Innovation and Management: A Comparative Analysis

This assignment delves into the world of innovation and management, covering the innovation mix, new product development process, and various tools used to drive organizational growth. It discusses how the innovation funnel meets market demand, the importance of commercial funnels in guiding customer purchasing decisions, and the challenges faced by organizations in developing, retaining, and protecting innovations. The assignment also touches on the role of 3D printing in intellectual property and innovation law, as well as the impact of technological innovation on carbon emission reduction in supply chains. It concludes with a discussion on the future of print crime and the legal implications surrounding 3D printing and emerging technology.

INNOVATION AND
COMMERCIALISATION
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview of ALDI ................................................................................................................1
Innovation and its importance ...............................................................................................2
innovation shaped organisational vision culture, leadership .................................................3
4ps of innovation and explain the use of innovation funnel to examine and shape innovative
ideas........................................................................................................................................4
Develop the frugal innovation and evaluation how to used frugal innovation in ALDI........5
Importance of the commercial funnel and application of new product development process for
commercialisation of innovation............................................................................................6
Innovation business case for ALDI including ways to access funding..................................7
Tools that organisations can use to develop, retain and protect knowledge intellectual
property...................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is related to the new product or method present in the market and Exploitation is
related to the process of managing or running something for financial gain. This report
summarized the AlDI's current situation and key activities. Innovation and its importance to the
employee of ALDI and different source of the innovation. Report also describe the vision and
mission of Aldi. Project introduced the 4Ps of innovation and use of innovation funnel. Develop
frugal innovation and importance of the commercial funnel and process of the New Product
Development.
Overview of ALDI .
Innovation: It refers to the implementation of some ideas for a product and a process. It
helps to add some more value in the already existing products and a person needs some
marketing and strategic skills.
Invention: It refers to an idea that helps to make a new product or a process which have
never been made. A new idea needs ot be implemented in order to raise the profit of a firm.
ALDI is a supermarket chain doing its business in household goods, alcohol and health
drinks. It is a collaboration of two German supermarket chains. Its logo display both the
companies name which are A is for ALDI NODE and ALDI SUD in logo picture. large sore
chain over 20 country. Approximately 104,400 number of employee are working with
organisation. ALDI stores have a unique feature that it does not contain only essential facility in
store so that goods can be delivery at low price to customer. This company is more focused on
cost cutting so it has policy to use weekly direct advertisement which are in form of mail and
brochures are distributed in stores only. ALDO also diversifies its business in mobile service
provider in Belgium and Netherlands as ALDI TALK. HOFER is its subsidiary company which
has joint venture with local petrol and energy distributors in Austria. These petrol pumps also try
to use less frills at petrol pumps. It mainly provide their own product rather than branded
products. ALDI rarely practice discount on its product as they already offer low cost to customer
but it use discount policy for gift items, flowers, children toys are cloths in weekends only.
ALDI have clear customer satisfaction policies like customer ask to return the unsatisfactory
food item, quality check standard label to its products, suppliers information on package. ALDI
do not use hydrogenated oil, artificial colour. Gluten free product are in trend which is also
follow by ALDI. its corporate social responsibility is commitment to customers,
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employees,planet. ALDI code of conduct is to insure fair and healthy practices in day to day
work. ALDI social standard in production insure minimum quality standard which has to
maintain by it suppliers and other stakeholder.
ALDI perform various activity to insure quality product and best business practices. It
make contact with various farmer to get the fresh and best raw material, environmental safety
work by recycle are waste reduces. ALDI use metal gates in the stores so that counting of the
bags can be done fast. ALDI try to get special discount from the supplier so that cost reduce
vision of the organisation can be maintain with no compromising quality.
Innovation and its importance
Innovation is the process to implement something new which can add a value to existing
product or service. this new thing can be a latest technology, product improvement, new idea or
and imagination. Innovation are doing by the every organisation for smooth function or better
customer satisfaction. There are two type of innovation can be done , first to bring whole new
product and service with innovative feature and second is to upgrade the existing products
competency. Every innovation Patrice must have two element first it has some economic cost
and also it brings improvement and must satisfy the customer need.
Innovations increase efficiencies- innovative machine and technology use by organisation in
day to day work will help employee to get the work done in less time, with less human error.
Quality and quantity of the work also increases.
For example ALDI use radio frequency identification for inventory which provide
information about inventory quantity by sensors. Quality of the vegetable and food indigents can
be check at the door with minim human inter fair and efforts (Mendis, Lemley and Rimmer,
2019)
Easy communication- innovation in production process, maintain data, quality management
function can give every information to supervisor when they needed. Employees do not have to
give manual report to their supervisor. Higher authority also get to know employee training
requirement , all functional department can take quick decision as they know the status of all the
works. ALDI uses latest software CRM to maintain customer information. Higher authority can
set accountability on the basis of customer complaint.
