Innovation for Small and Medium Enterprises

This assignment delves into the crucial role of innovation for the success of Small and Medium Enterprises (SMEs). It examines how innovation can attract customers, maximize sales, and enhance overall company performance. The focus is on understanding the elements of innovation essential for SMEs, including the application of the 4P's of marketing and the creation of innovative products. The assignment also emphasizes the need for legal protection through non-disclosure agreements and patent applications to safeguard innovative ideas from misuse.

INNOVATION

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its importance by comparing it with invention.............................................1
P2 Leadership, vision, culture and teamwork can shape innovation..........................................3
TASK 2............................................................................................................................................4
P3 4Ps of innovation and use of innovation funnel....................................................................4
P4 Development of frugal innovation.........................................................................................5
TASK 3............................................................................................................................................6
P5 Importance of commercial funnel and application of new product development processing
.....................................................................................................................................................6
P6 Innovation business case and tools for access funding..........................................................7
TASK 4............................................................................................................................................8
P7 Tools used by organization for developing, retaining and protecting intellectual property. .8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is one of the most indispensable factor that is used by entire corporate world
for gaining maximum benefits by satisfying consumer needs or demands. Its all about bringing
something new or advanced at marketplace in order to generate more or more revenue in a
minimum time period (Johnson, 2016 ). Rowlinson knitwear is a small business entity whose
main motive is to offer best or qualitative garments to desired consumers. Therefore, assignment
is going to highlight the significance of innovating something new or different as compared with
competitors. Along with this, frugal innovation and various P’S are also outlining in this project
for understanding the effectiveness of creating something new or different. Additionally,
companies are also designing their intellectual properties for establishing goodwill at
marketplace and making the product totally different from others. At the end project is showing
the tools of preventing intellectual properties from getting misused by rivalries.
TASK 1
P1 Innovation and its importance by comparing it with invention
Rowlinson knitwear is engaging in offering best clothing facilities to their desired clients
in order to create a positive relations with customers. As a result it helps in improving their
company performance by increasing sales due to increment in consumer demand. Innovation
plays a very vital role in corporate world because every individual wants something new or
trendy for experiencing totally unique items. Therefore, company is involving in manufacturing
creative products for capturing attention of millions of users. However, number of factors are
identified which shows that innovation is highly indispensable for company success. Some of
them are describing as follows:-
 Sales volume:- First or foremost objective of business entity is to maximize their
company sales in a minimum time period due to which they are involving in designing
unique products because clients get attracted towards creativity ( Seebode, Jeanrenaud
and Bessant, 2012). In today’s advanced world most of the users are curious to try to
different items as compare with others and ready to pay high amount for innovative
items. It means, it is essential for small and medium business to bring something creative
which make their organization different from large enterprises and get succeeded in
maximizing company sales by satisfying customers needs.
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 Long term relations:- It is not easy to make positive connection with consumers because
every users want to have unique and trendy product but at reasonable rate. Thus, it is
indispensable for medium enterprises to communicated in effective manner in order to
make long term relations. As it helps for Rowlinson knitwear in continuing their business
for longer period by acquiring support from consumers.
 Profit maximization:- One of the major reason behind creating something new is to
generate more or more revenue by seeking attention of high range of users in a minimum
time period. Due to which company is trying to spending maximum amount of funds in
enterprise to introduce trendy and different garments as compare with others.
Additionally , focussing on improving organization image from marketplace for gaining
attention of domestic as well as foreign customers.
By analysing the above elements it has been understood that bringing unique products is
most mandatory activities for small and medium enterprises because in today’s advanced world
company needs to focus on innovativeness as users are love to look different from others
(Nambisan and Sawhney, 2011). On other hand it is identified that innovation and invention
these two terms are totally differ from each other in various aspects. Thus, few major differences
in these elements are discussed as under:-
Innovation Invention
 Innovation is a term which means
introducing something different as
compared with others. It means
company might reform the existing one
or bring new pattern in similar product.
For example; launching creativity in
western dresses in terms of colour, style
and so on.
 It might used by public earlier because
innovative is a just reformation of
existing products.
