Concept of Innovation and its Significance to Employees

This article discusses the concept of innovation and its significance to employees in an organization. It explores the importance of innovation in achieving sustainable growth and development, and the role of employees in generating new ideas and implementing changes. The article also highlights the benefits of innovation for building a brand reputation and providing a competitive advantage. It further examines the relationship between innovation and invention, and the shaping of innovation and commercialization through vision, mission, culture, and teamwork. The analysis of the 4P's of innovation and the utilization of the innovation funnel are also discussed.

INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Concept of innovation and its significance to employees ................................................1
TASK 2............................................................................................................................................5
P3 Analysis of 4P's of innovation and utilization innovation funnel.....................................5
P4 Development of frugal innovation....................................................................................7
TASK 3............................................................................................................................................8
P5 Significance of commercial funnel and application of process for new product
development...........................................................................................................................8
P6 Creation of innovation business case................................................................................9
TASK 4..........................................................................................................................................10
P7 Developing, retaining and protecting knowledge & intellectual property through various
instrument.............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Illustration Index
Illustration 1: Innovation funnel......................................................................................................6

INTRODUCTION
Innovation is considered as most complex that requires appropriate market research and
analysis of customers demands to make necessary Amendments in products and services. It is
also considered as significant for achievement of sustainable growth in market. In this context,
analysis of softwire is done which is software engineering firms that develops various products
in the field of IT. With the continuous rising competition they have to create innovation to
sustain in market. Apart from this analysis various skills is considered in this report which give
understanding about various skills required to implement innovation and commercialize business
operations.
TASK 1
P1 Concept of innovation and its significance to employees
Innovation is considered as a process of implementation of new ideas or invention and
adding value for the accomplishment of specific task. It is also defined as a process that includes
application creative concepts to enhance the capabilities of products and services (Edquist,
2010). It mainly involves generation of new ideas and methods with continuous research and
assumption. With the continuous rise in competition it has extremely important for the firms to
make changes in their existing goods with the use of resources. In order to achieve sustainable
growth and development firms have to face various challenges and for resolving those problems
they have to apply various innovations. In this context, as an CEO of Softwire which is software
developing firm in UK analysis various changes is done to determine the growth of firms in
market (Chesbrough, 2010). Analysis of firm has determined that firm has achieved a sustainable
growth by creative various innovations and developing software solutions for other firms.
Apart from this, innovation is also considered as highly beneficial for every company and
not just for commercialization but building a brand reputation among the customers. It is also
considered that employees in the organization must creative and innovative skills to generate
new ideas that benefits the firm in introducing new products and services in market. In present
scenario, employees in Softwire has also provided a great support in implementation various
changes in the software that has resulted in continuous rise in market share. For the further
analysis, significance of innovation among employees is described below:
 Providing competitive advantage: In the organization, there is great significance of
employees within the firms as they are considered as stakeholders which provide a strong
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competitive advantage by analysing the strategies of competitors (Sosna and et.al., 2010).
Firms have provided a strong independence to employees to participate in decisions
making by providing various ideas.
 Development of skills: Innovations has great significance as it develops of employees in
the organization. Through continuous research practices employees will enhance their
skills and thinking to provide effective solutions for problems (Casadesus‐Masanell and
Zhu, 2013.). It will develop a strong identity of individuals and make them more
competent to face challenges at workplace.
From the case study, it has been analysed that apple computer has made a strong
innovation by introducing a small I pad in the market In 2001. It was considered as strong
innovation as there was only simple music players were in market which were not so reliable. By
making specific changes in structures and technologies apple has developed a small Ipad which
is suitable for customers and contains specific features like more storage space than other music
player, easily to use etc.
With this innovation, they have achieved a wide response from customers. It was
determined by there CEO this a strong innovation which has provided them a great break
through and increased the reputation of brand in the market (Schaffers and et.al., 2011). From the
another case study, virgin group has analysed that employees plays significant role in providing
growth to the firms. Virgin group is a famous group of companies in UK which is engaged in
various business services like travel, entertainment, finance and life style etc. they have also
achieved a continuous success in their business operations as they have provided freedom to
employees to participate in decision making functions. Firm has adopted innovative ideas which
are provided employees and resulted in development of new services for customers. Moreover,
it can be said that participation of workers is considered as significant for firms to make
innovation in their existing products and services.
