Innovation within a Small Business Context

INNOVATION
WITHIN A SMALL
BUSINESS
CONTEXT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance in comparison with invention..........................................1
P2. Role of organisational vision, leadership, culture and teamwork on shaping innovation and
commercialisation...................................................................................................................3
M1. Analysis of different sources of innovation....................................................................4
TASK 2............................................................................................................................................5
P3. 4P's of innovation and innovation funnel usage...............................................................5
P4. Developments in Frugal Innovation.................................................................................6
M2. Analysis and application of Innovation Funnel..............................................................7
M3. Evaluation of role of Frugal Innovation..........................................................................7
D1. Critical Analysis of how innovation is developed, embedded and measured.................8
TASK 3............................................................................................................................................8
P5. Importance of commercial Funnel and Application of New Produce Development.......8
P6. Innovation Business Case...............................................................................................10
M4. Measures to test, iterate and improve...........................................................................11
TASK 4..........................................................................................................................................12
P7. Evaluation of Different tools to develop, retain and protect intellectual property.........12
M5. Evaluation of tools in context of wider business environment.....................................13
D2. Critical Evaluation of nature of innovation...................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation refers to the procedure which is adopted by companies in order to introduce a
distinct and useful feature within their existing offerings in the market. The agenda behind the
same is to enhance the usefulness and importance of the product and service in context of its
functioning and scope (Chun and et. al., 2015). Moreover, innovation is also necessary for
organisations in order to appropriately and effectively gain a competitive advantage and long
term sustainability in the niche as well as potential markets. The report below is based on
Chilly's, which is one of the most effective and recognised organisations within the UK.
Moreover, the mission of the firm is to create offerings for an active urban lifestyle and ensure
inclination towards everyday use of reusable products. The company is currently planning to
expand its product line to remaining competitive. Hence, the report covers explanation in context
for innovation and determination of difference between invention and innovation. Moreover, it
also covers explanation of different types of innovation along with discussion of processes
required to commercialise innovation, within Chilly's. Furthermore, the assessment also
evaluates range of methods for protecting ideas and understand their advantages and
disadvantages.
TASK 1
P1. Innovation and its importance in comparison with invention
Invention is the procedure of creation of a completely new offering, which has never
been created before. Furthermore, it is the process through which either a new demand in the
market is created, or an existing demand is resolved. Moreover, this aspect is a core development
of ideas and experiences of an individual or group, into a unique and valuable offering
(Rasmussen. and Eliason, 2017).
On the other hand, innovation is appropriately adopted in bringing in improvements and
addition in features within a firm's existing products and services. However, there are several
points of its importance, to reflect value of innovation within a company, which are mentioned
below: Competitive Edge: One of the major aspects which reflects importance of innovation is
related to gaining a competitive edge within the market. This is because it enhances the
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capability of the organisation to overtake other companies in terms of introducing new
features within the products, as per the changing market. Return on Investment Maximisation: Another importance of innovation within an
organisation like Chilly's is that it helps in maximising Return on Investment (The
Importance of Innovation – What Does it Mean for Businesses and our Society?, 2019).
This is because, changing as per the current scenario helps the company in enhancing its
demand and hence, improve its profitability. Research and Development: This importance of innovation is related to the research and
development and in comparison with invention, it is highly beneficial as it allows the
organisation to cover wider market area and enhance the scope of improvement in
features of offerings of the organisation. Thus, innovation helps the company in making
their products more useful, in comparison to invention.
 Costing: In terms of costing, while invention requires development of a whole new
product, innovation helps in adding valuable features in products of an organisation,
which is less costlier for the company
In addition to the above facts, there is a significant differentiation between innovation and
invention which is reflected below:
BASIS INVENTION INNOVATION
Scope
The scope of invention is quite
wide as it is related to a
complete development of a
unique offering.
Innovation, on the other hand,
is implemented on ensuring
improvements or additions
within the service and
products.
Occurrence
It occurs whenever a new
demand is created or a new
idea is required to be
developed.
Its occurrence is subjected to
bringing improvisations within
the existing offerings.
Applicability R&D department undertakes
invention and it is applicable
to that extent only.
Innovation is adopted by the
whole organisation and is
applicable to each and every
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