Importance of Innovation in Business

This report discusses the importance of innovation in business and its impact on organizational goals and objectives. It explores the role of vision, leadership, culture, and teamwork in fostering innovation. The report also covers the 4 P's of innovation and the concept of frugal innovation. Additionally, it highlights the significance of the commercial funnel and new product development process in an organization.

INNOVATION

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

INTRODUCTION
The actual mean of innovation is adoption of new idea and plan for making better and
effective future for an organisation. Innovation is an important process of an organisation in
which ideation, opportunity identification, prototyping, production, marketing and sales are
included. It is a method of getting better and effective result that meets with new demand an
preference of customers (Schiederig, Tietze and Herstatt, 2012). After a certain period of time
innovation is required in every field such as business, technologies, services, methods and
products. Innovation is required because people get bored with same environment. Invention is a
kind of discovery in which people discover new and innovative things and ideas for establishing
better future. Innovation is required in every business firm in order to achieving organisational
goals and objectives in very effective manner. This report contents the study about the impact of
innovation and invention on business firm. In this report new and innovative techniques,
technologies, methods will be discussed in detail. Innovation is considered as new thought and
idea that can be convert into finished goods and services and create value for customers. Apple is
the most popular brand across the globe. The believe in new and innovative products. They put
their all affords for rendering innovative and services to their customers in order to earn more
profit and growth.
TASK 1
P1) Innovation and its importance to business in comparison with invention
Innovation: It can be describe as a new thought, device, idea and method. It is also called
as an application of making some better and new changes for providing efficient solution that
helpful to meet with new requirements, existing marketing needs and unarticulated needs.
Innovation is the process of converting new ideas into a well planned picture/ image. It explains
changes that are helpful in producing new and innovative production for satisfying needs and
wants of customers. innovation is required in each and every business firm because it is directly
consist growth and success (Nam and Pardo, 2011). With the use of new ideas it is easy for firm
to make conversion in their existing products that meet with desired need and wants of
customers. Innovation is useful in introducing new products at market place with more effective
and attractive feature and it is also possible in existing goods.
Importance of innovation:
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 It helps in developing unique image of business at market place which are helpful in
achieving organisational goals and objectives.
 It is helpful in establishing best technologies and methods for business which provide
support in production function (Chiaroni, Chiesa and Frattini, 2011).
 It helps in maintaining competitive advantage for any business firm by identifying best
path for operation. Innovation adopt best strategies and objectives in order to create
global accessibility of goods and services which are offered by firm.
 Innovation create value for future business plans, new ideas are helpful in attaining
upcoming needs and demand of customers that are change with the society trends.
 It helps in creating easy and effective communication channel for developing
connectivity among buyer and seller. This provide support in world wide transactions of
goods and services.
 New thoughts and ideas are helpful in attracting large number of buyers through their
innovative products and services. Innovation changes the existing trends of economy and develop dynamics of work place.
Difference between innovation and invention are described as under:
Basis for comparison Innovation Invention
Meaning It is consist the implementation of
new thought and idea for goods or
process of production for very firs
time.
It describes as an idea or new
process for making effective
production for new product that
has never been applied before.
Concept It is a practical execution of new
and well planned ideas.
It deals with original ideas and
works on the basis of theories.
What is it It creates value for existing
products and services.
It is mainly consist as introduction
of a new product at market place.
Required skills It is some set of technical,
marketing and strategic skills.
It works on the basis of scientific
skills.
Occurrence When demand of customers are
changed, then there is a need
required for a new products
It occurs when new and effective
idea strikes in the mind of
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(Gassmann, Enkel and
Chesbrough, 2010).
scientist.
Activities It needs to expand across the
department of firm.
These are conduct in research and
development department.
It can be founded that innovation and invention are two different process. An
organisation spend huge amount in development of these two processes. Apple is a well known
brand and large number of customers are attract towards innovative and new products. Apple
invest huge amount in their invention and innovation function just because they focuses on
rendering best and quality services to their potential buyers.
P2) Vision, leadership, culture and teamwork for innovation
Innovation and commercialisation are based on each other, every business organisation
concern towards developing new ideas and thoughts in their existing plan as per new market
trend. Commercialisation is described as a method of introducing a new product by any firm in
order to provide more satisfaction and earn high level of profit. Large number of buyers are
attract towards Apple just for its constantly changing thoughts and ideas that give beneficial
service to potential customers (Tebbe, 2011).
