Importance of Innovation and Strategy for Success

This assignment emphasizes the significance of innovation and strategy in achieving business success. It provides a detailed analysis of the topic by referencing relevant books, journals, and online resources. The importance of innovation and strategy is highlighted as key factors for success in various industries, including technology, tourism, and renewable energy.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance to employees with a difference with invention....................1
P2. Organisation Vision, leadership, culture and teamwork shape innovation...........................2
TASK 2............................................................................................................................................3
P3. Explain 4P's of innovation and use of funnel innovation.....................................................3
P4. Development in frugal innovation........................................................................................5
TASK 3............................................................................................................................................6
P5. Importance of commercial funnel and application of new product development.................6
P6. Innovation business case.......................................................................................................7
TASK 4............................................................................................................................................7
P7. Different tools which used to develop, retain and protect intellectual property rights.........7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In present scenario, firms under both domestic and international level are considering
both innovations and inventions in their operational activities. For sustaining at marketplace for a
longer period of time it is mandatory for business firms to keep on altering goods which are
being offered by them to consumers in order to fulfil their needs. Unicorn Grocery is an workers
co-operative store (Adner and Kapoor, 2010). It was located in Charlton-cum-Hardy,
Manchester, England in 1996. Their are 70 numbers of workers within the company. It is an one
of biggest independent wholefood groceries within United Kingdom. In this report, innovation
importance and its comparison with invention are discussed. Role of companies vision,
teamwork and culture at a time of shaping innovation as well as commercialisation along with
this also discussed about 4Ps of innovation and applications of developing a new product.
TASK 1
P1. Innovation and its importance to employees with a difference with invention
The term innovation refers with development of applications and ideas which boom up
the way of doing things. It may results in new products or services, a transformed business
processes, changes in the way of marketing and introduction of new technology. Along with this,
innovation supports small entities to grow by improvising their efficiency and productivity.
Entrepreneurs ability to innovate also remain them to be competitive and respond effectively
towards changes. Producing innovative products or services are enable to satisfy customers'
needs and wants in an effective manner and supports a company to gain high competitive edge.
Following is defined importance of innovation in context of Small businesses - Problem solving: Due to some external forces, business associations face several issues
that may also affect their working activities and decision making process. By using
innovative tools and techniques managers are enable to resolve work based problems.
The practised convention and planning for solving all issues is not sufficient even there is
needed implications of several effective ideas or concepts based on innovative thinking.
As the main objective of innovation is to diminish all workplace issues and perceive a
business organisation in an unprecedented manner. Adapting to market dynamics: It is an known fact of market that enterprise rapidly
changes. Hence, it is an strong requirements for adopting of innovation techniques so that
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staff can be empowered, engaged and an improve finance condition can be achieved
within a firm (Dahlander and Gann, 2010). Responding to customers expectations and demands: Innovative products are enable to
satisfy customers needs or demands in best possible way. Consumers are a key elements
of an enterprise in order to sustain its brand value at marketplace for long run.
Implication of innovative tools bring value for customers and a firm customer-oriented. It
turn out enhancement of increasing sales and profitability of companies by which they
are able to accomplish their goals and objectives in best possible manner.
 Effective competing: There are various companies are competing within a market
providing similar services as well as goods. Some of situation make it extremely
important for adopting it in a very creative way by which goods and services are
perceived in a very different way so that manager enterprise position can be availed.
For finding out major differences it is important to differentiate within invention and
innovation which is given below:
Difference between invention and innovation
Invention Innovation
Invention relates with producing that kind of
products or services which never has been
produce before; it implies to create totally new
product.
Innovation consists with modifying previous
products and making necessary improvements
in them to satisfy customers' wants.
This is a technological way of discovering
ideas by Research & Development in order to
formed final outcomes. This ideas is not
linked to previews goods or services.
It consists with applying several ideas which
are considered by management to get high
competitive edge. Innovation also entails with
combined with set of techniques along with
tools of marketing.
Invention is primarily driven by inventor
curiosity or research interest. Its merits are
defined by uniqueness and can be done by
scientific knowledge or skills.
Innovation is driven by desire to add customer'
value and advantages are defined by profitable
deployment. It relies on a broad set of
strategic, technical, marketing and operational
skills.
