Innovation and Entrepreneurship: Challenges and Opportunities

The provided document is an assignment that delves into various aspects of innovation, entrepreneurship, and business development. It covers topics such as the 4Ps of innovation, frugal innovation, new product development, and the role of intellectual property in business success. The document also references several books and articles on innovation, providing a comprehensive understanding of the subject matter.

INNOVATION

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1. Describe innovation and its importance towards organisation with invention................3
P2 Organisational leadership, vision, teamwork and culture shapes to innovation...............5
TASK 2............................................................................................................................................6
P3. Explain 4Ps of innovation................................................................................................6
P4 Frugal innovation .............................................................................................................8
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and the process of new product development.............9
P6 Evaluation of innovation business case...........................................................................11
TASK4...........................................................................................................................................11
P7 Intellectual property .......................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Innovation is the procedure which helps in rendering an idea or invention into a good that
initiate value for which customer will pay. It is aggregation of opportunities identification,
marketing, sales, prototype, ideation and production; innovation can be arbitrate as development
of concept or thought that is used in operation of executing goods and services are provided to
buyers. Whereas invention in totally different from innovation; it is related to discovery of fresh
and innovative things, concepts as well as ideas that develops better future of the company (Amit
and Zott, 2012). Iceland is the chosen organisation in this present documentation; that is British
Supermarket chain. Iceland Ltd. emphasis upon the sale of frozen foods, encompassing prepared
vegetables and meals. The company has covered the 2.2% share of the UK food market. The
case study contains importance of innovation and invention in the context of business of business
organisation. There will a discussion on various functions and strategics that has an effective role
in innovation and invention of new products or merchandises. A new product development plan
is also procedure in order to create new products and services for the company.
TASK 1
P1. Describe innovation and its importance towards organisation with invention
“Innovation consists turning an idea into a solution that adds value from a customer's
perspective”. In other words, innovation is an application of concepts that are reusable and novel.
Creativity means the ability that is helpful in generating effective ideas, is the seed of innovation
but unless, it can be applied and scaled; it is still just an idea. Innovation is much bigger than a
technological platform or a product. Along with this, it helps in preceding new products or ideas
for the organisation and management (Davila, Epstein and Shelton, 2012). In Iceland Ltd.
innovation is linked with positive dynamics in productivity, competitiveness, market share,
efficiency as well as quality. It also has a complementary role within organisational culture in
facilitating firms as they can interpret innovative activities into tangible performance
amendments. Business enterprises can also enhance their achievements and profits by rendering
work group possibilities as well as resources to innovate, in addition of employee's core jobs
tasks and activities.
Invention – It refers with embodiment of new technical and scientific ideas. For a
business entity, an invention should be patentable, novel, non-obvious as well as having the

ability of utility. It can serve many purpose but does not create positive value. It is also essential
for legal concept to patent law systems worldwide. In broader meaning, an invention is
something that has never been made before.
Difference between innovation and invention
INNOVATION INVENTION
An innovation is the commercialization of
invention. In other words, it creates dots
between inventions.
An invention is an intellectual exercise that is
come up with a new combination of solution
for the business problems and issues.
It includes bringing the new concept for the
market that is able to fulfil needs and wants of
customers (Drucker, 2014).
It is all about making such things or items that
is never ever created generated by anyone.
Innovation is known as piratical performance
of innovative and fresh plan.
It helps in introducing with new products in
target market those are able to meet needs and
desires of customers.
In that, practices are concerned with goods and
services are carried out which are offered to
buyers.
Firms are hired talented persons only just for
making an impelling design for new goods and
services.
Importance of innovation and invention for business organisations: -
 In the business entity, innovation and inventions helps in developing or replacing
business activities in order to extend productivity as well as efficiency. Both are also
useful to permit the business for increasing its quality or range of prevent products and
services.
 Innovation and invention has a significant role to develop the entirely new and
improvised goods and traded which often meet rapidly changing buyer's requirements or
demands.
 They adds value among existing goods or markets for differentiating the business from its
rivals and maximising the detected value to the markets and consumers.

