Importance of Innovation and Intellectual Property

The provided report discusses the significance of innovation in organizations, emphasizing its role in differentiating them from others. It highlights the importance of protecting intellectual property through patents, trademarks, design rights, and copyrights. The report also mentions various tools and techniques used to defend and retain knowledge and intellectual property, such as patenting innovations and designs, registering trademarks, and implementing copyright laws. By protecting intellectual property, organizations can prevent theft and maintain a competitive advantage in the market.

INNOVATION

INTRODUCTION
Innovation is referred to any fresh opinion or thought that can be utilized to create
innovative product or service. This concern usage of various cognition , data, creativity and
implement those to make a different thing. In relation with business concern context, managers
thinks new ways which can raise their enterprise and employ advanced opinion so that they can
make something assorted from their rival. Collaborative Store is a retail company which mainly
provide stylish clothes, accessories, furniture, art, independent designers (Union, 2014). This
assignment will mainly focus on importance of innovation and how this company's vision,
leadership, culture shapes innovation and commercialization. 4 P's of innovation and importance
of commercial funnel and different application of new product development is described in this
project.
TASK 1
P1 Innovation and compare with invention
From the mentioned above, innovation is a procedure of processing something fresh
which has unique quality and is different from others. This process can be used to meet different
requirement of business and can enhance their products and services. With the help of innovative
products, company can take a lead from other competitors as this has become a trend to launch a
different and new products in market. Collaborative store company is a mainly a retail store,
where they can provide different and unique designs which are not available anywhere in market.
They can use innovation in up grading their technologies which can help the company to
increase their profits (Drucker, 2014). It is and important tool and acts a catalyst to company
success and growth.
Along with this, invention of specific products is new and creative for customers so they
can attract with this. There are various differences between innovation and invention are
described as under:
BASIS INVENTION INNOVATION
Definition Invention is defined as an idea
for a process or product that is
new to everyone.
Innovation is related to the
implementation of ideas for a
product or process for the first
time.

What is it? It is creation of something new Changes are done in existing
products.
Concept It is an original idea. Practical implementation of
idea.
Occur when When new idea occur in the
mind of scientist.
When existing product require
improvement.
Concerned with Single process or product. Combination of various
process or products.
Above were some difference between invention and innovation. Below are some
importance of innovation for a business organization :-
Responding to increasing customers expectations and choice: Through innovation,
company can satisfy needs of customers. By providing them with different and unique products,
they can retain and attract many customers towards their products and services. Thus, innovation
increases profits for company.
Create a competitive advantage: By up grading technology and procedures, company
can lead in the market and through this they can achieve competitive advantage over others. This
helps them to stand up their business in competitive market and can attract many customers
which is prime goal of collaborative store (Berry and Berry, 2018).
Implement best method for organizations: Innovation help managers to develop new
methods for designing products by considering different trends of market. This leads to new
product development and through this company can earn their profits.
P2 Form of commercialization and innovation
Innovation is essential factor that help organization to reach competitive advantage and to
lead a successful venture. As mentioned above innovation is implementation of new ideas to
improve existing products or goods and commercialization is a process to launch a new product
into commerce or to market. Managers of store can invent something to attract attention of
customer towards their products. With this, they can achieve ultimate goal of company i,e., large

