Innovation and Its Impact on Business

This assignment delves into the crucial role of innovation in shaping business success. It analyzes various facets of innovation, including its types, drivers, and consequences for organizational performance. Students are tasked with researching scholarly articles and online resources to understand how innovation influences key business metrics such as profitability, market share, and customer satisfaction. The analysis will encompass both theoretical perspectives and real-world examples of innovative businesses.

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of innovation in company and compare with invention.................................1
P2 Organisational leadership, vision, teamwork and culture shapes innovation and
commercialization..................................................................................................................3
TASK 2............................................................................................................................................4
P3 4P's of innovation .............................................................................................................4
P4 Development in frugal innovation.....................................................................................7
TASK 3............................................................................................................................................9
P5 Commercial funnel and application of NDP process........................................................9
P6 Innovation Business Case ...............................................................................................11
TASK 4..........................................................................................................................................13
P7 Tools organisation use to germinate, protect knowledge, retain and highbrow property13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
To sustain in market, an organisation require to innovate their commodities as well as
their working structure within a span of time. This assist a company in modifying and updating
their services, products, framework, operations and strategy building techniques. This is helpful
in renovating products or existing services by understanding expectation and requirements of
consumers (Drucker, 2014). Although create customer through attracting them with more
features in market. This report analyses different aspects of commercialization and how it helps
in marketing through attracting customer with conveyed messages in business .
4Com is a small business organisation expending its market in all over UK. The
company facilitates networking and telecommunication services along with many technology
gadget and software to its clients. This study will analyse the major two aspects of management
which are innovation and commercialization and how innovation helped 4com in extension.
TASK 1
P1 Importance of innovation in company and compare with invention
Commercialisation is process of establishing or forming fresh commodity for dealing
with help of promotional tool – providing accessible in market. In brief, process of running or
managing something mainly in order to gain in financial situation. Innovation refer to
application of effective resolution which enable in achieving new needs, unarticulated needs, and
existing requirements of market. This is an art to add creativity in the existing commodity which
create demand and make it useful for multi-purpose. Consumer is a challenge which can be
solved through help of innovation, invention of new products and services. Invention is inventing
or introducing a new product, services, idea, opinions, technology which have not been
introduced in market before and able to cater change in scenario. Both terms are interdependent
but not same. 4Com need to include both in their technologies which is important for their
development. 4Com use Apple. Inc. and Virgin Group technique as innovation and invention
technologies and technical their products.
Importance of Innovation -
Build Competitive Benefits -
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Innovation helps organisation in increasing competitive advantages through adding
values in their products and services (Huberman and Miles, 2013). Invention helps in
reintroducing a concept with a different aspects to view which attract consumer in effective way.
Balance resource utilization -
Organisation, especially small business such as 4Com contains limited resources and
unlimited requirements. Innovation helps in allocating resources in balanced way to make the
best outcome out of all activities which is being made in company. It assist in proper utilization
of resources creatively and efficiently.
Develop Communication Skills -
Innovation require effective techniques and approaches whereas commercialization need
means of communication of message of specific company that help influence the targets
audience (Cui and Wu, 2016). This helps organisation to develop and innovate their
communication and interaction skills through analysis of market and interaction with investors
or public and adopting effective strategies for respected techniques .
Manage Healthy Workplace -
Innovation is the key of updating and modifying the company commodities as well as
structure and functions. This aid in maintain healthy work environment and create positive vibes
in an organisation for sustainability. Through enhancing and evolving communication and
company product quality, they can reconfigure the workplace system and make it more better.
This is a challenge for small business including promotion, raw material, technologies
and resources management to create innovative products ad commercialisation their services
because the process of promotion or marketing is expensive and requires creative idea to
decrease cost of it. Innovation administrate management is the procedure of monitoring an
products modification from ideation till the successfully implication.
