Importance of Innovation and Comparison with Invention

This document discusses the importance of innovation and its comparison with invention. It also explores the role of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. Additionally, it delves into the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(LO 3 & LO 4).................................................................................................................................1
This task is covered in PPT.........................................................................................................1
TASK 2............................................................................................................................................1
LO 1.................................................................................................................................................1
P1) Importance of innovation and comparison with invention...................................................1
P2) Role of Organisational vision, leadership, culture and teamwork in shaping innovation
and commercialisation................................................................................................................4
LO 2.................................................................................................................................................5
P3) 4Ps of innovation and use of innovation funnel to examine and shape innovative idea......5
P4) Development in frugal innovation........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is mainly associated with using new technologies and creative way of thinking
to add value and new features to a pre existing idea or product to make substantial change in a
product or services with the aim of improving its efficiency (Naughton and Foss, 2019). On the
other hand commercialisation is related with the process of bringing new product or services in
the market and is mainly associated with a broad concept which entails production, distribution,
marketing, sales, customer support and with all other key functions required for commercial
success of the new product or service. For this assignment the selected organisation is Vodafone
which is a multinational telecommunication company having its main head office in London,
UK. In this report an explanation about innovation and its comparison with invention is include.
Beside this, it also consists the role of organisational vision, leadership, culture and teamwork in
shaping the innovation and commercialisation. Further, 4Ps of innovation and use innovation
funnel along with development of frugal innovation are also form a part of this business report.
TASK 1
(LO 3 & LO 4)
This task is covered in PPT
TASK 2
LO 1
P1) Importance of innovation and comparison with invention
Innovation is a process of creating improvement or making significant contribution to an
existing product or services through developing better and improved features (Gabriel, 2019).
Thus, use of innovation process is made by maximum number of organisation to enhance the
quality and features of its product and makes an organisation able to remain relevant in
competitive market.
The importance of innovation is as follows:
Responding to competition and trends- The biggest advantage of innovation is that it
enhance the capability and performance of organisation through creating better features in its
product which provide better competitive strength in business market. Innovations allows an
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organisation to respond effectively towards the current the needs of customer and helps in
keeping a coordination with prevailing market trends (Çengel, 2019). Innovation has also
enhanced the capability of Vodafone and makes it able to come up with new idea and better
featured product to effectively and quickly meet and counter the demands of its customers and
thus, keep it ahead of its competitors through quickly adopting trends, technology and market
shifts.
Continuous improvement- The other important role played by innovation for an
organisation as it lead a continuous process of development and improvement through creating
and evolving new and enhanced features in a product or service. Vodafone is also giving due
importance to innovation as it provide sustainability and continual improvement to grow and
enhance the business skills and creativity.
Increase in selling point-The another advantage of innovation is it attract a larger
number of consumers for the more creative and better featured product. New and out if the box
innovation also provide positive media exposure which lead to better promotion and
enhancement in sales of of product (Yeo, 2019). Vodafone also makes continuous improvement
and innovation in its product to attract more customers and to facilitate them for picking and
purchasing new and well designed products.
Comparison and difference between innovation with Invention
Basis Innovation Invention
Definition It represent a process or efforts made
to improve and make significant
changes and modifications in an
existing product, process or service to
improve its efficiency (Innovation vs
Invention, 2019).
It is process which is basically related
with creation or introduction of a
totally new product or item for the
first time.
Main aim The main aim of innovation is to add
value to something that is already in
existence
The main motto of invention is
creation of new product or occurrence
of an idea that is never been made
before.
Concept The concept of innovation is mainly The concept of invention is related
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concerned with practical
implementation of new and creative
way of using a idea.
with an original idea and working on a
new theory.
Skills required A set and combination of marketing,
technical and strategic skills are
required for effective innovation
Invention is mainly a result of
effective scientific skills.
Activities
involved
The activities involved in
implementation and execution of
innovation is spread across the
organisation
The activities involved in inventions
are limited to R&D department and
scientific laboratory (Özilgen, 2019).
