Importance of Innovation in Organizations

This document discusses the importance of innovation in organizations and its relation to invention. It explores the role of vision, leadership, culture, and teamwork in fostering innovation. The document also covers the 4P's of innovation and the use of the innovation funnel to develop innovative ideas. Additionally, it discusses the significance of the commercial funnel and the usage of new product development.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Define innovation and its importance to organisation in relation with invention..................1
P2 Organisation vision, leadership, culture and teamwork can form innovation.......................3
TASK 2............................................................................................................................................4
P3: 4P's of innovation and use of innovation funnel to develop innovative ideas......................4
P4: Developments in frugal innovation.......................................................................................5
TASK 3............................................................................................................................................6
P5 Significance of commercial funnel and usage of new product development........................6
P6 Innovation business case........................................................................................................8
TASK 4............................................................................................................................................9
P7 Different tools which are used to protect knowledge or intellectual property.......................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Innovation is an essential process requirements and needs for all enterprises in order to
attain long term goals and objectives within given time period. It covers the application of
innovative plan and proper resources to satisfy wants and needs of customers in a proper manner.
Innovation is very essential and important concept which is apply by each and every enterprises
to maximise their sales and revenues (Aarikka-Stenroos and Sandberg, 2012). With the assist of
this tool an organisation easily attract large number of customers and increase profits in allotted
time period. In present assignment, chosen firm is Rowlinson Knitwear which deals in clothing
products for corporate purpose. This report classified into different tasks which includes
importance of invention and innovation. Organisational leadership, culture, teamwork and vision
can form innovation which is also determined in this project. Concept of frugal innovation and
importance of commercial funnel which is also described in this project. Innovation business
case and new development process also determined in this study. There are various tools which
are used to protect knowledge or intellectual property.
TASK 1
P1 Define innovation and its importance to organisation in relation with invention
Innovation: It is an effective process of translating a creativity and ides into a services
and goods that develop essential value. It is one of the main and best element which is apply by
all organisation with purpose to maximise their profit in limited time period.
Invention: It is a novel and unique method, device, process and composition (Abou-Ras,
Kirchartz and Rau, 2011). It is also essential and important for the each and every business to
invent new products and methodology which attract million number of clients. With the use of
this concept Rowlinson Knitwear easily introduced their cloths variety and brand in marketplace
and to the customers in systematically.
Therefore both are different from each other in terms of meaning, methods, concepts and
so on. There are some difference between innovation and invention which are determine as
below:
Innovation Invention
It is an application and process of innovative It is a new and specific approach, device,
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plan and method in an enterprises to maximum
profitability in given time period.
procedure and composition which increase
sales and revenue of enterprises.
It may be use for only economic motive. It may be for apply with economic and non-
economic motive.
Innovation is mainly introduced in marketplace
and to the client.
Invention can be define in both term such as
induced and autonomous.
It is a concept of innovative services, process
and product into marketplace.
It is the creation of an innovative service,
process and products.
Example: Rowlinson Knitwear is a
multinational organisation which deals in
clothing goods foe corporate and school
purpose thus, they implementing design,
variation in price, process, quality etc. in goods
will assist in attracting maximum number of
audience.
Example: Innovating new quality of clothes as
per the needs of clients that will support in
capturing higher market share.
Importance of innovation: There are significance of innovation which help Rowlinson
Knitwear to maximise their sales and reduce employee turnover (Bogers and West, 2012). Some
importance are determined as below:
Competitive advantage or benefits: Innovation is one of the best and essential method
which assist business entity in order to add new innovative features to their services and clothing
products. This also covers the utilisation of advanced technology which result is higher
competitive advantages and benefits in given time period. With the use of this tool an
organisation easily decrease their transaction cost and maximise profits.
Saving time and money: With the help of innovative plan and ides in business
operations, company easily save their money and time (Capozzi, Gregg and Howe, 2010). For
example: Rowlinson Knitwear use advanced technology which reduce time and require some
employees, thus they pay salary to few employees so that money is automaticity saved in proper
manner.
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Maximise customer satisfaction: Innovation also very essential and important for the
enterprise to attract large number of customers by providing quality and innovative products.