Process of Invention transformation into Innovation
When an invention is successfully commercialised, it transform into innovation. There
are few steps of that transformation that a commodity or services go through, its elements are as
below:
 Disruption
 Model Framework
 Infrastructure Model
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 Approval
 Timing
As the company relay on the techniques of Apple and Virgin group, 4com first interpret
their structure after which they build a framework of model. The company create an
infrastructure model of procedures as well as techniques. The approval of this innovation and
timing made the final outcome of the new products and services of 4com.
Sources of Innovation
Sources of innovation is required for forming or establishing an entrepreneurial venture
which is needed for an organisation or as a interdependent small business. For this there are
seven major sources that are:
 Unexpected
 Incongruities
 Process need
 Changes in market structure and industry
 Demographics
 perception change
 Fresh knowledge
Difference between Innovation and Invention -
Invention Innovation
Creating new services, concept, method or
technologies or introducing new idea for the
first time.
Improvement or advancement in existing
commodity, service, mental object, methods.
Needs study of whole market, examine
consumer expectations, various theories and
models. Scientific and technical research
methods.
Utilize study of trends and market.
Example – Introduction of WWW in market. Example - Rapid development of WWW till the
new digitization era (Invention Of the Year:
The iPhone, 2017).
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P2 Organisational leadership, vision, teamwork and culture shapes innovation and
commercialization
An enterprise's culture, teamwork , vision and leadership style change their techniques of
innovation and commercialization. Their are various ways through which these elements
interrelate and influence each other directly and indirectly. Here are components that shapes
innovation and commercialization and contour them explained as below:
Vision Role in Evolution and Excogitation -
Vision of organisation shapes its objectives, goals, aims and products they manufacture
and deliver to target users for meeting with their expectation. Company vision influence the
innovation and this decide then methods and approaches which is being executed over the assets
to develop (Gunday, and et. al. 2011). Vision of 4com is to facilitates their consumer better and
quick communication services and satisfy their demand by rendering effective networking
connection and better technologies. Virgin groups and Apple Inc. vision to facilitates unique
technology to consumer that this company follows.
Role of Leadership -
Leadership encompasses the abilities of leading and guiding a group, company or
organisation. Manager of company have to determine entire plans which occur for the
functioning of operations that took place in a company. Leader influence the decision making
procedure of a company which affect the innovation and commercialization ways and styles.
Employer have the role of stimulating and developing entire entity and affect the decision of
innovation and marketing techniques. 4Com, leaders have affected and developed the company
after they establishment which is being inspired by Apple Inc. and Virgin groups. Company
skills of leadership of company created effective strategies and expanded business in market.
Role of Culture -
Culture of an organisation refer to values and behaviour of company that helps in
building unique recognition and psychological environment of company. This assist company is
designing and planning of various operations and entity (López-Nicolás and Meroño-Cerdán,
2011). Apple believes in producing ad launching different product and introduce new
technologies to market whereas 4com beliefs is to provide best qualities and fluctuation of
communication in UK. Culture of a company portray its image weather its is positive or
negative.
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Team Work Role in Evolution and Creativity-
Team work activities are organised or coordinated to create flexible and friendly
workplace of a company. Such practices flourish company work environment as well as enhance
the productivity of employee. Theses activities render diverse and creative idea and concepts and
increase participation of employees in decision making processes that assist in developing more
creativity in the workforce. 4Com company have release new Stress month which allows
entrepreneur to share their views and suggestions over a problems. This is also team work
activity which help company worker in release stress and do something out of the line.
TASK 2
P3 4P's of innovation
Innovation is an art of presenting and developing an existing commodity creatively into more
useful and featured way. Innovation has the ability to carry change in society and entire system
of work (Manso, 2011). This is a helical process which obtain change through the help of study
and analysis with the time which is required. Successful innovation cater the positive change
whereas, inappropriate and unscientific vary negative impact. In context of business, innovation
through 4P's is require company like 4com to develop in market which involve products,
process, paradigm and price which are explained below:
Process -
Process refer to framework of production, delivering, designing, manufacturing the
commodities. This present the way of delivering and producing of products and modification
through the help of innovation. For example online order of goods or booking of offers or
services of 4com company which make it easy to access them for company as well as customers.