Innovations motivate employee- innovation motivate the employee as they feel organisation
seek innovation in very function. Employee feel themselves fir for adopting new technology and
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business environment. When innovation are implemented in organisation proper training and
development are given to the employee which increases employee engagement, growth
opportunity,carrier advancement opportunity to employees. ALDI organised training and
development programme it changed old production machine with new AI inbuilt machine to
make healthy drinks.
Innovation sources can be need of change in production process, demographic change , change
in customer need and preferences, changes in market location, new knowledge and idea and
change in competitor policy, product improvement etc.
innovation shaped organisational vision culture, leadership
Organisational culture are the common practices, value and belief, principle of all the
employee. Organisation culture include technology, strategy, product, code of conduct,vision and
mission of the organisation.
If employee are open to adapt change, dynamic organisational culture always welcome the new
idea and innovation. Employee cooperate in implementation and less resistant of changes will be
seen by the current employees. type of leadership also affect the innovation process for example
a team has autocratic leader, he will not ask the employee to give their new idea. Insecure leaders
are resist the innovation as they have fear to loose their position (Lusch and Nambisan, 2015)
Leader make the employee ready to use innovation , help in create the positive environment.
Companies vision are the long term goal which it want to achieve by mission. Innovation help an
organisation to reach customer satisfaction, help in reduce cost, increase the employee
satisfaction , increases productivity which eventually give profit to entity and make brand image.
Normally organisation are pay less attention to behaviours aspect of implement the innovation.
Organisation can predict the output when change is made in machines and mechanical process
prediction of human reaction is very hard to guess. If innovation get success it will beneficial for
all the stakeholders but if it become disaster than it can decrease the current market share of the
product. Organisational culture also consist set of education and skill competency a organisation
have to implement the innovatio (Xin and et.al., 2019)
ALDI always take care about the behavioural aspect of the change and innovation. It
vision to provide fresh food and inexpensive product require many innovation to cut the cost.
ALDI put innovation as crucial element for the company so that employee are open to change
and innovation. It also gave training to team leader and supervisor to adapt the change. Also
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share all the required information with employees so that they will take innovation as their own
benefit. Innovation enhance the customer satisfaction. A company can change perception of the
customer by making innovation. Also influence the customer choice. Organisation can stimulate
the innovation by encourage creativity, employee participation in decision making, give
employee chance to enhance skill and knowledge of the industry .(Lusch and Nambisan, 2015.)
4ps of innovation and explain the use of innovation funnel to examine and shape innovative
ideas
Our chosen company is ALDI beverages which provide the alcoholic and non alcoholic
beverages iin global level which are permitted by the local and countries law.
4PS OF INNOVATION
The 4ps of innovation mix is different from the Marketing mix the 4ps of Marketing mix
include Product, Price, Place, Promotion on the other hand 4ps of Innovation are Product,
Position, paradigm and process.
Innovation mix
Product- There is an always a question for the employees and management that how can
company improve the product and service, how to make it more appealing and creative than the
other existing product. Ideas from different people help to make product better it is known the
incremental change. ALDI is planning to launch there product in health beverages so they need
many suggestion of people for their product. The suggested innovation is make the product
completely different.
Position- position factor of the innovation mix relate to where to company have targeted the
offering. People may consider the position to the promotion mix but its different. Position relate
to the perception of the people. Today market place position is everything for the company.
Company is not get profitable by their goods and services they get profitable from the perception
of their customers about them. Position is all about the image in market and satisfaction of
customers
Paradigm- It means that the changes are applied in a ALDI such that the company innovate
some organic products. At this P helps to attract wide range of customers through its new and
advance technology. As the firm wants to innovate organic products because people are more
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health conscious and they need healthy foods that is why the firm uses this innovation (Drucker,
2014.).
Process- It doesn't mean to include the process to prepare the product or service there are many
other processes like all the processes connected with supplying, selling, recruiting, and even
accounting. Process innovation is anything that help to improve the processes the company. The
new ideas applied on the existing product can increased in profitability. Innovation processes
include that how company can communicate between themselves, with their customers, How
they managed themselves what are the processes of their decision making.
Innovation funnel innovation funnel relate to the developing a product that can meet with the
market demand and need in economical and manufacturable form by the taking of idea from
concept to reality. The shaping of the innovation funnel have few facts that has to be include in
like what is the problem that have to solved, what are the desired outcome, who will be impacted
by this project and who get the benefits from the project. Innovation funnel should be wide from
the front to get many potential ideas and narrow from after the selected few ideas that are
actually carried out within the active portfolio.