 In modern world, every business organisation wants to perform at global level; they also
think to grow in emerging markets. So as innovation and inventions helps such
companies to achieve their same purpose. In addition, it helps in taking advantage of the
global entrepreneurship movement.
P2 Organisational leadership, vision, teamwork and culture shapes to innovation
Every business organisations, is emphasised to develop or implement innovation among
their manufacturing process as well as goods and services. This will support it to achieve existing
goals and objectives in competitive market. Iceland Ltd. use advertising or commercialization
process for provoking new ideas which develop necessary changes over the product. Marketing
or exploitation is assistive to attain and retain higher profits as well as sales. Apple and Virgin
Group both are used effective tools and techniques as they can develop innovative goods and
things as per the market trends. By which both companies are the leader of international market. Vision – A vision statement is a proclamation of company's goals and objectives. It is
ideally rely on the financial condition of the firm and tend to focus on internal decision
making. In other words, a vision statement helps in guiding the transformational activities
by setting exemplify direction for the company's growth. In other words, it is an
inclination description of what an enterprise would like to accomplish for its mid term or
long term growth (Gordon, 2012). Apple's vision statement is ton motivate employees so
as they can contribute towards innovation for achieving competitive advantage. Its
mission and vision shows the direction of the company's growth and product
development. So that, Iceland Ltd. also have to adopt the same strategic in order to
become the market of retail products, it needs to focuses on its actions because they are
required to assure that the company continues in its success path. Leadership – It is the capability of a company's management in order to set achievable
challenging goals. An effective leadership means the activity of leading people or the
overall businesses. It involves practical skill of an individual who is capable to guide or
lead a group of people over the company. Leadership helps in creating an inspiring vision
for the future and also encourages to people as they can engaged with the goals and
objectives of the business organisation. Virgin Group has an adequate and innovative
leaders who coaches and builds team in order to perform day to day activities towards

goals accomplishment. In Apple Inc. leaders are liable to think initiate and act creatively
in various situations. Teamwork – Excellent team work has maximised involvement of team members that
utilise their strength and the area of expertise as well as distributing obligations to all. It
helps in information sharing among all the employees of the company; this will
enhancing the level of skills, knowledge and acquiring for the betterment of overall
organisation (Huizingh, 2011). Apple Inc. and Virgin Group has good team leaders who
can find out a wide range of possible solutions for each specific problem. They are also
able ascertain the most appropriate one among all of these methods by collective
interaction and input.
 Culture – Organisational cultural directly affects upon commercialisation and innovation.
In Iceland Ltd. there are divergent cultural people are worked and play an important role
in the execution of successful daily operations. It involves values, beliefs, moral, code of
conduct, religion etc. of employees. Apple Inc. and Virgin Group properly maintain their
organisation cultural by regulating effective communication; this will help staff members
as they can share their all issues and problems regarding working activities.
TASK 2
P3. Explain 4Ps of innovation
There are given below 4Ps of innovation, which are described as below: -

(Sources: What are the four 4Ps of innovation, 2017) Product perspective – It means changes in the things which is offered by the business
organisation. The core concept of innovation in concern with introduce a new product or
improving the existing ones. Product innovation helps in providing something different
and innovative to customers; this will also helps a company in increasing their sales and
profits. Along with this, Iceland Ltd. Also needs to develop new and trendy products in
order to accomplish humanitarian goals and targets. The products are supplied by Apple
Inc. are very much innovative and attractive in nature. The company always deliver
something different for its customers; now these days it emphasis on iPod that is easy to
use. It has different feature i.e. it can verbalise itself if we push any button on it. Process perspective – This is the second and essential prospect of innovation mix that
include to choose innovative process for manufacturing (Jaffe and Lerner, 2011). I Phone
7 is invented by Apple producers by the contribution of further nations in its outsourcing
parts. Apple Inc. and Virgin Group adopt easy and sufficient method while launching
Illustration 1: 4Ps of innovation

