The Importance of Innovation for Businesses

This assignment examines the significance of innovation for businesses operating today. It explores various aspects of innovation, including its benefits, challenges, and different approaches to implementing it. Students are tasked with analyzing the impact of innovation on business performance and discussing strategies that companies can adopt to foster a culture of innovation.

INNOVATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Significance of innovation in equivalence with invention ....................................................1
P2 Teamwork, vision, culture and leadership contour commercialisation and innovation. ......3
TASK 2............................................................................................................................................4
P3 Innovation's 4P in the use of innovation funnel to analyse shape innovation ideas. ...........4
P4 Development frugal innovation with example .....................................................................5
TASK 3............................................................................................................................................6
P5 Significance of commercial funnel and NDP for commercialisation of innovation .............6
P6 Build Innovation business case for an business, including access ways of funding .............7
TASK 4............................................................................................................................................7
P7 Tools through which develop, protect knowledge, retain and intellectual property. ............7
CONCLUSION................................................................................................................................8
REFRENCES ..................................................................................................................................9
Books and Journals ....................................................................................................................9

INTRODUCTION
Innovation can be defines as the process in which the the people engage with unique ,
new and creative products for the customers. In this the company also implement the new
products in the business environment with the creative thinking and idea to fulfil the needs and
demands of the consumers (Stokes, 2011). In this activity the company engage with their
qualified commodity or goods in the new colour, shape, sizes and also change their existing
model in very effective way so that will be liked by the clients. Innovation basically refers to the
things which is develop and modified by the new designs and by very innovative ideas. This
innovation simply provides the help and high growth as well as progress to the organisation
(Sawyer, 2011). 4Com is a small organisation which run the telecommunications and engage in
the activities such as mobile business phones, router, broadband, internet and many more. This
assignment will present all the aspects of innovation and how to use in the company so it will
help in the development. It also consider the all aspects of the innovation positive as well as
negative and how to generate, use, evaluate so it will intrigue to the consumer. That will be
beneficial by increasing the sales and goodwill in the market.
TASK 1
P1 Significance of innovation in equivalence with invention .
This innovation process prove great development and growth top the organisation. It also
assist in the increase the number of consumers by the innovative products in the business market
place There is almost every company which demands for for the fresh and innovative ideas
through this they increase the profitability and productivity. It simply also consider and enhance
the quality of the commodity which gradually make available the effectiveness and efficiency in
the very positive manner (Rosenbusch, Brinckmann and Bausch, 2011). It also modify and create
the goods and services in that way so it will
automatically increase the sales and satisfy the clients needs and demands. When the company
thinks of the innovation they also consider the new technology, idea, design, shape, size, colour
in the kind and execute as well implement in the development of the product. Importance of the
innovation are as follows :-

 It enhance the productivity by apply the new and original concept on their particular
commodities and the services then it will lead to the increase more progress, growth and
success.
 It helps in create the strong market footing in the business which will create the great
competitive environment in the market (Lundvall, 2010). This innovation is the basic key
through which they maintain, create, innovate some new products and services.
Some of the employees usually has confusion about the innovation and invention but in
actuality they both are far different from each other and they complete each other to make the
product a fresh and good quality and attract the profit through this. The comparison between the
innovation and invention are as follows :-
Basis Invention Innovation
Meaning In this process of invention, It
defines the concept and idea in
which it occurs in respect of
the process as well as the
commodity. That demands for
the totally fresh which never
been in the successful earlier.
Innovation generally defines as
the fresh creative idea which is
regarding to the technological
process or commodity for the
very initial time.
Function It produce the fresh
commodity in the market.
This add some of the limited
value on the something which
is already present in the
business environment.
Concept Scientific skills required In this strategic, mechanical
and marketing skills is needed.
Activities In this they demands and
engage in the activities of
research and development.
It can extended majorly across
the organisations.
Occurs when The fresh concept is settled by
the scientist.
Company feels and demands
for the improvement,
modifications, in the already