 Whereas, invention means introducing
totally unique which is never used
before and no one is know about that
item. It means if an association is
launching something fully advanced or
distinguish product. For example; few
upcoming entrepreneur is trying to
invent something different from others
such as; launching substitute of western
dress or invention by successful
scientist like iPhone etc.
 Never used before.
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Hence, both the terms are contrary to each other but similar in some extent whose main
such as; innovation and invention is trying to increase the profit of an association by gaining
attention of maximum clients in a minimum time frame. It has been proven that small and
medium business needs to understand the significance of creativity at marketplace. Most of the
organizations are engaging in this activity for maximizing their sales performance by seeking
customers minds.
P2 Leadership, vision, culture and teamwork can shape innovation
Innovation is demanded by every business entity for attaining their long and short vision
because it helps an organization in various manner. For example; maximize the company sales,
attract users or entire society, improve the performance as well as sometime employees also get
motivated towards their personal or professional objectives. Thus, various elements of an
organization is playing major contribution in shaping the innovation as well as encourage an
enterprise to bring something creative at marketplace ( Drucker, 2012). Roles of various
components of organization in shaping innovation is discussed as underneath:-
Leadership:- Managers of an enterprise is assisting their employees to bring some new
idea or thought while performing assigned job role in order to maximize personal and
professional productivity. Their main objective is to crate positive relations with users which is
only possible of enterprise is offering qualitative and different product as compare with rivalries.
In order to fulfil demand of consumers as well as to gain more bonus employees are trying to
introduce unique thoughts. Therefore, leaders are playing a very eminent role in motivating staff
members towards this stage because they are having their self target and motive which is
assigned by high authority.
Vision:- Every small , medium and large enterprises are having few long term and short
term vision but one thing is similar in every type of organization is that “profit maximization". It
means corporate world is running for gaining more or more profit in minimum time period.
Hence, selected firm is also getting motivated towards their vision due to which they need to
create unique products at marketplace.
Culture:- Organization culture have a major impact on company performance as
environment influence minds of employees that are existing at workplace in order to attain set
objectives. In fact, positive surrounding motivate staff members towards their assigned job role.
For example; flexible hours to workers refresh their minds, bonuses on their hard work, healthy
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conversation between higher authority or lower, parties, availability of more experienced
member and so on. All these elements motivate employees to get involved in designing
something new by giving full contribution in their assigned job role.
Teamwork:- Togetherness is a major power of success because it helps in accomplishing
various complicated work in appropriate manner without facing any problems (Brown and
Osborne, 2012). Along with this, supports in encouraging members to take part in decision
making process for introducing something new or unique thoughts in order to make changes at
workplace.
Throughout all the elements one thing is determined that every department of an
organization is focussing on gaining maximum benefits by introducing something totally
different and unique as compared with distinct rivalries emerging at marketplace. Along with this
trying to cope up with numerous business problems which might occurred due to changes in
various external and internal factors.
TASK 2
P3 4Ps of innovation and use of innovation funnel
Innovation are playing a major role attaining organizational objectives in a defined time
by attracting millions of customers as soon as possible. Beside this, launching of creative ideas is
not only the task whereas company needs to focus on their marketing strategy also in order to
promote their object in marketplace. Thus, 4 P’S is playing a very eminent role in introducing
product by considering necessary facts or figures such as; target consumers, place, location,
marketing strategy, requirement of users and so on. In fact company needs to understand each or
every aspect before creating advanced product in order to control possibilities of mistakes and
errors. Hence, it has been understood that 4P’S of innovation must be considered while
introducing new thought for minimizing loss. Proper description of 4P’S are described as
follows:-
 Product:- Tangible items is essential for company success because first or foremost factor
which is considered by an enterprise is that they need to introduce a totally unique item
for seeking attention of millions of customers in a minimum duration ( Bieraugel, 2015).
Instead of product company needs to pay attention on various aspects also such as;
packaging, delivering methods, transferring process and so on. It means, company needs
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to focus on various elements while producing company goods and items at marketplace.
Although, company is trying to maximizing their income by designing an outstanding
goods across the various market as per consumer needs.