Thus, they can satisfy needs and wants of clients and after that satisfaction level of audience is
automagically maximised.
P2 Organisation vision, leadership, culture and teamwork can form innovation
There is maximum contribution and involvement of the enterprise culture, vision,
teamwork and leadership in order to develop commercialisation and innovation in firm. If the
objectives and vision of the Rowlinson Knitwear is to guide their workforce about business
activities and functions so that they are able to accomplish long term goals in limited time period
(Chan, 2010). On the other side, culture of organisation that influence on employees performance
and business profitability. So, it is essential to retain culture with aim to motivate the workers to
create innovative plan to finished all task in given time period. All these elements are determined
as below:
Vision: Rowlinson Knitwear is a manufacture organisation that deals in clothing products
such as school and knitwear for school students. Vision statement of the company is to guide
workers about accomplishing long term goals and objectives by satisfying needs and wants of
customers. Effective vision effects ion innovation to apply advanced technology and attract large
number of clients towards business new products. To attain this, an organisation require to
formulate innovative plan and concept in their clothes in term of patters, colours, design etc.
Culture: In the organisation, there are different workers are employing which are belongs
to various culture and backgrounds. In this some workers are not communicate properly which
cause as a misunderstanding and conflict among entire workforce (Gibson and Naquin, 2011).
So that in order to overcome such problems role of management is to enhance their culture by
organising different events ad programs to them. Sometimes the workers are fail down in order
to know the rules, morals, values, regulations, norms and conditions, it is the responsibility of
business manager is to adopt new programs to trained workers regarding the environment and
culture.
Leadership: It is also important and significant part which highly involved in innovation.
An individual who has more power and skills in order to motivate and encourage their workforce
are known as leader. They choose Ashcroft Creative leadership style which is perfect to them. In
this they encourage their staff members to think innovative and creative ways to work
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effectively. Needs of business is to render freedom to their workers so that they can work freely
and tries to complete this in allotted time period.
Teamwork: An effective teamwork assist employees in order to understand weakness and
strengths of each other. So it is important and beneficial in order to maximise their sales and
revenues in limited time period. Knowledgeable and trained staff members are work with each
other that will assist in developing innovative through about improving quality and satisfying
wants and needs of customers.
TASK 2
P3: 4P's of innovation and use of innovation funnel to develop innovative ideas
4P's of innovation is one of the main element which is used by Rowlinson Knitwear in
order to introduced their innovative methods, concepts, products and services in marketplace and
to the clients. This tool includes, product, position, paradigm and process (Griffin, 2010). All
these are frequently support an enterprise to improve their product quality. These aspects are
determined as below:
Product Innovation: It is essential and main part of the each and every organisation
which assist in the maximisation of sales and profit. Rowlinson Knitwear is a manufacture
organisation which deals in clothing products so that they are require to innovate in their clothes,
colour, design and so on. All these are attract customers to purchase these products
systematically. Thus, these are essential and beneficial part for the company to maximise their
sales and profit.
Position Innovation: It is another part of the innovation which refers to creating variation
in the customers perception about products and services. For this, administration may decide to
modify their symbol, quality and logo of commodity that will assist in grabbing maximum
attention of clients and thus modification of moving audience towards purchasing clothing goods
will be more.
Paradigm innovation: It is introduced to the variation in the organisation structure or
framework (Hausman and Johnston, 2014). So in this business entity tries to maintain their
working surroundings which brings confidence and motivation among workforce thus the
enterprise can accomplished their predetermined goals and objectives in an easy manner. As
cause of Rowlinson Knitwear, it is a small organisation which has minimum number of
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employees. So in this role of employer is to apply innovative tool and approaches with a purpose
of increasing sales.
Process innovation: In order to achieve long term objectives and targets, business entity
should tries to develop an innovative process of production which turn in maximisation of profit.
It covers the modification in the marketing, production and manufacturing process which assist
in maximise profit. Along with the, company should need to implement advanced technology,
new process of marketing so as to effects behaviour and interest of clients towards purchasing
clothing products (Jagoda and et. al., 2011). Thus it can assist to satisfy needs and demands of
customers.
