the brand value of the company
in the market. On the other hand, commercialisation can be defined as a process in which a new
goods and services are being introduced in the trade (Dahlander and Gann, Davila, 2010).
Professional placement services is an organisation which is working on small scale so hey
will also required services through which they will get an opportunity to grow and develop in the
market. They can also do innovation in its services so that they can make their permanent in the
market and attract the customer base towards as well. There are many ways through which company
can do innovation in its activities like they can make use of latest technologies so as to attract large
no. of applicants for the job and then later on innovation facilities will also be utilised.
It is very essential for the organisations to make sure that they do not confuse between
innovation and invention. Both the terms are very different from each other and cannot be mixed.

Invention can be defined as a process in which a new product or a service is being created which
has not been created before. It can be in any form like an idea, resource , asset etc. But this term is
very much related with innovation as in both of these changes are made for making the product
more effective (Epstein and Shelton, 2012). There are so many sources through which professional
placement sources company can be helped by making its activities more effective. They can make
use of technologies and tools so as to introduce changes in the business activities and making it
more advanced as well. This is the reason company have been enlisted as one of the best
recruitment SME in UK.
Difference between innovation and invention are as follows:-
Invention Innovation
Invention can be defined as a process of
creating something new which has not been
discussed or created before.
It can be defined as a process in which
modifications are being done in the existing
products so as to match it with the products
which are being sold in the market.
This involve technological and proper research
for gathering new discovery.
They can make use of new market trend
evaluation and process of innovation is
required to be analysed.
For e.g. Invention of WWW. e.g. Constant improvement of WWW to
digitalised era.
P2. Organisational factors shaping commercialisation and innovation
Innovation and commercialisation are having a strong influence of the factors which are
being present in the business environment as they help the organisation in shaping their basic
formation. Professional Placement Resource is a recruiting company which is having conducting
all their activities in a creative manner so that they can make a different place in the market and will
be able to match with the demands of customers in the market. The factors which will help in
configuring various elements are leadership style, teamwork activities and operations, culture of
Professional Placement Resources etc. these are described in detail below:-
 Vision – It can be defined as a factor in which the company is based. It is basically an idea
or a goal which is required to be attained by the management. In this basically, thinking
process is carried out for future (Drucker, 2014). This concept will shape innovation
concepts in an appropriate manner. Professional placement sources is also having vision
which is to become the best recruiting agency in the market. So to achieve this vision they
will be required to add innovative techniques into its daily activities so that they can conduct
their work in an effective manner.

 Leadership – It is a process which is conducted for motivating and encouraging the
employees for performing their activities in a better manner. In this process, a leader is
appointed by the management for taking care of all the activities of the company
(Gassmann, Enkel and Chesbrough, 2010). Professional placement sources is also having
good leaders who are taking care of the whole organisation and because of them only they
have gained a better place in the market. If they will suffer from any issue regarding
recruiting employees. Then these leaders will help them in this.
 Culture - Professional placement sources is required to maintain a good culture inside the
company so that the employees can work in an effective manner. Also, each and every
person who are working in the company should be aware about the practices and values of
the company so that any innovation which will be done should be known to every member.
 Teamwork - Professional placement sources are working effectively in the market and it is
made possible only because of the team work of their employees. So, it can be said that team
work is very essential for any company to become successful in market. So,if any kind of
innovation will be implemented here then it will be properly executed as everyone will
know their roles.
TASK 2
P3. 4P's of innovation and use of innovation funnel
Innovation can be done in various manner but mainly it has been characterised into 4 parts
namely; Product Innovation, Process Innovation, Position Innovation and Paradigm Innovation.
These are also considered as an hypothesis with the help of which management can help in bringing
out positive changes in the company. Professional placement sources will also apply these 4P's of
innovation so as to conduct their operations. It can be shown as follows:-
 Product Innovation - In this section , innovation in the existing goods and services is
being carried out. It can be also be said that there is alteration in the method of producing
goods and services so that better products can be achieved. This is really effective as
because of this company will be able to gain more customer base. Professional placement
sources company is also doing innovation in its activities like they will make use of
technology through which the people who are registered in the online website of this
company will be able to add the degrees they have gained in recent times.
 Process Innovation – This section deals with the method of creating a product which will
be delivered to the customers (Hall and Lerner, 2010). So, Professional placement sources
can refer to various companies who are working in the same field so that they can get an
idea about the process they are following. They may use it for their benefit as well.
 Paradigm Innovation – In this section , it is said that all the changes are made as per the