Along with this, their also major difference between innovation and invention which determined
below:
Invention Innovation
Development or creation new things,
technologies, products and services which are
Generation of new ideas and implementation of
invention to develop existing products and
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not currently in existence. services.
Invention can be accomplished through
continuous research and practical experience.
Innovation can be done through analysis of
inventions and through study of various
research reports.
Creation of new products and services through
application resources.
Making existing products more reliable so that
they will achieve a continuous growth in
market.
P2 Shaping of innovation and commercialization by developing vision, mission, culture and team
work.
Commercialization is considered as process of taking innovation to extreme level with an
aim of achieving of ample of profit (Jiménez-Jiménez and Sanz-Valle, 2011). In order to
commercialize services of firm innovation plays a significant role as it provides a direction for
achievement of success in the market. For shaping the entire process of innovation and
commercialization it is essential for the firm to analyse the vision, culture and team work.
 Vision: This is a statement that defines the companies desired position in the market
which they want to achieve in the future. It is also considered as development of ways to
reach the desired position from the actual position. Having a strong vision aids an
organization to develop futuristic approaches in order to achieve the desired future
position in the market (Cross, 2011). In this context, analysis of softwire has determined
that they are regulating their business operation with a vision to become a global leader in
IT services by building own technologies, competencies and creating value for customers
as well as stakeholders. Moreover, they have defined that they will achieve this vision by
focusing on the fulfilment the emerging needs of their client's and making improvement
in the business. Further, analysis of Apple has determined that they have created
innovation in their product to satisfy the emerging needs of their customers. Ipod was
considered as great innovation of Apple which was generated from the idea of music
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players. By creating this innovation, the firm has achieved a No. 1 position in the music
player brand.
 Leadership: For motivating the employees towards achievement of common goal it is
important for the firm to develop strong leadership at workplace. In the organization, a
manager is considered as leaders that provides guidance and motivation to employees to
achieve the work with an aim to achieve the firm's objectives (Lichtenthaler, 2011). In
Soft wire, to achieve the global IT leadership, the managers have developed various
strategies which are followed by employees at workplace. They also aim at providing the
training to employees in order to improve their innovative skills and generate ideas for
making continuous innovation in their products Like IT software. Moreover, as observed
in the case virgin group is also provide equal opportunities to employees of training and
motivate them to provide innovative ideas that has provided a great support towards
achievement of sustainable growth in market.
 Organization culture: It also plays a significant role in development of positive
environment for employees at work place. Effective culture in the organization will
provide motivation to workers as well managers to formulate new and creative solutions
to make the products more reliable for customers (Atkeson and Burstein, 2010). In this
context, strong and positive culture has developed a strong relationship among the
managers and leaders within the cited organization. Participation and involvement of
employees has provided a great support to firm in accomplish the needs of their target
customers. It is also provided a great to create and implement strategies that helps in
expand the business operations at global level. Development of positive work culture has
also provided great support to Apple and virgin group towards continuous
implementation innovation and satisfying the needs of customers.
 Team work: In many organizations, managers have developed various teams in different
departments in order to manage the work more effectively. It provides a great support to
managers in achievement of participation of employees and development of positive
work culture within the firm. It also makes the employees accountable to provide
effective ideas that helps the organization in development of new products and innovation
of existing products to fulfil the demand of clients (Anderson, Potočnik and Zhou, 2014).
In Softwire, managers has developed team of key performers that provide continuous
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technical solutions to make changes in existing software and making it more effective.
Thus, by developing effective team work they have developed strong work culture and
achieved a high profitability in market. In reference to Apple and virgin group, efforts of
managers and employees has provided a great support to companies to increase their
market share and commercialization of business.
TASK 2
P3 Analysis of 4P's of innovation and utilization innovation funnel
In competitive environment, it is considered as essential for the organizations to make
continuous changes in the process of innovation (Piñeiro-Otero and Martínez-Rolán, 2016). In
this context, analysis of 4P's model of innovation is done that allows the Softwire to implement
changes in their process of innovation and accordingly improve the business to implement those
changes. It is also considered as innovation mix that contains four elements which are mentioned
above:
 Products: This element considers the innovations in the products and services which are
delivered by organization to its customers. This is a parameter which includes the ways
of modifying the existing products and services (Strese and et.al., 2016). With the
continuous research, employees of the softwire has provided different ways to modify IT
software that are developed by firm. This changes in software are considered as
beneficial for to secure confidential data and provided fast processing to clients.