Develop the frugal innovation and evaluation how to used frugal innovation in ALDI
Frugal innovation- Frugal innovation or engineering innovation relate to the process of the
reducing the complexity and cost of good and its production. Frugal innovation also refers to
removing the non-essential features from the product.
ALDI develop Frugal innovation and how it can be used
Cut production costs- ALDI looking for the cut of material costs and use of optimize the
resources
Instead of selling of the waste material company have to send it to the recycle centre and create
the another products, set the performance parameters that reflect the employees' efficiency goals.
Optimize with technology- there are two ways when technology allow reducing the cost first
one is automation of certain production processes its help to greater consistency and reduced the
cost and it helps to evaluate the production work flow. It is important for ALDI to use
automation in their process as much as possible because in this competitive market there are
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many companies already use a high degree of automation system(van den Ende, Frederiksen and
Prencipe 2015).
Change Design- IT is helpful for the ALDI to reduce their production cost to redesign the
product, what are key factor that are responsible for the success of company it has to be find by
the company have to eliminate the unimportant things while retaining the characteristics that
customers value. There is no need to put the expensive labels of the bottles, unique design of
packaging that is costly that should have to remove by the ALDI.
Importance of the commercial funnel and application of new product development process for
commercialisation of innovation.
COMMERCIAL FUNNEL OR SALES FUNNEL- It is also known as revenue and
sales funnel it refers to process of buying that companies direct the customers through when
purchasing products.
Importance of the commercial funnel
Product awareness- it is important for the ALDI to introduce their new product to the
customers. Customer will able to get to know more about the product with the right sales funnel.
Its help to the company to connect with more customers. Many times company launch good
product but if customer don't have the knowledge that what the product that are customers will
not able to buy it.
Increase in sales- commercial funnel is important because its lead the customer to buy the
product its help them to show the benefits of the product why they have to buy that product.
ALDI is planning for launch there healthy beverage, so its important for them to guide the
customers that what is the advantage of that drink its can help to make up their mind to purchase
the product.
Increase the conversion rate- when people moving to the sales funnel its possible that there
number will decrease but people who are staying in funnel is more likely willing to pay more
expensive products. Its help to filter out the non target customer and those one who stay they will
buy more product so its help to increase the conversions rate (Adler, 2015.).
Application of new product development process for innovation-
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New product strategy- innovators have to create the goals and objectives, ALDI had planned to
launch there new product so there new product strategy is to launch the health drink which attract
the new segment of consumer in company.
Idea generation- ALDI has to need the many ideas for the product from the different sources it
could be internal or external.
Screening- after getting the different ideas from different sources employees has to shortlist or
summarized the ideas by the selecting of the best one.
Concept Testing- in concept testing employees make the structure of idea in detailed that it
could be present, what is its quantity etc.
Business Analysis- business analysis is determined that what could be the production and other
cost and how much net profit will earn company is it meet with the objectives or not.
Product development- after all this process company is finally ready to start the production of
the product.
Marketing testing- marketing mix is tested through a trial run the product it could be by the
providing free sample.
Commercialisation- Introduce the product in market(Urabe, Child and Kagono, 2018).
OVERCOME CHALLENGES FOR SUCCESSFUL INNOVATION
There are many challenges has to face by the company to open an innovation that could be legal,
operational and cultural, for legal challenges company have to get the proper knowledge of the
innovations and legal documentation. For operational challenges company have to select and
implement the effective ideas process. For cultural challenges company have to establish an
efficient internal structure that help to manage the environment.
Innovation business case for ALDI including ways to access funding
ALDI is leading retailer which has 10000 stores in worldwide. Its estimated turnover is
€50 billion. One of the toughest factors in innovation is business case much of the information is
imperfect. ALDI is launching a health beverage product because of the demand of the customer.
Company is targeting with this product to the health conscious people, company set the
marketing mix of product it is new product for the world as well as for the company. It is the best
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product in this price range so its can easily attract the customer. There are many other
competitors in market who can give the competition to the new product of ALDI. Company have
to find out the numbers of customers, what could be turnover, estimated profit etc. Product is
developed in this time because people are so health conscious there demand for this product is
raise from few years(Resnick and et.al., 2016).
ALDI wants to innovate new organic products for their customers because it will help them
to attract wide range of customers and as a result, it also raise the profitability of a firm.