something across the market. They develop their strategics and policies to reach
maximum number of users. Position perspective – It is the third factor of innovation mix, i.e. positioning. It is related
with an establishment of products and processes in the specific context. Along with this,
position based innovation helps in rendering high quality services to customers in order
to gain maximum level of buyer's satisfaction. It include the changes in the signals that
are disseminated about a organisation and its working activities as well. Apple Inc. and
Virgin Group supplies quality products and services to their clients with innovative
features; they mostly targeted teenagers and youngsters to serve their products.
 Paradigm perspective – The fourth P of innovation that defines the dominants paradigms
of the business organisation. Paradigm based inventions consists with mental models
which give shapes the occurrence of the company. In addition, it means that if company
add some values and features over their products for the better growth and success so as
there is no change in the quality of products. Apple Inc. is delivering the same to their
users, like we can see a big change in the iPhones series – iPhone 4 to I Phone 7 and very
soon it will also launch I Phone 8 with better features and qualities than its previous
products.
Innovation Funnel – Every business organisations have their own forms of innovation
funnel. The funnel is broad that captures new ideas and narrows in order to select few that will
launch. Along with the concept of innovation funnel denotes the time to commercialisation and
the generate various thoughts regarding – technologies, ideas, opportunities and products. These
all have divergent development cycles so as they can enter the funnel at various points (Manyika
and et. al., 2011). Business organisation mostly emphasise on creating new products and services
as well as fulfilling the needs and demands of customers. New and innovative products are
designed by well skilled people; they spawn an effective utilisation of available resources. The
procedure also helps company to identify the best ideas among various options provides right
direction in order to achieve competitive advantage.
P4 Frugal innovation
Frugal innovation leads to inventions that are produced cheaper, faster and better for the
company; it is fuzzy. The core concept of frugal innovation involves that how managers and
entrepreneurs are funding on a new trend to initiate in rising markets. Sometimes it can refers as

reverse, inclusive as well as constraint based innovation that are able to produce technological
products that are customised at low prices Frugal innovation focuses on producing high volumes
of products for emerging markets.
(Source: What is frugal innovation, 2017)
Furthermore, frugal innovation discovers new and fresh business models, redesigns
products and reconfigure value chain so as to serve users who face extreme affordability
constraints in the sustainable manner (Mowery and et. al., 2015). In Iceland Ltd. it provides
functional solutions by few resources in create more inclusive markets. Apple adopt frugal
innovation to remove extra features that are non-useful for buyers and able to consume a huge
space in products. Apple Inc. and Virgin Groups both are famous for their electronic goods and
services i.e. mobile phones, computers, laptop etc. these companies have most popular brand
over the world; people have trust and faith on their products and services. Frugal innovation is
the need of each and every business organisation; it is known as the game changing strategy for a
business organisation.
TASK 3
P5 Importance of commercial funnel and the process of new product development
Commercial funnel is the activity that is applied to create derivative choices about how
the good is being sold at marketplace. Several companies emphasis on improving product feature
and quality because buyers are attract on quality aspects; for that they adopt commercial funnel.
It helps in converting potential customers into target customers. It is known as the best channel
of distribution through which goods and merchandise are delivered to its right users and at
Illustration; 2 Frugal innovation

suitable place. The funnel also helps in increasing sales of the company by encouraging its
selling activities.
Process of new product development: -
(Source: Process of new product development, 2017)
Idea generation is the first step of new product development. It involves delineating
sources innovative ideas and concepts for generating them into the company. In addition, ideas
for product can be obtained from basic research using a SWOT analysis. After this, Idea
Screening is the second stage- it includes that the object is to eliminate unsound concepts prior
to devoting resources to them (Patti, Yanes and Siuzdak, 2012). It helps in evaluating that will
the customers in the competitive market get benefit form the product or not.
The third step is Concept Testing; it presents that the consumer with a proposed product and
measure attitudes as well as intention at this early stage of development. This kind of prototype
can help avoid costly mistakes. Market strategy Development is the fourth step of new product
development process; that expound the market size, behaviour and structure, the planned product
positioning as well as the sales, profit goals & market share for the few years.
After that, business and financial analysis that is related with estimate sales volume based upon
size of market, estimate profitability and break even point.
Illustration 3: New product development