number of satisfied customers. Below are some factors which contributes in innovation and
commercialization:
Vision: It is referred to as an motivational argument designed by an organization, which
they need to accomplish or carry out in future. Vision prompt organisation to perform their work
in that direction where they can achieve their vision. It is vital for managers and seniors to
formulate achievable and clear vision statements for their company (Hsu, Tian and Xu, 2014).
This statements help them to produce quality products and service according to needs and
requirements of customers. Products which are developed by Iceland have desired capabilities to
satisfy needs of customers. This increase more revenue and profit to company.
Leadership: Proper leadership is important for a company to run in an organized
manner. Leaders of firm can invent new ideas and implement in their procedures to develop new
products which can fulfill customers preferences. They can watch the functioning of market
department while launching that new product in market as this will decide profit and loss for
company.
Teamwork: This is an initiative step which are taken by company leaders to assemble
different worker having unique set of skills and talents to come together and work in the
direction of accomplishment of business goals. Any organization become famous due to their
style of performing activities and results they are producing. A team is a collection of various
skills which can be used effectively in the direction of producing extraordinary outputs.
Employees can give innovative ideas to their team leaders which can be implemented while
designing a strategy to invent new products.
Culture: It is outlined as beliefs, values, norms, religions and knowledge of worker
employed in an enterprise and impacts a great effect on innovation and commercialization.
Iceland has a diverse culture where employees are from different cultural backgrounds (Malerba
and Adams, 2014). Employees can give different and innovative opinions to their seniors, so that
they can execute in their merchandise improvement scheme. Healthy and optimistic culture helps
the organization to grow and establish a good reputation in market.
TASK 2
P3 State 4Ps of innovation and innovation funnel
4Ps of innovation are described below:

Product: The best way to serve customers is by developing product which is made
according to customers preferences. Product can be designed and developed through different
procedures. After developing product, this is launched in the market. Organization can also make
modifications and alterations in existing products and re-launch that product in market with
modified characteristics.
Process: Best product can be developed only after implementation of best process.
Managers of production department have major responsibility to formulate suitable procedure for
a product (DAILY, KIEFF and WILMARTH JR, 2014). They scrutinize best process form other
available procedures and is known as innovation funnel. Manager ensures this by performing
various tests and experiments and develop a new product through best process.
Paradigm: This is connected by using innovative techniques in working of organization.
Managers can change their employed way to make it more effectual.
Position: This position is related to implement new and unique ways to achieving with
target customers. By using innovation funnel model, managers can select best dispersion
transmission to dispense their products to customers. This increases efficiency in reaching and
satisfying needs of clients.
Innovation funnel: The main aim of managers is to implement best suitable ideas and
procedures to meet market need in an economical form. They have number of ideas and opinions
in front of managers, from those different ideas they have to select best suitable which can fulfill
all requirements of customers as well as organization. Funnel supply a correct construction for
thought about generation and screening of alternate improvement choice ans combining a subset
of these into a product concept. Development of innovation funnel mainly involves three steps
and they are as follows:
 Focuses on wide mouth of funnel: As funnel have two sides, one side has wide
mouth and another one has a narrow mouth. In this stage, organization try to increase
their information and knowledge and collect as many ideas as possible. If company
have greater number of ideas, then there are large number of percentage to develop
different and unique products (Tukker and et. al., 2017). To move fast, managers
should have clear idea about their objectives. After receiving ideas, proper exploring
of these are necessary to select best idea.

 Narrowing part of funnel: This represents second step. In this, ideas are screened
out with suitable techniques and matched with set goals and objectives. Assessment
is carried out and ideas is selected.
 Narrow segment of funnel: In this, company launch new product or service to the
market.
P4 Define frugal innovation
Fugal innovation (FI) is referred to that, where non essential features of product or goods
are removed. This leads to reduction in cost and quality and increases durability of that goods.
This concept is a new attraction for managers to direct strategies according to this concept to
increase profits and sales. Several importance of FI are listed below:
 FI presents several opportunities to developed countries for many reasons. Different
companies adopt this theory and tend to sell their products and services at lower costs.
This attract those customers which prefer mostly low price products (Etzkowitz and
Ranga, 2015).
 When company is encountering low growth in their business, they can adopt frugal
innovation to cut down their research and development expenditures as well as
manufacturing costs.
 Customers prefer those products which they can afford easily and are economic for them,
by using this concept production department can develop affordable products to attract
more and more customers.
 Managers of collaborative store can produce low price products which is cost effective
and increase sales of company.
In case of Apple and Virgin, they operate in many countries and make changes according
to demand and need of customers. They may exclude extra charges and make it more affordable
in developing country so that customers can prefer them over other companies. Fugal innovation
help collaborative stores to increase their sales as they are selling affordable products.
Customers visit to retain stores and see variety of products, if they get all item as economic
prices, then this will only increases sales of company as well as their profits. Managers need to
provide different ranges of products for all classes of societies especially for lower and middle
class people which can help company to increase its sales (Kogan and et. al., 2017). Therefore
frugal innovation help company to attract more customers towards their store.