Source of innovation
The 7 sources of innovation are provided by Peter Drucker who is a grate management
consultant. These sources of innovation provide a purposeful way for Vodafone and other
organisation to search for the opportunities and mitigate the risk. The sources of innovations are
as follows:
The Unexpected- This source of innovations tends to inspire leaders and other mangers
to take advantage of emerged opportunity through unexpected and unique move.
Incongruities- This source aim at development of a product with the help of
appropriated research on the basis of demand and needs of customers (Zarrouk and Ouerghemmi,
2019).
Process need- This sources is task focused rather than situation focused and include
close monitoring of process of company to clearly identify weak spots to have corrective action
to eliminate these flaws in process.
Industry and market structure change- This source of innovation aim at keeping an
eye on changes going on in the technological environment to treat these changes as an
opportunity for better growth and innovation.
Demographics- The change in the age, education, employment, etc. have significant
effect on direction of business and can lead to better innovation and new horizons for an
organisation if identified on time.
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Change in Perception- Significant changes are taking place in perceptive and
intelligence level of people that open a road for companies to innovate and develop new product
in align with perceptive of customers.
New knowledge- Technological and scientific breakthroughs are the main source of
innovation that create a byword for innovation (DUTTA and ROUSSEAU, 2019).
These 7 sources of innovation also providing a better base and way to Vodafone to have
continuous and better innovation to develop new featured product to have better sales dan
customers base.
P2) Role of Organisational vision, leadership, culture and teamwork in shaping innovation and
commercialisation
An important role is played by the vision, leadership, cultures and teamwork in
enhancing and shaping the innovation and commercialisation in an organisation which is
explained below in context of Vodafone:
Vision
A vision is a long term statement that is set by an organisation to provide direction and a
fretwork to its employees and workers to achieve set the set targets (Chege, Wang and Suntu,
2019) . The vision of Vodafone is, “To become the communication leader in an increasingly
connected world through having better development and innovation to enrich its customer's
lives.” Thus, the vision statement of Vodafone is shaping and directing its employees to have
better level of innovation and commercialisation to provide better products and services to enrich
the lives of its customers through unique power of mobile communication.
Leadership
It represent the way and style used by an leaders to motivate and influence the employees
to make them more efficient and improve their performance. Leadership plays a significant role
in shaping innovation and commercialisation as if a strict leadership style like autocratic style is
adopted by larders than it reduce or hinder the process of innovation and creativity as employees
are not allowed to make use of their skills or to participate in decision making process
(Szutowski, 2019). On the other hand if use of democratic or transactional leadership approach is
made by leaders and due importance is given to the skills and creativity of employees which
motivates them for having better approach to innovation. Use of democratic approach is made by
Vodafone to provide encouragement to its employees to apply their knowledge and skills for
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developing and evolving new and more effective a ways to enhance the efficiency and quality of
product. Timely rewards and other benefits are also provided to employees to built their moral
and to shape the innovation and commercialisation in its organisation.
Culture
It represent the shared views, opinion and behaviour of leaders, mangers and all other
employees which form the overall workplace environment and culture. Innovation is basically a
leading indicator of organisation's ability to sustain success and in today's uncertain and complex
global business, sustainable success can only be achieved through culture of innovation.
Vodafone is taking effective steps to have better and more motivated culture and workplace
environment to encourage innovation and commercialisation in its organisation (Shi, Wu and Fu,
2019).
Teamwork
It is mainly concerned and related with team bonding which facilitates better coordination
ad interaction among co-workers and manpower thus, improve the ability of employees to think
rationally and strategically. In Vodafone also, efforts are made to encourage better team work
and many team building activities to encourage and lead to better interaction among employees.
Teamwork plays a crucial role in shaping and increasing the phase of innovation and
commercialisation in an organisation through facilitating better communication and relationship
among employees which lead to better exchange and transfer of knowledge and views which act
as a base for development of new and out of the box idea.
LO 2
P3) 4Ps of innovation and use of innovation funnel to examine and shape innovative idea
Use of 4Ps of innovation which is also known as innovation mix is made by organisation
to understand and evaluate the gap between current level of performance and the desired level
which lead to identification in flaws and areas where significant changes can be, thus creates an
opportunity to innovate or modify a product, process or service to achieve more efficiency and
better result (Rotstein, 2019). The 4Ps of innovations are explained below with respect of
Vodafone organisation:
Paradigm- It is related with the change in the way something is done in the organisation.
