The Importance of Innovation

This assignment delves into the crucial role of innovation in fostering economic development. Students are tasked with examining various definitions of innovation, analyzing its impact across different sectors, and exploring both the benefits and potential drawbacks associated with innovation. The assignment encourages critical thinking about the relationship between innovation and societal progress, supported by real-world examples and scholarly research.

Innovation

Table of Contents
INTRODUCTION................................................................................................................................3
TASK1..................................................................................................................................................3
P1. Significance of Innovation and comparison with invention......................................................3
P2. Shaping innovation through organisational culture, vision, mission and teamwork.................5
TASK2..................................................................................................................................................6
P3. 4P's of innovation and importance of innovation funnel...........................................................6
P4. Development of Frugal Innovation:- ........................................................................................7
TASK3..................................................................................................................................................8
P5. Significance of commercial funnel and the application used in new product development.....8
P6. Innovation Business case of Ensoft Ltd....................................................................................9
TASK4................................................................................................................................................10
P7. Tools and techniques needed for developing, retaining and protecting intellectual property
rights..............................................................................................................................................10
CONCLUSION..................................................................................................................................10
REFRENCES......................................................................................................................................11

INTRODUCTION
Innovation is one of the important factor that should be considered in order to running
business for longer period of time. Basically, it is an process under which idea of individual turn
into reality by launching the product into market (Amit and Zott ,2012). In other word, bringing
features in existing product and create goods and services which never come in market before that.
It allows them to grab market opportunities and remove all the threads through their innovative
goods and services. Apart from it in dynamic environment changes are coming with rapid speed due
to advanced technology and digitalisation. Therefore, it is necessary for every start up to have some
creative or innovative ideas in order to strengthen position in market. Under this assignment the
company which is preferred I.e. Ensoft Ltd. Which is UK based software company comprises of 70
engineers that specialises in developing every aspect of networking software. Further it discuss
about significance of innovation, 4P'S of innovation, frugal innovation and tools for developing and
protecting intellectual property. The approaches used for creating innovation culture and legislation
of protecting creativity can be studied in reference of Apple and Virgin group.
TASK1
P1. Significance of Innovation and comparison with invention
Meaning of Innovation:- It can be described as process in which idea of individual coming in form
of products in external market according to perception of target audiences. Different application,
theories and methods has been used so that idea can be implemented in better manner. In every
organisation each employees must be innovative and creative so that they think out of the box in
case of complex situations so that better outcomes can be obtained in future. Along with that
manger must understand all the market opportunities coming in business environment and execute
some alteration in their organisation structure so that objective can be accomplished in proper
manner.
Ensoft Ltd. Work on EnQuality development methodology and this approach help in
creating innovative thinking among engineers and gives proper framework regarding the
importance of team work (Ariga and et. al. ,2013). The main objective is to provide services to
customer at specified time period. If innovation is present fully in organisation then it help in
increasing profits and ensure better utilisation of resources.
Invention:- This can be described as process in which action has been taken for inventing something
new in the form of process or device. It require both technical and scientific skill in regard to their
products. This step is generally done when company lost their position and want to revitalise it in
order to create strong position in market.

Difference between innovation and invention is discussed below:-
Basis Innovation Invention
Meaning Innovation refer to
implementation of ideas for
product and process for very
first time.
It is basically an idea or
creativity in the form of product
or process which never has
been made in market.
Whole concept The concept is fully depend on
practical implementation of
new and creative ideas.
Under this original idea coming
without any mixture of other
source and working is done on
theory.
Skilled required Innovation required all
marketing, technical and
strategic skills for growth and
development.
It require technical and
scientific skills for creating
something new.
Activities required Spread across different types of
organisation in order to expand
their business and profitability
both.
Limited scope up-to research
and development department
because of developing distinct
techniques which never came
before.
Importance of innovation from employees of Ensoft Ltd. :-
 It assist in gathering new skills and ability which improve overall career of individuals.
 Ensoft Ltd. Is dealing in software development so proper training and guidance is given to
workforce which enhance their creativity.
 Increasing overall efficiency and effectiveness of employees because they get the
opportunities to think out of the box at the time of solving complex market issues. Employees who perform well will be rewarded by incentives and benefits which motivate
them to maintain standard quality of services.
Importance of innovation from business perspective:-
 When overall performance of employees has been increases then it helps in maintaining
standard quality of goods and services with better efficiency.
 Innovation allow organisation to provide goods and services according to the customer taste
and preferences.
 For proper revitalisation of company products new features with attractive varieties which

