Innovation and Performance: A Literature Review

The assignment provides a comprehensive literature review on the topic of innovation and performance. It draws from various sources, including books, journals, and online resources, to examine the effects of innovation types on firm performance, the role of innovation in driving economic growth, and the importance of innovation systems in promoting sustainable development. The review also discusses the concept of innovation, its measurement, and its relationship with performance outcomes in different contexts.

Innovation
CONTENTS

Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance to organisations in comparison with invention.....................1
P2. The way organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation........................................................................................................................2
TASK 2............................................................................................................................................4
P3 4Ps of innovation and use of the innovation funnel...............................................................4
P4 Developments in frugal innovation........................................................................................5
TASK 3............................................................................................................................................6
P5 Significance of commercial funnel and application of New Product Development (NPD)...6
P6 Innovation Business Case for and organization.....................................................................7
TASK 4............................................................................................................................................8
P7 Different tools that organisations can use to develop, retain and protect
knowledge and intellectual property............................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is an important concept for every business organization because it defines new
ideas and invention within the organization. With the help of this, firm convert their ideas into
quality services for their customers. Basically, it plays important role in developing overall
performance of the company which may leads in attaining set goals and objectives. The process
of innovation also contributes in satisfy the customers’ needs and wants as per their needs. It
directly contributes in enhancing the profitability level of company at market place. Along with
this, by implementing innovation concept within their business, firm easily attract larger number
of customers by producing quality goods and services. Talent Plus is a HR consulting firm which
deal at small level (Anderson, Potočnik and Zhou, 2014). This report is based on invention which
aid in improving the performance level of the company. Innovation and its importance to
business organization in comparison with invention is also mentioned in this project. Along with
this, organisational leadership, vision, teamwork and mission also discussed in this project which
can shape innovation and commercialisation. In addition of this, 4P'S of innovation and use of
innovation funnel is also mentioned in this assignment.
TASK 1
P1. Innovation and its importance to organisations in comparison with invention
Innovation define an effective activity as well as procedures in which company improve
their quality services. This will aid in developing the overall growth of the company at market
place. By using innovation concept, company easily produce new and quality services as
compare to its competitors which may leads in improving the positive brand image at market
place. Along with this, innovation helps in establishing effective production process by which
company serve variety of services to its customers as per their needs and wants. With the help of
this company attain better success. Basically, this procedure includes various aspects like any
kind of modification, alteration within the existing production process by implementing new and
innovative ideas. With the help of this company enhance their profitability level and at the same
time they also invite large number of customers towards the products and services (Boons and
Lüdeke-Freund, 2013). In addition of this, invention and innovation both term are different and
play their specific role in business environment. The difference between both term can be
understood following points:
Basis Invention Innovation
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Meaning Invention is a process in which firm
completely develop new products
within the organisation that never
been made before.
Concept of innovation refer to
the modification within the
existing products and services
with the purpose of attaining
better results from its consumers.
Skills Invention required scientific skills
by which workers easily invite
larger customers towards the
company products and services.
For implementing innovation
concept, person required
technological, strategic skills in
order to enhance the growth level
of the company.
Concept Invention is based on original ideas
which introduce by individual at
market place.
The innovation concept is based
on practical implementation of
new ideas within the company.
Importance of innovation in comparison with invention:
Basically the concept of innovation is one of the important procedures foe business
organization by which company enhance their profitability level by delivering quality services to
its customers. Along with this, it also develops actual theories, confidence and skills towards the
implementation of innovation process in most effective manner. With the help of this company
produce creative services for their customers with the aim of attaining better success at market
place. By using innovation concept, firm attain competitive advantage form its rivals by
providing attractive services in market place.
