Understanding and Analyzing Innovation

This assignment delves into the multifaceted concept of innovation. It requires students to define innovation, differentiate between invention and innovation, and explore various types of innovation. The assignment also encourages critical analysis of factors driving innovation, influential theories, and real-world examples. Students are expected to demonstrate a comprehensive understanding of innovation principles and their practical implications.

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Difference between innovation and invention and its significance.......................................1
P2 Vision, mission, culture and teamwork shapes innovation and commercialization..............2
TASK 2............................................................................................................................................3
P3 4Ps and use of innovation funnel and examination of this new idea.....................................3
P4 Process of developing frugal innovation in FORDWAY......................................................4
TASK 3............................................................................................................................................5
P5 Importance of commercial funnel and application of new product development process.....5
P6 Innovation building case for FORDWAY including way of access fund.............................6
TASK 4............................................................................................................................................8
P7 Different tools for developing retaining and protecting intellectual property.......................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In today competitive environment, innovation is very important because if company will
not implement this then it will not be able to survive in the market. Every enterprise adopts this
policy on the basis of demand of customers as well as on the basis of market situations.
Organization should design their products and services in that manner which will aid in
achieving competitive advantages over its rivals (Amit and Zott, 2012). This innovation is very
necessary for small scale organization because it focuses on limited area by which efficiency of
firm can be improved and aids in serving to the customers in an effective and efficient manner.
This project is based on FORDWAY which is small scale industry which provides technological
solutions to their target market. This report will state about difference between innovation and
invention and has main objectives to define various ways by which company can design unique
goods or services for improving their performance as well as for satisfying consumers’ needs or
wants.
TASK 1
P1 Difference between innovation and invention and its significance
Innovation- It is a process of converting new idea in to real which aids in producing products or
services in unique manner and satisfied needs or wants of customers. This strategy creates value
for FORDWAY as well as for its consumers. In this, firm generates goods or services on the
basis of changing demand of target market so that they can satisfy the requirements of customers
and can convert them into loyal ones (Krishnan and Ramachandran, 2011.).
Many people think that innovation and invention is the same thing but in real, both are
different with each other. As in given case study, Apple Inc. introduced I-pod as a music player
and also increased storage capacity, so in this situation, expansion of capacity will be assumed
innovation while launching of music player is invention process. There are many differences
between invention and innovation which are given below-
Invention Innovation
In this, idea, products or services are made for
the first time which has never been made
earlier.
It includes implementation of idea or plan in
goods or services for first time.
In this process, new goods or services are Some modifications and changes are done in
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created. existing products.
It arises when new idea comes in the mind of
scientists for the first time.
It occurs when existing merchandise requires
some modifications or must have new features
which can satisfy needs or wants of consumers.
It is related to single products. It includes various merchandise and process.
In this, research and development plays an
important role because it aids in implementing
idea in to products.
It spreads in the entire organization.
As a CEO of FORDWAY, it is suggested that it should focus on innovation process
rather than on invention. In successful implementation of changes, employees play an important
role so it is better for the company to take suggestion from them so that they feel themselves as a
part of firm and will contribute in the success of enterprise (Davila, Epstein and Shelton, 2012).
Innovation process directly influence the lives of people who are associated with this
organization because this procedure will help in increasing company’s profit that will provide
more growth opportunities to its employees or stakeholders.
In invention process, new goods or services are introduced in the market which has never
been seen earlier. For example- when in the market, computer is introduced for the first time then
it is known as invention but when laptop are launched then it was an innovation because it is the
further form of computer.
As A CEO, it is suggested that this policy should be adopted by company as per the
requirements of consumers so that it can generate its expected result or outcome (Amit and Zott,
2012).
P2 Vision, mission, culture and teamwork shapes innovation and commercialization
New creation is based on long term objective of company. For this plan, FORDWAY
should have clear vision and mission statement because it will increase the chance of success of
this process. Company’s vision, mission and culture play an important role in achieving the
desired result or outcome in the following manner-
 Vision- It means objectives that company wants to attain in future. It is suggested that
FORDWAY should have clear vision statement so that employees can work as per
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specified standards and will contribute in achieving the specified result. So company’s
vision statement should be cleared.