add the value of existing products in market place.
Apple Inc. is top most famous software company dealing in different sectors and recognised as
innovative association in all over the world. Further this company introduced I-POD which is
smaller in size with digital techniques having an capacity of keeping thousand of songs at one
gadgets and it also decrease the market of Sony Walkman by providing better version to target
audiences. This allow Apple Inc. to enhance their market share and profitability.
P2. Shaping innovation through organisational culture, vision, mission and teamwork
If an company is planning to introduce new and innovative products in market then they
ensure that it will satisfy the current needs and requirement of customers. Innovation is a complex
procedure so it is not compulsory that it give success to organisation but in many cases they have
the failure due to huge competition in market that grab all the opportunities (Baldwin and Von
Hippel ,2011). Therefore before launching any new thing organisation investigator need to research
about all current needs of niche market and observe that whether their discovery is helpful in
satisfying that needs and demand.
In relation Ensoft Ltd. Which is software making company who focus is to maintaining
quality service of their products and services. Apart from it company marketing team concentrate on
all promotional tools like advertising and commercialisation process in order to bring new changes
in their existing products so that costumer aware about all the benefits they gained from it. Apple
Inc. and Virgin group both uses different tools and techniques in order to innovative and digitalise
their product in most effective manner and present that thing is such way which never in market
before that. Apple Inc. is an inspiration for all the small companies and start up to research market
demand , trends and then come with their product segment which allow them to become leader. For
achieving all this Ensoft Ltd. Has to develop their vision, mission and leadership qualities.
Following points plays important role in describing innovation which stated below:- Vision:- Vision can be described as term which is generally established for long term
objective of company which ensure growth and development of business. While setting the
vision of organisation Ensoft Ltd. Try to create innovative ideas in their business activities
for successful business environment. Apple Inc. main aim is to provide world class software
and significant example in digital world by inventing iPods and iTunes . Further motivating
employees to do work with full efforts that leads to innovative ideas in order to gain
competitive advantage over competitors. Mission:- It is a part of vision which is develop for short term basis in order to
accomplished overall objectives of company. Therefore, in order to achieved mission
company has to reach with their long term goals. Corporate Culture:- In order to launch any products and services which is innovative and

creative then it is important for management to ensure that ethical practices has been carried
out in working style of employees. Policies and strategies are made which ensure fair trade
operations in whole department which maintain the goodwill and brand image of company. Team spirit:- Ensoft Ltd. Is successful software developer industry in UK country and the
main reason behind it that all the staff members work in team for achieving mutual
objectives. Manager and leader both motivates their workers to maintain quality standards in
their software. For example apple Inc. one of the leading brand developed their own
software known as Macintosh. All these possible because of team work and creativity, skill
of engineers.
 Leadership qualities:- Ensoft Ltd. Must hire those individuals who possess leadership
qualities in their personality because their works and communication inspire whole
workforce to perform function according to the rules made by company. Both Apple and
Virgin Inc. having innovative and professional leaders who lead the whole team effectively.
TASK2
P3. 4P's of innovation and importance of innovation funnel
If organisation has to survive in competitive market for longer period of time then in such
case they must considered the 4P'S of innovation at the making changes in their services and
products. Basically 4P's of innovation is given by John Bessant and Joe Tidd which describe the
need of innovation in present world. Further, it allows them to knowing perfectly all the
modification needed in working structure. Following are the 4P'S of innovation which stated
below:- Product Innovation:- this stage state that what type of innovation require that improve the
product or services through some modification at the tome of delivering to end users. In
simple word product innovation means adding some more features and convert it in different
ways as compare to original one (Gordon ,2012). Ensoft Ltd. Need to make modification in
the tools and techniques which they recently used at the time of software development. The
main benefit is to gain the interest of thousand of customer who are inclined more towards
technology. Apple Inc. every year come with highly innovative and digitalised product in
order to increase their market share. Process innovation:- Organisation can make innovation in their process through which
products are delivered and transfer to end user. Products must be human centred by using
resources effectively in making more productive all the existing products. Therefore Ensoft
must develop such type of goods and services which help in reducing their cost of
production and increase the chances of optimum utilisation of resources. Apples iTunes and