Test marketing involves placing a product for sale in one or more selected areas by observing its
actual performance under the proposed marketing plan. Commercialisation encompasses
implementing a total marketing plan and full production that is responsible in launching the
product in competitive market.
P6 Evaluation of innovation business case
In business entities, innovative business case is well defined objective and purpose; they
are invest money and time of the firm into a project. It also provides a new edge to commercial
enterprise rather than investing it in a non-essential activity. With reference to this, it is the basic
concept that is used in order to create new products for the company. Innovation business case is
apply at the every stage of NPD for ensuring that the cost stays in limit. Apple Inc. and Virgin
Group are used time gap policy that is helpful for them as they can innovate new products and
services for their potential customers. The business case for innovative products are described as
below Research and development activities – Innovation business case is liable for researching
and developing various business activities which can be used in producing new and
innovative products (Patton, 2011). These working activities has a vital role over the firm
cause they are accessible in evaluating the real or actual situation of market. Time management – Iceland Ltd. needs to develop and execute a proper schedule for its
working tasks and operations. So as managers can finished their work on time; effective
time management strategics supports in achieving goals and objectives of the company in
target market. Resources – These are the are essential assets form commercial enterprises in the
effective execution of policies and plans fon regulating new product.
 Funding - These are very much important to every company as it can take financial help
from money lenders, stakeholders and capitalist. UK government also render subsidiaries
and loans facilities to companies.
TASK4
P7 Intellectual property
Intellectual property helps in boosting innovation in the organisation. It helps in
enhancing the creation of developing of new ways and products those can be considered under

the law of intellectual property. The act renders an exclusive authority as well as access to the
person for a particular time period. Apple Inc. has many intellectual property because it regularly
inventing new methods and things which it wants to keep exclusively to itself. So as it increase
the chances of earning in long run. One of the right is related with retina display of
I Phone. As same, Iceland Ltd. also have to make some rights on its own products and creations.
There are given following tools of intellectual property: - Copyrights – It is legal right that is created by the law of the country that permits the
manufacturer of original work privilege rights for its distribution channel. It is essential
for every company as to that protects the original expression of ideas (Rice, 2013). This
is because, there is a lots of competition is available in market and there is a risk of
copying brand by competitors. Trademarks – Trademark is understandable design, sign or logo which differentiate a
product from others. For the sake of corporate identity, trademarks are often displayed on
company's building.
 Patents – It is set of privilege rights that are granted by a sovereign state to the producer
for a limited time period in the exchange of public revelation of an innovation.
CONCLUSION
As per the above case study, it has been concluded that innovation and invention has a
vital role in growth and success of the company. In this present report, there is described
importance of innovation and invention in the context of business organisations. Along with this,
4Ps of innovation i.e. product, paradigm, process and positioning are also analysed in this
assignment. In order to adopt the new ways and methods of production, business organisations
uses frugal innovation whereas new product development helps in creating new and trendy goods
for the company with an aim of attracting numerous customers in competitive market. In
addition, commercial funnel, intellectual property and innovation business cases are also defined
in the documentation.

REFERENCES
Books and Journal
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review. 53(3). p.41.
Davila, T., Epstein, M. and Shelton, R., 2012. Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gordon, R. J., 2012. Is US economic growth over? Faltering innovation confronts the six
headwinds (No. w18315). National Bureau of Economic Research.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Jaffe, A. B. and Lerner, J., 2011. Innovation and its discontents: How our broken patent system is
endangering innovation and progress, and what to do about it. Princeton University
Press.
Manyika, J. and et. al., 2011. Big data: The next frontier for innovation, competition, and
productivity.
Mowery, D. C., and et. al., 2015. Ivory tower and industrial innovation: University-industry
technology transfer before and after the Bayh-Dole Act. Stanford University Press.
Patti, G. J., Yanes, O. and Siuzdak, G., 2012. Innovation: Metabolomics: the apogee of the omics
trilogy. Nature reviews Molecular cell biology. 13(4). pp.263-269.
Patton, M. Q., 2011. Developmental evaluation: Applying complexity concepts to enhance
innovation and use. Guilford Press.
Rice, A. K. ed., 2013. Productivity and social organization: The Ahmedabad experiment:
Technical innovation, work organization and management. Routledge.
Ries, E., 2011. The lean startup: How today's entrepreneurs use continuous innovation to create
radically successful businesses. Crown Books.
Rosenbusch, N., Brinckmann, J. and Bausch, A., 2011. Is innovation always beneficial? A meta-
analysis of the relationship between innovation and performance in SMEs. Journal of
business Venturing. 26(4). pp.441-457.
Sawyer, R. K., 2011. Explaining creativity: The science of human innovation. Oxford University
Press.
Online
What is innovation? 2011. [Online]. Available through:
<http://www.innoviscop.com/en/definitions/process-innovation>. [Accessed on 4th
August 2017.]
The 4 Ps of Innovation, 2010. [Online]. Available through: <https://hbr.org/2010/06/the-4ps-of-
innovation>. [Accessed on 4th August 2017].

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