present commodities.
Concern It concerned with the single
goods and services or the
process.
It aggregates of the varieties of
the procedure and the goods
and services.
Invention change into the innovations
There are some of the elements which help invention to change into the innovation. There
are some of the factors to transform then which seems quite unique combination of them are as
follows :- Disruption :- There is the products and process either the services which demands them
to radically disrupt their status of the nature. The invention is not so interesting which
have their unique value as well as the cost differentiations. There is just and incremental
innovation which is better. Business model structure :- Invention basically stands for their good change for thee
success which is obvious as well as the immediate value towards the buyer. They also
often a functions of the model; of business which is distribution. Adoption :- Invention needed to be lead with their customer centric thinking of design,
They are various kind of the only professional which trained their marketers which can
successfully as well as the efficiently, tot heir timing and the optimal cost. The leading
with the marketing in their social era which is surrounded by their invention with their
marketing strategies.
 Timing :- All these kind of the subject demands for the timing. There is the services,
predicts, customers and markers create their ecosystem of theist opportunity. They also
demands for their components which came together at their common time. They also can
be driven by their marking strategy approaches.
P2 Teamwork, vision, culture and leadership contour commercialisation and innovation.
An organisation should introduce their trending and up coming objectives which assist in
to achieve their respective target and goals in very effective and efficient way. Employees of the
company demands to know the significance of the innovation which actually help them to
interpret and understand the use of the commodity of the product services (Leiponen and Helfat,

2010). They must have to resolve the issues which is raised by the consumer and related to the
innovation. They need to give the right direction to their employees which actually assist them to
achieve their desired goals and objectives. Apple Inc. supervise the ability of the worker and
capabilities too through which they find the skilled employees which can perform the task in the
appropriate manner along with managing their other co workers. Mission :- This organisation main mission is to accomplish the all long term as well as
short term goals in the particular time period. This innovation basically assist them
accomplish all the goals which demands for the fulfil in particular time. Vision :- Vision refers to the long term goals which every organisation consider for their
great growth by the time. It already has the desired targets which consist of the present
financial position of the 4com company that have to accomplish in the forthcoming time
period. There is vision of the organisation which which provide some of the advanced
technology products to their clients. These some innovation may provide the
configuration of business growth and help to the achieve their upcoming goals. Leadership :- The top management of the company leads for the innovation by doing
various survey and research. Through which they got the idea about the current as well as
future trends in the business environment. These leader provide the correct way to their
company and encourage as well as motivate their employees so they can accomplish the
objectives effectively and efficiently (Lee, Park, Yoon and Park, 2010). This innovation
leads to the fresh products which contour the commodities. Teamwork :- When the number of employees work altogether for the same objective and
mission in very effective manger to accomplish same goals that refers to the team work.
It increase the skills and knowledge of the innovative goods and services by sharing the
ideas with the other co employees. This team works helps in increase the coordination in
between the departments and the workers within the company. This Apple Inc. company
distribute and allot the work to each team so they focus on the team in very effective way.
Team work generally helps in motivating the employees for achieving their respected
target. This 4com company also adopt this method of team work and assign each work to
the teams which will be more beneficial for the company and organisations. They should
also innovate the fresh products which usually provides the high quality of the progress
and development (Johnstone, Haščič and Popp, 2010).

 Culture :- It is important factor to make available the good working environment and
conditions to the employees so the can perform the task better. It plays a vary role in the
progress of the company if the individual does not perform the task in the good manner
then he / she will face the satisfaction from the job. Innovation helps in change the
culture by introducing and launching fresh products and services into the market.
TASK 2
P3 Innovation's 4P in the use of innovation funnel to analyse shape innovation ideas.
Innovation and funnel helps the company in focus and concentrate on the needs and
demands of the consumer. By adopting and using these techniques the 4com company has create
new opportunities to fulfil the postulation of the clients. This 4com company also innovate the
concepts and ideas through which they produce the products in the sector of the
telecommunications. It is essential to analyse and observe the trends by particular time intervals
so they compel them and update themselves. Along with this they also cope up with the business
environment by staying modified. To survive in the business competitive market it is all-
important to be updated and innovative. This model the 4P's of innovation is introduced by the
Joe tidd and John bessant (Hall and Lerner, 2010). The main aim to develop this model is to
attract the large number of people. The 4P's of the innovation stated as :-
Product innovation :- It modify and introduce fresh commodities and services.
Commodities are the main which is offered in the market which provide the information about
the standard of the innovative products and that observe the demand of the consumer. 4Com
company especially focus on this quality products and try to design it in more innovative way
which look quite different from the other present goods in the market. The Apple Inc. company
use the innovation in each of their products they launch which gradually helps them as in terms
of the profit.
Process Innovation :- Innovation demands for the time and creative idea it is not just
simple process instead of this it is quite complex. It usually consume lot of time and many
resources. This process helps in to make the good product same as Apple Inc. also compel and
invest lot of time in this and motivate their team members for the new concept. This Apple Inc.
company also came with the new launch and creative innovation with the I-Pod music player

