Innovation and Business Model Development

This assignment delves into the concept of innovation and its significance in shaping successful business models. It examines various types of innovation, including product, process, and business model innovation, highlighting their distinct characteristics and effects. The analysis emphasizes how innovation can drive value creation, enhance competitive advantage, and contribute to overall business growth. The assignment also encourages students to explore real-world examples of companies that have successfully implemented innovative strategies.

INNOVATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 .........................................................................................................................................1
P1) Innovation and its importance to organisations with invention...........................................1
P2) Organisation leadership, innovation and teamwork for innovation and commercialisation
.....................................................................................................................................................3
TASK 2 ...........................................................................................................................................4
P3) Evaluating 4 P'S of innovation............................................................................................4
P4) Development of Frugal innovation.......................................................................................7
TASK 3 ...........................................................................................................................................8
P5) Importance of commercial funnel and NDP in an business firm.........................................8
P6 Evaluation of Innovation Business Case................................................................................8
TASK 4 .........................................................................................................................................9
P7 Different tools used by organisation......................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is defined as an adoption of new idea and plan for making an effective future
of an industry. Innovation is combination of opportunity identification, prototyping, ideation,
marketing, sales and production (Sawyer, 2011). It can be determined as development of idea
and thought which can be used in operation of implementing goods and services that are offered
to consumers. Invention is different term and it is described as discovery of new and innovative
idea, thoughts and things that are helpful in creating better future. Innovation is needed in each
and every firm after a period of time, because people get bored with same things. Innovation is
providing help and support in achieving organisational goals and objectives. Periscopix is well
known marketing consultancy, headquarter in UK. The major purpose of this company is to
provide best and innovative service to their customers in order to get more profit. This report
contains the study about various differences between invention and innovation. It describes
multiple strategies and functions which are helpful in effective functioning of innovation and
invention. Apple is most popular brand which is focuses towards implementing new ideas and
thoughts into proper action. Large number of customers are attract towards apple just for their
innovative feature in their products.
TASK 1
P1) Innovation and its importance to organisations with invention
Innovations: Innovations is termed as a process which includes generation of new ideas
that are helpful in meet with needs and wants of customers. It can also be defined as thoughts
that can helpful in rendering proper solution for issues of customers. Alteration means
modification of goods that are important in every business firm for satisfying different needs and
wants of customers. Innovation is required for create new feature in existing products and
development of new good at market place that meets the need of consumers. Companies use
various techniques, technology and methods for implementation of new ideas into proper action.
Up gradation is possible with the use of modification in technology. The needs and wants of
customers are rapidly change as per the change in society and cultural. Organisation redesign
products as per the new market demand (Rosenbusch, Brinckmann and Bausch, 2011). Policies
and plans that are helpful in development of thoughts and ideas or convert them into
merchandise form.
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Importance of innovation that are described as below:
 Innovation is required in each and every department of an organisation, just for
implementation of new thought and idea.
 It helps in creating well reputed image of firm at the place of market that are needed for
attaining organisational goals and objectives (Ries, 2011).
 It helps in developing new and best methods and technology for firm that provide support in
operation and production function.
 It helps in maintaining brand image of company for long run of business in their future.
 It helps in managing competitive advantage for every business organisation by developing
best path for each and every function related with operation and production.
 Innovation means adoption of unique ideas and thoughts that are not applied by any one else
, and company use those ideas for better achievement of goals and objectives.
 Customers are placed all around the world, according to today's scenario companies take
views of their customers thus they can implement better features in their products.
Difference between innovation and invention is described as below:
Innovation Invention
It is describes as the establishment of new
thoughts and ideas for effective implement ion
of production function.
It determined as a discovery of new
techniques, methods and technology for
effective operation of new things that has never
been applied before.
It is known as piratical performance of new
and innovative plan.
It perform on the basis of different theories as
per the requirement, and deals with fresh and
original ideas.
It is required for making values for existing
goods and services (Rice, 2013.).
It is helpful in introducing new products at
market place that meet with new demand of
customers.
In this activities related with goods and
services are carried out that are offered to
consumers.
Firms are hire talented people just for make an
effective design for new goods and services.