TASK 3
P5 Commercial funnel and procedure of new product development
Through commercial funnel, company can sell their products and services in target
market which increases their sales and enhance profitability. It is necessary for every company to
implement this concept so that they can enhance their revenues. Managers can develop strategies
by including this so that company can achieve desired success (Fang, Tian and Tice, 2014).
Commercial funnel is an effective tool to manage company's sales. Below are some importance
of this funnel:
 By using sales funnel, managers can find out best way to reach target market. According
to that, they can encourage their distribution of their products and services. This concept is very much helpful in reaching to target market and making available
product to target customers.
New product development process
This is a process which includes all procedures that are carried out in developing a new
product. Every product has to go through certain stages before going to market. Following are
some stages: Idea generation: This is the first stage of developing new product. Idea is given by
everyone that are working in organization and can be in any form. This can be related to
different activities which is to be carried out while product development such as
marketing of product, launch events, designing, etc. Identifying target market help them
to generate effective ideas in appropriate direction. Idea screening: This step involves screening out of best ideas from numerous other ideas.
There are various aspects which are play an important role in scrutinizing the ideas or
opinions such as firm strength and weakness, expected return amount and reasonability
(Vermesan and Friess, 2014). Concept development and testing: A concept is basically a scheme which is made after
the investigating of opinion. Various thoughts that passes showing test are turned into
concepts for investigation procedure. These concepts are tested on target market where
some customer are chosen to test the concept. Employees brief them about features of
product and tell them to visualize it. They try to know the opinions of customers, whether
they like it or not, does it fulfill customer's meed or wants.

 Business strategy analysis and development: Testing results help company to come up
with final concept which is to be converted into product. Analysis of market and other
strategies are done (Voorberg, Bekkers and Tummers, 2015). Product development: After approval of all schemes, product conception is regenerate in
existent commodity with all condition. Test marketing: Feedback is taken from customer and further changes are done, if
required. Commercialization: In this stage, marketing strategy of products are decided with the
help of marketing mix.
 Introduction: Final introduction of product in market is done.
P6 Develop an innovation business case for firm
For successful organisation, the innovation business case must be required in systematic
and appropriate manner that support to understand entire procedures as well as activities in better
ways. In this included some specific planning such as;
 Executive summary : Collaborative Store is a retail sector organization which deals in
stylish clothes, art, independent designers, accessories and furniture. Now firm wants to
dealing with online services by implementing innovative ideas and creative thoughts.
Major objectives of implementing e-commerce practices are for supply quality products
to their customers on different locations easily. Target – Products supply on different locations is the main target of firm because
through this they can easily enhance organization's sales properly. Online dealing
practices and applications are basically uses to maximize number of business customers. Identifications of company's objectives: It is first step in which company identify its own
objective and adopt new innovative ideas so that effective goals or targets can be set. It
also support in making appropriate strategies and implement the plan in better ways. It
also support in aligning the changes as per the requirements and targets of the company. Market research and survey: This is defined as the study which every organisation have
to conduct survey or research for gathering data and analyse particular area. This must be
compulsory for the collaborative store as if is entering into new market that survey will
support in analysing and examining market trends, customers and competitors so that
better organisation can be created (Gember-Jacobson and et. al., 2014). It also support in

