Importance of Innovation in Organizational Growth

This assignment explores the importance of innovation in organizational growth and how it shapes teamwork, culture, and leadership. It discusses the 4 P's of innovation and the use of frugal innovation in organizations. It also highlights the significance of new product development and commercialization in driving innovation. The case study focuses on Qubic Hotel, a retail organization in the UK.

Innovation

INTRODUCTION:
Innovation is a base for every business for developing product. It is done to sustain in the
market for long time. Innovation can be in business process or methods to make change in
product features. In order to attract new customers it is essential for business to develop new
products by identifying their needs (Laeven, Levine and Michalopoulos, 2015). Also, innovation
helps in generating sales. Making continuous innovation will help business to grow and develop
at slow rate. This assignment will describe the importance of innovation and how its shapes
teamwork, culture within organisation. Moreover, the 4 P's of innovation is discussed. Besides
this, importance of new product development is described. At last how knowledge and
intellectual property can be protected by using different tools is evaluated.
For this assignment organisation selected is Qubic Hotel. The cited firm belongs to retail
sector and operates within UK. The existence of the company on such a small level requires
frequent innovations in business activities to survive. Thus, this report will help in developing a
relevant one for the cited establishment (Wadhwa, Phelps and Kotha, 2016).
LO 1
P1 Explain innovation and its importance to organisation
A process that helps business to grow and develop in the industry. It creates opportunities
for business to make change in its operations and process. Through this new products or services
are developed. Also, innovating operations helps in improving productivity and efficiency of
employees (Hsu, Tian and Xu, 2014). It creates a platform by which business can gain better
competitive advantage over its competitors. Modification can be in process
Innovation helps firm in various ways. It helps in creating something unique so that no
one can copy that. It provides new tools and methods to employees so that their efficiency can be
enhanced. Also, it provides a creative environment to complete tasks in effective manner.
Qubic Hotel can follow different strategies to create a better organisational culture. These
are as follows:-
Building a diversified and team work place- Changing process or methods creates new task
and goals. For completing this team with diversified people are build (Brunswicker and
Vanhaverbeke, 2015). They perform tasks in creative way. Also, they share different ideas and
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thoughts and help each other. With this goals are achieved in effective way. Also, this increases
communication between different departments.
Providing modern tools to workers- It is the most important benefit of innovation.
Employees are provided new tools to work with. This helps in enhancing their skills and
abilities that leads to improve their performance. This results in completing task in specific time
period. Also, resources are effectively utilised that leads to reduction in production cost. Qubic
Hotel will be benefited by innovating their operations (De Vries, Bekkers, and Tummers, 2016)
It will help them to compete in the market. Hiring new talent will bring in new ideas and
creative thinking.
Looking to the future- Business gets an insight to look into the future. They know what
further changes can occur in customer taste and preference and accordingly products can be
developed. Also, how innovation will help them to grow and what expectation may arise from
consumers. Moreover, they discover the areas where business can be expanded. Moreover, they
can focus on using technology in operations.
For example- Apple launched Ipod as their new product. This helped them to focus on
future. With this they were able to make changes in products by identifying customer needs. It
helped Apple to grow at very rapidly (Autio, and et..al 2014).
Comparison between innovation and invention
Basis for comparison Invention Innovation
Meaning Invention is the process that
occurrence of an idea for a
process that has never been
made before.
Innovation is the process
which implement of idea for
product that uses for the first
time.
Concept Invention concept adopts
original idea and theories that
relates to new learning.
Innovation adopts practical
implementation of new idea.
Skills required Basically, this process required
scientific skills.
On the contrary, innovation
process adopts technical
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theories or strategic skills to
innovate some new methods of
techniques.
Concerned with Invention focused on specific
process, that is research &
Development.
On the contrary, Innovation
focused on the multiple
products or services.
P2 How organisational vision, leadership, culture and teamwork shape innovation and
commercialisation.
Innovation brings changes in business goals and objectives. It entirely alters the vision of
business. This affects organisation functions and operations. Also, with emerging of new
methods and process employees roles and responsibilities are modified. That brings changes in
their working affecting the overall organisation culture. It increases their skills and knowledge as
they work with latest machines and technology. It enhances enterprise performance and
productivity. Creativity and communication between employees is increased (Nicholls, et.al
2015). This is beneficial for firm to effectively implement innovation.
In order to implement innovation employees work in as a team. They coordinate and help
each other in understanding their roles and duties. Each department develops various strategies to
implement innovation. For this they build teams with diversified people that helps in achieving
goals in efficient way. Moreover, this gives shape to business as they become eligible for
creating long term goals. Each team contributes in their own way by attaining set targets.