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P2. Organisation Vision, leadership, culture and teamwork shape innovation
It is known that innovation is a key area of concern by which company is able to
compete effectively at marketplace. It signifies the level of success and failure which has been
achieved by an firm (Davila, Epstein and Shelton, 2012). Although, several factors are getting
involved in creating and upliftment of innovation within business organisations, such as -
teamwork, culture, vision and leadership. These are explained in brief below: Vision: It refers with the reason behind existence of a company. The vision statement of a
business enable it to produce in better manner and then management put efforts to
achieve it in best possible manner. Vision of Unicorn Grocery encourage innovation for
retaining a competitive edge as well as workers are motivated to give ideas for betterment
of enterprise. Leadership: It is an one of main part of an company as they set a course of innovation
should be followed by workers. Methods of leadership like as building a trust as well as
vision for a long term aid in shaping creative or innovation in the term of enterprise. The
modus operandi of a enterprise challenge more creative and efficient mean of carrying a
work which is discovered. Unicorn Grocery chief executive should be known for
measuring innovation which should be adopted within the organisation. Culture: These are effected by shared attitude and behaviour which is practised in
company. It is for management to create a culture where employees are willing to learn
new and innovative things then apply them in their business practices so as to obtain
efficiency at workplace (Drucker, 2014). Components of making a speedy behaviour,
motivation and collaboration tend for shaping an innovation which lead enterprise at a
high level.
 Teamwork: In this it is measured that staff members of an business create synergy as
well as cooperative efforts. Working in a team require certain factors, such as- cohesion,
mutual support, coordination and communication. Teamwork carry out confidence and
enthusiasm between employees as they tend towards generating new and innovative
products. Various experiences and opinions turn into advantages of an company along
with that enterprise accountability lead to make a creative and innovative idea which
make changes in existing goods and services within the company.
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TASK 2
P3. Explain 4P's of innovation and use of funnel innovation
It is defined to be develop which aid in making something innovative s that expectations
and requirements of customers can be satisfied. Issues are persistent by customers are solved by
changing in goods or services. The main category of its method carry out on radical innovation
as well as incremental ground. Practices of incremental innovation make a small positive
modification within a working will lead to major changes within a long period of time. Radical
innovation is an method of disruptive which tend to shale market circumstances as well as again
define it in a own way (Gassmann, Enkel and Chesbrough, 2010). It consists of 4 components
like as promotion, place, price and product. Their are platforms on which enterprise can innovate
their goods or services for the growth of business can be entertained. 4Ps components are
discussed in brief below: Product: It is referred to most preferred method while looking to creative services or
goods. They companies products are improved for satisfying customers needs in an
effective way. Unicorn Grocery run in a emphasis as well as optical business on giving
customised services to customers in an adequate way. It is an innovation of incremental
method as it add up margin in a positive modifications in products. Process: It is undertaken into consideration method where they provide goods and
services to their customers. When it is linked to undertake business, it solve around
proper use of latest technologies efficiently is emphasized on better outcomes which can
be improved. Position: This component of innovation mix is tend towards determining their target
market segmentation in which goods or services of the company will be offered. The
chosen organisation, Unicorn Grocery is known for its innovative offerings and strong
brand value so that it focus on bringing necessary modifications thus customers'
requirements can be fulfilled in best possible manner. Furthermore, positioning mix aids
to untapped target market segmentation thus to increase sales and profitability ratio. Components of innovation mix purpose is to find out their targeted segments as well as
way in which goods or services are perceived. Unicorn Grocery is mainly known for their
innovative brand as well as it bring out small positive rapidly modifications so that
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various requirements of persons can be satisfied. By positioning method untapped market
segment is considered and capitalised upon (Hall and Lerner, 2010). Paradigm: It is a very radical type of innovation in which they made a efforts for various
dominant paradigm persistent within a market. Innovation mental model are worked on
so that they can perceived favourable within a marketplace. It also defines a way of doinf
a business functions. For Example: Bausch and Lomb is an main players in an optical
business has again defined their paradigm from 'eye care' and 'eye tear'.
Concept of innovation funnel
It is considered as an initial stage of generating an idea. In the process of innovation
funnel various ideas are obtain by the managers and select the best one which suit current
situation of the company. It acts as an refinery which ensure that ideas are not eliminated as well
as best one are adopted till the end. The term of innovation funnel is mainly divided into three
stages which are as follows:
(Source: Innovation funnel, 2018)
In first stage, there is focused on observing several ideas in the mouth of innovation
funnel. Lots of ideas increase chance of developing a enterprise goods or services.
In second level, it begin where innovation funnel starts to narrow downwards which
mean that typical ideas are analysed on the basis of returns as well as risk so that they can form a
decision (Hjalager, 2010).
At last stage, effective and befitted ideas are gathered in the end of funnel. Priority of
choosing a idea aid in growth of goods or services which are rendered within a marketplace.