 Leadership- It is also very important element of an organization because it motivates to
other person so that they can work according to the specified standards and in efficient
and effective manner so that company can move towards the way of success. Leader
should have expertise and experience because it will aid the company in achieving
desired result or outcome (Drucker, 2014). FORDWAY has various types of team who
have assigned specified task so that they can complete their duties effectively and
efficiently. For getting success of plan, every team member should contribute equally
and also assure the acceptance of new products or services. FORDWAY has main
motive of enhancement of existing technologies which can be possible only when
organization will follow policy of a detailed analysis of process of enterprise.
 Culture- It is another component which contributes in getting success in innovation
process. If in an organization, there is healthy working environment then workers will be
motivated and will work perform effectively and efficiently as well as will also give their
best efforts by which company will be able to attain its desired result or outcome.
 Team work- It is another most important element that are required for completing a
project in an effective and efficient manner because collectively work can be finished in
more better manner rather than individually because in a team, there are different types
of people who have various level of skills and knowledge. If all members will use their
skills or full knowledge then it will produce best result. In given case study, at the time
of development of new products, Apple INC. involved all members of company by
which organization will be able to get expected outcome (Davila, Epstein and Shelton,
2012).
So all above mentioned factors should be considered by FORDWAY while implementing
innovation process.
TASK 2
P3 4Ps and use of innovation funnel and examination of this new idea
Innovation process is used by company so that it can analyze the progress of innovation
which includes various steps that starts from idea generation to the final execution of this plan.
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In other terms, it can be said that this funnel is a process of converting this plan in to real
products or services by considering all related aspect. It includes 4 “P” which are as follows-
 Product- It is very important aspect in which changes are done in existing products by
which company will be able to attain competitive advantages over its rivals. For example-
in given case study, Apple INC. expanded storage capacity in their mobile phone as well
as launched music player which will be known as product innovation (Difference
between invention and innovation, 2017).
 Process- In this type, modifications are done in existing process by which goods are
created in better manner that aids in satisfying the needs or wants od target market. In
this, manufacturing procedure is amended in that manner which will support in offering
better quality of goods or services at same period of time. As CEO FORDWAY, it is
suggested that firm should modified their process in that manner by which it can utilize
its raw material and man power in an optimum manner and will serve to the consumers
according to the requirements of consumers.
 Positioning- In this, company tries to do re-positioning of their existing products or
services. FORDWAY should adopt that strategy which will aid in attaining expected
result or outcome. In positioning, firm creates positive perception in the mind of
consumers so that they can prefer only its products or facilities.
 Paradigm- In this, firm adopts innovation process after considering all important
elements which may influence this procedure. This concept is related to mental models
which shape what an organization (Drucker, 2014).
FORDWAY is a service provider that provides technological solution to the people. It
wants to set up a research team that will have skilled people who will assistance in the
innovation process. Being a CEO, I suggested that small company should not invest in
developing research team because it increases cost or expenses of research and development.
P4 Process of developing frugal innovation in FORDWAY
Frugal innovation is a process by which cost of goods can be minimized. Generally, with
the help of this, non-essential features can be removed from the merchandise or offers of the
company.
Company should adopt innovation process on the basis of capability of consumers what
actually they can pay for taking its facilities. FORDWAY should offer that unique products
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which are in the budget of the company as well as of target market so that it can achieve its
desired result or outcome easily and effectively (Goldberg, 2013). Frugal innovation process is
as follows that are given below-
 It should include detailed knowledge or information about innovation so that work can be
completed according to the standards and can attain its desired result.
 Hiring of skilled manpower so that they can perform their job effectively and efficiently
and be able to carry out process without any disturbance so that they can contribute in the
success of company (Goldberg, 2013).
In the given case study, Apple INC. appointed skilled workers and used them in an
optimum manner that helps the company in implementing innovation process
successfully. It launched products within budget of itself as well as of customers.
In other terms, it can be said that frugal innovation can be developed within a company
by taking feedback from the consumers. Employees of FORDWAY find out solutions
that they provide to the consumers. With the help of this, consumer complaints can be
handled easily by which customers’ needs or wants can be satisfied.