Innovation funnel: It is another tool of attracting customers towards business services and
goods. It is a best term that refers about the creation of new methods, techniques, product and so
on. Main purpose and motive of Rowlinson Knitwear is to applying this methods to satisfy basic
needs and wants of customers. There are some phase which are includes in this are:
Wide of mouth: Under this phase, business conduct research in order to gather necessary
information or data about customers needs and demands (Kuratko, Hornsby and Goldsby, 2011).
Rowlinson Knitwear gather the information regarding the customer perception or view for their
clothes.
Selection of ideas: Under this steps, business entity choose the best and innovative ideas
which assist them to enhance their product quality and decrease operations cost.
Implementation of ideas: In this process, company implement new ideas in order to
maximise sales by providing quality products and services.
P4: Developments in frugal innovation
Frugal Innovation: It is an effective process and activity of reducing cost of production
and complexity in its production. Commonly, this introduced to removing incidental features or
quality from a products. Due to, pattern, design, colour of cloths, the clients are not satisfied and
they never display their willingness in order to buy their clothes. This will decrease profitability
and sales of enterprise (Kutvonen, 2011). Thus needs of Rowlinson Knitwear to apply frugal
innovation to eliminate additional cost of product which obtained in developing unwanted
pattern and design in the commodity this will assist in decreasing production cost and are
capable to render quality and effective products at reasonable prices.
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Development and principles and frugal innovation: It mainly consist five steps which are
determined as below:
1. Determine and find chance in adversity: This principle help in reducing the issues and
difficulties in a proper manner. It proceeds something that is seems or threat like turn and
adversity into a chance and opportunity.
2. Do more with few: It is another step, in this Rowlinson Knitwear require to increase sales
and profit in allotted time period. In this they think regarding what you have have already
in an innovative way to develop better solutions (Snow and et. al., 2011).
3. Think and act flexibly: It is essential and beneficial for the organisation to think new and
innovative in order to develop business operation at international and national level.
4. Keep it simple: With the use of this principle, Rowlinson Knitwear tries to reduce
complex problems easily. More choice are not available for the company to innovate
their products and services in marketplace.
5. Include the margin: In this business entity understand their clients and its problems. So
that they tries to reduce them essentially. In this they provide entire information related to
innovative products and services to customers which satisfy needs and wants of
customers.
6. Follow your heart: It is a last principle which is essential for the organisation to
motivate, passionate and maintain long lasting relationship with audience.
TASK 3
P5 Significance of commercial funnel and usage of new product development
Commercial funnel: It is an effective process which is apply by Rowlinson Knitwear in
order to manipulate customers about purchasing clothing products and effective services. This
assist the organisation in order to maintain long-lasting relationship with customers by rendering
quality products (Therrien, Doloreux and Chamberlin, 2011). This tool gives better chance to
business in order to know about the real figure of sales for their clothing products. To attract
million number of customers, business entity launch their clothes for the youth.
Importance of commercial funnel: There are some significance of this tool which are
determined as below:
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Enhance quality: Commercial funnel assist in improving products quality and satisfying
needs and wants of clients. Thus, an enterprise can easily maximise their profitability and sales.
Improves brand image: In order to providing clothing goods for corporate and school
purpose which assist in snatching attention of customers, employees and so on. All these show
their preference to buy innovative products and services which assist them in maintaining long
lasting and strong position in marketplace.
Reducing losses: Commercial funnel is also essential and important in implementing
variation in the methods and technology which is apply in the production process (Walsh, 2012).
So with the help of technology advancement company easily minimise all losses easily.
New product development: It is essential concept which is used by all organisation in order to
develop innovative product in marketplace (New Product Development Stages, 2018). This
concept includes some steps which are shown as below:
(Source: Maximilian Claessens, 2015) Generate idea: Under this process, business need to identify an essential plan for the
product development. So that company tries to through to innovate product quality,
design and so on. Idea screening: Under this phase, the administration of an enterprise require to analysis
which idea and plan may provide profit to company.
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Illustration 1: New Product Development

 Define concept: Under this, need of management is to define an innovative concept and
idea in relation of their workers and obtain proper solutions about implementation.
