Importance of Innovation and Its Comparison with Invention: Assignment

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and its comparison with invention.......................................................................3
P2 Organizational factors influencing shape of innovation and commercialization...................4
TASK 2............................................................................................................................................5
P3 4P's of innovation and innovation funnel...............................................................................5
P4 What is frugal innovation.......................................................................................................7
TASK 3............................................................................................................................................7
P5 Commercial funnel and the process of new product development........................................7
P6 Build an innovation business case for the organization.........................................................8
TASK 4............................................................................................................................................9
P7 Tools and techniques used to protect intellectual property....................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation means generation of ideas and imagination which is totally new for everyone.
These thoughts can be converted in to unique products and services which can be beneficial for
company. The products which are produced by company should have the capacity to fulfil all
desires of customers in order to build good relationship with developments in frugal
innovation a them. It is necessary for managers and employees to implement innovation
within their organisation in order to develop better products and maximise their profitability
(Bogers and West, 2012). Talent plus is management consulting company which is based on
assessing talents of candidates and make them ready for future competitive world. They are
focused towards increasing in profitability, job performance and engagement of employees, sales
performance, etc. This assignment will mainly focus on importance of innovation and its
comparison with invention. 4P's of innovation and importance of innovation funnel is also given
in this report. In addition to this, development in frugal innovation and importance of
commercial funnel with application of new product development is also given. A business case
and elements of intellectual property is also enlightened in this assignment.
TASK 1
P1 Innovation and its comparison with invention.
Innovation is a process where ideas and imagination are translated into manufacturing of
a product or service which have the capacity to satisfy all needs of customers. By generation of
new ideas and strategies, it result in maximizing company's profits and also enable them to
manufacture unique types of products which are totally new for customers and for the market.
Talent plus is a company which are involved in future development of candidates by providing
them appropriate training and resources in order to tackle future challenges and opportunities
(Van, Nijkamp and Masurel, 2013). By doing some modification and adding new ways to train
candidates can enhance their productivity and can attract large number of candidates towards
their academy. Innovation in current era is really necessary in order to maintain and retain recent
position and to lead in the market. It is known fact that multinational companies only hires best
employees for their organisation and Talent Plus is one such academy which provides them with
highly qualified and talented candidates. Talent Plus is not limited to training and education, it
also deals in various other sectors like, health care and hospitality, financial, government,

services and utilities, consumer products, etc. In these sectors, they can also use innovation to
improve their services and also lead their company in global market. Innovation act as a catalyst
of growth for any organization. So, it is necessary for companies to generate new ideas to
improve their functioning.
On the other hand, invention is referred to new ways or methods for manufacturing a
product or service. Invention is totally new idea for everyone. Below is the comparison of
innovation and invention:
BAISIS FOR COMPARISON INVENTION INNOVATION
Meaning It is occurrence of new ideas
for product or service that has
never been generated before.
It is referred to the
implementation of new ideas
for a product or service for the
very first time.
Skills required Scientific skills required. Different skills like marketing,
technical and strategic skills.
Concept Generation of new ideas. Practical implementation of
ideas.
Concerned with Single process or product. Combination of various
products or process.
Following are some importance of innovation:
Satisfying increase customers needs: Innovation help companies to work according to
their customer's desires in order to satisfy all their needs and demands. By applying innovation
and creating unique products, company can attract customers for different parts of the world and
increase their sales of product and service.
Competitive advantage: In this competitive world, it is crucial to develop new products
and launch it in the market at some interval of time (Edquist, 2013). This help in maintaining the
current position of the company and also help them to achieve competitive advantage over other
competitors.

P2 Organizational factors influencing shape of innovation and commercialization
In order to achieve targeted goals and objectives, it is necessary to adapt innovation and
commercialization process. Modification and alterations can be made in company's strategies and
process. They can also involve employees to participate in decision making process and in other
management activities to increase their knowledge and skills which is beneficial for them in
future. Products or services developed by company should be marketed or distributed by them in
order to satisfy their customers (Tebbe, 2011). With the help of commercialization, they can
market their products and provide those products to customers on time. Talent plus can market
their services on large scale to attract candidates in large number. Some organisational factors
that can shape innovation and commercialization are given below:
Vision: It is crucial to develop vision statement for any organisation as to provide
managers and employees with ultimate aim which has to achieved in future. These statements
differentiate companies form other organisation as they all have unique visions. It should be
unique and creative and is not copied from anywhere. Employees and other staff can give new
ideas to their superiors to develop modify their vision so as to attract customers towards their
company.
Teamwork: This is an effective way to contribute combine talents and skills of various
employees and managers towards a task to produce maximum profits. Every employees have
given the responsibility to bring new ideas and suggestions which can improve their productivity
of company. From numerous ideas, managers can select best ideas and implement them to
encourage profitability.
Leadership: This is the ability of a leader to direct, control, motivate, inspire, guide a
business organization. Leadership is necessary for every company to ensure discipline and
proper working order. Their are many duties and responsibilities of a leader which they have to
carry out efficiently to ensure timely achievement of activities and desired success for company.
They are also involved in generating innovative ideas which can lead to production of unique
products or services (Camisón and Villar-López, 2014). They ensures positive changes and
modification withing organisation and direct employees in right directions.
TASK 2