Process innovation assist in increasing the efficiency of resources through using effective
techniques.
Product -
Products refer to the asset which company offer to their consumer in exchange of capital.
Products development or improvements is required in an organisation after a period of time, for
which company need products innovation. This helps in modification and alternation of services
of a company and to sustain in market as well as expanding business with attaining target
consumer (Boons and Lüdeke-Freund, 2013). Like 4com used to provide 4G Internet services to
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the clients but after the modification of technologies in the market, company started 5G
broadband and Wi-Fi services which have helped company creating some new consumers in the
market.
Source 1: innovation's 4P, 2017
Position -
Position in business term refer to the perception and place of company or specific
products in user's mind. Position innovation helps in relocating product's perception in consumer
and create a new identity of it. This can be managed and controlled through the help of
promotional tools or commercialization which build a brand image through conveying message
(Ansell and Gash, 2012). 4Com have created a good market image by rendering effective and
modern technology to users on competitive cost. Also company use promotion mix to portray
positive aspects of company and deploying business.
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Paradigm -
Paradigm refer to the pattern and model of entire system that a specific individual or
organisation use. It is based on models, theories, approaches of development and evolution.
4Com take Apple theories and technology structure in structure and design new planning out of
it to imply over their own commodity they deliver or produce.
Innovation management include entire process of designing till implementation of
innovation order the producers in order to modify or renew it according to trends in industry.
There are few types of innovation that occur in respect of NDP in which these 3 are most basic
mentioned as below:
1. Disruptive Innovation –
This concepts look of new technologies which is only can be achieved with the help of
increment innovation and modification in products.
Pros – Seek opportunities to grow and help in expansion of business.
Cons – Not enough consumer insights.
2. Incremental Innovation –
Increment innovation concentrate over sustainability of products through making changes
in that and reducing the price of services by adding new features. Example – I-Phone of Apple.
With every launch of new phone, company reduce cost of existing.
Pros – Increase sales and more branding.
Cons – Lack of coordination and risk of time.
3. Breakthrough Innovation –
Catering a change in recent technologies, products and models which impact over the
business spontaneously.
Pros – Increase efforts and competitive benefits.
Cons – Domination of market by large popular organisation.
Use of Funnel Innovation -
Innovation funnel is used in procedure of product development either in new service
invention or modifying existing commodity. There are few steps of NDP which is made
undertaking funnel of innovation which helps in properly administration of evolution. It helps in
finding solution of issues which is emerging in market or with consumer or emerging the new
one by analysing market condition and expectation of customers. In case if 4com faces any
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issues, they can use commercial funnel to resolve the issues in which first they would review the
issues, develop new technologies and evolve modified project that is suitable according to
situation.
P4 Development in frugal innovation
Frugal innovation also known as reverse innovation refer to those new forms that
facilitates technological solution of manufacture and production in cost effective way. Frugal
often defines less danger to surrounding. Through the reconfigure value of supply process,
company can design the strategies of modifying and altering products in effective way which
enable productivity of services (Patton, 2011). This helps company in producing less expensive
products with new and high technologies access which is popular trick to manufacture in recent
era. 4Com use frugal innovation to reduce expenses of manufacture and delivering and through
this company is able to supply low price products with high quality. Here are few impact of
frugal innovation:
Less Manufacture Cost -
Major help the frugal innovation render is cheaper cost of production of products through
using better and modified technologies which helps in increasing benefits and competitive
advantages. Through this, organisation can maximize their profits an revenues and balance their
resource allocating them efficiently. Consumer prefer good quality and less price products
combination. Apple Inc. provide high quality products on higher costs. But 4com use frugal
innovation and supply same technologies through adapting manufacture techniques of the
company. This helps in adding new features to 4com and create potential buyer for company
development.
Resource in Beginner Additional Evidence -
This is the main assisting resource in production of services of 4com company inn order
to improve and develop their product quality. This helps in managing the methods which is used
in increasing profits of applied strategies and implemented plans. 4Com provide modern
telecommunication services and altered features to users such as cordial software which is one of
most modified ad advanced software of recent era. Such things are possible through frugal
innovation which has helped 4com in expanding in UK.
