Open Innovation and its Implementations

This assignment delves into the concept of open innovation, examining its theoretical foundations and practical applications. It presents a comprehensive literature review of scholarly works that analyze different aspects of open innovation, including its benefits, challenges, and implementation strategies across diverse industries. The review highlights key trends and insights from leading researchers in the field.

INNOVATION

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1) Innovation and its importance to organisations in comparison with invention..............3
P2) Vision, leadership, culture and teamwork for innovation and commercialisation.........5
TASK 2............................................................................................................................................6
P3) 4 P'S of innovation...........................................................................................................6
P4) Frugal innovation ............................................................................................................7
TASK 3 ...........................................................................................................................................8
P5) Importance of the commercial funnel and NPD.............................................................8
P6) Innovation business case for an organisation...................................................................9
TASK 4 .........................................................................................................................................10
P7) Tools used for protecting and retaining intellectual rights............................................10
CONCLUSION .............................................................................................................................11
REFRENCES.................................................................................................................................12
.......................................................................................................................................................14

INTRODUCTION
The actual mean of innovation is determine as new idea and thought which can be
transfer into goods and services that creates value for customers. Innovation is a kind of process
which includes ideation or invention, opportunity identification, prototyping, production
marketing and sales. It is application of better result that meets new preferences, requirements,
existing market needs, unjointed needs (Gawer, 2011). Innovation is the new development
process , and this is accomplished by more creative or effective products, technologies, methods,
services, processes or many business models that are promptly available to governments, markets
as well as society. Innovation is required for every organisation in order to achieving goals and
objectives effectively. This report contains the study about difference between innovation and
invention. In this we will discuss about the marketing strategies, technologies which are helpful
in innovation function. Apple is the well known organisation which focuses towards innovation
of new and upgrade products. They work for providing best and innovative service to their
potential buyers. Commercialisation is an introduction process in which the firm introduce new
product and service with the market. Invention is directly consist to new discovery that is
beneficial for growth and success of an industry.
TASK 1
P1) Innovation and its importance to organisations in comparison with invention.
Innovation: It involves transforming ideas into pictures. It is described as changes which
are made in products and these helps in adding values to goods and services thus satisfying the
needs and wants of customers. It helps in delivering new or change products to customers which
are effective and they satisfies the present desire of customers. Innovations can be made in
existing products or new products can also be introduced in market. New product can be
developed with the help process, technology, changes or improvement in services. Redesigning
of existing products provides various answers to current market necessitate. All the procedure
which are helpful in development of new ideas and translating of ideas into merchandise that are
demanded by customers are all covered under innovations (Teece, 2010).
Importance of innovation:

 It helps in creating competitive advantages for business by adopting to best
objectives and strategies in order to make world wide accessibility of products
and services.
 It helps in creating unique business images which are helpful in effectively
achieving business goals and objectives.
 It helps in changing dynamics of workplaces and different trends in economy.
 It helps in making global connectivity with customers.
 Increase in choices and expectations of customers towards the business.
Difference between innovation and invention are as follows:
Innovation Invention
1. Innovation means implementation of
new ideas for changes in products and
services.
2. Practice implementation of thoughts
3. It need marketing and technical skills.
4. It requires various combinations of
goods and services.
5. The activities are spread around the
globe
6.
7. Improvement for changes in the
existing products.
1. Invention means evaluation of ideas for
products eventually for the first time.
2. Theoretical ideas.
3. Scientific skills are needed.
4. It is used for individual products and
services (Stokes, 2011).
5. Activities are limited to only research
and development department.
6. New ideas are developed in scientific
research.
Thus it can be evaluated that innovations and inventions are two different concept. Both the
activities require large amount of capitals in research process. Apple spend huge amount in their
innovation function, because they believe in providing new and satisfactory product and service
to their loyal and regular customers. Process of innovation is not easy, it take lot of time to make
place in peoples mind. Large number of consumers are aware about new trends, and they want
goods and services as per new innovative idea. Invention is the discovery of new thing which is
not identifiable by any one. The major purpose of APPLE INC. is to render quality products with
new and advance feature.

