The Role of Innovation and Intellectual Property Rights in Business Success

This assignment delves into the differences between invention and innovation, highlighting the significance of introducing new products to maintain competitive advantage. Through the lens of IKEA's approach to innovation, the report discusses how companies can benefit from innovative offerings and secure their ideas using intellectual property aspects such as trademarks, patents, and copyrights.

UNIT 8 INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and determine the different between invention and innovation.....................1
P2. organisational vision, leadership, culture and teamwork can shape commercialisation and
innovation...............................................................................................................................3
TASK 2............................................................................................................................................4
P3) 4Ps of innovation and uses of innovation funnel.............................................................4
P4. Frugal Innovation.............................................................................................................5
TASK 3 3.........................................................................................................................................6
P5 Importance of commercial funds and application of new product development processing
for commercialisation of innovation......................................................................................6
P6. Build an innovation business case for an organisation including ways to access funding7
TASK 4...................................................................................................................................7
P7. Different tools that organisation can use to grow, retain and protect knowledge and
intellectual property................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Books and Journals...............................................................................................................10

INTRODUCTION
In the recent times, companies lay high level of emphasis on undertaking innovative
practices with the motive to gain competitive edge over others. The aim of the file is to
understand the importance of innovation and commercialisation. Most of the companies earn
their profit while using innovation plan or introducing new ideas to improve conditions exiting
product or developing new goods or services. This file is also explaining the method of
protecting ideas and innovative aspects introduced in the market (Drucker, 2014). It helps to
understand the importance of Intellectual Property Rights. It also highlights new product
development concept it is also very helpful for generating more profitable for IKEA
organisation. It also defines this file build a case of innovation which is very effective for long
run business.
TASK 1
P1. Innovation and determine the different between invention and innovation
It is referred with creating an idea for providing satisfaction and to fulfil the expectations
of a customer. It includes process by which are related to new ideas and is useful for products.
Innovation is the process of translating values of goods and services. It involves different values
from resources, imaginations or information and includes all those processes which create
innovative ideas for increasing sales (Union, 2014).
It is very important for increasing the purchasing power of buyers. It is reserved not only
to large size corporations, small companies who generate ideas for growth in their business but
they also want a competitive position in the current market where big companies dominate small
organisations.
Innovation is very necessary for developing new business. IKEA is amongst the most
innovative organisations; it is a multinational enterprise which sells their products by using new
technology for improving their product’s performance so this corporation make great idea like
world changing innovation types so they also change the environment of their company if they
make thoughtful plan. Through innovation, this enterprise provides different competitive position
in all market places. They also focus on marketing strategies and achieve goals of their business.
It is benefits for customer they people want sever the motive of this organisation is to earn huge
amount with innovation. They sell their furniture’s products with new idea they modify their
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services in time-to-time, most of the people like this company product. IKEA introduce their
product with innovation, they also create introduction of their service through invention. All
numbers of product with new ideas so it is very important for this industry they also provide their
goods and services in an effective manner.
IKEA organisation need to identify this resource, process, risk, business partners and
suppliers and is very helpful for make successful their innovative ideas these things will help to
generate profit in this company. It is also helped for assessing the value of market, money of the
new ideas and their innovation this corporation is a critical implicit factors. Therefore,
innovation is very important term in every organisation and invention is also very useful aspect
which will help for introducing the new product in the market. Though innovation large and
small organisation is also improved their existing product performance. Innovation refers with
new ideas and inventions help to introducing products
The main motive to this organisation is to earn huge amount with innovation. They sell
their furniture product with new idea they modify their services in time-to-time, most of the
people like this company product (Drucker, 2014). IKEA introduce their product with
innovation, they also create introduction of their service through invention. If this organisation
makes significant contribution to an old product, process or their services so they improve their
growth of the business. They adopt new technology for improving their product performance so
this corporation makes great idea like world changing innovation types so they also change the
environment of their company if they make thoughtful plan. Through innovation this enterprise
provides different competitive position in market places. They also focus on marketing strategies
and achieve goals of their business (Union, 2014). It is benefits for customer they people want
several numbers of product with new ideas so it is very important for this industry they also
provide their goods and services in effective manner.
