Innovation within a small business context

Innovation within a small
business context
1

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and its importance to employees in comparison to invention.........................3
P2 Shaping of innovation and commercialisation..................................................................5
TASK 2............................................................................................................................................6
P3 4Ps of innovation and explain the use of the innovation funnel.......................................6
P4 Developments in frugal innovation and how it is used in an organisational context........8
TASK 3............................................................................................................................................9
P5 Importance of the commercial funnel and the application of New Product Development9
P6 Build an Innovation Business Case for an organisation, including ways to access funding
..............................................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Different tools that organisations can use to develop, retain and protect intellectual
property.................................................................................................................................11
Designing Open Innovation Based Product Development Process For Smes Using Mobile
Technologies, 2019. [Online]. Available through < https://www.researchgate.net/figure/The-
Closed-Innovation-Funnel-Model-Source-https-learnopen2studycom_fig2_316917224 >.13
2

INTRODUCTION
Innovation is a very important concept and has raised the capacity of every business to a great
extent. It is a practice through which some change is brought into the market which is capable of
performing well in comparison to those which are already available products in the market in the
same filed (Ahn, Minshall and Mortara, 2015). Though it requires lots of practice and thoughts
before bringing innovation into something but once it is launched, difference in the business can
be observed. Invention is another concept under which an entirely new product or service is
invented. Chilly’s was founded in 2010 by James Butterfield and Tim Bouscarle. It deals in the
bottle products and aims to deliver a bottle that can provide cold water to the user at any time.
Innovation and invention in the same business context will be discussed in the following report.
Other concepts that are related to this practice will also be highlighted which will further help in
understanding the change and into more detail.
TASK 1
P1 Innovation and its importance to employees in comparison to invention
Chilly deals in daily product which is bottle that is used by a huge population. As it
belongs to the industry which has very close competition it become crucial for the referred to
enterprise to keep on innovating its products so that customers can be kept interested in the brand
and hence maximum market can be covered. Innovation is a concept through which they can
bring change in the present features of the bottles and by adding value to same it will be able to
differentiate its product from the other (Chun, Chung and Bang, 2015). More importance of this
concept for Chilly’s can be understood from the following points:
Facilitates adaption of black swan events – the internal and external factors for any
business keeps on changing. It is very crucial that there is adaptive culture in the organisation. In
case of any opportunity present outside innovation facilitates management to adopt same and
hence the overall business can be brought to next level. If the work force is rigid and do not
favour change then there are chances of staying behind in the race of rivalry in the industry.
Helps in achieving the competitive advantage – Every business has different capacities
and those which has the innovation supporting culture gives a good completion to other brands.
By bringing a new feature in Chilly’s bottle it will be able to deliver better option to the
customers and hence will cover greater market share. Also this aids in establishing customer
3

relationship as they feel that their demands are recognised and hence long term relations are
established.
Facilitates international business – range of brands are dealing operating at international
level. to maintain or create demand differentiation has to be there in the brand products. Only if
Chilly’s deliver a better or new product to the customer it will be able to create its demand. If the
same product is delivered by all the organisation than customer will be indifferent in choosing
which product, choose (Dries and et.al., 2013). Apart from this if the domestic customers are
satisfied once than it becomes easy to take the same product at global level
The above discussion shows that how through innovation better business can be done.
Distinct from this is the concept of invention. Mostly it is misunderstood by the people and they
consider it same as innovation which is not correct. Invention is a different practice which is a
result of an entirely new thinking and results into bringing a huge difference in society or
business. The variance in both the concept can be better understood from the following table:
Innovation Invention
Innovation is a process through which alteration
is done in the already existing product or service.
Invention on the other hand is a result of
completely fresh thought or concept which
brings a noticeable change in the business.
It is a less time consuming process a
modifications in the already existing products
and services are made.
This is a more time taking concept as
everting is started from zero.
Less thought process is required and can be
suggested by any employee in the business.
Contradict from innovation, invention is
more complex activity and needs expert
advice and suggestions.
4