If organisation culture is changed then leaders have to change their leadership style in
implement change. They have to define new roles to employees and motivate them to adopt
innovation. Along with this, they find out creative ways of completing complex task. It is done to
encourage workers so that goals can be achieved easily (Love and Roper, 2015). Leader changes
their style according to developments in enterprise. For example- Steve Jobs applied creative
leadership style that was useful for Apple to continuously innovate new products. This helped
them to grow extensively in the industry
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LO 2
P3 The 4 P's Of innovation and its use in shaping innovative ideas
The base of innovation is based on 4 P's . These P's helps in developing new products or
service. It creates a roadmap that shows how products can be developed. There are certain levels
that is followed in 4 P's. Besides this, innovation consists of two aspects. These are radical and
incremental. Radical is related to changing the way of using a product (Block and Keller, 2015).
With this new products are developed. On the other hand incremental is related to changes in
business operations. It is done to improve product or service quality. These both aspects are
interrelated to each other. The 4 P”s are defined as follows process, product, position and
paradigm:-
Process- It is related to way of producing or delivering a product or service. Generally, change
in process is done to reduce cost and increase profits. However, it helps in increasing efficiency
of employees as it modifies their role and duties. By this they have to use new methods to
complete tasks. Also, manager develops strategies and assigns new roles to them. Moreover,
training is provided to employees that increases their skills knowledge (Cajaiba-Santana, 2014).
The process of delivering product is changes which attracts new clients and retaining existing
ones. Besides this, the purpose can be improving quality of product or service.
Position- It is related to areas or markets where products or service can be provided to
customers. Usually its focus in on increasing market share. This is done to meet the changing
demands of customers. Research is conducted on this and then data is analysed to develop a
product. Qubic Hotel can expand its business in UK and neighbouring countries. It will help
them to attract new customers and gaining more market share. Qubic Hotel can promote it
through social media marketing (Schippers, West and Dawson, 2015).
Product- Most of the innovations are done in products so that customers can be retained. As
customers taste and preference changes frequently, it is necessary that products are manufactured
according to it so that their needs can be fulfilled. For this resources and employees are required.
This modifies and provide shape to entire business functions. Various business produce different
products with some minor changes in their features. Also, they differentiate goods on the basis of
specifications or features. Consumers are often attracted towards new products. Sometimes it can
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lead to failure as consumer may not find it effective enough (Balland, Boschma and Frenken,
2015). For example- Qubic Hotel can develop goods on the basis of market segmentation.
Paradigm- This consists of strategies that have to be followed while developing product. It
provides a blueprint that shows how process will be implemented. With this employees roles and
duties are determined. They are given new responsibilities and shown how they have to perform
it. Goals and objectives are modified according to innovation. However, strategies are developed
on the basis of goals. For example- Qubic Hotel can develop strategy to achieve short term goals,
then long term goals can be developed (De Massis, and et..al , 2015).
P4 Developments in frugal innovation and how it is used in organisation
The main purpose of developing new products is to attract new customers and increase
sales and profits. Every business needs to grow and develop to survive in the market for long
term. Also, with this business finds out new areas for development. This helps them to produce
goods with some special features. Moreover, by conducting research business identify demands
and needs of different people. Then they manufacture products accordingly. Also, this results in
attracting customers. Frugal innovation in product or service is done to meet the needs of poor or
middle class people. The purpose is to enhance living standards of these people rather than
earning profits. Enterprise focus on increasing market share in developing countries. Moreover,
this innovation is based on principles such as frugality, flexibility, intuition, etc. (Kung and
Schmid 2015).
Once, targeted audience is specified, products are delivered to them. Qubic Hotel can
focus on Asian market where vast opportunities are there for growth. It will help in increasing
their presence and thus fulfilling demands of people. With this Qubic Hotel can generate more
revenue and survive for long run.
Example-
Apple Inc.- Ipod was developed by Apple by using frugal innovation in 2001. It was produced to
attracted middle and high class people of different countries. By this people were highly attracted
towards Ipods. This created a boom in the market (Laeven, Levine and Michalopoulos, 2015).
Due to this Apple generated a large amount of revenue. It helped firm to grow and develop
rapidly. Apple was known as Innovative company.
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Virgin group- This group expanded their market in various areas such as travel and tourism,
finance, etc. Besides this, they used frugal innovation to enter into mobile industry. It helped
them to attract middle class people and thus leading to grow and develop. For this managers and
leaders developed strategies (Wadhwa, Phelps and Kotha, 2016).
Thus, from the examples it is observed that both companies focused on middle class
people and used frugal innovation. With that they developed low cost product so that it can fulfil
their needs. This helped them to grow very rapidly by attracting large number of people. Also,
they were able to generate high revenues from this.
LO 3
P5 Importance of commercial funnel and application of new product development (NPD) of
innovation.
In order to attract more customers new products are developed. It is done with the help of
a concept known as new product development (NPD). It creates opportunities for business by
providing them a unique product. By analysing NPD enterprise gets to know what new features
must be added in the product. Also, how goods will be created and what process will be followed
and implemented in this. Before implementing NPD research is conducted. It helps in collecting
data and information. The data is analysed and then product is developed. It helps in developing
product in effective way (Brunswicker and Vanhaverbeke, 2015). Idea generation, idea
screening, business analysis, etc. are certain steps followed in NPD.