 FORDWAY should offer products according to the requirement of consumers so that it
can attract the large number of customers.
 It should adopt effective marketing strategy so that it can reach to the target market easily
and effectively.
After completion of discussion, it is concluded that for implementing innovation process,
company should hire skilled and knowledgeable workers so that they can drive the firm
on the right pathway of success. Employees are the most important element of a company
because without having them, firm will not be able to attain its desired result or outcome.
TASK 3
P5 Importance of commercial funnel and application of new product development process
According to Huizingh (2011) “Commercial funnel includes set of activities by which
potential consumers converts into actual customers.” With the help of this procedure, company
will be able to increase its market share as well as of its sales or revenue by which firm attains its
desired result or outcome (Huberman and Miles, 2013).
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In new product development, organization develops new products or services for the
market so that it can satisfy the needs or wants of consumers. For developing new goods,
organization has to follow many steps that start from idea generation to the commercialization. If
following conditions are fulfilled then it will be assumed new products-
 Modifications in existing goods or services.
 New merchandise is offered which will have unique features that will be different from
existing goods.
This development utilizes marketing conditions, demand of people as an opportunity by
which it achieves competitive advantages over its rivals. For developing new offerings,
organization should organize market research by which it can know about the needs or wants of
consumers that will aid in producing goods effectively which will satisfy their requirements. If
new firm will offer best quality of goods at fewer prices then it will be able to attract large
number of people and will also provide them competitive advantages over its competitors
(Huberman and Miles, 2013).
FORDWAY also adopts various innovative strategies like service of data management
and storage consolidation etc. by which it is able to receive huge amount of profit. 4 “P” of
innovation funnel is very important for an organization because it aids in attaining desired result.
It also provides various advantages which are given below-
 With the help of process management, entire procedure can be made effective and
efficient by which project can be completed within specified period of time and with
expected result.
 By introducing new product, organization has captured large market share and also
created positive image in the society.
 These 2 Ps have significantly helped the company to grow and rest two Ps are the part of
FORDWAY future mission.
By following the process of new product development, organization can produce better
quality of gods or services that helps the company in attaining specified result or outcome.
With the support of this process, firm will be able to know that innovative products are
getting positive response or not (Johnston and Marchell, 2016).
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P6 Innovation building case for FORDWAY including way of access fund
Building case is made by company for investing their time and money into investment
project rather than on competing one. It is a basic concept that are used in new product
development and also used at every stage of production process. While making this case,
organization has to follow various steps that are given below- Understand the objectives- While implementation of plan, organization should clearly
know about its goals and target because if firm will know about specified about its
objectives then it will aid in designing the plan accordingly by which company will be
able to get success in the market. With the support of building case, decision regarding
operation of firm can be taken easily by which it can achieve its specified result
(Huizingh, 2011). Gather the input- At this stage, company should collect all relevant information that will
support in preparing business case. It includes data that is useful in preparing financial
model and word based justification. Analysis- FORDWAY should analyze all collected information because it will help in
selecting best alternative that will support in building business case effectively and
efficiently.
 Tell the story- It is the last stage in which information is presented via presentation in
which people will explain all things related to organization. While presenting data,
presenter has to face various challenges such as to keep information clear, maintain
objectives etc. It is very important because if decision maker does not understand it then
he will not be able to resolve the queries of public (Johnston and Marshall, 2016).
There are various sources of funding which can be used by FORDWAY that are given
below-
 It can use its own earnings and savings.
 It can borrow from banks and other financial institutions.
 It can also take loan from venture capital that provides funds to the company in
exchange of their shares. In this, people invest their money in to more risky
investment so that they can earn more profit or income
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 It can also take money from angels who are also known as personalities who have
lots of wealth for investing into companies. They can invest from GBP 15000 up to
500000. These people invest in the growing private companies to earn good profits.
TASK 4
P7 Different tools for developing retaining and protecting intellectual property
Intellectual property rights provides exclusive rights to its owner to use its their unique
idea, plan etc. It is an intangible asset in which there is no competition for a specific period of
time. It includes various assets which are given below-
 Trademark
 Patent
 Copyrights
 Trade secret etc.