P2. The way organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
A concept of innovation required an effective way to develop business activities in order
to attain positive outcomes. In context of Talent Plus, company use various tools and techniques
within their organizational activities in order to attaining set goals and objectives in appropriate
time frame (Breznitz and Murphree, 2011). This will aid in enhancing the positive brand image
at market place. In addition of this, manager also play vital role in providing better direction to
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their workers so that they effectively implement the concept of innovation within the
organization (Brown and Osborne, 2012). This will aid in increasing the chances of attaining
desirable goals and target. Furthermore, for attaining better results, manager also responsible for
monitoring worker’s performance at the time of executing their activities. By this manager easily
improve their productivity level at market place. In this context there are important elements
which helps company in attaining better results. All these are as follows:
Vision: It is one of the important element which may help business to attain appropriate
results. basically it is based on future aspect where the company wants to see itself. Talent Plus
operate their business with the purpose of attaining long term and short term goals which leads in
enhancing the productivity level of the company. In this context, the vision of Talent Plus is to
be leading HR consultancy firm in UK by providing better services to their customers. With the
help of this they easily execute their activities and attain better success at market place in
upcoming period of time. In this context the main objective of this company is to established
positive relation with their customers in which they easily compete their competitors at market
place.
Mission: This term is related with the short term goals in which company maintain their
positive brand image at market place. In this context the main mission of Talent Plus is to
provide best candidates to organisation who are willing to have them. With the help of this
company enhance their profitability level at market place.
Leadership: Leaders as well as manager provide better direction to their team workers at
the time of performing task. By this company easily attain their set goals and objectives and at
the same time also encourage them to perform well. In context of Talent Plus, leader of the team
motivates as well as encourage them to put their best efforts for attaining better results. Better
leadership contribute in attaining all the target in appropriate time frame.
Teamwork: For attaining set goals and objectives, it is important for business
organization to motivate their workers for working in a strong team. So that every employee
easily executes their work and activities. Good team work helps in achieving set goals and
objectives in appropriate period of time (Brynjolfsson and McAfee, 2012). Along with this, it is
also important for manager as well as leader to to maintain healthy relation with their workers so
that they effectively attain their target in appropriate time frame. In addition of this, Talent Plus
also set various teams for performing entire business activities and function in order to attain
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better results. In this innovation can give shape to team work which may leads in achieving
positive outcomes.
Culture: Under this, it is also important for business organization to maintain better
culture in which workers easily perform their activities and also reduce the chances of arsing any
kind of conflicts among them (Cross, 2011). With the help of this, firm enhance their
productivity level and at the same time also attain competitive advantages. In this context, an
effective culture contributes in established positive and comfortable working environment so that
workers effectively perform their task with more effectiveness.
TASK 2
P3 4Ps of innovation and use of the innovation funnel
Concept of innovation can be defining as an effective procedure to produce something
new in front of customers which may leads in increasing profitability level of the company.
Basically it helps in fulfilling customers’ needs wants towards the company products and
services. By implementing the innovation process company enhance their performance level in
front of customers and at the same time also established their positive brand image at market
place. In context of Talent Plus, company use 4P's of innovation which aid in improving the
overall performance of the company. All these are as follows: Product: It is one of the essential factor which offer by the company to its customers as
per their needs and wants. With the help of this company maximize their profitability
level. For inviting as well as attracting number of customers, company undertake better
research for understanding the customers’ needs and wants. With the help of this
company enhance their profitability level ta market place. Process: It is also important factors in which company effectively implement the process
which may leads in improving the performance level of the company. For attaining better
results, it is important for Talent Plus to use effective process in which they provide
better training and development programs to their workers to provide them quality
services to its customers (De la Mothe and Paquet, 2012). Position: This element is also important element of innovation which is related with
promotion. In this, company easily increase their profitability level by serving quality
products and services. In this company use various tools and techniques such as social
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media and many more for communicating with their customers. With the help of this
company easily established their positive brand image at market place.
 Paradigm: It is important P of innovation which helps in adding features within the
existing products and services (Gawer, 2011). Along with this, it also includes need of
innovation which is important for attaining better results. With the help of this company
enhance their profitability level by adopting entire changes which may leads in achieving
positive results.
Use of innovation funnel to shape innovative ideas
Innovation funnel play vital role in which business adopt real life example as well as
situation for converting into their products. This will aid in inviting large number of customers
towards its products and services. Basically the main aim of this is that it helps in analysing the
market trends in order to offer quality services to its customers as per their needs. It helps Talent
Plus to attain better success by fulfilling customers’ needs and wants.
P4 Developments in frugal innovation
Frugal innovation defines an effective procedure in which company produce new and
innovative products with less production cost. Mainly it helps in increasing the profitability level
by minimising the manufacturing cost. It directly contributes in overall success at market place.