Vision of firm for commercialisation and innovation: Vision and mission statement are
describe at the time of start ups of an organisation. The whole operation work of an industry is
based on these two statements. The aim of every business organisation is to become more
valuable across the globe. The CEO of Apple Inc. currently introduced vision statement that
declared that we believe in making high featured products with the use of least cost. According
to the companies profile it describes that they believe in simple form of work than complex. The
effective vision of company leads the firm at the side of commercialisation and innovation.
Cultural of firm for innovation and commercialisation: Innovation is required in each
and every business firm. The heart of Apple Inc is its continuous innovation in products and
services. They work as per the culture of secrecy which is an essential part of organisational
strategy to reduce and minimize theft of confidential information, data and property that are vital
for firm. The success and growth of company is depend on its success.
Leadership of firm for commercialisation and innovation: Steve Jobs contribute the
most in success of Apple Inc. he is the one who put his all knowledge and affords for achieving
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high position for company. At the time of Steve Jobs company uses autocratic leadership style in
order to handle small range of organisational operation. After Steve Jobs, the Tim cook handle
the over all operation function of Apple Inc. he is the great leader across the globe. Now there is
a vast change in leadership style, he leads the company in right direction at reach at very high
position. A good leadership style is helpful in create commercialisation and innovation. Tim
Cook mainly focuses on reducing the work force form the employees and motivate them for
effective production (Chesbrough, 2010).
Team work of firm for innovation and commercialisation: The management of every
firm is focuses on making effective team for better utilisation of resources. Team is group of
people in which they can perform a task in very effective manner. The distribution of team is
depend on manager of firm, he or she divide employees as per their skills and talents. Apple Inc
try to create team for performing tasks that are big and future oriented. Team work is helpful in
establishing good and effective relationship between employees, workers as well as managers.
TASK 2
P3) 4 P'S of innovation
The requirement of innovation is necessary for every business organisation in terms of
providing high quality and new services to their customers. Firms are concern towards adopting
new and innovative techniques for increasing production in order to earn more profit. The
marketing mix of Apple Inc is described as below:
Product: Apple is the most popular brand across the world which is liked by large number
of population. Product is the major aspect of marketing mix, which play an essential role in every
business firm. Apple Inc is most noticeable company because of its innovation in products and
services. They continuously create innovation in their operation and products for attracting large
number of customers towards their organisation. The most popular products of Apple are I pod,
iPhone, apple TV, apple watch etc.
Price: At a single time Apple target only a single group of customers according to the
feature of product and service. Price of products play a vital role in marketing, company use
various pricing strategy to give competition to its competitors. Apple rapidly change their price
just for high range of competition at market place. They use premium pricing strategy for
satisfying the actual wants and needs of customers (Manyika and et.al., 2011).
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Place: It is a major aspect of marketing mix. Companies use various strategies and
methods for reaching at potential buyers and clients. Apple target to their final customers with
the use of various channel. Apple use the strategy of opening its new stores and outlets at
different locations that makes easy transaction with their buyers. They also follow the idea of
trade partners in which they handle or establish a better communication channel among their
partners for developing better distribution channels (.Edquist, 2010).
Promotions: Apple use so many new and innovative promotional strategies for upgrade their
goods and services among public. There is no need of creating awareness about products and
brand because as a famous consultancy people are having proper knowledge and information
about the company and its products. The major focus of Apple Inc is on product, they maint
differentiating products as per their various feature and that makes their product outstanding and
unique from competitors.
P4) Frugal innovation
It is a process of identifying new and innovative business models, redesign products and
reconfigure value chain. Frugal innovation is the method of reducing cost and complexity of
production function and goods. It is mainly considered as an aspect of removing non-essential
and non valuable feature form a finished good. Frugal innovation is the set of new thoughts and
ideas that are develop on the basis of some extraordinary requirements and needs. It is a term
which determines as the main thought and idea that are important for create goods and services
that can be easily fit at the market place. This innovation is the ability to generate economic,
social and business value, this try to reduce the significant value and use of insufficient
resources.
