The Impact of Innovation on Business

This assignment delves into the crucial aspects of innovation and its impact on business. It examines various strategies employed by organizations to foster innovation, including open and user-driven approaches. The focus lies on understanding how creativity, innovation management practices, and the effective commercialization of new ideas contribute to a company's overall success. The analysis draws upon scholarly articles that investigate the relationships between labor unions, customer involvement, and innovation outcomes.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and its importance in organisation in comparison with invention.......................3
P2 Impact of organisational vision, leadership, culture and team work in shaping innovation
and commercialisation................................................................................................................5
TASK 2............................................................................................................................................6
P3 4 P's of innovation and uses of innovation funnel.................................................................6
P4 Developments in frugal innovation........................................................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and application of New Product Development...............8
P6 Case of innovation business of an organisation.....................................................................9
TASK 4..........................................................................................................................................10
P7 Different tools to retain and protect knowledge and intellectual property..........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is improvement in creation of product and providing services in the company.
So, it fulfils the needs and wants of consumers and satisfies users. Commercialisation of new
ideas helps in earning more profits to company. Report tells about Unicorn Grocery Store. It was
found in the year 1996. Firm sells products including the body care, household, etc. Project
explains about the innovation, its importance in company and comparison with invention as well
as methods through which vision leadership and culture can shape innovation and
commercialization (Aarikka-Stenroos and Sandberg, 2012). Also, there is discussion on 4 P's of
innovation and use of funnel to monitor creative ideas and development in innovation along with
its use in the firm with various examples. Assignment talks about the importance of commercial
funnel and use of new product development for commercialization of innovation along with
creating an innovation business case of firm including ways of funding. Project explains different
tools that company use to develop, retain and protect the knowledge as well as intellectual
property.
TASK 1
P1. Importance of innovation to an organisation in comparison with invention
These days, technology is changing on frequent basis. This has a direct impact on the
operations of company. Unicorn grocery has to accept changes and there is the need to adopt
those modifications and apply them on operations. There are many alterations but it is not
important to accept all the changes. Modifications which are important and beneficial for
performing business operations must be adopted. These changes are also invented by someone.
There are few sources of innovation which are:
 Process need- The reason of changes in organisation is that when individual is not
satisfied with current process, this helps organisation to take some innovative ideas to
improve operations of company.
 Unexpected- Every company has some goals and targets and it is necessary to achieve
them to make a positive image in the market (Bogers and West, 2012). Key person
sometimes apply some new and innovative ideas to achieve set goals and targets. There
are chances that some positive results out of new technique. Every time, it is not

necessary that company will get success. This type of change is known as unexpected
innovation.
 New knowledge- When person gets fresh information or study about some aspect and
they apply it to their operations then it is known as new knowledge innovation. There are
chances of negative as well as positive results out of it.
 Change in perception- When individual's perception gets changed related to some
concept then this type of innovation occurs (Chun and et. al., 2015). It is important to
take deep knowledge about such topic so that this proofs to be fruitful.
Unicorn Grocery is the store which has many new and interesting changes that can be
made by management of company. Innovation means to take measures which are associated with
new techniques. These days, there are many inventions done and they are registered under some
intellectual rights. This will provide security from being used generally. These innovations help
company to provide higher satisfaction to customers and in case of some profitable condition, the
goodwill of Unicorn increases. This is important that employees of organisation must also have
knowledge about that change and they must learn about those changes so that in case of any
query, management can provide proper guidance.
Difference in innovation and invention
Innovation and inventions are two words which look synonymous to each other and many
people think that they are same. But there is a huge difference in both the words. Difference
between innovation and invention is discussed as below:
Innovation Invention
 Addition to existing product or service
is known as innovation.
 Coming up with new products and
services is known as invention.
 There is value addition in existing
product through innovation.
 In invention, it is necessary to convey
about new products and services to
consumers.
 Innovation is done when there is some
problem in existing products and
services or there is no proper
satisfaction of customer's demand.
 Invention arises when there is the
demand of thing which is not in
existence.