Expend Business -
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4com create a brand image through facilitating new and modified forms of technologies
and new gadgets in market in less cost. Through brand development, company can increase their
buyers and sales which can help in deploying business in different markets in all Europe. This
can be achieved through effective and innovative promotional and marketing techniques used by
company.
For example: Apple used frugal innovation in beautiful and advanced such as they build
value through whistles and reducing bells: they bring away mouse, keyboard as well as gave
people greater value. Virgin group CEO believe frugal innovation concept said “This is the
creative part which tells us how to do better in less.”
TASK 3
P5 Commercial funnel and application of NDP process
4Com have business of telecommunication services such as broadband, Wi-Fi,
networking, gadgets and other technological services including software which has been
expanded in United Kingdom (Rosenbusch, Brinckmann and Bausch, 2011). Different from
personal selling, commercial funnel is a model which structure the process of analysis of
consumer expectation and needs and development of new products going through different steps
of funnel. This process helps in increasing consumer and sales of products through innovating
and modifying company commodities in more creative way. Commercialise funnel also reduce
the conflicts and barriers in the path of developments.
Considering the case of Apple, they have just developed HiHi technologies for better
functioning of software which is being appreciated Iin whole world. 4Com is basically
developing this technology in their company and providing it in less price which is helpful for
the company and extending the business.
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Source 2: Business Model Analysis and Open Innovation, 2013
According the commercialise funnel, to develop a project and programme a product,
company need to generate an idea to work. In order to select the task, they go through various
market analysis and process of commercialise funnel's steps which are explained below:
Generation of Concept -
First stage of product development is generation of idea or concept of innovation
creatively (Sartori, Favretto and Ceschi, 2013). This idea can be carried through the market
analysis, examine market trends, consumer expectations or requirements or market evaluation.
Presentation of Concept -
This is the second stage of product development in which employ present their generated
plan in front of smart team, employer and CEO for understanding their point of view over the
concept in order to make changes according to the needs and consequences to proceed next step
of improvement.
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Evolution and Experiment -
Testing of products is being made while developing a new services to measure the pros
and cons (Jaffe and Lerner, 2011). After testing, the product evolution process is begin to
produce commodity in mass amount for market launch by using appropriate strategy.
Market Evaluation -
Market evaluation is required in order to assume results of implemented strategy of NPD.
Development of Products -
Later the analysis is being made, company begin developing product or altering its
features by following the process of development.
Commercialization -
Promotional and marketing activities are essential for launching or reintroducing the
modified products in order to present and convey new features as well as influence consumer to
make purchase decisions through attracting them with the message. Small business needs
commercialization to expand their business as well as aware and attract new customers for
purchasing products.
Outcome -
In the last step, final outcome of implemented strategy which have been implicated over
the product under NDP process is being measured. This is done through analysing responses and
feedback of users as well as scale the sales and revenues of specific services.
P6 Innovation Business Case
In order to have any issues or problem related to some service or products, innovation
case is being made to implement strategy in market with using accurate steps and process. This is
the case of 4com company which is UK based small enterprise provide communication and
network services to public (Sawyer, 2011). These are the major steps for developing a business
innovation case:
Executive Summary -
4Com is an SME which is UK based organisation which was introduced in market in
1999 that facilitates variety of products to their consumer including technical gadgets, smart
phones, Wi-Fi and another telecommunication services. Company is creating and carrying many
other techniques and portraying brand image in order to deploy its business in all Europe. The
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organisation want to launch a new product in market with new exotic features. Report will set
consumer, market analysis, need of new products and funds managements ways.
Need –
Market demands for new technological products and services or innovation in existing
one. Understanding the circumstances, company should launch a new phone with new features
as it's been months since they last launched phone.
Solution -
The solution of problem is launching of new smartphone with latest technology in cost
effective price for attaining consumer.