P2) Vision, leadership, culture and teamwork for innovation and commercialisation
Every firm is focuses towards innovate their ideas and thoughts according to new market
trend. Commercialisation is considers as a process through which new idea and product is
introduced by any firm or organisation in order to attaining high level of profit. APPLE INC is
famous for its constantly changing ideas and thoughts which are beneficial for consumers. Apple
products are used by the youth because its provide innovative feature that are useful for every
generation.
Vision of firm for innovation and commercialisation: Vision and mission statement of
firm is based on its success and growth. Every company wants to valuable in world. CEO of
Apple INC introduced the current vision statement of the organisation which stated that we
believe that we are on the face of the earth to make high featured products and that's not
changing. As per the opinion of upper management department they they constantly focusing on
innovating. They believe in simple not in complex work. They believe that they need to own and
and control the primary technologies behind the product that they make and participate only in
market where they can make a significant contribution (Edquist, 2010). They believe in in saying
no to thousand of projects, so that they can really focus on the few that are truly important and
meaning full to them. This vision leads the organisation towards innovation and
commercialisation.
Leadership of firm for innovation and commercialisation : The progress of apple is
not possible without Steve jobs, because he is the one who putting all the affords for leading the
company. Apple follow autocratic leadership style at the time of Steve jobs for managing micro
range of business operations. Now there is a dramatically change in leadership style, Tim Cook
is the greatest leader across the world. According to his guidance Apple reach at the very high
position, he is an inspirational leader for employees,and he motivate them to become a better
worker or human being. If good leadership style is followed by the firm then it is easy for
organisation to make innovation and commercialisation.
Cultural of firm for innovation and commercialisation : The basic cultural of Apple
Inc is to facilitating continuous innovation, which is at the heart of the company. They follow the
culture of secrecy which is the part of company's strategy to minimize or reduce theft of
intellectual property,data and information that are important for organisation (Manyika, et.al

2011). Culture is the key factor for companies success. This helpful in identifying capabilities in
encouraging changes, policies, technologies and strategies.
Team work of firm for innovation and commercialisation: Team work is the major
aspect of every firm, it is useful in performing a task in effective manner. It starts at top and
strain down through every layer of the firm whether it is liked by any one or not. Team work
makes good relationship among colleagues, so it is providing support in innovation and
commercialisation.
TASK 2
P3) 4 P'S of innovation
Innovation is necessary in every firm, in order to render best quality service to the
customers. Industries are focuses towards apply the new invention into action for earn huge
amount of profit and increase the competitiveness. Marketing mix of Apple describes the brand
and company which covers product, price, place and promotion. These all are explains as below :
Product : Apple is well known brand, it is famous for its innovation in the world. It has
always try to come up with new and advance feature that amazed the whole universe. They
rapidly make innovation in their new products for attaining consumers trust towards the brand or
quality. Some products of Apple such as Mac, iPhone, I pod, apple watch, apple TV , software
and services that apply marketing strategy for innovation and commercialisation (Chesbrough,
2010).
Price : Apple is the only firm who does not target all the group or sector of society.
Pricing strategy of company is play as a marketing leader. Competition is a major reason of price
changing. Innovation of apple is comes up with cost, they follow premium pricing policy in
order to fulfil the neds and want of the consumers. Apple always focused on shaping the new
ideas into proper form, for making effective and innovative operation.
Place : Apply adopt some aggressive methods and strategy in reaching at the premium
clients. They target to end customers through various channels. Most popular and innovative idea
of Apple was opening of its own outlets store where it is easy for them to sell their products.
Sometime they follow the concept of trade partners. They maintain communication with their
partners for better distribution channels. Company discover new ideas or thoughts which are