iPod is changing innovation in music world that allow customer to enjoy thousands of song
at one gadgets. Positioning Innovation:- The third focus of innovation is changing the perception of
customers in respect of position or process in a specific thing. All the position based
innovations refers to all the modifications in how many manner particular product or process
perceived symbolically and in what manner it has been used. For example Apple Inc. is
known as software brand but now people prefer as top most company in mobile sector.
 Paradigm innovation:- Paradigm basically related to mental model which shape what an
organisation is basically about. Further, they need to consider all the factors and forces
which is used to develop innovative activities in working operations. Proper observation
required at the time of making plans for the purpose of combining creation in business
process.
Figure: 4P'S of innovation Source:- 4P'S of innovation space
Innovating Funnel:- This term can be described one of the important things in which different
steps has been taken place in order to develop product or process. The main objective of innovation
is to create such process and product that meets all the needs and desire in manufacturing form.
Further strategic management formulated different type of ideas which cannot be used at one time
so they mix up all the ideas and creativity at innovation funnel in order to redefine it properly and
select only those one which are related with objectives and goals of company. Organisation need to
develop such innovative and creative ideas which fulfil the needs of customers.

P4. Development of Frugal Innovation:-
Frugal innovation is generally used in order to reduce all the complexity and cost of goods
and production. In other word it is a way in which all the non essential elements are removed from
durable good in order to sell the products in developing countries (Jaffe and Lerner ,2011). The
main objective behind all this is to effectively carried out all the operations in effective manner.
This technique is environment friendly and less harmful for working employees.
Some important example of frugal innovation are solar powered Vortex ATM and AmbuPod is
powered by motorcycle which facilitates one lying patient with seated attendant. Therefore, Ensoft
Ltd. Required to develop some innovative goods and services in their software industries.
Frugal innovation can also seen in services apart from product only. Although services are not too
much advertised but if they are effective then customer really experienced it in order to satisfy their
needs. Their are different principles of frugal innovation which are described below:- Proper education:- Every organisation need to educate or literate all the individuals
regarding all the product they are planning to launch in upcoming year. The main objective
is to know needs and wants of target audiences. Manage asset:- Company by using different tools and techniques management team can
manage all the asset, production department and logistic management in order to delivered
services to end customers in timely manner. Create feasible solutions:- Both research and manufacturing department of Ensoft Ltd. Must
have an skill and ability to develop such type of solution which are long term and
sustainable for both internal and external environment. Changing customer perception:- Ensoft Ltd. Try to change all the bad perception of
customers regarding all the goods and services. Principle of frugal innovation help in
satisfying the needs of customers. Create innovative friends:- In order to expand the business all over the world Ensoft Ltd.
Need to make strategic alliances with new business partners which have good market place
and enjoy brand image also. All these help in increasing innovative ideas regarding their
products and services.
 Value co-created with prosumers:- Prosumers are those personality who design, create and
consume all the products and services they really want from organisation . Therefore Ensoft
Ltd. Try to arrange such items which are according to the needs of prosumers.
TASK3
P5. Significance of commercial funnel and the application used in new product development
Commercial funnel is a vital component through which company trying to find out the best

source through which they can easily transferred goods and services in target market (Jain and et. al.
,2013). Apart from it maintaining the logistic department so that they distribute all products timely
to their clients which help in increasing the profits and market share. In commercial funnel full
promotion of product has been done through advertisement and social media sites in order to
generate the awareness among different countries regarding all the modification coming in company
product segment.
Therefore, Ensoft Ltd. Must used this methodology in order to new product in market in
effective manner. Apple and Virgin group has fully changed their entire scenario in order to develop
new ways of doing work so that they reach to thousand of customers at one time.
New product development:- This term described as process in which ideas regarding new
development is segregated into different stages which stated below:- Generating idea:- First step is to formulate the basic ideas on the basis of which product is
launch in market and it must be ensure that ideas must be according mission and objectives
of company in order to remain sustain in market. Screening of ideas:- After the idea been generated next step is to screen them from the
available alternative gained from investigation and research. On the basis of objectives and
goals select the relevant one that give optimum output to company. Developing market strategy:- Next step is to develop the market strategy in order to beat all
the challenges of rivalry. Different policies and tactics has been established by marketing
team so they easily grabbed all external opportunities. Financial analysis:- Under this step manager analyse all the financial factors which need to
analyse in order to implement all the activities of organisation related to operation and
manufacturing department. Testing and concept development:- in this step relevant ideas which are screened must be
converted into products but instead of launching it officially firstly it has been tested by
providing sample to limited customers who share their experience regarding goods and
services and then changes has been made under it.
 Commercialisation:- after testing the product in order to know customer feedback and after
taking all corrective action for further improvement company require to commercialise their
product in market by using different promotional tools in order to enhance their sales and
profitability.

