Importance of Innovation in Organizations

Innovative
Business Case
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Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
TASK 1............................................................................................................................................2
P1 Explain innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................2
P2 Explanation of ways in which organisational vision leadership and culture and teamwork
shape commercialisation along with analysis of different innovation sources......................4
TASK 2............................................................................................................................................5
P3 Explanation of 4P’s of innovation and usage of innovation funnel to examine and shape
ideas........................................................................................................................................5
P4 Frugal innovation development and application of frugal innovation and innovation funnel
in organisational context.........................................................................................................7
TASK 3............................................................................................................................................9
P5 Significance of commercial funnel and application of new product development process
for commercialisation and innovation....................................................................................9
P6 Innovation business case for Essence Drinks..................................................................11
TASK 4..........................................................................................................................................13
P7 Evaluate the different tools Essence Drinks could use to protect the intellectual
property rights of a new drink..............................................................................................13
CONCUSION................................................................................................................................15
REFRENCES.................................................................................................................................16
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INTRODUCTION
It is important for business firms to focus on innovation in order to offer new products with high
utility to their consumer base so that they are able to survive in this industry for a long time
period. The present report is based on Food production company essence drinks. Significance of
innovation in comparison to invention is provided in this report. Different sources pf information
are analysed in this report along with the impact organisational culture and leadership on
commercialisation. 4P’s of innovation are explained in this report and frugal innovation along
with innovation funnel are applied to Essence drinks. Commercial funnel and new product
development process are discussed in this report along with the ways to protect intellectual
property rights for Essence drinks. Innovation business case for essence drinks is also provided
in this report.
Background to the company and the problem: Essence drinks was established in UK in
the year 2019. Initially the sole offering of the company was a healthy mango lassi beverage
which gained huge success in the UK market. This rapid success of the company is attributed to
the distribution capability and innovative products. Sales of the company have decreased
recently and introduction of innovative product is required to boost the sale of the company.
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MAIN BODY
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation
Innovation is the process of improvement in the existing product adding suitable features and
attributes. Basically an innovation is an action taken by someone to develop new ideas for the
better performance of an organisation (Leckel, Veilleux and Dana, 2020). In essence drinks the
company always implement the approach of innovation to maintain good collection of drinks and
to meet the changing customer demands. Innovation is a systematic and formulated
implementation of new idea in order to optimally maximize the capabilities of the business and
also to maintain the satisfaction level within the customers. There are different factors that drives
the innovation and an organisation suggests technology, new customer demands etc. Whereas
invention is a process of generating new idea in market that has never been heard or think about
in the past. Invention is a process with the potential to bring change in the market by its
objectives.
Importance of innovation in organisation
In essence drinks innovation is highly important to retain the existing customers and to to attract
new potential customers. The process of innovation in an organisation helps the company to
maintain the balance between the growth and the sales to optimum level. The innovation of new
products or services for process helps Ascent strings to gain the competitive advantage over the
Rival firms and also help organisation to increase its brand value among the consumers by
providing them with new products. An organisation that drives innovation help their employees
to develop their critical thinking and creative skills in order to commercialize the innovation in
the market. The innovation helps an organisation to capture the larger market share and thereby
able to gain better profits with the new innovation of product (Schmid and Kwon, 2020). Hence,
innovation is highly profitable for an organisation in different aspects thereby increasing the
recognition of the brand name and attracting more people towards the brand.
Difference between innovation and invention
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