 Marketing strategy: It is another phase which is essential for the management to provide
all information about changes in product and technology by applying marketing strategy. Business analysis: Under this phase, the administrator needs to evaluate the effectiveness
and potency of introducing innovative goods in marketplace (Wonglimpiyarat, 2010). Product development: In this stage, company decide to apply effective tool and concepts
which may assist in decreasing production cost. Test marketing: In this manager decide which marketing tool to be selected in attracting
large number of customers towards business products and services.
 Commercialisation: It is refers as final phase in which administration of Rowlinson
Knitwear review entire process and take a effective actions to render innovative clothing
products into marketplace with a motive to attaining success and growth in future.
P6 Innovation business case
Rowlinson Knitwear is a small organisation which deals in different variety of clothing
products. In order to develop their business operations at global level, they face different
challenges so that in order to overcome this they apply innovation. In case of business innovation
some steps are highly included which are determined as below:
Executive summary: Referred firm deals in clothing goods for corporate and school
purpose only. In this they implement innovative marketing strategies which assist them to target
large number of audience (Yin, Shi and Yan, 2014). They apply wit product differentiation
marketing strategy which is beneficial for them to maximise their sales and revenues. For
example: Rowlinson Knitwear developing unique and new design with innovative features and
colour combination, it assist customers to purchase more products.
Need: In this need of the organisation is to developed innovative products and services
into marketplace by satisfying wants and demands of customers.
Solution: It is one of the main and essential part of the innovation business case which
help them to enlarge their business operation at global level. In this management of the company
conduct research program to identify basic needs of customers about clothing products.
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Research on audience: In this need of administration is to analysis target audience and
gather feedback or commend about the product price, quality and so on.
Design and develop plan: In this phase, the administrator mainly emphasis on planing an
innovative design of their products.
Investment needs: In this needs of the manager is to focus on identifying resources about
fund (Wonglimpiyarat, 2010). It is highly required in order to do all activities of business
properly. In order to arrange capital they use different resources such as long term and short term
sources.
TASK 4
P7 Different tools which are used to protect knowledge or intellectual property
Rowlinson Knitwear apply different tools and technique's to retain intellectual property.
All these are determined as below:
Patent: It is a best tool that assist in protecting entire information regarding innovation
and product development which must not be applied by any business. In order to achieve patent,
Rowlinson Knitwear need to render application to legal authority in keeping powers of applying
such innovation.
Copyright: It is refers as a rights and power of applying businesses name to produced
their own clothing goods to the customer's. For this, an enterprise should provide precise to other
organisation after acquiring some child of payment (Wonglimpiyarat, 2010).
Trademark: It is mainly related with creating registration or enrolment of business work,
symbol and tag line. It is important for the company to maintain their reputation in marketplace.
On the other side, in any cause business not apply this that they face different legal consequences
which is not god for its reputation.
CONCLUSION
From the above mentioned report, it can be summarised that innovation and invention is
main part of the business success. But both term different in meaning and other ways.
Innovation, frugal innovation and commercial funnel is more essential and important for the
growth and development of company. All these are also essential in development of new
product, services, process, methodologies and so on. Business case of innovation also important
for the organisation in order to identify basic wants and demands of the customers towards
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clothing products. There are different tools such as patent, copyrighted and trademark are highly
used in order to defend knowledge or intellectual property in an effective and efficient manner.
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REFERENCES
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thin film solar cells (pp. 5-20). Weinheim, Germany: Wiley-VCH.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
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Capozzi, M. M., Gregg, B. and Howe, A., 2010. Innovation and commercialization, 2010:
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Griffin, A., 2010. New‐Product Development Innovation and Commercialization Processes.
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Kutvonen, A., 2011. Strategic application of outbound open innovation. European Journal of
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Snow, C. C. and et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management. 28(1). pp.3-16.
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Therrien, P., Doloreux, D. and Chamberlin, T., 2011. Innovation novelty and (commercial)
performance in the service sector: A Canadian firm-level analysis. Technovation.
31(12). pp.655-665.
Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
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Yin, W. J., Shi, T. and Yan, Y., 2014. Unique properties of halide perovskites as possible origins
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Online
New Product Development Stages. 2015. [online]. Available through: <https://marketing-
insider.eu/new-product-development-process/>.
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