which is may be small in the size but it will consist of almost more than 1000 songs which is
quite better in quality.
Positioning Innovation :- 4com company also make new things which is establish in the
reputation in the business environment with the help of the transformation. This company knows
that how to position their products in the mind set of the target clients which carry out their
wants (Gassmann, Enkel and Chesbrough, 2010). Their main is to place their goods at that place
so where they easily get evaluated by their target consumer.
Paradigm :- Company gradually adopt all the main factors which assist to execute the
innovation process. Analysis and observe that particular product is very essential step which is
done by the employees and also check whether all the things is going smoothly or not.
Innovation process assist to achieve the target and goals. 4Com company use all these statements
and compel these 4P's to raise the growth of the company.
P4 Development frugal innovation with example .
In this process, in which decrease the complexity, value of their particular commodities
and the services. They usually not remote lots of characteristics and features from their goods
through this they can also sell their products in the different nations. In the 4com company they
Source 1: 4p's of innovation

recreate and develop some of the business mobile phones with this they also redesign and create
them again. Through this they make their product more reasonable and affordable for the target
audience in very effective and sustainable way. This actually help them in surviving in this
competitive market. Along with this there are different resources which provides the various
structural methods assisted by this frugal innovation some of them are as follows :-
Help to innovation and their accumulative property :- This is very crucial way and
method of the 4com organisation. This is actually help them to maintain their dignity, goodwill
by updating their goods and services in order to meet the systematized so through this they can
satisfy to their target consumer (Drucker, 2014). This innovation also helps in increasing their
marginal profit by their new creative product in the competitive business environment. This
latest products provide gratify to their clients by providing them new telecommunication gadget,
phones, internet also which is enjoyed by them.
Distribution of the trade good line :- 4com company introduced some of the fresh
technology in very creative way for their consumers in the business environment. This will
automatically assist them for the economical excogitation which help to the organisation
although they can also raise their goods line and distribute all of them at the equal numbers.
Through this they also catch and grab the growth of the company.
Step-down in the value of products :- This process will go on the track in which decrease
the value of goods and services. It is in support of the great and fresh tools and technologies.
This will be more reasonable and sustainable for the buyer. So, through this tactic I also increase
the sales and marginal profit for the company (Crossan and Apaydin, 2010). If the 4com
company reduce the value cost of the product then it will automatically tends to deal raw
material with the low price value.
TASK 3
P5 Significance of commercial funnel and NDP for commercialisation of innovation .
Commercial funnel describes as the term which is simply short and easy to interpret and
understand. In this method they lead to the potentiality consumer into the existent user which
make available the goods and services in very effective way. In the other hand, new development
of the product (NDP) is very helpful for the organisation through this they introduce this new
launch product to the consumer. This will intrigue to the consumer, new and innovative things

generally attract to the consumer because in return they satisfy the needs and demands of their
target clients. This process also defines the current trends and set the tendency of the competitive
market. At the very initial stage they do market survey through which they got to know the trend
and demands of the consumer. They develop their commodity and services as according to that
so, that will directly serve the satisfaction. There are various stages and steps through which they
develop the new goods and services some of them are as follows :-
Generating idea :- Idea is usually render from the market research. When they usually
start gathering and collect the information from the survey then they get the idea like what
actually consumer is demanding and what market is required (Christensen, Horn, and Johnson,
2011). They develop and innovate the product as according to this so, they frame the idea and
execute that in the physical form of the product. It is essential for them to test the product in the
every situation so on, they will get to know whether this product is worthy , profitable or not.
Feedback also very beneficial for them they also consider the clients and work on their
complaints and feedback.
P6 Build Innovation business case for an business, including access ways of funding .
4Com telecommunication company is introduced in the 1999, their aim is to provide the
connectivity in the entire UK by distribution effective as well as efficient goods and service.
Innovation is the basic key through which the company can survive in the typical competitive
market. Because consumer wants something new and creative which make their work more
easier with lots of more features and characteristic. There are some of the steps of innovation
which is used by this 4com telecommunication company are as follows :-
Expected benefits :- There are many number of benefits which is attract by the
innovation (Brown and Wyatt, 2010). When any of the company attain for the introducing new
product then it automatically draw a fine attraction as will attend from the target consumers this
will tends to go with benefit.
Development and designing of the strategies and plans :- It is very crucial phase, after
doing the market survey. Team has to be work on the gathered data and information which is
conducted by the research. Along with this they have to ready the plan do they can which fulfil
all the stuff such as, attitudes, behaviour, demands, needs and execute them in very effective and
efficient manner. Product development is basically concern with the designing and plan