Measures are adopt and create transformation Scientific research processes are helpful in
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in available goods. evolvement of new ideas and thoughts.
As per the above table it has been analysed that invention and innovation both are important and
required in every business firm. These both are different from each other and the usage of
innovation and invention are also contrary. Apple is concern on developing innovation in their
variety of products and services. Innovation is helpful in satisfying the needs and wants of
customers and provide support in attaining cited goals and objectives of firm.
P2) Organisation leadership, innovation and teamwork for innovation and commercialisation
Every organisation is concerned on creating innovation in their goods and services in
order to fulfil the current needs and wants of market and customers (Patton, 2011). Periscopix
use commercialisation as a process of generation of new idea that create required changes in
products. Commercialisation is helpful in attaining high share and profit.
For example: Apple is focused on creating innovation in their goods according to new
requirement of customers as per market trend.
Vision of firm: vision are predetermined statements that are helpful in success and
growth of business. It provide a right direction for implementation of each and every function of
organisation in an effective manner. Every business firm has to be quantitative and valued
across the world. It provide support in earning unique brand image of firm. Every firm have their
own vision and mission, this statement helps to differentiate one company form others. The
higher authority and top managers are involved in every important decision of cited firm. They
describe their goals and objectives to their employees as well as customers. This is
predetermined statement because in vision company describe their future goals and objectives.
That are helpful in achieving profit for company , so vision provide proper assistance to their
staff members, so that they can put their potential for performing task and duties. Overall
function and operation of an organisation is based on vision and mission statement. Every
business firm focuses towards becoming more powerful across the world.
Cultural of firm: This factors directly impacted of commercialisation and innovation. As
a well known marketing consultancy Perscopix collect large amount of data and information for
better implementation of strategy. Different dimensions related with technology are adopted by
organisation for effective utilisation of resources in well planned manner. Cultures play a
significant role in creating modification in products and services. Good cultural environment
provide opportunities and strength (Patti, Yanes and Siuzdak, 2012). The heart of every firm is
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its rapidly changing tools and techniques related with innovation. Organisation perform duty and
task as per their own secrecy and cultural that is an important part of every business strategy to
minimise and decreases stolen and theft on important and confidential data and information, in
this property is also included because it is also vital for organisation.
Leadership of firm: Leaders are important elements for business organisation. They
provide direction to their employees for performing task and responsibility in an effective
manner (Mowery and et. al., 2015). Leaders are helpful in assigning right duty and responsibility
to right person. They rapidly evaluate performance of employees and give task per their
speciality. An organisation hire educated and well skilled people for achieving goals and
objectives in an efficient and effective manner. Managers and leaders are encouraging their
employees and subordinated for providing better contribution in every operation function.
Leaders provide chance to their employees in taking part in every decision related with their job
and duty. This is an effective way of motivate workers.
Team spirit: Every business firm focuses on reducing workforce form their employees.
They divide workers in various teams as per similar set of knowledge and interest. Innovation
can be created by effective implementation of team work. Profit and growth can be achieved
through better utilisation of team work in cited plan and procedures. Goals and objectives can be
achieved in an effective way with the coordination of group member in an effective manner.
Various important changes had to be established in the process of innovation. Every
business firm is focused on better implementation of innovation function that are accepted by
huge number of people.
For example: Every business is concern towards creating healthy work environment to their
employees and it become easy for better implementation of team work. Invention and innovation
can be attained in variety of goods that leads towards growth and success of Apple Inc.
TASK 2
P3) Evaluating 4 P'S of innovation
Innovation is essential term in every business firm just to face continuous changing needs
and wants of customers. There is need of making required changes in their goods and services
for satisfying different needs and wants of customers. Periscopix is concerning on creating
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innovative alteration in products in order to achieve large amount of profit sustainability in
competitive era of market. The4P's of innovation is described as below:
(Source: 4P's of Innovation )
Product perspective: The products of apple are very much innovative in nature. Large
number of customers are attract towards new and innovative feature of goods. Apple use
different design that makes product more effective and easy to carry from one place to another.
