Innovation and its Significance in Enterprise

This report discusses the concept of innovation and its significance in enterprise, including how it can increase productivity, improve communication, and utilize resources effectively. It also explores the differences between innovation and invention. Additionally, it examines how vision, culture, teamwork, and leadership shape innovation.

Innovation

Contents
TASK 1....................................................................................................................................................3
P1. Innovation and its significance in enterprise...............................................................................3
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation...................4
TASK 2....................................................................................................................................................5
P3 4Ps of innovation and use of innovation funnel to shape innovative ideas..................................5
P4 Development in frugal innovation and its use in organisation.....................................................6
TASK 3....................................................................................................................................................7
P5 Significance of commercial funnel and application of new product development for innovation7
P6 Innovation business case for an enterprise..................................................................................8
TASK 4....................................................................................................................................................8
P7 Various tools that can be used by enterprise to develop and protect intellectual property........8
CONCLUSION.........................................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
Innovation is an effective process of producing as well as delivering something new which
may lead in satisfy customers’ needs and demand. With the help of this firm create By using
this concept business organization easily enhance their performance level by add values
within their existing products and services. larger customers base in which they provide them
better convenience. Along with this, it also aids in capturing customer’s attention towards the
company products and services (What is innovation?, 2011). This concept also retains number
of customers for longer time period. As per today’s business environment, use innovation
concept is more important for business in order to make their competitive place in market
place. In absence of this firm fails in attaining better results. Present report is based on
plan.com, is mobile communication provider to its customers. They want to enhance their
business by using innovation concept in effective manner. This report discussed about
concept of innovation with its importance which aid in improving existing product line.
Along with this, 4ps of innovation also mentioned in this report. In addition of this, use of
frugal innovation in business is also mentioned here.
TASK 1
P1. Innovation and its significance in enterprise
In current scenario, innovation is an effective concept of adding new and value methods
within their process in order to satisfy customers’ needs and demand in effective manner.
Basically, innovation know by developing a new product with more efficiency in which
company easily create better customers and attain competitive place in market. By
implementing this concept firm easily offer variety of products and services to its customers
for satisfying their needs. Along with this, it also defines various ways to enhance their
image. Thus by implementing innovation, plan.com easily offer variety and features services
to its target customers. In this, there are some importance of this concept in business
organization. All these are as follows:
 Increase productivity level of company: It is considering as an important benefit in
which firm serve their services at affordable price. This will save time and cost as
well because it helps company at the time of producing better services. Along with
this, new and innovative ideas define various ways to enhance overall productivity
level at market place. Innovation aid in capturing market share from its rivals.
 Maintain better communication process: Effective communication is more important
for every business organization at the time of implementing innovation concept. It is
broad concept and complex as well so that it required effective communication which
may leads in reducing the chances of arising obstacles in overall innovation process. It
helps in increasing profitability level of the company at market place.
 Aid in effective utilization of resources: By implementing innovation concept, firm
use all the available resources in effective manner. This will enhance their better
production process in which company maintain their quality services and offer to their

customers at affordable price (Anderson, Potočnik and Zhou, 2014). With the help of
this plan.com improve their overall performance level at market place.
 Provide benefits to business organization: It is important for business organization to
produce new and innovative things in order to invite as well as attract larger number
of customers. With the help of offering new services, firm attain competitive
advantage at market place (Boons and Lüdeke-Freund, 2013). In context of plan.com,
they use innovation for serving quality services to its customers in order to satisfy
their needs.
Along with this invention and innovation both terms are differed from each other which can
be understood by following differences:
Basis Innovation Invention
Meaning Innovation can be said as
concept that is used for
implementing fresh ideas for
the products that are existing
in the market area. By making
certain changes they can
increase the brand image.
Invention is considered as an
activity that happens all of a
sudden. It occurs for the first
time. Under this, the activities
that performed are not yet
attempted.
Concept The concept is applied in order
to add value to the products so
that maximum benefits can be
gained.
Invention is done for the
betterment of people. Thus, it
is performed for making a new
product.
Required skills For innovation skills that are
required are related to
marketing, technical etc.,
As compared to innovation,
invention required more
specific skills for example: To
invent a formula it is necessary
that an individual have
scientific knowledge and skills
respectively.
Activities The activities are divided
across various departments so
that effective results are
obtained.
Activities that are performed
under this are limited to
research department thus,
confidentiality is maintained.

