Innovation within a small business context

Innovation within a
small business context

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and determine its importance to organizations in comparison with
invention.................................................................................................................................3
P2 Explain how organizational vision, leadership, culture and teamwork can shape innovation
and commercialization............................................................................................................5
TASK 2............................................................................................................................................7
P3 Explain the 4 P's of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organizational context............................................................................................................8
TASK 3............................................................................................................................................9
P5 Explain the importance of commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation..................................9
P6 Build an innovation business case for an organisation, including ways to access funding10
TASK 4..........................................................................................................................................11
P7 Evaluate the different tools that organizations can use to develop, retain and protect
knowledge and intellectual property....................................................................................11
COCNLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is defined as activity and process for conversion of new ideas and thoughts
into goods and services that possess value and consumers pay for it (Blackburn, Hart and
Wainwright, 2013). This can be process for making modification and changes in existing
products and services of organisation in order to earn high profits margins and satisfying
requirements of consumers. Similarly, commercialisation is defined as way of bringing new and
innovative products and services at market. This includes different activities like manufacturing,
selling, distributing, customer support and many more. The given report is based on Chilly's
which was founded by Tim Bouscarle and Butterfield in 2010. This focus on offering people
with cold water on the go in order to avoid single use plastic bottle. The report will discuss about
innovation and importance in context to invention. It has also covered 4P's of innovation and
using of innovation funnel to know about new creation. It also highlights about importance of
commercial funnel, innovation for business case and application of new product development.
TASK 1
P1 Explain innovation and determine its importance to organizations in comparison with
invention
Innovation
This is defined as procedures in order to make innovative in existing product of
organization and doing new in unique and attractive way for products and services of business
(Bridge and O'Neill, 2012). It is regarded as activity in order to implement new ideas and
thought through which enterprise can provide variety of products to their users by making
alteration according to their requirements.
Importance of Innovation
Innovation is very importance at workplace as it assist in providing boundary in
identifying market in quick and easy way as it offers high products to users which helps in
maintaining relations for developing markets that leads to grow bigger. In context of Chilly's,
innovation is important for generating new business which is cardinal source of development and
success of organization. It is important for company to do innovation that assist in making proper
improvement and development of products and services as per specified target people. The
importance of innovation in context of respective organization are:

Satisfying Customer Needs- People of today's era are health conscious and prefer reuse
products (The Importance of Innovation, 2019). The respective organisation focus on fulfilling
need and demand of consumers through innovation by offering them reusable bottles. It assist in
enhancement of sales and profitability.
Gaining Competitive Advantage- Innovation helps in gaining competitive advantage by
offering products and services as per consumer requirements. Chilly's can get competitive
advantage through compatibility of products from market. As it is manufacturing reusable bottles
in various size to gain competitive edge from market.
Invention
This is defined as new things that has made or created by someone or identification of
new ways for manufacturing goods and services (Chang and Hughes, 2012). It is referred as
specific process that offer new insight. Whenever organisation focus on innovation they required
specified area for doing invention.
Comparison Between Innovation and Invention
Basis for comparison Invention Innovation
Meaning This denotes occurrence of new
ideas for goods and services that
has never made before.
It is the procedure which focus on
improving products and services
with help of using new ideas for
first time.
Concept New idea is developed according
to theory.
There is functional executing of
new ideas.
Necessary skills It requires scientific skills
(Difference Between Invention and
Innovation, 2019).
It requires marketing, strategic and
technical skills.
Activities It is limited to research and
development activities.
It perform activities of extended
crosswise.
Invention and Innovation-
Invention is referred to introduction of an idea or process for the first time and involves
creation of a new product. Anew invention is significantly different from previous inventions and