P3 4P's of innovation and innovation funnel
Company generated different ideas and thoughts and implement those new ideas in their
strategies. This leads to development of whole new product or service which has the power to
fulfill needs of customer. There are 4P's of innovation that is used by company and they are
mentioned below:
Process: With the help of process, company can develop their product or service in right
manner within appropriate time. Without process or procedures, no company can manufacture
their items. It is crucial to develop effective process in order to develop best product in order to
enhance profits and revenue to the company (Dewald and Truffer, 2011). For making the
process, mangers and associated people different procedures and select one process out of many
which is best suitable and cost effective and implement it. For selecting best process, they can
use innovation funnel also.
Product: It can be either intangible or tangible item which is produced by company to
serve their customers by fulfilling their needs. Main aim of ecery organisation is to increase the
number of satisfied customers so they can make them their loyal partners. If they are satisfied
with their services and products, they will again prefer them over others. They can develop
unique and innovative products to seek the attention of new customers and can also make some
alteration in existing products and re – launch it in the market.
Paradigm: In this, managers modify their working styles and improve it in order to make
it more effective and proficient. It is mainly related to implementation of innovative techniques
in functioning of company.
Position: It is mainly concerned with the strategy of managers to reach their target
position or market. In this, managers have to decide their best distribution channel and supply
chain through which they can transfer their product or serve from one place to another easily and
within time limit.
Innovation funnel: This is used by almost every organization in order to achieve
maximum profits out of their products or services rendered to their customers. Innovation funnel
helps company to select best of every thing, whether it is process, strategy, procedures,
delivering points etc. There are many employees working in organisation and if they bring
different ideas, then manager will have bulk of ideas and opinions, from that he can select the

best suitable thing and implement it within the organisation to gain profits (Manyika and et al,
2011). Following are three stages that are involved in innovation funnel:
Focuses on wide mouth of funnel: This part of funnel focuses on gathering and
collection of information and ideas that will be useful in developing as many ideas as possible.
Proper this, managers should know about their goals and objectives clearly and then only they
can preform their duties well and gather information in right direction. They have the
opportunity to select best ideas from pool of ideas and can develop unique product or service out
of it.
Narrowing part of funnel: In this step, best idea is selected and compared with the
objectives of company. This step also includes research and evaluation.
Narrow segment of funnel: This is last part of this concept as well as end part of funnel.
In this, company uses commercialization theory to introduce their products and service in
market.
P4 What is frugal innovation
Frugal innovation (FI) is concerned with removal of non essential characters or features
that are present in product or service. Company adopt this concept in order to lowers the cost of
production as well as product price. This increases the durability of products and also leads to
development of affordable and economic products. This concept is the recent attraction of all
companies and special for those who have their company in developing country. With this
concept, company can attract large number of customers as they prefer economic prices as
compared to higher prices (Stokes, 2011). This is beneficial for those companies which have
weak economic conditions and customers belong to lower and middle class. By adopting this
concept, company can easily fulfil customer's demand at lower costs. These requirement changes
according to business operation in different countries. Frugal organizations focus on creating
good quality solutions that can deliver great value to customers at lower costs rather then making
customers vow with technically sophisticated product. Below is an example related of Frugal
innovation.
In case of Aldi store, top level management can identify the economic condition of that
country in which they will operate. If the country have low economic conditions, then they can
provides their goods at lower prices and can also remove non essential features from some of the
products and sell it in economic prices. By doing this, they can attract customers from lower and

middle class and encourage their sales. Customers will prefer their products over other retail
stores. This will increase their profits and revenue of the company. So, it is beneficial to use
frugal innovation as well as commercial funnel in order to achieve desired success.
TASK 3
P5 Commercial funnel and the process of new product development.
Company should focus on distribution of their products and services to target customers
and market. They should ensure that customers get their items of time. Organisation should
manufacture products in such a manner that can they can satisfy the demands of their customers
or clients (Hausman and Johnston, 2014). This is the responsibility of marketing department to
formulate strategies which can facilitate effective distribution. For this, they can use the concept
of commercial funnel to manage their sales and distribution of products. This ensures timely
availability of products to customers as well as in different markets. Following are importance of
commercial funnel:
 Distribution of products or services on time.
 More satisfied customers or clients.
 Improve distribution capacity of company.
 Encourage sales of products,
 more profits to the company.
New product development process
This process involves all steps which are involved at the time of development of new
product. Every product has to go through some stages to finally reach to the market and those
steps are given below in detail:
Generation of idea: This is an initial step where ideas are generated for manufacturing
new product. Managers involves employees to bring new ideas and opinions for upcoming
product. Large number of ideas give maximum opportunity to choose from.
Idea screening: At this stage, ideas are explored and screened and best ideas are selected
from poll of ideas. Some factors are there which influences section criteria of ideas and those are
strength and weakness of company, customer needs, expected return on investment,
affordability, etc.