Commercialization- In this a new product or service is launched in particular area or
region. Commercialisation gives new tools and techniques for promoting that product.
Business analysis- Top management does an analysis of new product to analyse the cost,
profit margin ,etc. This gives an idea whether developing that good is beneficial for organisation
or not. Also, employees analyse how it will satisfy customer needs.
NPD is important for business in various ways. It is because of these reasons that is described
below :-
New value for customers- Basically, an extra value is generated by developing a new
product. This helps in attracting customers towards it. Also, needs of them are effectively
fulfilled thus they start expecting more from firm (De Vries, Bekkers, and Tummers, 2016).
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Improved society- As people expectations are fulfilled they start demanding more. It
helps in improving quality of life. A high class society reflects its customers needs in the future.
Also, it enhances their status.
Continued existence of company- Businesses will only be able to survive if there are
continuous developments of new products. This help them to develop new products and remain
in
For example- -Qubic Hotel can develop new products by segmenting the markets. They can
identify needs of people and then develop products for them. It will help firm to increase sales
and attract new customers (Autio, and et.al 2014). In this way organisation can expand their
business through innovation.
Process of new product development
Idea generation : This is the first process that idea generation to make new process
development. This makes the best possible action plan, to make new changes growth.
Idea Screening : After selecting multiple choices of new strategies company needs to
select from them into more specific manner. In order to implement this process more further,
company needs to loop upon on some factors such as company strength, company weakness,
customer needs, expected ROI and affordability etc.
Concept developing techniques
It is the another step that includes concept development and testing approach.
Business strategy analysis development
This testing results or help business final concept to be developed into a project. To
analyse the business new product development plan helps to enhance the marketing, branding or
marketing mix.
Product development
On all the strategies are approved, the product concept is transformed into an actual
tangible product.
Test Marketing
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Another process is to test the product innovation process after analysing the feedback in
the test marketing phase.
Commercialisation
This is the final stage in which product launched in the market.
P6 Building case for an organisation.
A huge amount of fund is requires by business to develop new products. It is
because sometimes, the products developed may fail leading to huge loss to business. Thus, in
order to overcome from loss funds are needed to maintain financial position in the market. Also,
business must have strong financial position for NPD. Besides this, funds are needed to organise
business operations and activities. For smooth flow it must be ensued that enterprise should have
enough funds, otherwise it can affect NPD. There are many sources available for business to
acquire funds from the market. The most common option is bank loan. Banks can easily provide
fund, but for this some security has to be kept (Nicholls, and et..al 2015). This restricts company
to borrow from this as it affects their balance sheet. Besides this, venture capital can be another
option. Qubic Hotel is creating new products. So they need funds for that. Also, for promoting
and marketing funds are required. It helps in developing effective strategies and implementing it.
Furthermore, different tactics can be applied by Qubic Hotel to manage and implement
innovation. It will help them to achieve goals effectively.
Budget for innovation
Expenses Cost (Rs)
Development of the business analysis and
case
1580
New product development 8750
Manufacturing and production 9870
Advertisement and promotion 4570
Total 24770
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Business case is very much important to identify the actual need of business strategies
such as funding. Company can take many options for arranging different funding sources.
Company required, funding for product development, marketing.
LO 4
P7 Different tools organisation can develop to protect knowledge and intellectual property
An intellectual property of organisation consists of things such as patents, copyrights,
trademarks and trade secrets. So these have to be protected to restrict competitors from using it.
They arise when innovation occurs in process or methods. This results in generating new
formula, procedures, etc. IP contains confidential information that is used by business in
developing products. Thus, various tools are used to protect them (Love and Roper, 2015).
The first thing that business can do is registering the IP from government. It will help
them to have legal right on their IP. This will automatically restrict others from using it. Also,
they will have a legal proof of their IP rights.
Second Qubic Hotel can create policies of how and where to use IP rights. Policies will
consist rules and regulations that employees have to be followed. This will restrict them to use IP
rights anywhere else.
Qbic Hotel can protect their IP by securing confidential data and information in a
database. The database can be secured by installing firewalls and routers. Also, cited firm can
create high data security measures to protect their systems (Block and Keller, 2015). Apart from
this training can be given to employees regarding data and system. It will hep Qubic Hotel to
protect data within organisation.
Example- Qbic Hotel can protect its IP rights by getting registered with government. This will
be very useful for them in restricting other companies to use their right. Also, they can develop
policies regarding use of these rights within organisation. Besides this, training can be given to
employees for keeping the IP confidential.
Intellectual Property
Patent : Patent is the best form of intellectual property that protect company from different form
of goals. Besides, this helps to control the unwanted material goals and objectives.
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