 E.g. Updated version of android  E.g. Invention of mobile phone
P2. The way organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Innovation is done by the top level management. There is the requirement to apply those
changes in organisation. Unicorn Grocery adopts new ideas but they can apply these changes
only when top level management can provide proper guidance to subordinates. There is an
important role of manger to guide how to apply those changes and leader has to keep eyes on the
operations of employees (Cui and Wu, 2016). In case of negative results again, guidance is
provided. It is not necessary that all employees are ready to work under new technique and so,
they must be motivated to accept changes. In this, leader has a vital and important job to apply
innovation in a better way. N.R. Narayana Murthy and Bill Gates are very good examples in
terms of leadership.
Unicorn Grocery can join hands with delivery vans which helps customers to get back to
their place with purchased products and provides more satisfaction to customers. But this can
only be possible when manager gives proper guidance to delivery man. There is the requirement
of a lot of money and time invested in R&D department. Hence, proper guidance give good
results out of innovation. It is important that company has to first try whatever it is going to
apply. This will help them to know about shortcomings and they can be clear at initial stage only.
ORGANISATIONAL VISION: Vision of organisation has an important role in creating
innovation. It is important that manager has to communicate about goals and objectives of
company to employees so they are aware about changes taking place. There is difference in
employee as well as organisational goal and so, manager has to bridge gap in between both, this
gives positive impact on the performance of employee.
LEADERSHIP: There is important role of leader in application of innovative ideas. Employees
act as power guidance by team leader. There are many corporates which fail to apply new
techniques due to lack motivation and guidance skills. Innovation can be applied in operation
when employees itself ready to work under changed environment and enjoy it.
CULTURE: Culture of company also affects working style of employees. So there is important
role manager to create good environment (Aarikka-Stenroos and Sandberg, 2012). If there is

good relation among employees then there are bright chances of having positive results on
organisational goals. This helps to achieve targets and goals on time also.
TEAM WORK: Company does not work with operations of single person objectives can be
achieved with employer and employees. Goals and targets can be achieved by manager only
through employees but there is essential role of direction to achieve objectives. Hence it is clear
that there is joint efforts of employee and employer in achieving targets.
TASK 2
P3 4 P's of innovation and uses of innovation funnel
Innovation is very complex process. This process is important and provide growth to
organisation. There is requirement of new and innovative ideas, this can be done with taking
ideas from employees. There are chances that employees may give fresh ideas which help
company to accomplish goals and objectives and provide growth to company. 4'P of innovation
are-
PRODUCT: Unicorn Grocery can innovate some new product which provide more satisfaction
to customer (Bogers and West, 2012). This is beneficial for the growth of company and provide
edge to firm over competitive brand.
PROCESS: Process innovation means company focuses on change on production method or
technique. This will [pr9ovide benefits to company such as reduction in production time and
cost, less number of defectives, etc. This indirectly affects consumer also as they get best quality
product.
POSITION: Position innovation is done when company does not have any thing to do new in
same segment so they launch their product in di9fferent sector. This means position innovation
helps company to expand their business. There are possibilities of failure of new product or
company has to re launch it in market with some modifications.
PARADIGM: This innovation is not related to any customer need. This approach is different
from all the above approaches and this give emphasis on some different thought which no one
has think. Product or services which is developed under such innovation needs more promotional
activities to aware people about new launch.
USE OF INNOVATION FUNNEL TO EXAMINE AND SHAPE INNOVATIVE IDEAS
Innovation funnel has vital role while manager of Unicorn Grocery wants to apply
innovative ideas (Chun and et. al., 2015). It works as important part of in which company puts all