Concept development and testing: Ideas that successfully passes the screening test are
converted into concepts. These ideas are then tested on target customer or markets. Employees
provide all information and brief about the product to sample customers and take feedback about
the experience with product. According to that, managers make necessary alterations in product.
Product development: In this step, product is develop by considering customer's choices
and needs. It also involve implementation of reviews given by sample customers in their
feedback help company to increase their sales.
Introduction: This is last step of new product development and is concerned with
launching of products or service in to market. They uses different promotion tools to promote
their products, so that large number customers can be aware about their products.
P6 Build an innovation business case for the organization
Innovation business case help company to develop a proper framework of business
activities. This help in proper understanding of operation and tasks and also enable smooth
functioning within organisation. Some specific planning is done below:
Identifications of company's objectives: This is important step for managers to
understand goals and objectives of the company. If they have clear idea about them, then they
can formulate their plan according to that and encourage maximum sales (Fischer and Qaim,
2012). With clear vision, managers can also guide their subordinates properly and in right
directions. Managers Talent Plus should be clear about the vision of company and work in the
direction if its accomplishment.
Market research and survey: It is crucial step form company to run and operate
necessary market research and survey in order to get information and facts about target
customers and market. Talent Plus can perform research in order to check what all skills and
talents are required by candidates to become eligible for multi national company.
Evaluation: It is necessary for company to revise and evaluate its procedures performed
by them in order to check their effectiveness (Drucker, 2014). To stay ahead in the market, it is
necessary to provide good services to candidates so they can become for which they have joined
Talent Plus.
Sometimes, to expand business in different areas, Talent Plus requires huge funds and
financial supports which can be given by different investors and financial institutions. Lack of

funds prevent practical implementation of certain activities. Some of the investors are given
below:
Angel investors: It provide funds to startups or entrepreneurs. The capital given by angel
investor can be one time investment or continuous injection of capitals to support the company to
carry out its operations easily (Goldberg, 2013). Angel investors may be known or unknown to
the entrepreneurs and include, doctors, lawyers and business associates such as suppliers,
customers, etc.
Bank: It is a financial institution which provides necessary funding and financial support
to entrepreneurs, micro, small, medium and large set ups. They also provides loans on minimal
interest rates which can be covered by the entrepreneurs and others.
Venture capital fund: They provide funds to those start up companies and small
business that are believed to have long term potential of growth. They basically come from
investment banks, well off investors and other financial institutions. They not only provide
monetary support but also provide mechanical and technical expertise.
TASK 4
P7 Tools and techniques used to protect intellectual property
Intellectual property (IP) includes set of legally protected and intangible owned by a
company form outside use without any consent. It includes patents, copyrights, trade marks, and
design rights. They are mentioned below in detail:
Copyright: It is a legal term which is used to describe the rights of the owner over his
work and literary (Baden-Fuller and Haefliger, 2013). Copyright include books, music, paintings,
sculpture, films, computer programs, databases, advertisements, amps and technical drawing, etc.
Copyright means right to copy. In this the owner gives the right to other person to reproduce the
work.
Patents: It is given at the time of invention. It is an exclusive right given by government
organisation to an inventor for a limited duration of time in exchange for detailed public
disclosure of an invention.
Design rights: It helps the owner to protect the visual appearance of product or item by
proving owner with exclusive rights for that appearances. There are mainly two types of design
right: registered and unregistered design rights (Gnyawali and Park, 2011). Registered design

rights are provided up-to 25 years of protection to owner and is somewhat similar to patent.
Unregistered design rights helps owner to protect their three dimensional designs.
Trade mark: It is a recognizable phrase, symbol that denotes a specific product or
service and help in differentiating it from other products legally. For this approval, company
need to register themselves at national level and should be approved by government by country
(Nathan and Lee, 2013).
Above are some important elements that helps in protecting intellectual property of
company and below are some advantages offered by protecting these rights.
 It enhances the market value of business.
 It helps in converting ideas int profit making.
 Help in accessing or raising finance for company.
 Helps in marketing product or service of organization.
 Enhance export opportunities for you business.
 Protect from stealing and imitating o concepts.
CONCLUSION
From the above report, it can be concluded that, innovation prices is important for
company to perform on regular basis so as to lead in competitive market and also retain their
position. It is necessary to generate new and unique ideas which can result in new products and
process. This help in increasing profits and leads to achievement of desired success. Talent Plus
is a management consulting company which assist candidates to become efficient in different
areas. They provide them with necessary training and education that make them eligible for
competitive world. They uses different concepts like innovation, commercialization, innovation
and commercial funnel, frugal innovation to achieve competitive advantage over others and
attract as many candidates from different parts of the world as possible. There are different
elements which help company to protect their intellectual rights from thief and imitators.

REFERENCES
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