 Paradigm: From the analysis, it is considered as method to change the ways of
regulating business operations that could even result in continuous innovation (Tiwari, R.
and et.al., 2017). In this context, managers in softwire have a constant focus towards
identification of new technologies and innovation that could be radical and make the
products more effective for customers. It enables the employees to bring more effective
ideas so that effective modifications could be done in innovation of products to satisfy the
customers. Moreover, it is a parameter that has enabled Apple towards changing their
process of regulating business. They have developed a new product Ipod rather than
making changes in simple MP3 player. Further, this specifies there process of making
changes in business.
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 Process: Apart from the preparation process of firms products and services, it also
includes the steps that the firm should take to implement changes in them. In softwire, by
improving the process of development of software, database and systems, managers will
influence the clients's and enhance business operations. Constant changes in process
makes the firms more competent towards innovation and commercialize their business
operations. Further, they have faced many problems in making changing in process but
with effective strategies they have achieved growth and satisfied their customer by not
compromises in quality of services.
 Position: It is a parameter that concerns towards increasing the market position of firms
products and services by implementation of modified process of innovation. The position
of softwire will rise if it constantly makes efforts for application innovative methods to
increase their brand image among the customers and employees. It has been recognised
with strong market position firm will be able to expand their business operations and
increase their clients in other countries.
Innovative funnel:
For shaping the innovative ideas to employees, innovation is used that consider three aspects of
product development process.
It provides a clear understanding that the aim of any product development process is to
take an idea from the market. Through appropriate market research a firm will identify various
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Illustration 1: Innovation funnel
(Source 1: Innovation Funnel, 2017)

appropriate methods and technologies that helps in making the products more effective. With this
investigation a diversified range of inputs are provided for the selection of best and appropriate
actions. In this context, in the software development process various alternative inputs are
identified by managers but with appropriate screening they will utilize the effective input that
will be suitable for product development (Vanhaverbeke and et.al., 2017). However, managing
the funnel involves three very different challenges that have to be followed by Sofwire.
The first stage states that the mouth of funnel should be widened which describe that the
cited firm should enhance its knowledge base and ways of assessing more information to develop
new products and new ideas of process. The second challenge is to narrowing the funnel neck
which considers appropriate screening of information at every stage and application of resources
towards most beneficial opportunities. It also involves creation of portfolio of project that meets
their objectives. At last stage, managers that selected products must deliver the objectives are
approved by the firm. As observed in the case, Apple has developed their products by making
appropriate market research and applied various technologies to develop new product.
Development of I pod has increased the profitability of firm and accomplish there objective of
increasing brand reputation in international market.
Therefore, it has been understood that the firms will develop their products with
appropriate market research and application appropriate inputs to make them more effective for
customers.
P4 Development of frugal innovation
From the research, it has been recognised that the process frugal innovation is considered
as methodology utilize by the firm to develop new business models, reconfiguration of value
chains and redesign of products to reduce the cost to serve the customers that critical affects from
price constraints (ALADI, 2016). This is process that that removal of extra or waste things from
the existing products to make effective for customers. In this context, Sofwire should constantly
involve the process of frugal innovation to constantly update their software, database and
services to remove the loop holes. It will provide a competitive advantage to them against there
rivals by reducing the extra cost of product development.
With reference to case of Virgin group, efforts of both management and employees has
provided a great support to the firm towards generation of new and innovative inputs that are
further utilized for improvement of their products. From the effective participation of employees
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that were able to reduce the extra cost and providing services to there customers at effective cost.
It has provided them support to sustain in competitive market and making continuous innovation.
TASK 3
P5 Significance of commercial funnel and application of process for new product development
The importance of this funnel can be considered by the fact that it effectively supports
towards introduction of new products in market so that the firm will analyse the existing needs. It
is considered as effective for the selection and implementation of appropriate ideas. It provides a
clear understanding to managers about the selections of effective methods and application of
resources (Ali, and Shah, 2016). In this context, there is a great importance of this funnel in
Softwire as it has provided a great support to managers towards screening of inputs and
implementation of innovation in software solutions. By introducing effective products and
services that satisfy the needs of customers, they will be able to attain the high revenues and
enabling the commercialization. From the case study, it has been defined that the commercial
funnel is effectively utilized by Apple and virgin group to introduce new products and services in
market. From this method they have achieved the competency to influence the people with their
innovative product.