IKEA needs to identify this resource, process, risk, business partners and suppliers it is
very helpful for make successful their innovative ideas these things will help to generate profit of
this company. It is also helped for assessing the value of market, money of the new ideas and
their innovation this corporation is a critical implicit factors. So innovation is very important
term in every organisation and invention is also very useful aspect it will help for introducing the
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new product in the market. Though innovation large and small organisation is also improved
their existing product performance.
P2. organisational vision, leadership, culture and teamwork can shape commercialisation and
innovation
IKEA organisational vision is to improve performance of their business while using
innovative ideas, this company’s manager must clear their vision , mission and value of their
work so this the responsibility of the top level management clear their mission target like how
can increase product sales so they make effective plan for increasing their sales in the future.
They also make effective market strategies which are also affected their goods and services. The
main motive of this company is to enhance sales by offering quality products to the customers.
Further, they make innovative plan regarding their work or product so they proper use of their
resources in effective manner (Amabile, and Pratt 2016). Leadership is the part of the firm
management it helps to influence other people so it the most important aspect most of the firms
use this term leader. Leadership is the process of motivating other employee they get ready to do
work in effective way or will to do something new in workplaces.
Leadership is very necessary for increasing the work efficiency among staff. IKEA also
lays emphasis on assessing persons who are not only know technical skills or other skills,
searching for those peoples who are willing to do work with team. Leader helps to manage whole
work and also help to create healthy environment (Union, 2014). Therefore, they always tried
create an environment that inspires their employees by hiring more staff from diverse
background. Leadership can also give shape to innovation and commercialisation in an
organisation. Teamwork is also very helpful for handling entire work in the company. This firm
also work with team member it is very helpful for inspire other team leader they also ready to do
work in innovative way. Team leader also helps in making new ideas for the improving the
performance of business. Teamwork is providing the right direction of the employees and they
achieve their target easily; it helps to generate the new ideas which are very helpful for company.
Culture is very important as it creates a healthy environment so employees work in
proper manner and increase their work efficiency. These are helpful for maintaining the business
performance. These also provide the shape of organisation with innovation (Berry, and Berry,
2018). Team leader, leadership, vision, culture can shape innovation and development for every
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corporation. These are the most crucial for maintaining long-term business and providing lots of
opportunities for enterprise.
TASK 2
P3) 4Ps of innovation and uses of innovation funnel
IKEA needs to generate ideas they have chosen the best ideas which is most profitable
and is known as innovation funnel. If this organisation chooses better ideas than they generate
idea through brainstorming , this company try to reduce the idea to the minimum, they create
their thoughts for achieving the goal of this business but they take care they try to generate many
ideas they select that who is the better or more effective.
4Ps of innovation
Product- it refers with the value of product contributing in IKEA . Without effective
product how can manage their business stability so it is important for continuing the value of
product. This organisation sells their product with quality and the main motive every enterprise
is earned profit more with providing effective service to their customer.
Process- it is related with the commercial opportunities of the product, means it is the
process of goods and services is going through in reasonable prices. IKEA spending all money
on their product in different way, level it is the process will help to change organisation structure
but is too much long and it is very costly. Many corporations change their business environment
through this process. It is also related with fewer chances for that innovation to come through
achieve the goal of the business.
Position- IKEA have in good position and their products and services is good it is very
important for this company because position will determine the kind of flexibility and it is the
way of changing the business environment. It is very important part of very company, position
help to expand their business or more demand of their product. Mostly people prefer that kinds
of services which are reasonable as well as brand loyalty.
Paradigm- IKEA sells their furniture product but there good and services is making
some problems so they solve this problem funnel innovation through means one idea are not
work so they have to work on second plan. It is very effective for maintain the stability of the
business. If IKEA replace their product it is also the best for maintaining the trust of the
customers. But replacing idea is very long time period so they have need to make maximum 30
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idea generate so it is easy to solve particular problem. Therefore, in this situation this firm need
to funnel idea it means if one plan does not work so they have implemented on next plan.