requirements of the customers. Here, the managers of Professional placement sources has
got an idea of adding a new type of software in its company so as to innovate their practices.
By applying this, they will make the work of their customers more easy as they will have to
make to do the uploading process again for adding up new changes in their CV (Hjalager,
2010).
 Position Innovation – Here, it is said that position of company is very appropriate for the
company as through this only customers are attracted towards them. If Professional
placement sources wants to increase their position in market then they will have to be
updated in the market and make changes in their products accordingly. These innovations
will help them a lot.
Innovation funnel can be defined as a process through company will be able to choose the
best option for their company. It is a machine in which all the ideas are entered and out of which the
best one is selected for the company. It is playing a very important role in framing innovating ideas
in the company.
Innovation Funnel can be applied in the following manner:-
 In the 1st pace, All the ideas gathered by the company is entered into the refinery system
 In the 2nd step, Company will have to make choices about which idea is required to be
selected . Since company has so many ideas so they will think of choosing each and every
idea but they can not do this.
 Those goods which will fit with the structure and functioning of the company will be
selected by them.
 The idea which will be selected by the company will be finally implemented .
P4. Development in Frugal Innovation
Frugal innovation can be defined as a type of innovation in which company tries to use least
resources for producing their goods and services so that they can be used by each and every one.
The produced formed by these type of innovation are very cheap and are easily available as well.
So, in these types of innovation, the product creators removes all those features from those products
which is not necessary. Here changes can be introduced in any form like decreasing the cost of
manufacturing the products, Low use of electricity, low cost etc. Professional Placement Resource
can also use these types of innovation while giving services to their clients.
These types of innovation is taken place at that time when company will be suffering from
any kind of issue in marketplace (Huizingh, 2011). Frugal innovation is considered as very
supportive as through this they will be able to manage the operations of the company in a very
effective manner. So, Professional Placement Resource can make use of mobile advertising if they

want to promote their company rather than Television advertisement as the cost of giving
advertisement is very high. There are major six principles of frugal innovation that is mentioned
here: Engage and Literate – In this type, innovation is made in the same product in which the
changes are already made but nothing technical is added into this (Leiponen and Helfat,
2010). Asset Flex – In this, Professional Placement Resource company will do innovation so as to
support in enterprise sustainability. This is being implemented in giving ideas and
suggesting solutions as well. Sustainable Solution - This aims over the case issues in order to find a suitable solution of
issue. Shape Consumer behaviour – If Professional Placement Resource will come to know about
the choices of customers in the market then they will try to give same type of services to
them so that they can get satisfied and get attached with the company for longer time. Creation of consumer value: - This is also considered as an effective and efficient process
of communication which is implemented by the company for knowing their value in the
market. It can help in meeting the positive outcome.
 Innovation Stakeholders: The organisation can introduce various types of frugal innovation
so as to coordinate with the stakeholders in an effective manner.
TASK 3
P5. Commercial funnel and application of new product development process
Commercial funnel can be referred as a process of forming or making new ideas for
producing goods and services for the company. Through this funnel, all the plans and procedures
made by the company are implemented which was created by the management. Through this
process, the project idea will be delivered to the members of company within time which will help
them in getting good results.
Professional placement resources company is also required to adopt this process as this
process is following the steps of new product development process (Melville, 2010). The referred
company can also implement this process so as to understand their importance. It is as follows:-
 Suitable strategies will be implemented by the company so as to execute innovation inside
the organisation so as to improve the quality of goods and services.
 They can also make use of commercial funnel so as to maximise the profit margin of the
company. Professional placement sources can also make sure of this process.