P2. The way vision, culture, teamwork and leadership of enterprise shape innovation
Innovation is a wider concept and it includes various factors that can affect the
organisation internally and externally. Leadership, vision, culture and teamwork are the major
elements that organisation should consider before establishing or implementing any strategies
and product (Breznitz and Murphree, 2011). Further, it has been explained so as to
understand it in an effective manner:
 Leadership and innovation: It is important for business organization to provide better
guidance to their workers to enhance their motivation so that they effectively perform
their duties. In this leader adopt various approaches which directly affect the overall
performance of the company workers as well. Along with this, concept of innovation
is also an effective in which manager should provide better direction to its workers so
that they effectively perform it and attain positive outcomes.
 Organisational culture and innovation: Culture define beliefs and features which
exist in business organisation. In this the whole structure of business follow it
effectively to maintain their positive brand image at market place. Along with this,
effective culture of the company helps in encouraging workers to perform well as at
the same time also adopt challenges effectively. In this context without organization
culture, implementation of innovation concept cannot be done in appropriate manner.
 Innovation and teamwork: For attaining better success, it is important for business
organization to develop an effective team in which all the activities can be done
effectively. With the help of this firm maintain better relationship among all the
workers and also attain their commitment towards the company and its goals. By this
implementation of innovation can get done in effective manner. Along with this,
effective communication also essential for implement innovation concept in effective
manner in order to attain positive outcomes.
 Vision and innovation: It is one of the effective statement in which company define
future aspect where they want to see it self. Thus it is important factor that directly
affect the innovation process of the company in which frim enhance their productivity
level at market place (Brown and Osborne, 2012). In context of plan.com easily
attain their vision by implementing innovation process in most effective manner.
Thus, all these are effective and important factors of innovation concept by which
manager of the company easily enhance their profitability level and maintain their
performance level. Basically all these elements are highly impact on brand image of the
company so that it is important for manager to modify all the necessary changes and
implement it effectively. This will aid in increasing the profitability level by capturing
customer’s attention towards its products and services.
TASK 2
P3 4Ps of innovation and use of innovation funnel to shape innovative ideas
It is considered as an essential element in order to remain in the market for a longer
period of time. Therefore, the concept of 4Ps helps an organization in getting into a superior
position in the market area. Thus, Plan.com is considering all the stages for gaining
maximum profits. Mainly, it includes four steps that mentioned below for a better
understanding:

Product Innovation: Product is made with both tangible and intangible substances
and these are used for making products according to the needs and wants of customers. For
this, it is essential that company carry out an effective research so as to know the requirement
of consumers.
Process: This step highlights the entire process of production from collecting raw
material to converting them into final goods (Brynjolfsson and McAfee, 2012). Therefore, to
manufacture a commodity, product goes through various stages like designing, technical
resources, assembly line, execution of final material.
Position: Under this stage, various kinds of mediums are used by which company can
promote their commodities. Thus, different types of tools and technologies are optimized in
this. This assists the organization in gaining better position in market area. Therefore, for
upgrading the position now Plan.com is planning to launch a new application through which
consumers can ask any information related to connectivity.
Paradigm: It is not possible that the ideas which are implemented will give better
results. Therefore, it is important that additional features are added in the commodity on a
regular basis so as to make the product more fruitful. Further it will attract more and more
companies towards the company.
Use of innovation funnel in shaping Innovation
Innovation funnel is a method which is used for converting a product into reality
which the help of unique ideas and thoughts. Henceforth, the main aim of applying this
concept is to analyse the current trends that are present in the market area so that better
services and facilities can be provided to customers. Therefore, Plan.com is utilizing
numerous methods for the same.
P4 Development in frugal innovation and its use in organisation
Frugal innovation is an effective way which helps in making new and innovative
products and services to its customers. With the help of this, firm manufacture innovative
services to its customers in order to attain better satisfaction level. Along with this, the main
advantage of using this concept is to define number of opportunities in which firm enhance
their profitability level at market place. This will reduce the unnecessary cost and expenses
(Cross, 2011). In this context, plan.com easily implement better innovation concept which
many leads in attaining better growth level. All these can be understood by following points:
 Determine opportunity in adversity: Under this principle, investigator undertake an
effective research in order to remove issues in order to maintain better sustainability
at market place. With the help of tis firm attain positive outcomes inappropriate
manner.
 Think and act flexible: It is also considering as an important method which is flexible
in nature in which manager assess the research effectively in order to maintain better
performance level.
 Maintain it simple: It is also an effective and important method in which manager of
the company resolve all the issues by finding better solution in effective manner. This
will help in saving cost and time of the company.