Requirement of Innovation in Services -
Innovation is necessary for the betterment and development of company as well as attract
and attain more potential buyer through latest technologies. 4Com apply frugal innovation to
reduce cost of production and utilize resource in company in efficient way. Therefore, company
have adopted this approach from Apple and Virgin Groups to compete the rivals offering user
more attractive offers. 4Com have not been updated their company since few months. Market
have introduced many new technologies so the consumer is expecting 4com to launch it too.
User Analysis -
Consumer analysis helps in identifying consumer needs and expectation as well as
segmenting customers into different sections. This helps in making process of commercialization
more convenient (Stokes, 2011). 4Com is targetting youth and business persons for new products
according psychographic, demographic and geographic segments. Also they undertook HiHi
technology in their new phone for better functioning of systems.
Creation and Advancement of Strategy -
In this stage, company need to form few innovative and creative strategies according the
requirements of consumers and market. This is being designed more creatively for
accomplishing consumer with presenting new features. The new phones is designed in respect to
access 5G internet.
Demand of Funds and Investors -
4com is a small enterprise which desperately require funds and investments for launching
such technologies in their phones and undertaking the expenses of production under the control.
A businessperson requires funding for balancing their expenses or organise some capital assets
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for expenses such as promotion, commercialization, product development in market etc. There
are 6 genuine types of funds that company can attain which are:
 family and friends loans
 bootstrapping
 bank loans
 venture investors
 Venture capitals etc.
Funds can enlarge the expenditure budget and increase quality of products.
Expected Outcome -
A business when implement strategy or products in market, expectation of benefits and
competitive advantage is being measured by leader in advance. Company is expecting aggregate
20% benefits out of entire expenses made over whole process of production, distribution and
taxation (21 Tips When Renting Your First Office Space, 2015).
TASK 4
P7 Tools organisation use to germinate, protect knowledge, retain and highbrow property
Intellectual property is a legal idea which can be applied properly by professionals. Small
businesses such as 4com improve or develop products and to protect their minor revolutionary
inventions and their initiative toward the innovation of products through IP rights. Sign,
trademark, brand copyright, patent are come intellectual process while defend company
invention and help in creating liable and potential buyers.
Role and Rights of IP
In this era of knowledge based economy, elements of manufacture return is lesser than
investment on knowledges return. IPR helps in knowledge assurance from profitability. To
protect and save from being exploited, gov. have provided some rights to professional as well as
company which are these IPR rights including patent, copyrights etc. that helps in saving their
credit for any innovation they have cater (West and Bogers, 2014).
IP Tools -
company or specialist can protect their inventions or innovation through various process
including patent, trademark which are explained below:
 Patent –
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Patents is made to assist new products, process and equipment and use of new services.
The company have to follow the rules and policies of patent.
 Copyrights –
Copyrights helps in protecting any art, painting, music, sculpture and other inventions
which require a registration and proof.
 Trademark –
Trademark is an identity of presenting it graphically and is a sign of presenting the
reliability over company products.
Implication of Growth of Open Innovation and Open Source -
Open Innovation – In this, organisation utilize external resources and methods in order to
commercialise and develop their products and services (Zhou and Li, 2012).
Open Source – Refer to a software in which general codes is accessed on free and enable
to alter and re-modify.
The benefit of open innovation is creative, innovative ideas and concepts that create more
profit and growth in context of 4com. There is multidimensional link between open innovation
and IP. It helps in dealing with gov. and defending corporation rights and other sector related
issues with helping in growth.
CONCLUSION
This report concludes that invention as well as innovation, both are essential parts of a
company that are helpful to grow and develop in market and attain objectives. Whereas
commercialisation method assist company to deploy their business in industry and earn more
profits through attracting consumer. On the other hand, innovation render consumer altered and
fresh services which create liability and credibility by influencing position of enterprise. A
company, either small business or large organisations should use effective and efficient tools of
innovation as well as commercialization considering it major components for developing and
evolving in society or industry. Both helps in creating brand image so companies can keep
innovating overall structure .
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21 Tips When Renting Your First Office Space. 2015. [Online]. Available
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[Accessed on 4th September 2017]
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