 Process:- After manufacturing marvellous items it is essential to focus delivering
procedure in order to serve consumer with best product on right time at right place. It
helps in creating positive relations with consumers for gaining maximum benefits by
fulfilling their needs in define time period. For example; selected firm is engaged in
designing clothes or garments for desired customers and adopting advanced technology
for transferring it across the international boundaries. It helps in making positive relations
with maximum clients which resulted in making long term connection with consumers.
 Position:- Small and medium enterprises are dominated by large multinational company
and have a major impact on sales of an association. Assessment of position is helpful for
company while designing their policies and strategies to run a business entity in an
appropriate manner. It is highly similar to marketing promotion because analysis of
current positioning aids an enterprise to assist while designing success strategy.
Additionally promote the company towards innovative ideas for improving the
circumstances as well as increase the return on investment.
 Paradigm:- Last stage of innovation is all about fluctuation of mental models towards an
enterprise which includes behaviour of human beings at organization marketing strategy.
It shows the various viewpoints , thoughts and expression of individual towards changes
occurred by enterprise ( Van Lancker, Wauters and Van Huylenbroeck, 2016).
By considering all the above P’S company can easily attain their set targets by
implementing all the marketing activities in appropriate manner with the help of useful strategy.
Along with this, all the above factors is useful for enterprise at every situation such as; consider
choice or preferences of clients, market assessment, competitors products, methods of delivering
and so on.
P4 Development of frugal innovation
Innovation is useful for commercial enterprises because it aids in creating connection
with employees. As a result, company is trying to improve existing position of an organization
by introducing various qualitative products on affordable price. Frugal innovation is an
appropriate process that is used by selected firm to offer best or reasonable product to their
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desired customers whomsoever are enable to buy costly products that in a minimum time period.
Along with this, it helps in analysing the choice or preferences of middle class people also to
attract their minds also in a desired time frame. However, most or useful development which is
identified in frugal innovation is that this strategy aids an association by providing best suitable
solutions to those company which are having minimum resources to design final goods
(Bernasconi, Harris and Moensted, 2013). Thus, development in this factor is highly beneficial
for small firms that are offering door to door services to clients and putting lots of sacrifices in
attaining their objectives. For example; lower section of society are enable to enjoy costly
products and services offered by multinational companies. Therefore, with the use of frugal
innovation selected firm can easily design similar product but on a reasonable rate that is afford
by individuals. However, it is essential to focus on each or every aspect for acquiring minds of
final users because products are lastly consumed by them only which resulted in profit for
business entity. At the end it has been understood that enhancement in frugal innovation is highly
indispensable for organizational success and development as well as satisfied high range of
middle class people whomsoever are failed to buy costly items.
TASK 3
P5 Importance of commercial funnel and application of new product development processing
Commercial funnel is also known as sales funnel whose main motive is to gain attention
of users for increasing their profit level in order to establish their goodwill at marketplace. Along
with this it helps an association for continuing their business for longer period of time. However,
it is not easy to grab the minds of customers because their mind fluctuates as per changes in
existing factors. Basically, this funnel is consist of an appropriate stages which gone through
starting phase of individual when he/she or going to buy something at market. Thus, for
organization this process started when customers get attracted towards particular products due to
its attractiveness, uniqueness and so on (Koch, 2012). Then, its time to covert their visiting into
liking by affecting buying decision so that consumer can buy that specific item on particular
price. All the major steps through which sales funnel is going through are describing as follows:-
 Attract:- An appropriate tool for garbing attention of customers such as; effective
marketing strategy with the use of attractive websites, designs , advanced technology to
capture and so on. It means techniques are using for capturing in a less time.
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 Convert:- Needs to offer best services to users in order to enforce them to share contact
information for company.
 Close :- Its time to manipulate consumers with various tools and techniques in order to
create effective or positive relations with them. As a result, they are going to buy the
product by getting affected as well as ready to pay.
 Delight:- At this stage company needs to offer best or qualitative items for their
customers so that they can select same association in future also. Moreover, refer their
friends, partners and close one.
As a result through this process an organization can easily enhance their product for
attracting consumers towards specific products. Additionally, get succeeded in satisfying their
needs or demands with the use of advanced technology and adopt the process of commercial
funnel (Talukder, 2014).