The main advantage of using this, company get various opportunities in which they develop their
overall brand image at market place. With the help of this firm capture larger market share form
its rivals by delivering quality services to its customers at affordable cost. Along with this, frugal
innovation support business organization to make variety and quality products and also cut down
the overall cost of the company. In this there are some element which helps in understanding the
frugal innovation are as follows:
 It is important for manager to effectively understand about worker’s strengths and
weaknesses which may leads in motivating them to improve their performance level.
 The management of the company also provide various opportunities in which firm
enhance their profitability level by proving quality services to its customers (Gennaioli,
Shleifer and Vishny, 2012).
 Talent Plus use new and innovative technologies produce quality products and services
for their customers as per their demand in order to provide them better satisfaction.
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 Along with this, manager also responsible to update strategies and plans as per market
trends to attain better results. With the help of this firm enhance their profitability level at
market place (Gunday and et. al., 2011).
All these helps in implementing the process of innovation process which directly
contribute in attaining higher success at market place.
TASK 3
P5 Significance of commercial funnel and application of New Product Development (NPD)
Commercial funnel is an effective procedure which helps in implementing modification
within existing products and services. With the help of this, company attract larger number of
customers towards the company products and services. In addition of this, commercial funnel is
appropriate tools which helps in delivering quality goods and services in market place. Along
with this, this funnel also provides better support in which company maximize their profitability
level and at the same time also attain better success at market place by capturing larger market
share form its rivals. Basically the main aim of using commercial funnel is to enhance heir
overall sale of the form in order to achieve larger profitability.
In addition of this, the first step of this process is to determine the ways to generate the
profitability level. After this step manager of the company evaluate the cost and rates which
required at the time of implementing the ideas to develop a new products and services.
Furthermore, firm also determine the way which needs money and funds to implement the
products within the organization. This will directly contribute in enhancing the profitability level
of the company in market place (Jiménez-Jiménez and Sanz-Valle, 2011). In this context, there
are some main importance of commercial funnel which help business organization to capture
larger market share by delivering quality services to their customers. All these can be understood
by following points:
 Innovation aid in improving the quality of the products which may help in attaining better
results.
 It directly contributes in overall growth of the company in market place.
 Innovation promote creativity in order to generate more profits.
New product development:
NPD is a larger process which may aid in developing a new product which includes some
steps are as follows:
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 Idea generation: Under this, manager generate ideas by undertaking an effective research
in order to gather relevant information.
 Idea screening: Under this, the manager of the company defines specific ideas in which
they appropriate advice form experience people in order to generate larger positive
outcomes in appropriate way (Kleinknecht, 2016).
 Concept development: Manager of the company make an effective transform new
products by considering real life situation and actions.
 Strategy development: Under this, business organization prepare as well as formulate an
effective strategy in order to improve their quality products.
 Examine business situation: For attaining better results, manager of the company analyses
the actual situation of the business to implement the concept of innovation.
 Product development: In this firm develop their quality products to satisfy customers’
needs and wants.
 Test marketing: Under this, firm offer their products for testing its acceptability in market
place.
 Commercialisation: It is last step in which company sale their final products final
customers by using appropriate communication tools.
P6 Innovation Business Case for and organization
Talent Plus is a HR consultancy firm which operate their business at small level in which
they serve skilled and capable employees to those organization willing to have. Along with this,
company also tries to serve their services in effective manner to attain larger profitability at
market place. In this context there are some aspects which consider at the time of preparing
innovation business case are as follows:
 Executive summary: Talent Plus is HR consultancy firm in UK in which they offer better
knowledge to their customers to improve efficiency level. The main aim of this company
sit o be a leading HR consultancy firm in UK. For this company serve quality services to
its customers in order to capture larger market share (Lundvall And et. al., 2011).
 Target: Talent Plus target those companies who wants to recruit skilled and talented
workers to improve their profitability level with the help of this firm enhance their
productivity level.
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 Situation: Under this, firm make an appropriate section in which all the issues and
problems are get resolved by providing better solution to their customers (Manso, 2011).
 Why product is innovative: For inviting larger customers, company should produce
innovative services such as firm provide talented workers with more efficiency to
business in which company enhance their profitability level.