Apple is mainly focuses on their new product that is iPod which is very much easy to use. This is
worlds smallest music player. It has different feature like it can speak for itself while pressing
any button on it. It give further detail about next song (Manyika and et. al., 2011). The iPod can
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Illustration 1: 4P's of Innovation

easily download so many music as compared to other music players with the help of a software
which needs to be installed in computer.
Process perspective: It is second and important aspect of innovation mix. Apple use
innovative processes of products. The iPod is invented by apple manufacturer with the
contribution of other countries in outsourcing parts. Apple use common and easy way to launch
iPod at market place through their outlets and stores (Jaffe and Lerner, 2011). It follow the
common way to reach at their potential buyers. It goes from manufacturer, wholesaler, retailers
and then customers.
Position perspective: It is an essential element of innovation process. Every firm is
focuses on rendering high quality services to their customers in order to provide satisfaction.
Apple give good quality product such as iPod with innovative feature and mainly targeted to
youngsters and teenagers.
Paradigm perspective: It consist as continuous functions of any product and services.
When company add some new and advance feature in their products for better growth of
company. New ideas doesn't change the products it is just addition of new feature in their
products.
Innovation funnel: It can be determined as the process of collection of new ideas and thoughts
and select best among available alternatives. Companies mainly focuses on identifying new
needs and wants of customers and than produce goods as per requirement of market. New
products are designed by well skilled people, so that they can create an effective utilisation of
resources. This helps an employee to select best and innovative idea among various options
which provide right direction to achieve competitive advantage.
P4) Development of Frugal innovation
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(Source: Frugal Innovation 2017)
Frugal innovation is an process of decreasing and reducing issue, conflicts, complexities,
production and cost of goods. This is mainly consist as an element that is helpful in removing
less important and non-essential aspects and features from a daily useable good. At the time of
operation and production function company faces so many issues and complexity and frugal
innovation helps to reduce them (.Huizingh, 2011). It can be describes as a term which is helpful
in deduct those features that are not useful in firm. Apple adopt frugal innovation just for
removing extra features that are not useful for customers and consume a huge space in products.
Virgin and Apple Inc. are most popular brand across the world and people have faith and trust
on its products and services. They are famous for their electrical goods such as mobile phone,
laptop, computers etc. these two companies having availability of variety goods across the
globe. Frugal innovation is required in each and every business firm because of fulfilment of
extraordinary requirements and needs. It has the ability to create economic, business and social
value, this mainly use for reduce inefficient utilisation of less required resources. Frugal
innovation is also known as the strategy of game changing. Apple Inc. earn high profit with the
help of their most popular goods such as iPod, iPhone series. These two goods render more profit
than other goods. This innovation is used in deducting non-necessary aspects from a durable
product.
For example: Apple adopt various new and innovative business model for effective
development of goods at market place. These models are helpful in identifying needs and wants
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Illustration 2: Frugal Innovation

of customers and create as per demand and preference of people with more innovative idea and
feature.
For example: Virgin group use new methods and technology for producing new goods
that helps to meet with different requirements of people. For earn more profit and revenue the
create some advance and innovative changes in their products.
TASK 3
P5) Importance of commercial funnel and NDP in an business firm
Commercial funnel: Companies are mainly focuses towards their product feature and
quality. Large number of buyers are attract on quality aspects (Gordon, 2012). The major
advantage of company is its good image. Commercial funnel is apply for create derivative choice
about how the good is being sold at place of market. This is described as best channel and media
of distribution by which goods can be delivered at right place and right customers.
Encourages activities of selling: Sales is an important aspect of every business organisation and
commercial funnel helps in creating an effective and efficient process that provide high growth
and success.
Reaching to customers: This process is helpful in providing best way to firm for react at
their targeted customers. Best and innovative design is created for effective utilisation of channel
that helps to reach consumers who are beneficial for firm.
New product development:
The development of new product is important for profit maximisation in an organisation.
After a certain period of time people get bored with available goods and service, they want some
innovation and advance feature in their products. People are follow norms of society and their
preferences also changes as per new trend of market, so companies are focused towards
providing beneficial services with advancement to their customers. Company have to face
various risk factors before launching a product at market places. Apple and Virgin firstly try to
remove complexities for market and than introduce a brand new product with innovative and
new features.