It can be relate with any process or operations like the way of products are sold, from off the
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counter to selling it through internet. In context, of Vodafone a shift or change in its way of
distribution of its products and mobile phones can be changed through having better innovation
in its online website to cater more customers for booking its product trough online medium.
Product- This element of innovation mix is relayed with improvement in the product or
services and how a product can be made more appealing and better than other available and
existing product. Regular efforts and attempts are made by Vodafone to have efficient
modification and up gradation in its product and services which are mainly related with the
availability of better speed and smooth network. (Xu and Maas, 2019). Beside this many radical
changes and upgraded versions of mobile set are also offered by Vodafone to have significant
amount of innovation in its product to attract more customers for its incremental and appealing
product and services.
Process- In this factor of 4Ps of innovation all the process and steps related with
manufacturing or distribution of product or services are included like supplying, workflow,
hiring of people, training, etc. This factor of innovation aim at finding the ways that how these
process can be improved and modified to increase the profit of organisation. Vodafone is very
mush concerned about its process and activities and timely changes and innovations are made to
keep a coordination of its process with the current trends and technology level of target market.
Position- This factor of 4Ps is related with the perception of organisation that how their
products and relevant changes and modifications are communicated with its target market
segment. This factor is very mush related to the positioning and marketing factor of organisation
(Choi and Zo, 2019). Vodafone ensure effective communication with its customers to have better
reach and to understand their perceptive about new innovation and desired features.
Thus, these 4Ps of innovation are helpful for Vodafone to explore possible enhancements
in various areas of its business operations and supports the idea generation process to incubate a
new idea for having better creativity and innovation in organisation to achieve the desired targets
and vision.
Innovation funnel
It is a mechanism that is used by an organisation for shaping and encouraging innovation
through developing consent stream of ides of ideas that can be used for viability and thus, helps
in innovating new features successfully. The main parts of innovation funnel which are used by
Vodafone or any other company to evaluate ideas and conceptualize products is provided below:
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Opportunity assessment- Under this part efforts are made by Vodafone to get
knowledge about existing opportunity for a new product line or line extension.
Insights based ideation- This step is related with selection of best opportunity that
properly fits with the strategy of company, thus this step is associated with brainstorming, co-
creating with customers, and conducting market research and surveys to ideate different kinds of
products or offerings that could be capitalize or innovate.
Conceptualization- Under this stage actual concepts and strategies are designed by
Vodafone for the top idea which get selected at the stage of ideation (Jones and Comfort, 2019).
Evaluation and benchmarking- The next step after conceptualisation is approaching the
target customers to test and evaluate the different concepts. For this step Vodafone is making use
of choice modelling and online website to have proper feedbacks from customers.
Go/ no go- This step of innovation funnel is related with analysis and evaluation of
feedback of customers to check or monitor the chances of success and decision regarding
whether go/ not go with the project or innovation is made.
Launch- It is the final step in which after proper analysis of feedback and chances of
success a new innovation and well featured product is launched into the market by Vodafone.
P4) Development in frugal innovation
Frugal innovation is mainly elated with the processes of deucing complexity and cost of a
product through removing non-essential features to maintain the cost efficiency in the business
operations (Alunni, 2019). Development of frugal innovation has provided a better way to
organisation like Vodafone to minimize the use of resources in development, production and
delivery of innovated product to have better sustainable growth. In practical way use of these
principles of frugal innovation are made by Vodafone to achieve the cost efficiency in its
innovation:
Engage and iterate- In this principle agile R&D, involvement of customers, interactive
prototyping, analytics, modularity, aligned incentives, etc. are included.
Flex your assets- This principle is having focus on clean/green manufacturing, micro
factories, social and collaborative manufacturing, frugal supply chain, etc. which are properly
adopted by Vodafone to meet economies of scale.
Create sustainable solutions- This principal of frugal innovations is related with bold
audacious goals, circular economic design of product, waste2waeltyh multi-purpose products,
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and sustainable ecosystem to maintain the cost efficiency in the operations of Vodafone (Planes-
Satorra and Paunov, 2019).
