Importance of Innovation and Commercialisation in Business

Unit 8 - Innovation and
Commercialisation
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INTRODUCTION
Innovation is required in every business to modify process and method and produce new
products and services. With innovation it becomes easy for them to compete in industry and
sustain for long term (Capponi and et.al., 2019). However, it provides a direction in which
organisation has to proceed. Moreover, in such a competitive business world it is necessary for
companies to gain competitive advantage. Along with it, quality of services and products is
enhanced and costs is reduced as well. Companies need to implement innovation in an effective
way.
The assignment will reflect on importance of innovation and how it shapes culture,
leadership, team work, etc. also, it will describe about 4P’s of innovation and funnel. Moreover,
development in frugal innovation will be explained. In addition to it, commercial funnel and
NPD of innovation is determined. At last innovation case is described along with tools through
which intellectual property can be retained and protected.
P1 Innovation and its importance with the differences with invention
Innovation can be defined as a process of improving effectiveness of a product by
creating and improving them and adding some innovating features. In other words, it can also be
said that it is a successful exploitation of new ideas for attracting customers and increasing sales
by satisfying their needs and demands. There is some importance of innovation in the context of
business and developing a new product as Sainsbury's want to develop organic food products and
healthy drink. It thought about this idea because people of UK are becoming more health
conscious and there is a high intensity of competition in this food and beverage industry. Some
advantages which it can get by innovating its products and developing new product in existing
market such as:
Increase productivity: The main benefit of innovation and developing a new product or
organic food is, company can increase its productivity. People want to try something new, and
they change their needs continuous manner so, by providing them new product or innovative
product, an organization can attract wider range of customers (Yu, 2018). It will lead in
increasing overall productivity and sales of the company.
Beat competition: Food and beverages industry of the UK is increasing and developing
in a rapid manner and due to this development, it is increasing competition among players.
Sainsbury's have several rivals or competitors such as Tesco, ASDA etc. For being in the
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competition it is important to provide attractive and innovative food products So, by providing
organic food products and innovative product, Sainsbury's can beat the competition and become
the market leader.
There is a difference between innovation and inventions. The definition of invention is
the process of creation of a product and introducing it and it processes in the market for the first
time (Giuliani, Martinelli and Rabellotti, 2016). On the other hand, innovation means to make
existing products attractive as well as developing new product by adding some innovative
features in them or make some significant contribution to an existing product, processes and
services. In this context, it can be said that Sainsbury's introducing a new product in its existing
market and to its existing potential customers. So, it shows that it is innovation and for that it will
require to use some innovative strategies. So, it can be said that invention create something new
and innovation creates something that sells.
P2 How vision, team work and culture shape innovation
In a business, innovation is shaped and implemented through its vision. This is because the
company vision reflects its core values, ethics, etc. that makes things easy to get it done in proper
way. However, vision statement of firm enables employees, managers, etc. to take effective
decision and develop strategies that where innovation can be done and how it is implemented.
It is evaluated that another major factor is organisational culture. it is because culture depends on
vision. Also, maintaining and having a positive culture creates a passion of doing something
new. It boosts employee confidence and allow them to contribute in developing new product or
innovation (Chen and Vanhaverbeke, 2019). Moreover, if culture is positive it automatically
helps in shaping innovation. The roles and responsibilities are assigned to staff and along with it
new goals and objectives are set. It highly impact on their behaviour in positive way. they are
able to contribute in attaining goals. Besides that, managers also support in developing plans and
implementing it.
Likewise, team work also play crucial role in shaping innovation. It allows staff to work in
team and contribute in attaining goals. So, when innovation is implemented, various teams are
formed and assigned roles and responsibilities. Thus, each employee works in team and they all
share ideas and views with each other. the higher team work leads to increase in efficiency.
Alongside, with proper communication activities are performed in effective way.
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