the ideas and then sorting is done which option is best. In case of Unicorn Grocery where
company thinks to hire pick and drop service vans. There are many thoughts generated related to
it such as which type vehicle is required. Some customer prefer two wheeler or due to more
product there is need of four wheeler as well. So there are some pros and cons of every option
which has to be analysed after keeping in this funnel. There are many things such as time,
money, availability, etc. has to be taken into consideration.
P4 Developments in frugal innovation
Frugal innovation means to provide product and services at cjeaper rate as coompared to
other product. These investments aims at reducing the cost of product and there are less defects.
These products give benefits of same product but with some little modifications. In production of
these products there is use of less resources as compared to other product. The main aim behind
frugal innovation is to provide better satisfaction to consumer at lower price. This will help to
provide growth to company and brand become famous among common people. There are six
principles of frugal innovation. They are as under- ENGAGE AND ITERATE- This principle say that company need not to come with fresh
ideas all the time. They can renovate the existing thoughts (Cui and Wu, 2016). FLEX YOUR ASSETS- There is need of fund to apply innovation in market. In initial
days generation of fund from external source is tough so manager has to retain profits of
company. SUSTAINABLE SOLUTION- There are problem in operation then there is need of
innovative ideas. It is important to analyse the problem carefully and then take corrective
measures over it. SHAPE BEHAVIOUR OF CUSTOMER- To make innovation famous among public.
Management of Unicorn has to promote its product in industry(Cunningham and Porter,
2011). CREATION OF VALUE WITH CUSTOMERS- There must be regular contact with
customer of company so that they can know about change in customer behaviour.
 INNOVATIVE STAKEHOLDER- Stakeholders are the person who are associated with
company and they have interest in dealings of company. If stake holders are innovative
then this will help company to come with fresh ideas.

TASK 3
P5 Importance of commercial funnel and application of New Product Development
MEANING OF COMMERCIAL FUNNEL
The primary goal of Unicorn Grocery is to earn profits and provide utmost satisfaction to
customer. This will help to expand business. There is requirement of funds for getting things
innovative in current industry (Drucker, 2014). This will help company to compete with other
firms and are able to run in long race. This funnel will assist to find which is most appropriate
option which help to get more revenue out of new ideas. This is important because management
of Unicorn Grocery conducting innovation so that they can increase their profits. There are
chances atht some ideas does not get success first time due to some flaws but after finding these
defects it must be rectified and take corrective measures.
IMPORTANCE OF COMMERCIAL FUNNEL INCREASE GROWTH AND EFFICIENCY: This funnel is beneficial as they provide
option which is most appropriate in current scenario. There is important role of manager
in analysing which is most suitable method. This will help organisation to increase its
efficiency and this helps in getting positive results. Employees also feel concentrated
towards what they have to do. PROMOTE CREATIVITY: Innovation is all about creating new things and ideas. There
are many options in the mind, but they have their own advantages and disadvantages.
Through commercial funnel there are possibilities of shuffling ideas and thought.
 ENHANCE QUALITY: Through innovation there is increase in quality of product and
services, this helps to pro0vide satisfaction to customer and this help in growth of
employees also. They are motivate to give their best services (Eesley, Hsu and Roberts,
2014). They get chances of promotions with this and the ultimate goal of Unicorn
Grocery also satisfy.
APPLICATION OF NEW PRODUCT DEVELOPMENT
These days there are changes taking place in environment so company has to accept
these changes and apply modifications in product and services. There are following steps in
development of new product-

 Idea generation- This is the first step which says that manger of company come with an
idea after analysing market. In this step company may have many basic ideas in which
they perform innovation. Idea screening- In this step all the ideas are analyse and try to know which method is
best among all (Herath, Cranfield and Henson, 2010). Every method has its own pros and
cons so it is important to opt option which is best and appropriate for the growth of firm. Concept development and testing- After analysing option there is requirement of develop
what to do and how is it achieved. In this stage targeted consumer and their need is
analysed. Market strategy development- In this stage R&D department of Unicorn Grocery identify
the market and its scope of future growth. Business and financial analysis- There is requirement of funds to apply any change in
operations of company. It is essential that R&D department has to analyse what will be
requirement of money. Test marketing- This is the step when company starts dry run of its product and services.
This test is done among small group of targeted consumer. Through this management of
company came to know about reaction of public (Hoque, Chishty and Halloway, 2011).
In case of negative results it is important to reduce its defects.
 Commercialisation- This is the last step of New product development. This steps aims at
launching product in market. While testing if there are negative results then if must be
removed.
P6 Case of innovation business of an organisation
Innovation applied in Unicorn Grocery store includes following steps- Executive summary- Unicorn Grocery is small and medium firm operates in England.
There aim is to increase their brand value in industry. Innovative ideas are one of the
method which is helpful in achieving aim (Huizingh, 2011). Target- Management of Unicorn wants to provide pick and drop services to customer.
This services proofs to be more fruitful in case target of this innovation is old age people. Solution- It is not easy to apply innovative ideas in operations so it is important that
company has to launch services by telling advantage of it. This will provide assistance to
consumer and increase faith of user.