 Include the margin: It is an important principle which leads in determining customers
and their taste. This will also help in finding better solution of the customer’s issues.
Basically the main purpose of this is to evaluate better solution by resolving all the
issues (De la Mothe and Paquet, 2012).
 Follow your way and heart: Under this principle worker maintain passionate towards
the work in order to attain positive results.
TASK 3
P5 Significance of commercial funnel and application of new product development for
innovation
Commercial funnel is said to be a concept which is used by most of the company with
purpose of evaluating the ways through which more and more money can be generated so as
to get maximum profits. For this most of the organization make and execute number of plans
with an uncertainty whether they will succeed or not (Gawer, 2011). Therefore, in such
situations, commercial funnel play an important role and make out the ideas from which
company can get highest benefits. Thus, there main aim is to enhance the sales and
profitability. Further, the concept includes certain steps which are discussed in detail so as to
understand it in a better manner:
Under the first step, company tries to recognize all the ideas through which they can
gain benefits. This includes factors like conversion rate, cost price required while
implementing the plan etc., henceforth, Plan.com generate an idea from which they can get
maximum benefits and raise more revenues. Therefore, amongst all the thoughts they select
those through which profits can be made. Importance of commercial funnel is given for clear
understanding:
 Enhance the quality of products and services
 Plays an important role in growth of the organization.
 Encourage creativity
Process of new product development
Making a new product is not a easy task in fact it is a lengthy process and main steps
are mentioned below:
Idea generation: This is the first step in which the formulation of idea take place,
with a detailed research about the places and factors like suppliers, distributors, process etc.,
therefore, information are collected so as to make a substantial product in order to fulfil all
the needs and demands of customers (Gunday and et. al., 2011).
Idea Screening: This step is considered after evaluating the above mentioned stages,
for this, Plan.com is taking advices from experts and experienced person who can help them
out in making proper plan for conducting the future proceedings.
Concept development: After going through both the mentioned step, this stage is
determined and finally the concept is written on paper so that it can be converted into reality
by using various actions.

Development of strategies: Under this, numerous strategies and plan of actions are
done, so, here managers play an important role for the same.
Examine business conditions: Under this, a detailed evaluation of market area takes
place so that company can set a target audience and place from where they can get maximum
benefits (Gennaioli, Shleifer and Vishny, 2012).
Product development: in this stage the final features that are to be used are finalized
so that product can be developed in order to satisfy customer’s demands.
Test Marketing: To check the compatibility of the products, first the product is sold
in particular places in order to know whether it will give maximum benefits or not.
Commercialization: This is the last step and it is used for promoting the product so
that it is in reach of every single person. Therefore, the commodity is out for sale on a big
level. For this, various kind of mediums are used like selling through online, through various
shops etc.,
P6 Innovation business case for an enterprise
Innovation concept play important role in business organization to enhance their
performance level. In this context, plan.com is a small business which operate their business
as provider of mobile communication (Jiménez-Jiménez and Sanz-Valle, 2011). In this they
serve their services to business class customers to maintain their productivity level. It directly
contributes in creating strong customer base within the organization and enhance their
profitability level. In this business also expand their business by using better innovation
concept. This can be understood by stated business case:
 Executive summary: As a small company plan.com deal in mobile communication
sector in which they target business customers who wants to use application to share
their information with others. With the help of this they create their strong customer
base and attain better profitability level.
 Objectives: he main objective of plan.com is to provide quality mobile services to its
customers in UK. By this firm easily maintain better relation with their customers.
 Solution: It is important for business organisation to provide better convenience to
their customers in order to satisfy their neds and demand in effective manner.
 Why products are innovative: For capturing customer’s attention, it is important for
pla.com to use innovative products and services to their service users in which they
easily satisfy their demands (Manso, 2011). In this plan.com launch better application
to their customers in which they easily transfer their information with other with more
security.
 Customers research: To attain better outcomes, it is more important for plan.com to
understand customers demand towards the products features and variety. This will
help company in satisfying their customers and enhance their profitability level.
 Funding: Proper financial resources is important for implementation of innovation in
which pla.com take loan from banks and another institution to keep enough funds.
With the help of this fir easily maintain better performance level.
 Expected benefits: It is defining expected benefits in which frim enhance their
performance level by implanting better innovation concept. With the help of this firm
attain better profitability level at market place.

TASK 4
P7 Various tools that can be used by enterprise to develop and protect intellectual property
Plan.com is a renowned company in United Kingdom and deals in providing
communication services in respective areas, for retaining their position in market area they
are optimizing various strategies (Lundvall And et. al., 2011). Along with this, it is important
that they have enough information about their basic needs so that they can be aware of
various kinds of frauds and illegal activities. Some of the laws and legislations are mentioned
below in order to protect themselves:
Trademark: It is used by most of the companies so that customers can easily identify
the services provided by any particular organization. Basically it is used in the form of signs
and symbols for making the product unique from others. This can be seen on packages, labels
or vouchers.
Copyright: This is a legal right or laws that are created by regulatory bodies so as to
give powers to the creator so that they can sustain the originality. Therefore, it can be said as
a form of intellectual property right and only protects the ideas not the thoughts that are
mentioned for further proceedings (Kleinknecht, 2016).
Patent: It can be said as a set of exclusive rights that is given by government for a
limited period of time. This is considered in order to define the claims about the invention
done. It protects an individual’s work from being copied. Patent can be for 20 years but not
more than that.
CONCLUSION
From the above mentioned report, it can be summarised that concept of innovation is
more important for every business organization. By implementing this, firm enhance their
performance level by inviting larger number of customers towards it products and services.
Along with this, various factors are also effect the overall innovation process so it is
important for manager to assess effectively before implementing in their business
organization. For attaining better results, proper training and development programs should
be provided by manager to its workers so they can effectively perform their task and attain
better results. This will direct contribute in enhancing overall performance level of the
company at market place.

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>.