Frugal innovation process is used by the firms just for change the game, it is also known
as the game changing strategy. The most popular products of Apple are its iPhone and iPod,
these two provide more profit than other products. Frugal innovation is used just for removing
non-necessary elements from a regular useable products. It helps in identifying new business
models that are useful in effective operation function of an organisation. A successful innovation
are based on low cost an it is available at very large scale. The major work of frugal innovation is
to render new products and services through an easy and scalable way, so goods can be easily
purchased by final customers (Stokes, 2011).
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For example: Apple use various business model for develop their product at market place. With
the help of these models they identify the needs new preference and need of people. They create
more innovative and new feature in their iPhones, so that large number of buyers are
automatically attract towards the new product.
Virgin group apply new technology for manufacturing new product that helps to meed with need
and wants of customers. They add some new and advance feature in their product just for earn
huge amount of profit by attracting more customers towards the brand and product.
TASK 3
P5) Importance of commercial funnel and NDP in an organisation
Apple Inc is mainly focuses on quality aspects, because customers are mainly attract
towards quality of product. A good image among public is an advantage for company. People
who are regular buyer of company having overall knowledge about profile of company. New
product development is based on the above described factors. It is also important for companies
growth and success (Teece, 2010). Apple Inc mainly uses commercial funnel for developing a
new product at market place. For example Apple start with small range of phones and now reach
at the high definition of iPhone 8 with more technology, advancement and feature. Commercial
funnel based on to track the stages of buying decision of costumers or purchasers. it also let you
know what your company neds to do help to customers at their each stages.
The commercial funnel is the process of new product development with the use of idea
and thoughts form outers environment and select the best idea among available alternatives. For
using funnel process it is required for company to follow the step by step development for their
new product. First of all company collect different ideas of people and then select the best which
is helpful in achieving organisational goals and objectives in effective manner.
New product development is also required for success and growth of company. After a
period of time public get bored with the existing product. The needs and wants of customers are
changed as per the society trend, so company needs to frequently develop new and innovative
products for satisfying the needs and wants of customers. Company introduce a new product at
market place with lots of aspect of risk (Gawer, 2011). Apple Inc introduce new product after
removing all risks from the market.
P6) An innovation business case for a business
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Every business firm is mainly focuses on satisfying the need and wants of customers.
They work as per their objectives and aims. The major purpose of business is to develop new and
innovative products as per preference and need of customers. Apple is mainly focuses towards
identifying the actual needs and wants of customers and than try to develop the feature of
product which are helpful in meeting with customers needs. Apple is focused on introducing new
and innovative iPhone with extra and excellent feature (.Belussi, Sammarra and Sedita, 2010).
They include more sound effect, camera, software, storage, hight, weight and many more
innovative and attractive feature. For making more appropriate and predetermined product
company use various innovative techniques. The manager of Apple encourage their employees
for better contribution of work. The affords of workers are beneficial for development if new
product at market place. Steps of innovation business case are described as below:
Idea generation: This is the first step of developing an innovative product at market
place. In this stage competitors, end users, marketing research, suppliers, strategies of marketing
are incurred in an effective manner. Apple adopt a proper and well planned strategy for
organisational objective and growth. Employees are the major asset of an organisation they are
helpful in attempting all tasks related with marketing, operation and production.
Idea screening: This is the evaluation stage of new idea and thought which has been
implemented by firm in respect of getting more profit and success. In this stage the authenticity
and suitability is checked by the top level.
Concept development and testing: In this stage the new and innovative idea has to be
converted into proper action. Apple evaluate the plan in various parameters just for develop a
new product at market place.
Strategies development: It is required for every business firm to develop an effective
strategy for creating consciousness about the new product.
Business analysis: After completion of above stages, it is important for company to
know the actual worth for duration of products. Through this analysis Apple provide accurate
information about the position of company.
Product development: This stage is helpful in transferring idea and knowledge into
actual action (Hammond and et.al., 2011.).
Test marketing: In this stage company provide sample products to their workers and
buyers for evaluating the feature, durability, accessibility and than they check the result of which
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is collected by the experience of employees. Firm make changes which are needed for products
and than sell it at market place.