identifying customer's need, wants, tastes and preferences regarding products and
services by data collection.
 Evaluation: It is next stage where manager of innovation plan focus on evaluating the
activities and any process for carrying out tasks or work in collaborative store. It is an
essential for getting best results or outcomes with the help of innovation and creative
thinking.
It is the best way for achieving success in collaborative store, as they can consider the
plan and structure for adoptions so that innovative strategies can be developed. This organisation
has opportunity to maximise its wealth or size in the market in an effective manner. It also an
essential to maximise profits and increase sales volume as much as possible. For this, company
required enough funds or capital so that changes can be made in an appropriate way and best
strategies can be adopted to achieve business goals or objectives (Chen and et. al., 2015).
Organisation can take financial support from various investors so that appropriate innovation can
be brought. It also will help in implementing the ideas or plan through proper financial facilities.
There are various types of investors which are as follows:
Angel investors: These investors have huge finance and funds resources and they provide
this to small entrepreneurs and start ups for running business. Investors invest more funds for the
purpose of getting high returns or outcomes with few capital investment.
Venture capital funds: In this, investors are not interested take risks or uncertainties.
They do not want to bear any losses so they ask for partial ownership in the firm in which they
invested their money. They take part in making business decisions related to management.
Bank: Bank gives financial facilities or funds to small scale businesses as per the terms
and conditions. In this, parties follow some formalities while taking funds from bank. Loan also
consider in business investment.
TASK 4
P7 Methods and tools use to defend and retain knowledge and intellectual property
Intellectual property are considered as fundamentals for innovation. These property leads
to creativity and broadens user prime of goods and applications. Different sort of intellectual
property such as patents, trademarks, design right, copyrights are considered as primary mode for
providing government rights to innovation and thought new ideas (Hu and et. al., 2014). It render
legal foundation by which intangible ideas and innovation can supply benefits to company,

employees and society. There are several essential elements of intellectual property which are
mentioned below:
Patent: It is an authenticated way to protect the innovations done by any company. After
patenting particular part, no one can copy or imitate that. By taking grants from government,
company can patent their work.
Design rights: This is subjected to copyright of design made by company. If any
company has registered their design then nobody can produce that designs. Registered designs
protect visual appearance of a product or item which gives an exclusive right for that appearance.
Trade mark: It is mainly represented by a logo, symbol, sign,expression which
represents product or services of a particular sources. Owner of trademark can be an individual,
business organization or large group. It is registered on national level and approved by legal
body of country. Trademark are mainly represented on their building and in their labeling of
products, services, etc.
Copyright: It is the legal right of an individual or large organization. This means that the
original creator of a product gives right to other to reproduce their work. It give exclusive right to
develop their product for a given period of time (Hu and et. al., 2014).
There are different tools and techniques that are available in market which is utilized by
company in order to protect their intellectual rights. Some benefits of using these methods are
mentioned below:
 No second party can imitate or copy legal eights of company.
 External party cannot steal ideas and designs of company.
 With the help of patent and trademark, they have legal authority for that particular
product.
 It help company to increase their sales and enhance profits.
These are essential feature which should be executed by company to protect their right.
Films, books, papers, journals, music, art and other creation that are listened, heard and seen by
customers are covered under intellectual rights. Its better to patent all innovations and ideas so
that there is no stealing and company can operate their work smoothly.
CONCLUSION
From the above mentioned report it has been concluded that, innovation is necessary for
organisation to implement in their working to differentiate themselves from others. It consists of

generation of new ideas and thoughts which can be executed by managers and development team
to produce new products and items. This help company to achieve competitive advantage over
other rivals and maximise productivity and profitability for company. Collaborative store can
invent new designs which can attract large numbers of customers towards their product. By
implementing intellectual rights, they can protect their legals foundation of company form
stealing. This report mainly represent different methods and features which affect innovation and
invention. If managers can apply innovation in their processing, this will increase revenue and
sales of company and can make stand in market.