according to this. It is most important that hoe to implement this idea and design practically and
to carry them in the market that's all comes in the market planning and designing.
TASK 4
P7 Tools through which develop, protect knowledge, retain and intellectual property.
The intellectual property provides the basic correct direction to the top management and
they utilise the plans, ideas and some other assets. Generally people not use the property without
asking for the permission from the owner or their sole owner. It always assist them to provide the
basic and unique idea which is created by the individual (Amit and Zott, 2012). There are many
varieties of the intangible properties which you cant steal them or use them without taking
authorization from the actual owner of that property are as follows :-
 Patent
 Copyrights
 Trademark
 Secret trade
 Design right
4com company deals with the telecommunication in which it consist of the internet,
business mobile phones, router, broad band, networks many more. They try to manufacture these
products in that way so they can maintain their high quality along with the good services. It is
necessary to concern about the property rights and other fake people who try to steal the
company's technology or features. There are few rights which help to the company are as
follows :-
Copyrights :- In this, if some other person steal or use the property in illegal by without
taking approval from the owner. Then, it will consider as a crime and the other one have to pay
penalty as according to the norms and crime.
Patent :- If any of the individual invent or create something by their own then he/she can
take the legal rights from their respective government (Adner and Kapoor, 2010). So, the
investors must register their name with their discovery afterwards it will take action if any of the
individual use that illegally. That would be consider as a crime.

CONCLUSION
As according to the mentioned assignment, the innovation plays very crucial part in the
business competitive market. If any company has to be survive then and promote their growth it
is essential to adopt the innovation which directly and indirectly satisfy the needs and demands
of the consumers. It is concluded that 4com company is also using and adopt various innovative
technology and features in their product so they can also increase the sales which leads to the
profit. 4P's are the important in the terms of the innovation in the organisation, and it is important
to use the innovation and invention both in very proper and best way.
REFRENCES
Books and Journals
Adner, R. and Kapoor, R., 2010. Value creation in innovation ecosystems: How the structure of
technological interdependence affects firm performance in new technology generations.
Strategic management journal. 31(3). pp .306-333.
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review. 53(3). pp .41.
Brown, T. and Wyatt, J., 2010. Design thinking for social innovation IDEO. Development
Outreach. 12(1). pp .29-31.
Christensen, C.M., Horn, M.B. and Johnson, C.W., 2011. Disrupting class: How disruptive
innovation will change the way the world learns (Vol. 1). New York: McGraw-Hill.
Crossan, M.M. and Apaydin, M., 2010. A multi‐dimensional framework of organizational
innovation: A systematic review of the literature. Journal of management studies. 47(6).
pp .1154-1191.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation. R&d
Management. 40(3). pp .213-221.
Hall, B.H. and Lerner, J., 2010. The financing of R&D and innovation. Handbook of the
Economics of Innovation. 1. pp .609-639.
Johnstone, N., Haščič, I. and Popp, D., 2010. Renewable energy policies and technological
innovation: evidence based on patent counts. Environmental and resource economics.
45(1). pp .133-155.

Lee, S., Park, G., Yoon, B. and Park, J., 2010. Open innovation in SMEs—An intermediated
network model. Research policy. 39(2). pp .290-300.
Leiponen, A. and Helfat, C.E., 2010. Innovation objectives, knowledge sources, and the benefits
of breadth. Strategic Management Journal. 31(2). pp .224-236.
Lundvall, B.Å. ed., 2010. National systems of innovation: Toward a theory of innovation and
interactive learning (Vol. 2). Anthem Press.
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.
Stokes, D.E., 2011. Pasteur's quadrant: Basic science and technological innovation. Brookings
Institution Press.
Online
reasons why innovation is important to businesses today. 2014. [Online]. Available through :
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