P6 Evaluation of Innovation Business Case
Every business organisation is mainly concern towards satisfying the actual wants and
needs of customers in order to earn profit (.Drucker, 2014). The major work of Company is to
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address aims and objective because, they work on the basis of elements of aims and objectives.
Business case are important for firm. These are helpful in introducing new and innovative
products at market place that meets with requirements of customers. As per the above case it has
been founded that Apple Inc. apply time gap policy in which that is possible for them to
introduce and launched product with innovative feature every year. Virgin group launched its
goods according to the strategy of its competitors (Davila, Epstein and Shelton, 2012). It provide
helps in covering large amount of market shares. Periscopix is known as marketing consultancy
is diversified into different market place. The business case for innovative products are described
as below:
Research and development activities: These activities play an essential role in every
business firm as it are helpful in identifying the actual situation of market. According to the
needs of market new product can be produced that fulfil needs and wants of people.
Time management: Company needs to create a proper frame work for effective
management of time in each and every function of organisation.
Resources: These are important assets for firm these are used for effective execution of
policies and plans for implementing new product.
Funding: It is very much required for every firm to take financial help from money
leader, investors and stake holders. Government also provide loans and subsidiaries facilities to
companies.
TASK 4
P7 Different tools used by organisation
There are so many tools and techniques are available which are used by Periscopix for
developing intellectual property and employee's are described below:
Copyrights: It is accepted by the court of country that grants producer of original work
fortunate right for its channel of distribution. Copy right is important because there are lots of
competition available at market place and competitors can copy their brand. With the use of
copy right no one can copy their brand other wise company can sue others at court. It can be
determined as the sign of '©' which repersents that clause has copyright (Amit and Zott, 2012).
Trademarks: It is an essential identity of any firm which differentiate it from others.
Trademarks can defined in the form of logo, symbols and some combination of words which are
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applied by producer to create their product stand out form their available competitors. Trademark
is described by the sigh of “TM”.
Industrial design: This can be described as a model that provide help and support in
designing variety of goods. An industry should keep in mind the aspects related with safety,
security, pattern and shape.
CONCLUSION
As per the above report it has been concluded that innovation and invention play different
role in every business firm. These two are based on each other but they are different terms.
Innovation is used for generation of new idea in respect of producing innovate products. These
products are created for satisfying the needs and wants of customers in order to maximise their
profit. Innovation and commercialisation are significant term which are used for making
availability of new products through their channel of distribution. The process of funnel is used
for deducting extras and non-essential elements form organisation. Intellectual properties are
helpful in rendering safety and security to companies, so one con copy their brand.
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REFERENCES
Books and Journal
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review. 53(3). p.41.
Davila, T., Epstein, M. and Shelton, R., 2012. Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gordon, R. J., 2012. Is US economic growth over? Faltering innovation confronts the six
headwinds (No. w18315). National Bureau of Economic Research.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Jaffe, A. B. and Lerner, J., 2011. Innovation and its discontents: How our broken patent system
is endangering innovation and progress, and what to do about it. Princeton University
Press.
Manyika, J. and et. al., 2011. Big data: The next frontier for innovation, competition, and
productivity.
Mowery, D.C., and et. al., 2015. Ivory tower and industrial innovation: University-industry
technology transfer before and after the Bayh-Dole Act. Stanford University Press.
Online
Patti, G. J., Yanes, O. and Siuzdak, G., 2012. Innovation: Metabolomics: the apogee of the omics
trilogy. Nature reviews Molecular cell biology. 13(4). pp.263-269.
Patton, M. Q., 2011. Developmental evaluation: Applying complexity concepts to enhance
innovation and use. Guilford Press.
Rice, A.K. ed., 2013. Productivity and social organization: The Ahmedabad experiment:
Technical innovation, work organization and management. Routledge.
Ries, E., 2011. The lean startup: How today's entrepreneurs use continuous innovation to create
radically successful businesses. Crown Books.
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.
Sawyer, R.K., 2011. Explaining creativity: The science of human innovation. Oxford University
Press.
What is innovation? 2011. [Online]. Available through:
<http://www.innoviscop.com/en/definitions/process-innovation>. [Accessed on 20th
July 2017.]
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