Adaptation of new production development plan
It includes the process that the cited should follow to introduce new products and services
in the current market place. It is essential for the firm as there is a continuous changes in demand
of customers. Basically this plan includes seven steps that are described below:
 Generation of idea: Through market research managers and employees will have to
generate systematic ideas. In softwire, they have to generate various inputs or information
so that can select appropriate that will beneficial for them.
 Screening or selection: At this Stage, most effective and beneficial concept must be
selected by the Softwire from the available alternatives.
 Evolution and testing: the cites entity needs to create effective idea that is productive
and able to applied in product concept (Ashmawy and Chew, 2016). Further, they have to
test these products concepts so that they are considered reliable and suitable for
customers.
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 Development of marketing strategy: Managers have to develop appropriate marketing
plan they enable them to introduce their innovative products in market. With effctive
marketing them will provide information to customers about their products and influence
them towards the organization.
 Creation of product: In this step, the managers of softwire will formulate the concept in
to physical products (Carayannis and Meissner, 2017). This will provide a clear
understanding that the concept can be developed in to product or any changes are
required will be identified.
 Commercialization: with the completion of above process the final product would be
launched in market to understand effect of innovation on sales. It defines that firm has
bear cost of promotion and advertisement but it will ultimately provide profitability and
competencies to handle the risk.
P6 Creation of innovation business case
As per the analysis, a case for sofwire is taken in to determine innovation in the product
that are applied by the organization through the many ways. Sofwire is Considered as global
leader in software developers for their clients' in London. Presently they are providing the
software solution for the other firms and a database to manage their data and reports. There
software are considered as more reliable as compared to their clients. With the continuous
change technology, there are essential changes in DBMS is required to provide fast accessibility
customers. With the continuous rise in market position of softwire, its competitors have applied
various strategies to capture the market. For the achievement of sustainable growth, firms has to
develop new DBMS software with updated technology that is considered as more reliable for
customers. Through appropriate market research, they will generate innovative ideas that helps
them in development of new DBMS software. For creating this innovation there is requirement
of some resources that are described below:
Financial Resources: These are also considered as effective resources that are required
to develop and implement these innovative ideas. Analysis of firm has determined that they will
generate resources from various sources such as:
 Shareholders: These are considered as main parties through which firm will be able to
generate funds for the development of their products (Erdemir, 2016). In this scenario, it
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is analysed that the firm will generate its funds by issuing there shares to individuals in
market at specific prices.
 Financial institutions: These are considered as most important institutions that provides
funds to companies or individuals at minimum interest rates. For the development of new
software firms will generate funds from these financial institution. Like Banks.
Therefore, from this analysis, it has been recognised that firm will be able to develop new DBMS
software and achieve sustainable growth in market.
TASK 4
P7 Developing, retaining and protecting knowledge & intellectual property through various
instrument
Intellectual property is considered as process involved in creation of minds such as
invention, literature work, software creation. Images, logo. There are various aspects through
which the firm can protect its intellectual property such as patents, copy rights, trademarks etc. in
order to protect the data and confidential information, firm will use various methods which are
described below:
 Firewall: It is the most important software through which is used by the other SMEs
firms to keep the data safe and secured from hackers and external users (Hojnik, J. and
Ruzzier, 2016). Softwire will either develops its own software or use firewall to protect
their information from competitor access.
 Anti wires protection: from the use of Antivirus software they can protect their data
from corruption or any other technical problem. Appropriate antivirus software will
enable the firm to manage their resources and enable employee to protect their files from
any sort of problems.
 Patent: In order to protect the intellectual property, it is an exclusive rights that helps the
organization to make there products safe from others. Softwire will create a patent of its
DBMS software and logo to protect from external or competitors.
CONCLUSION
From the above report, it has been summarized that the innovation is an important
element that helps the small business enterprises to expand their business operation by making
necessary changes in their existing products and services. In order to create innovation firms
have to undertake market research for gathering information and regarding new products and
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services. Application of innovation funnel has described that softwire should develop new
DBMS software with application new and innovative ideas which they derive from the market
analysis.
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