 Customers research: As a famous company, Talent Plus understand their customers taste
and preferences by undertaking an effective research. With the help of this they easily
create strong customers within the organization.
 Funding: For attaining better success, it is important for company to manage their
financial resources for analysing the collected data and information. For this company
take loan from financial banks and institutes.
 Expected benefits: Under this, firm determine the profit after implementing the
innovation concept which may leads in attaining positive outcomes.
TASK 4
P7 Different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
It is important for every business organization to protect their rights, thought and opinion
in order to attain better success. In this intellectual property provide effective information of
organization which is differ from others. With the help of this company make their specific brand
image in front of customers and market as well. It includes some properties like, trademark,
copyright, trademark, trade secret and many more. All these aid in attaining better success at
market place. In context of Talent Plus, they operate their business with the aim of providing
better services to the workers in order to enhance their productivity level. Basically, intellectual
property helps in protecting the business things copyrights and many more. All these can have
understood by following points: Copyright: In this, person registered their copyright under the act and legislations to
protect their goodwill. By this company offer their products and services which may
leads in improving the performance level of the company (Metcalfe and Miles, 2012).
Basically it is registered for limited period of time. Patent: Under this context, an individuals discover new things and goods to sell their
products and services in market place. Thus, it is important for business organization to
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registered the patent in its acts which may leads in improving the brand image of the
company at market place (Rosenbusch, Brinckmann and Bausch, 2011). Trademark: It is also an important way which define sign, design and identity which help
business organization to define their specific brand image at market which is differ from
others. Basically, it shows on product package and label by which customers determining
the quality of the products. With the help of this company build their positive brand
image at market place.
 Trade secret: It define the process in which business organization define their methods
and pattern in order to attain competitive advantages. Basically, it is related with the
information which keep confidential from the company in appropriate way.
CONCLUSION
From the above mentioned report, it can be concluded that innovation play vital role in
increasing positive brand image of the company. In this company easily provide quality services
to their customers as per their needs and wants. With the help of this company easily compete
their competitors at market place and take strong place. Along with this, 4p's of innovation also
helps in improving the profitability level in which firm serve variety of goods and services in
market place. In addition of this, commercial funnel also plays vital role in increasing the
chances of attaining number of benefits which directly contribute in attaining higher success at
market place.
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REFERENCES
Books and journals
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal
of Management. 40(5). pp.1297-1333.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-the-
art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Breznitz, D. and Murphree, M., 2011. Run of the red queen: Government, innovation,
globalization, and economic growth in China. Yale University Press.
Brown, K. and Osborne, S. P., 2012. Managing change and innovation in public service
organizations. Routledge.
Brynjolfsson, E. and McAfee, A., 2012. Race against the machine: How the digital revolution is
accelerating innovation, driving productivity, and irreversibly transforming
employment and the economy. Brynjolfsson and McAfee.
Cross, J., 2011. Informal learning: Rediscovering the natural pathways that inspire innovation
and performance. John Wiley & Sons.
De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol. 14).
Springer Science & Business Media.
Gawer, A. ed., 2011. Platforms, markets and innovation. Edward Elgar Publishing.
Gennaioli, N., Shleifer, A. and Vishny, R., 2012. Neglected risks, financial innovation, and
financial fragility. Journal of Financial Economics. 104(3). pp.452-468.
Gunday, G. and et. al., 2011. Effects of innovation types on firm performance. International
Journal of production economics. 133(2). pp.662-676.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Kleinknecht, A., 2016. Innovation patterns in crisis and prosperity: Schumpeter’s long cycle
reconsidered. Springer.
Lundvall, B. Å. And et. al., 2011. Handbook of innovation systems and developing countries:
building domestic capabilities in a global setting. Edward Elgar Publishing.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Metcalfe, J. S. and Miles, I. eds., 2012. Innovation systems in the service economy: measurement
and case study analysis (Vol. 18). Springer Science & Business Media.
Rosenbusch, N., Brinckmann, J. and Bausch, A., 2011. Is innovation always beneficial? A meta-
analysis of the relationship between innovation and performance in SMEs. Journal of
business Venturing. 26(4). pp.441-457.
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.
Online
What is innovation? 2011. [Online]. Available through:
<http://www.innoviscop.com/en/definitions/process-innovation>.
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