 Through this process, the referred company will get an option to do their business at
international level.
The steps included in new product development process are as follows:- Generation of Idea – In the first step, Professional placement resources is required to have a
close idea about the requirements and demands of the customers on the market (Manso,
2011). So, here this company can implement a rewarding system so as to do recruitment in a
better manner. Screening of Idea: Here, the presentation and screening of idea will be conducted so as to
know the reaction of people about the change they are going to implement. Experimentation and Development: In this step, the idea is being tested so as to know
whether it will be successful in the market or not. Development of product - In this step, the service is being developed for the final outcome. Commercialisation – Here, the referred company will try to make their products famous in
the market by promoting it in an effective manner. Through this, they will be able to attract
more customers and increase their sales as well.
 Launching:In this final step, the new product or the service will finally be launched in the
company.
P6. Innovation business case of Professional placement sources
Professional placement services (PPR) will be implementing various new techniques so as to
implement the innovation process in an effective manner. For this, they will be required to make a
business case through which they will be implementing their innovative idea properly. Its steps are
as follows:-
Executive Summary: Professional placement services (PPR) is an recruitment company which
performs the work of hiring candidates for several companies. They are working in this sector from
a very long time and has satisfied the demands of various clients as well.
Need: With the increase in competition in the market, they are also required to innovate their
activities so as to maintain their position in the market. In this case innovation is not done by
choice, it done by need (Sartori, Favretto and Ceschi, 2013).
Solution – In this part, it will be discussed that if management wants to increase their market share
then they are required to use various promotional and advertising methods so that they can increase
their customers .
Market Evaluation: With a specific end goal to comprehend the necessities and prerequisites of
customer and market, new item require configuration is being encircled by PPR. The organization
need to improve the measure of spending which they spend more than 20% work.

Planning & Evolution- here, development of planned activities or business plan is being made.
Financial Requirement: - Organization orchestrate different kinds of administrations and items
which can help in taking care of the requests of entire improvement (Teece, 2010). There are
different money related sources, for example, bank credit, companions advance and so on.
Expected Benefit - In the wake of arranging and planning strategy, the inexact criticism and result
is being resolved and assessed inside the organization which later is being contrasted and genuine
result.
TASK 4
P7. Organisational tools used to retain and protect intellectual property
Intellectual property rights can be defined as a framework which was created by government
so as to protect the rights of the people in an effective manner. After implementing these types of
rights, the chances of duplication is reduced and inventions are also secured. If anyone will still to
take advantage of innovations and inventions of others them they will be in major trouble as any
action can be taken against them and case may also be filed. So, if professional placement services
will do any kind of innovation and they want its trademark or copyright then they will have to take
permission for it in advance. The rights can be discussed as under:-
 Trademark – It is in the form of sign which is given to a particular product so as to get it
identified. It can be in the form of words, signs, symbols etc. This is required to be
registered under the trade mark act and its initial time of ownership is 10 days, after that it
has to be renewed.
 Copyright - It characterized the correct given to the individual for their abstract or masterful
work. It can be given for subterranean insect sonnet, film, tune, music structure, acts and
artistic creations and also illustrations, photos and so on (Yin, Shi and Yan, 2014). Any
thoughts, formulas, actualities and work that don't have innovation isn't canvassed in these
classifications.
 Trade Secrets - As all commercially viable ideas cannot be patented, it is suggested that
some ideas should be treated as trade secrets which will be patented at later stage.
CONCLUSION
From the above report, it can be concluded that Innovation is playing a very crucial role in
developing the activities of the organisation and will help in achieving growth and development as
well. These processes are to be conducted by experts only who are having good knowledge of
market as well. Since the technology is also developing in the market so the managers is required to
make sure that they learn these new techniques and then implement it in the organisation as well so
that the company be in the competition. This report has discussed about various elements of
innovations and how they help the company in getting competitive advantage in the market. Along

with this frugal innovation is also discussed which is very popular in the current business era.
REFERENCES
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