P6 Innovation business case and tools for access funding
Business case is all about highlighting the vision, mission, stakeholders and various other
elements that is essential to consider while designing strategy for company success. However,
business case is helping an enterprise in promoting company across the international boundaries
with the help of useful strategies and tools. In fact, an effective business case is showing the
major objectives of firm in order to minimize the probability of any mistake and losses that
might create due to confusion. Hence, various factors which falls under an appropriate business
case is described as follows:-
 Company vision:- First or foremost element is that employees needs to understand the
long and short term vision of an association for making strategy as per requirement. For
example; Rowlinson Knitwear is trying to expand their business in various regions so that
they can gain maximum return on their investment.
 Mission:- Their mission is to satisfied clients that are loyal towards an association as well
as attracting more or more in a less time frame.
 Stakeholders objectives:- Company are involving with various shareholders for making
effective relations with consumers as well as trying to enhance their goodwill through
different sources. For example; gain more benefits or profit, expand business and so on.
Hence, it has been understood that business case needs to consider all the essential factors for
reducing the chances of losses. Along with this needs to acquire funds from different sources
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because capital is most indispensable factor for an organization because all the business activities
are run with the use of sufficient funds. Some of the major sources of funds are; equity,
preference shares, debentures and so on.
TASK 4
P7 Tools used by organization for developing, retaining and protecting intellectual property
Innovation is not share with others because introducing creative products is a knowledge
of a person or entrepreneur who is involving in bringing something unique marketplace for
attaining maximum benefits ( Bogers and West, 2012). Their main objective is to gain maximum
benefits by bringing different things by using self learning and talent. Therefore, it is essential to
take necessary steps for protecting knowledge and intellectual property from getting misused by
hackers. Some of them are described as follows:-
 Spend time to design smart intellectual property.
 Need to conduct audit for identifying all the registered and unregistered trademarks or
patents.
 Required to invest sufficient amount in Non- disclosure agreements in order to ensure
that this will prevent all the personal identity from fraudulent activities.
 Acquire professional supports for controlling probabilities of mistakes.
 Need to file patent application for preventing it from misuse.
CONCLUSION
From the above report it has been summarized that innovation plays a very vital role in
improving the company performance because it aids in capturing attention of millions of clients
in a minimum time frame. Along with this supports in maximizing sales by introducing creative
products at marketplace which automatically gain attention of customers. However, overall
assignment is focussing on requirement of innovative items to small or medium enterprise. At
the end it has been understood that medium association needs to focus on various element of
innovation because it is beneficial in various. For example; use of 4P’S of innovation aids in
understating the marketing process as well as commercial funnels supports while attracting
consumers towards set objectives and goals.
REFERENCES
Books and Journals
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Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Seebode, D., Jeanrenaud, S. and Bessant, J., 2012. Managing innovation for sustainability. R&D
Management, 42(3), pp.195-206.
Nambisan, S. and Sawhney, M., 2011. Orchestration processes in network-centric innovation:
Evidence from the field. The Academy of Management Perspectives, 25(3), pp.40-57.
Drucker, P., 2012. Managing in turbulent times. Routledge.
Brown, K. and Osborne, S.P., 2012. Managing change and innovation in public service
organizations. Routledge.
Bieraugel, M., 2015. Managing library innovation using the lean startup method. Library
Management, 36(4/5), pp.351-361.
Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the
bioeconomy: An open innovation perspective. Biomass and Bioenergy, 90, pp.60-69.
Bernasconi, M., Harris, S. and Moensted, M., 2013. High-tech entrepreneurship: managing
innovation, variety and uncertainty. Routledge.
Talukder, M., 2014. Managing innovation adoption: From innovation to implementation.
Ashgate Publishing, Ltd..
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management, 21(1), pp.61-75.
Roepsch, T.J., Deprez, G.A., Holbrook, J.A., Hernandez, J.B., Peterson, G.J., Mauldin, B.A.,
Aragon, O.F., Tinker, J.E., King, H.I., Li, Q. and Smet, K., 2016. 3dT FRAME MODELING
APPARATUS. U.S. Patent Application 14/631,535.
Koch, A.H., 2012. Authority and managing innovation: a typology of product development
teams and communities. Creativity and Innovation Management, 21(4), pp.376-387.
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