TASK 4
P7) Tools used for retaining and protecting intellectual rights
Every individual having their own set of knowledge and skills, the creation of mind
attract towards creative thought and idea. Any discoveries related with phrases, words, design,
symbols and works can be incurred in rational property (Sosna, Trevinyo-Rodríguez and
Velamuri, 2010). These ideas are helpful in bridge the gap between innovators and public
interest. Every employee having some set of rights, so they can easily use their idea and
knowledge without thinking about the position of competitors in a certain period of time. Some
major tools are describes as below:
Trademark: It is an important identity of any business firm, it can be in the form of
symbols, logo, group of words that are used my manufactures to make stand out their product
form competitors. It helps in distinguishing a specific brand. The symbol of trade mark is “TM”.
Copyrights: It is acknowledged by the court of country that grants the manufactures of
original work fortunate right for its distribution and use. The actual mean of copyright is no one
can use the symbol without the permission of particular company. It can be describe as the
symbol of '©' which consist that clause has copyright.
Patents: The develop of monopoly is able to disclose their work and identity in favour of
general population. It can provide satisfaction from theft of brand name. It is a legal equipment
of united kingdom to safes the right of discoverer or inventor (Huizingh, 2011).
Industrial design: It is a kind of model which is helpful in designing various products. A
product should be different from its competitors so producer use mode of industrial design for
keep in mind the aspects of safety, shape and pattern.
CONCLUSION
Innovation and invention both are different terms. Innovation is re-framing existing idea
and invention is introducing new thing at market. For this context, there are various number of
things are described with this context in which frugal and funnel innovation take special place.
along with that 4 p’s enable an organisation to formulate appropriate strategies for their long
term benefit. By using commercialisation concept company can employ their working at large
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level. Also, for security purpose government made some regulations in which trademark act,
copyright act is must. They enable an organisation to keep their products secure.
REFRENCES
Books and Journals
Fuglsang, L. and Sørensen, F., 2011. The balance between bricolage and innovation:
Management dilemmas in sustainable public innovation. The service industries journal.
31(4). pp.581-595.
Blindenbach‐Driessen, F. and Van Den Ende, J., 2010. Innovation management practices
compared: The example of project‐based firms. Journal of Product Innovation
Management. 27(5). pp.705-724.
Grönlund, J., Sjödin, D.R. and Frishammar, J., 2010. Open innovation and the stage-gate
process: A revised model for new product development. California management
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Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Sosna, M., Trevinyo-Rodríguez, R.N. and Velamuri, S.R., 2010. Business model innovation
through trial-and-error learning: The Naturhouse case. Long range planning. 43(2).
pp.383-407.
Hammond, M.M., and et.al., 2011. Predictors of individual-level innovation at work: A meta-
analysis.
Belussi, F., Sammarra, A. and Sedita, S.R., 2010. Learning at the boundaries in an “Open
Regional Innovation System”: A focus on firms’ innovation strategies in the Emilia Romagna
life science industry. Research Policy. 39(6). pp.710-721.
Gawer, A. ed., 2011. Platforms, markets and innovation. Edward Elgar Publishing.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Stokes, D.E., 2011. Pasteur's quadrant: Basic science and technological innovation. Brookings
Institution Press.
Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of
Science, Technology, Innovation and Development. 2(3). pp.14-45.
Manyika, J., and et.al., 2011. Big data: The next frontier for innovation, competition, and
productivity.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Tebbe, J., 2011. Where good ideas come from: The natural history of innovation.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation. R&d
Management. 40(3). pp.213-221.
Chiaroni, D., Chiesa, V. and Frattini, F., 2011. The Open Innovation Journey: How firms
dynamically implement the emerging innovation management paradigm. Technovation.
31(1). pp.34-43.
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Nam, T. and Pardo, T.A., 2011, September. Smart city as urban innovation: Focusing on
management, policy, and context. In Proceedings of the 5th international conference on
theory and practice of electronic governance (pp. 185-194). ACM.
Schiederig, T., Tietze, F. and Herstatt, C., 2012. Green innovation in technology and innovation
management–an exploratory literature review. R&D Management. 42(2). pp.180-192.
Online
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<http://www.innoviscop.com/en/definitions/process-innovation>. [Accessed on 15th
July 2017.]
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