Figure: New product development Source:- New product development,2018
P6. Innovation Business case of Ensoft Ltd.
Business case in relation to innovation is helpful in introducing new products in the market
place and business case of organisation are described below:-
 Describe all the data related to risk of investing in various projects.
 Next thing is to convince all the investors to invest in their business plan by ensuring that it
give huge return in future.
 Important thing is to acknowledge that business idea is made by the use of logical and
practical plans.
Both the Apple and virgin group engaged in different business plan at the time of launching new
products in market (Johnstone , Haščič and Popp ,2010). Different policies has been made in order
to reduce all the gaps in market in respect of their goods and services. Steps involved under it are:- Gathering inputs:- Manager require to collect all the inputs in order to collect all the
information which used to carry out different organisational activities in effective manner. Analysis:- Whatever the data gathered must be analysed properly in order to achieve
organisational objectives. Conclusion:- under this stage whatever the product is developed must be presented in front
of strategic level in order to take final decisions.
 Objective understanding:- After come to conclusion it is duty of manager to communicate
to all workforce regarding the objective and goals of company.
The business case for innovation
In today’s business environment, where needs and wants of customers change on a fast
speed, implement innovation at workplace is become necessary for every enterprise in order to
satisfy their needs and to sustain in market for long run. Concept of innovation is the one which
make the enterprise difference from all other players exist in marketplace and also help in generate

more number of profits. Ensoft Ltd is a software development company and now entity wants to
develop a software which will help travellers to track their luggage.
Approaches to innovation
Company require technical knowledge and huge amount of funds to implement innovation at
workplace. Enterprise wants to develop this in order to enhance convenience level of customers
and to add value to their travel experience.
Planning innovation
Various activities are involve in plan and execute the innovation. It is very important that every
activity should be well execute so company can get all benefits related with innovation. For this,
entity can create a written plan consists all steps require to implement innovation at workplace. As
Ensoft Ltd wants to develop a new software known as luggage tracker, company require to first
identify its target market so it can add specific features in it and can attract more number of
customers.
Innovation in business
Implement innovation at workplace and offer something new to customers on continuous basis is
very essential for a business organisation. With help of innovation Ensoft Ltd can attract more
number of customers and can get competitive advantage. It is very important for managers to
encourage employees to think creatively so firm can offer innovative solution to its customers.
Funding innovation
Funds are known as one of the most essential resource require to implement innovation at
workplace. Various sources of funds are there which can be utilise by firm to manufacture and offer
something new to its customers. Following are the major sources of funds that can be use by Ensoft
Ltd:
 Bank loan: This is one of the most popular source of fund that can be use by company. In
this bank lend a huge amount of funds on an interest rate.
 Venture capital: In this, individuals known as venture capitalist help firm in carry out its
commercial activities and they expect a return on their investment which they offer to
another firms.
 Business incubators: These are the one who mainly focus in the high technology sector by
offer support for business in its different stages of development.
 Personal investment: Individual’s own cash and assets is utilise, this is most common source
of fund.
After develop and offer a new product to customers, company examine its effectiveness in order
to identify the areas of improvements and to make the innovation more effective and successful.

TASK4
P7. Tools and techniques needed for developing, retaining and protecting intellectual property rights
Intellectual property rights are exclusive right given to real owner in respect to their
invention and product which distinct their identity from other competitors (Leiponen and
Helfat ,2010). The main motive of Intellectual property right is to protect that individual from
fraudulent activities of other persons. Different tools and techniques has been used in gaining
competitive advantage are described below:- Patents:- Generally patent right is given when company coming new product in the market.
It is given when organisation identify the new and easy way of doing work by using
different techniques. Trademarks:- it consist of sign, symbol, design and colour which is used in order to protect
products against fraudulent activities. Ownership of trademark is given for the period of 10
years and after that it can be renewed also. Copyrights:- It is generally given is respect of some literary, dramatic and choreography
work. The ideas is original and person get right in respect of it.
 Trade secret:- All the commercial ideas cannot be patented so it is suggested to treated as
trade secret which later become patented.
Apple Inc. getting patent right in respect of all inventions and technologies they discover which
distinct their products and services from others.
CONCLUSION
It has been concluded from whole assignment that innovation and their commercialisation is
essential in order to earn profits and remain sustainable in external market for longer period. Further
different invention and innovation are done on regular basis so it is vital for company to make
changes in their organisational structure. In order to protect from fraudulent activity different legal
protection is given in the form of intellectual property rights.

REFRENCES
Books and Journals
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Online:-
What is innovation?. 2017. [Online]. Available through:
<https://www.merriam-webster.com/dictionary/innovation >.