 Reason behind innovative product- Unicorn has its own goals and targets which has to
be achieved . Innovative steps are the medium to achieve it (Jagoda and et. al., 2011).
Providing pick and drop services aims at providing assistance to consumer does not
having convince facility. Customer research- This is important to know relevance of innovative actions in current
environment. In case there is deal in applying those ideas then there are chances that
competitive firm take advantage. Hence it is important that R&D department has to do
research diligently. Funding- There is important role of finance in applying changes in company. There are
many sources of finance but it is important to adopt option which is cheap and readily
available. Options like share holders fund, angle investors, venture capitalist, etc. are the
source which invest in plan but it is important that they must like the idea. It is important
that idea must generate revenue out of it. There is requirement to pay interest in lieu of
fund so it is important to opt source which is cheaper.
 Expected benefits- Innovation must have some benefit to company. In case of Unicorn
Grocery the pick and drop service will provide assistance to people and they prefer to
shop from this store only (Kutvonen, 2011). This will ultimate help to increase revenue.
TASK 4
P7 Different tools to retain and protect knowledge and intellectual property
Innovation is a way which is used by company to adopt new modifications. It is
important that company has to protect that innovation from being used in general way. There are
some rights which safeguards the investors innovation from use. If someone want to use these
innovations then they have to take permission from owner of that right. Some of the tools are
discussed under- Patents- This is the right given to individual to use for some period. This means user has
to pay loyalty amount after completion of term of contract. User has to give again loyalty
fees to use particular service or image. Copyright: This right is used by individual who has some unique artistic piece of work.
This includes drawing, song, music, painting, etc. This act helps to protect the creation of
one person from being used.

 Trade mark: Trade mark means a particular sign can be used by particular company.
This helps to create a image in mind of consumer (Lundvall ed., 2010). Trade mark will
help company to create awareness in consumer.
 Trade secret: Innovation is not one night process. There is requirement of fund as well as
time to create some useful thing. So it is necessary to protect them from being copied.
Trade secret helps to provide copyright or patented at later date.
In case of Unicorn store they can hire some particular agency and they can have contract
with them and they put Trade mark of Unicorn store on those vehicle. This will help consumer
also to know that particular vehicle is at service of Unicorn Grocery.
CONCLUSION
From the above discussion it is clear that innovation is not easy to accept there are many
issues which arise in operations. This report says that there is difference between innovation and
invention. While company wants to achieve growth through medium of innovation there is
important role of vision, leadership and culture of company. There are 4 P's of innovation which
are the ways and scope of improvement. Innovation funnel and commercial funnel are the
elements which help manger to know which method is best and beneficial as per company point
of view. In case company wants to develop new product in market then it is necessary to follow
proper steps and in case of negative results corrective measures must be take.

REFERENCES
Books and Journals
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Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1).pp.61-75.
Chun, D. and et. al., 2015. Labor union effects on innovation and commercialization
productivity: An integrated propensity score matching and two-stage data envelopment
analysis. Sustainability. 7(5).pp.5120-5138.
Cui, A. S. and Wu, F., 2016. Utilizing customer knowledge in innovation: antecedents and
impact of customer involvement on new product performance. Journal of the academy
of marketing science. 44(4). pp.516-538.
Cunningham, S. W. and Porter, A. L., 2011, July. Bibliometric discovery of innovation and
commercialization pathways in nanotechnology. In Technology Management in the
Energy Smart World (PICMET), 2011 Proceedings of PICMET'11: (pp. 1-11). IEEE.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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teams on venture performance: Aligning founding team composition with innovation
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35(12).pp.1798-1817.
Herath, D., Cranfield, J. and Henson, S., 2010. Understanding the financing of innovation and
commercialization: the case of the Canadian functional food and nutraceutical sector.
Applied Economics. 42(21).pp.2667-2682.
Hoque, M., Chishty, M. and Halloway, R., 2011. Commercialization and changes in capital
structure in microfinance institutions: An innovation or wrong turn?. Managerial
finance. 37(5).pp.414-425.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
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Jagoda, K. and et. al., 2011. Development and commercialization of renewable energy
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Online
What is innovation?. 2017. [Online]. Available through:
<https://www.merriam-webster.com/dictionary/innovation >.