based on the targeted area, Apple needs to apply those invention into proper action for making
effective innovation.
Promotion : Apply use various promotional strategies for promoting their product at the
market place. As a well known brand there is no need of creating awareness because people are
having proper knowledge about the company. This targets specific segment of consumers, so
during the promotional campaign, its basic focus is on products. They differentiating products on
the basis of factors that make it unique from competitors (Tebbe, 2011).
Apple try to innovate their ideas in designing hardware products and sell them through online
channels.
P4) Frugal innovation
It is the innovation of ideas and thoughts which are implement on the basis of special needs and
requirements are call frugal innovation. These are mainly originated in the form of emerging
markets. Frugal determines the main idea which are necessary for develop products and services
, that are easily fit in these markets. It is a process of discovers new and innovative models for
business. Frugal innovation consist of reconfigures value chain, redesigning products to serve
consumers who are able to face high affordability device in a predefined and sustainable manner.
Its basic purpose is to reduce complexity and cost of a product and its production. This
innovation helps to removing non-essential elements from a regular useable good like phone or
iPod for the aim of sell them in developing areas.
It helps in discovering new business models, creating value chain of products in which
which same designing of products are linked together and redesigning or make changes in the
existing products which fulfils the desires of customers. It helps in providing new products to
consumers in an easy and scalable process which can be easily purchased by customers. It
consist of tapping organization voids and research difficulty to create access to more wider
networks. Thus frugal innovation helps in giving various functional solutions by utilising
resources in an efficient manner (Gassmann, Enkel and Chesbrough, 2010).
Standard innovations are different from frugal innovations in the following ways:
It involves innovations in products at the top level of pyramids where the purchasing
powers of customers are highest and tickling down effects are very less.
Example: IBM was first computer and later many new companies invented their products like
dell, HP, Lenovo and Asus and now have their own operations.

TASK 3
P5) Importance of the commercial funnel and NPD
Quality is main focus of Apple while developing new product or whether it is about
existing product which is a core competency of the company which can be taken as advantage by
company. Brand have a good image amongst people who use its product is also an advantage for
apple. New product development is also based on these factors for apple in which it uses funnel
for development. Like it started with iPhone range and have reached to introduce iPhone 8 with
best technological advancement creating a environment for its competitors to develop their
technology as well. Apple have been leader in market by acquiring major market share in
satisfying its customer which is a very useful element for company (Chiaroni, Chiesa and
Frattini, 2011).
A funnel in new product development helps in contracting ideas from outer environment
which is used to extract best amongst them. While utilising a funnel there are various sets which
are to be followed that means step by step development is there in funnel development of new
product. First ideas are ascertained which are there in environment after that these ideas are
evaluated to choose best. Best idea is chosen by evaluating its scope in current market by Apple.
Than idea is communicated to organisation and after positive consent of employees idea is
brought to action by employees. In this way commercial use of funnel is done by Apple in new
product development.
Funnel is a way to have innovation in operation of company's which are required in
market. Needs and wants with demands of customer is ascertained by which a conclusion for
development of new product is done by company product developer. Success of new product is
also ascertained so as to have minimum risk is loss to company in developing new product. Than
company introduces it to market to get best response from its buyers. Like apple is a company of
mobile which manufactures mobiles with new innovation in every model so it requires to have a
market knowledge in order to compete with its competitors in domestic as well as international
market to sustain in it (Nam and Pardo, 2011).
In this way to gather more information related to technological advancement and serving
in terms of quality to its customers can be analysed by Apple through funnel for
commercialisation of its new product which it have developed to gain a lead over market of
technological advancement.