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Illustration 1: Innovation funnel, 2018

P4. Development in frugal innovation
It is rightly said that enlargement of peoples of middle class with a rise in the prosperity
of economy within the nation. Hence, it is vary necessary to manufacture goods or services are
customized within a large market. It will helps them to evolve frugal innovation as well as face
external market challenges in an effective manner. Along with this, frugal innovation is being in
a method in which characteristics and functions are minimal to their bare importance of cost
benefits. Goods of frugal are known to be a accessible, adaptable, affordable and appropriate are
often characterised by sustainability of features. Their are desperate requirement to develop
frugal goods as a previews goods have emerged to be most importantly is costly, aggressive and
complicated (Why are innovation and strategy most important factors of success, 2015).
Term of frugal innovation is development starts from organising a research within a
market place which will lead to find out expectations as well as demands of customers. Analysis
of market identifies cost which is paid by consumers for satisfying concentrating requirements.
For Example: Unicorn Grocery provide quality of goods and services by experiencing particular
person to cater their services in optometry sector. It practitioners mainly charge high hence pass
by affordable within a mass market.
Another method which is included in frugal innovation is a design of goods. R&D
conforms the requirements of markets which make distinct goods are enjoyed in masses. Supply
chain configurations can further help in growth of giving value to frugal. It is important to think
about frugal as a main enterprise opportunity either than constraint perceiving. This method vary
from previews innovative market. It is supreme to decrease manufacturing cost which is inverse
to latest innovation trends within a marketplace (Huizingh, 2011). Emphasis in having a strong
aspects of engineering lead to innovation which concentrate on decreasing of cost either market
driven.
TASK 3
P5. Importance of commercial funnel and application of new product development
It is rightly said that innovation without commercialisation is nothing. The company
carry out functions in a medium and small domain are said to be innovate at a time of tenure
within a marketplace. But issues are mainly lies in scaling up as well as famous so it can be
capitalised upon. Their are reasons for this conditions such primarily aid them in reaping
innovation advantages. Unicorn Grocery posses a optician practices of network which is further
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commercialised so they can improve services of optometry which is given in an affordable and
convenient way.
Process of commercialization lead to establish a latest change goods within market. It
stands typical for enterprise to define journey of customer starting from awareness for retaining
within company. It help enterprise in organising an firm analysis which lead to find out of areas
are improved (Leiponen and Helfat, 2010). It can be find out that there are lower person turning
up for the services of optometry which mean that they are not aware about these services in a
ideal way.
New product development
It is an process of sequential as it lead to deliver a latest good within the market as well as
for a small companies it is a big work lead to make a enterprise. Main steps of new product
development are as follows: Product idea brainstorming: Workers come up with their ideas which can help a
enterprise to develop. With this, surveys are organised so that new ideas can be formed
within a market place. Evaluation of ideas: Ideas are generated which are divided on the basis of their
advantages and viability which is adopted by company. Main ideas can be rest eliminated
and retained. Market Evaluation: It help in finding out preferences and trends of target consumers so
that suitable goods or services are provided (Manso, G., 2011). Analysis of competitive situation: This step purpose is to analyse issues of demands
linked with different cost contribute so that having a broad view of conditions can be find
out. Development of product: Keeping in mind about expectations and demands of customers
goods can be developed so that business comes up with a right goods and services. Commercialisation: This method are taken into consideration marketing techniques and
promotional tools which are adopted by company so that reactions of customers can be
find out.
 Launching: It determine quality and quantity provided by business and manufacture as
well as establish a new product within a market. Hence, it is said that Unicorn Grocery
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relies on the process of commercialization and introduce trends of optometry services by
keeping in mind about needs of customers.
P6. Innovation business case
Unicorn Grocery deliver quality goods and services to customers of country. The
organisation had recently find out that there is an high scope in being with a investing company
as it is a condition of win-win for both enterprise customers and owners (Melville, 2010). It is
extreme requirement of delivering quality goods and services to customers within a nation and
current generation is much prone to eye linked diseases and infections because of using a
platform of digital. Organisation of latest technologies tools as well as methodologies will
definitely aid in services provision in an effective way of satisfying by the help of functioning
additionally which is adopted. Before applying an idea it is important to organise the analysis of
market with future forecasting so they can arrange it.
It is important to have a access of financing so that innovation can be significant as well
as commercialized financial advantages which are used. Innovation contribute marketing tactics,
planning and research by which financial resources can be used are as follows:
 Venture capital is one of an important method which assist in increasing funds. It is a
form of strategic partnership which assist in collaborating of financial resources.
 Research councils is other external way by which funding could be utilize (Sartori,
Favretto and Ceschi, 2013).
 Global innovation are final extrinsic sources of finance which give assistance ranging
from 30,000 euros to 10 million euros to small companies.