FORDWAY company is dealing in information technology sector so for it, these assets are
very necessary because it aids in maintaining unique ideas confidential and no one can copy
it (Mariadoss, Tansuhaj and Mouri, 2011). In this, best example is that SAMSUNG company
copied Apple INC’ gadgets however Apple has brought the technologies in such a policy that
other companies cannot display the Retina display in any other smartphones.
With the help of this, firm is able to achieve competitive advantages over its rivals. For
protecting these rights, there are various laws that govern to these assets so that no one can
copy it. FORDWAY should hire best qualified employees so that they can understand they
can follow all rules and regulations. It should also protect their internal process and policies
of different customers.
Intellectual property rights can be obtained by a person in that situation when there is
new or creative works which can be treated as physical property. There are many intellectual
rights which are given below-
 Copyrights- It is used in any case of literature and article work. It is governed by
copyrights act that protect the rights of its owner so that no one can use this property
without any permission of .titleholder. Generally, this right is limited period of time
and after completion of this period, owner has to renew it. If any person wants to use
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it then they have to pay royalty to the proprietor otherwise he will be liable to pay
penalty (Johnston and Marshall, 2016).
 Patent- It is governed by patent act which has main motive to protect the right of
owner. If an individual will have some unique idea and invention of new products or
services then he can registered it so that no one can use it without getting permission.
 Trademark- It can be a sign, logo, symbol and combination of it by which company’s
products or services can be indemnified easily. It is very helpful in differentiating
itself from other company.
CONCLUSION
Innovation is very important component because it aids the company in achieving desired
result or outcome in an effective and efficient manner. From the above study, it is concluded that
innovation and invention both are different thing and both are different from each other. There
are 4 P of creation which is product, process, position and paradigm that supports in maintaining
better quality of goods or services. For developing new offerings for the market, organization has
to follow some steps which is very helpful in creating better quality of goods that will get
positive response from the market. In UK, there are various types of rights such as copyright,
patent etc. which gives exclusive rights to its owner.
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REFERENCES
Books and journals
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review. 53(3). p.41.
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.
Goldberg, D.E., 2013. The design of innovation: Lessons from and for competent genetic
algorithms (Vol. 7). Springer Science & Business Media.
Huberman, A.M. and Miles, M.B., 2013. Innovation up close: How school improvement works.
Springer Science & Business Media.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Krishnan, V. and Ramachandran, K., 2011. Integrated product architecture and pricing for
managing sequential innovation. Management Science. 57(11). pp.2040-2053.
Kwon, S.W. and Adler, P.S., 2014. Social capital: Maturation of a field of research. Academy of
Management Review. 39(4). pp.412-422.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Mariadoss, B.J., Tansuhaj, P.S. and Mouri, N., 2011. Marketing capabilities and innovation-
based strategies for environmental sustainability: An exploratory investigation of B2B
firms. Industrial Marketing Management. 40(8). pp.1305-1318.
Metcalfe, J.S. and Miles, I. Eds., 2012. Innovation systems in the service economy: measurement
and case study analysis (Vol. 18). Springer Science & Business Media.
Rice, A.K., 2013. Productivity and social organization: The Ahmedabad experiment: Technical
innovation, work organization and management. Routledge.
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.
Tebbe, J., 2011. Where good ideas come from: The natural history of innovation.
Union, I., 2014. Communication from the Commission to the European Parliament, the Council,
the European Economic and Social Committee and the Committee of the Regions.
Bryssel.
Van Eck, P.S., Jager, W. and Leeflang, P.S., 2011. Opinion leaders' role in innovation diffusion:
A simulation study. Journal of Product Innovation Management. 28(2). pp.187-203.
Online
What Is Innovation?. 2017. [Online]. Available through: <https://its.yale.edu/about/innovation-
its/what-innovation>. [Accessed on 10th August 2017].
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Difference Between Invention and Innovation. 2017. [Online]. Available through:
<http://keydifferences.com/difference-between-invention-and-innovation.html>.
[Accessed on 10th August 2017].
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