ROI is as follows:
Particulars Amount ($)
Selling expenses 25000
Raw material 1500
IT expenses 20000
Miscellaneous expenses 25000
Total 715000
From the above, it has been concluded that this innovation helps to raise the profit of the
company by 40 percent. Therefore, this technology or innovation helps ALDI to raise their brand
image in market.
ALDI access funding from selling its product and there are many sources for access funding for
innovations like
 Governments grants- grants obtained from different levels of government for a variety
of purpose and industries. Criteria can differ from grant to grant.
 Debt- sourcing funds from third party and agreeing to give their money back.
 Equity- sourcing funds from third party with agreement to give the investor a share of
the business.
 business angels- high worth individual who invest directly into business for equity
 Venture capital- venture capitalists are fund manager who invest other people's money
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 Crowd funding- funding the project by raising money from, large number of people.
Tools that organisations can use to develop, retain and protect knowledge intellectual property.
Intellectual property are the category of the products which includes some creations of
human intellect. There are so many IP which can be used by ALDI such as:
Trademark: It is a sign or symbol which identifies a product belongs to a particular
brand. It is a legal which is described on package and label or voucher in order to make itself
differentiated from others. This mark helps an owner to protect themselves from any
infringement claims. ALDI also uses trademark such that it has its own symbol which makes its
product different from others.
Patents: It is a prescribe by a government authority and also provide a right to exclude
others from using, making and selling their own products. This types of rights are granted in
exchange for a public disclosure.
Copyrights: It refers to a legal right of an owner such that the owner has a right to copy.
In this, the original creator of a product only gives an authority to reproduce the work and it IP
also helps to protect the services from any wrong things.
Survey feedback- survey help to collect he data via a questionnaire. Decision making is from
the collected information. The answer to survey feedback range from work quality, condition of
work, working hours, salaries. From collect data managers pinpoint the problems and draft plans
for solutions. Its help the organisations to develop the area where is required.
Team building- team buildings are designed to improve the capacity to the employee to work
together as a team in tough environment. Sensitivity increase in team members is the main
purpose of team building.
Sensitivity training- sensitivity training is the most popular organizational tool. Sensitivity
training help to interact in order to better understand with the other employees. As result its help
to team members become more motivated and efficient in different work environment.
Brain storming- in organizational development tool involves that many managers come on the
same problem with their different perception. Its help to get creative thinking, its brings team
members together and helping them engage in a lucrative discussion of fixing a problem (Kogan
and et.al., 2017).
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Management by objectives- management by objectives help to pinpoints thegoals of the
organisation and assigning them to managers. Their responsibilities to done the task on efficient
time manner.
Quality circle- Success of the task is possible by the managers who willingly participate in the
work.
Process consultation- a organisational consultant help to the employees as well managers to
give the suggestion to their work where they need to improve, its gives the guidelines on how to
handle and tackle work related problems
CONCLUSION
From the above report it has been concluded that how the innovation mix work for the new
product launching, important of the innovation funnel for the understanding the market demand
are meet with new product and commercial funnel help the customer to guide the buying of
product. New product development process include various step to introduce the product in
market. Different challenges legal, operational and cultural and overcome factors and sources
where innovation get funds. Tools that help the organisation to develop, retain and protect the
innovations etc.
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REFERENCES
Books and journals
Mendis, D., Lemley, M. and Rimmer, M., 2019. The future of printcrime: Intellectual property,
innovation law, and 3D printing. In 3D Printing and Beyond: The Intellectual Property
and Legal Implications Surrounding 3D Printing and Emerging Technology. Edward
Elgar Publishing Limited.
Xin, C. and et.al., 2019. Optimal Decisions for Carbon Emission Reduction through
Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel
Preferences. Discrete Dynamics in Nature and Society.2019.
Resnick, S. M. and et.al., 2016. Marketing in SMEs: a “4Ps” self-branding model. International
Journal of Entrepreneurial Behavior & Research.22(1). pp.155-174.
Adler, P. S., 2015. Community and innovation: from Tönnies to Marx.
Kogan, L. and et.al., 2017. Technological innovation, resource allocation, and growth. The
Quarterly Journal of Economics.132(2). pp.665-712.
Urabe, K., Child, J. and Kagono, T. eds., 2018. Innovation and management: International
comparisons (Vol. 13). Walter de Gruyter GmbH & Co KG.
Lusch, R. F. and Nambisan, S., 2015. Service innovation: A service-dominant logic
perspective. MIS quarterly.39(1).
Bloom, N., Draca, M. and Van Reenen, J., 2016. Trade induced technical change? The impact of
Chinese imports on innovation, IT and productivity. The Review of Economic
Studies.83(1). pp.87-117.
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