P6) Innovation business case for an organisation
The major purpose of every organisation is to develop new product as per demand of
consumers. Apple introduce a new and innovative iPhone with excellent feature of sound,
camera, storage, look, weight etc. for produce this product firm need to adopt and apply new
techniques just to make the phone predetermined and high quality. Firm ask for better
contribution of employees in this process, because their affords are beneficial for the
development of new product (Schiederig, Tietze and Herstatt, 2012). Apple hire well skilled
people who are having adequate knowledge about the production of a new product. Some steps
are involved in this process:
Idea generation: This is most important stage in which marketing research, competitors,
strategy, end users, suppliers are included. Employees are helpful in performing all the task
which are related to the market research. Apple implement a proper strategy for attaining growth
and success in this competitive era.
Idea screening: In this step further idea has been evaluated by the firm. The idea should
be authentic and suitable for new product development (Sosna, Trevinyo-Rodríguez and
Velamuri, 2010).
Concept development and testing : In this stage idea has to be formulated in actual
formate. Apply test the plan for develop a new iPhone in several parameters.
Strategies development: After completion of above steps, firm develop appropriate
strategy for creating awareness about the selected product.
Business analysis : Apple need to know the worth of product duration. This analysis
provide the accurate information about companies position at market place.
Product development: This stage is helpful in converting idea into actuality. Apple
develop new iPhone and evaluate the performance (Fuglsang and Sørensen, 2011).
Test marketing: The company render the product to their employees and potential buyers
for testing the durability, feature, accessibility, and then they check result and recommendation
which is provide by the employees. If any changes is needed then firm make those changes
before selling product in market.

Commercialisation: This is final and important stage of product development process. In
this part firm introduce the good to market for creating awareness among people. Innovation and
commercialisation is depend on each other.
TASK 4
P7) Tools used for protecting and retaining intellectual rights.
Any creation of our mind, which leads to creative ideas and innovation for which a
monopoly can be hold by the owner of the idea. Any discoveries of words, phrases, designs,
symbols or artistic works or literary works can be included in intellectual property. In order to
protect the ideas and bridge a balance between public interest and interest of innovators,
intellectual property rights have flourished. Basically it is a right of a person so that he can use
his own idea and knowledge without thinking about his competitors for a specific time period. It
encourages a person to use his knowledge freely (Blindenbach‐Driessen and Van Den Ende,
2010).
There are several points where one needs to reserve his particular intellectual property
from being used or violated by other by any means, therefore he can use the idea of safeguarding
his property through various means like getting them registered. Tools that are most commonly
used in retaining and protecting intellectual property rights are mentioned and discussed below:
 Trademarks: Trademark can be define as a symbol,logo,word, or group of words which is
used by any producer to differentiate his goods from the other producers. Trademark is
represented by the ''TM'' symbol. It helps the customers in identifying a specific brand.
 Copyrights: It is granted through the law of the country which permits/grants the
producer of original work the privileged rights for its use and its distribution. The word
copyright under any work can be stated or the symbol '©' can be written in-case the
article has the copyright.
 Patents: For granting the developer of the invention a monopoly so that he can discloses
his work in favour of general public. Through getting a word patented a person gets a
relieve from its theft. It is a legal instrument of government of united states to protect the
right of the inventors (Grönlund, Sjödin and Frishammar, 2010).

 Industrial designs: Industrial design is a model which helps producers in applying
designs for their different products so that the products can be differentiated by the
customers. Industrial designs works as safety measure for shape and pattern of products
or objects.
 Geographical indications: Geographical indications indicates the location and birth place
of the product, from where the product is produced. Basically it determines the origin or
location of the product. It is mentioned on the products so that their geographical location
can be identified (Huizingh, 2011).
CONCLUSION
As per the above discussion it has been concluded that organisation are mainly focused
towards providing best and satisfactory services to their potential buyers. Apple adopt new
technologies for developing new and innovative products at market place. Innovation is
important in every firm. Invention directly consist of discovery of new idea and thoughts which
are helpful in organisational growth and success. The products of Apple are helpful in education
as well as business sector. They offer high quality product in very reasonable price, just to reach
at high position. Apple is famous for its rapid innovation function, they quickly adopt the
changes or use modern strategies for develop goods on the basis of market trend.

REFRENCES
Books and Journals
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