Shape customer behaviour- This factor of frugal innovation is focused on making
frugality aspirational, gamification, social learning, product longevity, etc. to maintain cost
efficiency while innovation.
Co create value with presumer- Under this principal efforts are made by Vodafone for
cocreation in phase of discovery, design, development, marketing, distribution and customer
support.
Make innovative friends- This principle is focused on having hyper collaboration,
supplier best practices, ecosystems partnerships, and engagement with start-ups to have better
cost efficient innovation with in the Vodafone (Naughton and Foss, 2019).
Thus, development of frugal innovation has lead to effective and better development and
creation of innovation in Vodafone through marinating cost efficiency and minimizing the
requirement of resources and mate rail needed for innovation.
CONCLUSION
From the above report and assignment it can be concluded that innovation is basically
related with creation and developing new and enhanced feature in an existing product while
invention is a process that involve creation of a totally new product. There are 7 sources of
innovation developed by Peter Drucker which helps in making and implementation successful
innovation in an organisation. The vision, leadership, culture and team work exists at workplace
of oargnstions plays a vital role in shaping and enhancement of innovation. 4Ps of innovation are
there which includes product, process, paradigms and position. At last it can be summarised that
innovation funnel and frugal innovation are two important concepts for having and shaping
successful and cost efficient innovation in organisation.
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REFERENCES
Books and journal
Alunni, A., 2019. Innovation Finance and Technology Transfer: Funding Proof-of-Concept.
Routledge.
Çengel, Y., 2019. Ramifications of the 2nd law of thermodynamics on innovation and
sustainable future. International Journal of Research, Innovation and
Commercialisation. 2(2). pp.91-104.
Chege, S. M., Wang, D. and Suntu, S. L., 2019. Impact of information technology innovation on
firm performance in Kenya. Information Technology for Development, pp.1-30.
Choi, H. and Zo, H., 2019. Assessing the efficiency of national innovation systems in developing
countries. Science and Public Policy.
DUTTA, D.K. and ROUSSEAU, M.B., 2019. ALLIANCE EXPERIENCE, INDUSTRY
CONDITIONS, AND EXTERNAL TECHNOLOGY
COMMERCIALISATION. International Journal of Innovation Management, p.2050007.
Gabriel, K., 2019. Accelerating innovation in a changing world. International Journal of
Research, Innovation and Commercialisation. 2(2). pp.105-114.
Jones, P. and Comfort, D., 2019. A commentary on local authority commercialisation
strategies. Journal of Public Affairs. 19(1). p.e1885.
Naughton, B. and Foss, L., 2019. Responsible innovation and commercialisation in the university
context: a case study of an academic entrepreneur in digital healthcare. In Responsible
Innovation in Digital Health. Edward Elgar Publishing.
Özilgen, M., 2019. Role of innovation in commercialisation of bioenergy research. International
Journal of Research, Innovation and Commercialisation. 2(2). pp.77-90.
Planes-Satorra, S. and Paunov, C., 2019. The digital innovation policy landscape in 2019.
Rotstein, F., 2019, June. Commercialisation of intellectual property [Book Review].
In Intellectual Property Forum: journal of the Intellectual and Industrial Property
Society of Australia and New Zealand (No. 116, p. 56). Intellectual and Industrial
Property Society of Australia and New Zealand Inc.
Shi, X., Wu, Y. and Fu, D., 2019. Does University-Industry collaboration improve innovation
efficiency? Evidence from Chinese Firms⋄. Economic Modelling.
Szutowski, D., 2019. Innovation source, advancement stage and company stock returns. The
Service Industries Journal. 39(13-14), pp.925-942.
Xu, Z. and Maas, G., 2019. Innovation and Entrepreneurial Ecosystems as Important Building
Blocks. In Transformational Entrepreneurship Practices (pp. 15-32). Palgrave Pivot,
Cham.
Yeo, B., 2019. What Drives University Technological Innovation Outcomes? A Re-Vitalised
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Zarrouk, A. A. and Ouerghemmi, C., 2019. Influence of atmospheric cues on the consumers'
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Innovation vs Invention. 2019. [Online] Available Through<
https://www.groupdiscussionideas.com/innovation-vs-invention-what-is-more-important-
2/ >.
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