Innovation business case -
Executive summary Unicorn Grocery is a cooperative retail and grocery store located
in in England. There is over 70 employees are presently working
and having a turnover around turnover of around £7 million.
Ethics form the foundations of the business, and Unicorn's
Principles of Purpose are the framework within which the
business operates.
Need Innovation will assists to Unicorn Grocery in order to improve its
operational and functional area as it support to meet changing
needs of customers. The innovation in terms of software which is
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undertaken by a business helps in achieving distinct results.
Solution Evolution of innovation contribute in Unicorn Grocery to
determine needs of various customers as well as to modifying
existing services thus to serve in better manner.
Consumer analysis The target market segmentation of the company is based upon
demographical market areas. By making innovations in current
offerings Unicorn Grocery is enable to attain and retain large
group of customers.
Creation and Improvement The idea of introducing a software that enable to get customers'
know about company and its offerings.
Acquisition of funds As a small business enterprise, Unicorn Grocery can obtain funds
from various sources, i.e. bank loans. Banks are able to fulfil
financial needs in exchange of a security.
Benefits availed It enable to generate a culture of innovation at workplace as well
as simultaneously improving customer experience.
TASK 4
P7. Different tools which used to develop, retain and protect intellectual property rights
It refereed to creative by mind which carry its value in a commercial and moral sector.
Government has made legislation linked to protect rights and awarding to use that property as
per their wishes. By protecting creators creations can exercise their property rights as well as
gain financial advantages from their creation. Small companies like as Unicorn Grocery optimise
their best use of their registered creativity to uplift their present market. Their are main tools
which are linked with retention and protection of intellectual property like as patents, design
rights, trademarks and copyrights. Brief discussion of their tool as are given below:
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 Patents: It gives an particular rights to protect their property against illegal use. It defend
their property rights for an tenure of 20 years. It is an main method by which innovation
can promote (Teece, 2010). Trademarks: It is a distinct language, symbol and sign which are employed by company.
It is an main feature which distinguish brand product with others. These assets which are
valuable can protect over a period of 20 years. Its annual fees are paid by government.
 Copyrights: It refers to creativeness which are made by human mind as well as their
protection. Original piece of work are protected against without taking creater
permission. Its main purpose is to increase creativity of an financial advantages and
individual which are used by it.
These brands play a very main role in creation protection which carry out in a innovation
form. Using of intellectual property will make sure that there is low risk included in product
misusing as well as avail returns of financial. It help in leading an innovative good within a
market as well as reap financial advantages to take into consideration the aspects of regional
before going to international (Yin, Shi and Yan, 2014). Another limitation is that it generate
power to a individual person who can exercise same in an monopolistic way.
CONCLUSION
From the above discussion, it is comprehend that innovation plays a critical role in small
and large scale business organisations in order to get high competitive edge in a minimal time of
span. It provides them an opportunity to serve something new and unique to customers in an
effective manner. The report has stated that innovation is totally as it encompasses modifying
existing products or services of the company. Keeping a base of innovative market it is important
to concentrate on cost as well as accessibility feature so that large markets are available in a
effective way. Creation of particular person can protected and retained by the aid of intellectual
property rights like as copyrights, patents and trademarks.
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REFERENCES
Books and Journal
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.
Dahlander, L. and Gann, D.M., 2010. How open is innovation?.Research policy.39(6). pp.699-
709.
Davila, T., Epstein, M. and Shelton, R., 2012.Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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.
Hjalager, A.M., 2010. A review of innovation research in tourism.Tourism management.31(1).
pp.1-12.
Huizingh, E.K., 2011. Open innovation: State of the art and future
perspectives.Technovation.31(1). pp.2-9.
Leiponen, A. and Helfat, C.E., 2010. Innovation objectives, knowledge sources, and the benefits
of breadth.Strategic Management Journal.31(2). pp.224-236.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Melville, N.P., 2010. Information systems innovation for environmental sustainability.MIS
quarterly.34(1). pp.1-21.
Sartori, R., Favretto, G. and Ceschi, A., 2013. The relationships between innovation and human
and psychological capital in organizations: a review. The Innovation Journal. 18(3). p.2.
Teece, D.J., 2010. Business models, business strategy and innovation.Long range planning.43(2).
pp.172-194.
Yin, W. J., Shi, T. and Yan, Y., 2014. Unusual defect physics in CH3NH3PbI3 perovskite solar
cell absorber. Applied Physics Letters. 104(6).p.063903.
Online
Why are innovation and strategy most important factors of success. 2015. [Online]. Available
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most-important-factors-of-success/>.
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