P4. Frugal Innovation
Frugal innovation is new idea that turns to produce goods and services that move toward
the lower end of purchaser. It is the process to reduce complexity and cost of product and its
manufacture. IKEA produce their goods and services in an effective way but it is difficult to
decide their costs because they want to earn more profits (Wallace, 2017).
Frugal innovation is very effective for this company as it helps to reduce the cost of
production. For example this organisation produces more furniture item for earning more profit
they manufacture their product at very low cost (Frugal innovation, 2018). It is beneficial for
organization. Like they produce their own country but sell in other nations so they ultimately
achieve their goal. Frugal innovation is very useful for developing the product cost. The main
motive of this company use frugal innovation for growth of their business.
Frugal innovation help to sustainable growth of IKEA corporation and frugal innovation
is referred with limited resources like material, financial, institutional and that twist into new
ideas are find out practical solutions. For example, this company use this innovation the price of
the product 60%- 80% lower cost than the current product and they have need to at least 50-
80% improve their product quality they do not have compromising their quality. The benefit
frugal innovation is it is design thinking at the good or services and it is services level is also
depend on their staff (Tukker, and et.al, 2017). It is related the new was of development of
products.
IKEA needs frugal innovation system for growth and cut down funds to reduce their
liability and increase their demands for frugal products and process. It is also related with
resources that will help to increase demands for more frugal product. It helps to reduce cost of
some forms of new ideas, new opportunities, creating huge (Union, 2014). Today it is very
important as it is fast growing business without innovation no anyone achieves their goal so it is
very important part of business. Frugal innovation is consisted with thinking and get individuals
and business to change their goal and through this concept people leaning more skills.
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TASK 3
P5 Importance of commercial funds and application of new product development processing for
commercialisation of innovation
It is the most important if IKEA company spend lot of money their product development
the commercial funnel is help to this organisation to provide a best services in a thousand of
customers and help to provide the contact details (Tukker, and et.al., 2017). They attract their
customers though effective marketing and advertising which take all the information visors
website, social media. This company inspire their consumers through share their contact details.
Clients also inspiring when they meet quality services and they feel happy and satisfied with
their need and wants. This firms also create own page in website for attract more clients they
upload their product pictures prices and they also offer their existing consumer ready to easily
buy their good.
Funnels are very beneficial for visited sites and rising to pay some customer use to the
product before paying but it is not good idea so IKEA making effective strategies they build their
trust and this organisation maintain their relationship with customer while making profit. there
are several steps in making new product development it is very important step for developing
new product IKEA also work on this step they set new model strategies and establishing
branding or other (Union, 2014). The aim of this company when they develop their product or
launch new product in the market. Therefore, they use new techniques for improving their
business performance as well as maintaining product image.
Firstly they generate their ideas then idea screening in front of other team member
(Biemans, 2018). They focus how to develop then implement that strategies and developing
their product after test and commercial then introduce their goods and services in market. Testing
marketing is also very necessary after making sample of product it is very important to confirm if
they are produce is it right or not. When product is ready so this company apply marketing
strategies and take final decision to launch their services this steps involves briefing different
department about their responsibility and target. Every decision is making before the final
introduction of new product developing.
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P6. Build an innovation business case for an organisation including ways to access funding
Executive Summary
Innovation or new ideas are crucial for any business to improve its new and improved
services in market. It helps to increasing business efficiency and earn profitably ratio. IKEA
main aim to reach their target through innovation with their business. Robotic furniture would be
introduced in market to achieve desired income.
Aims and Objectives
Aim: To attain market share by satisfying customers
Objectives:
 To emerge as a market leader in home made and furniture's range of products
 To satisfy customers by selling goods at affordable prices
 To accomplish net profit margin of 20 % for upcoming period
Target
IKEA which is regarded as a valuable brand in the world will introduce robotic furniture
in the market. This type of furniture automatically does the work without inculcating human
effort. For instance, if person throws his unfolded clothes in the wardrobe and as such, internal
system of robotics will fold and hang clothes automatically which is an innovation through usage
of technology. This innovation will be fruitful for IKEA so as to grab customer's attention and
thus, sales will be injected in a better way. The target customers of company are almost all the
individuals of all ages, sexes etc. Hence, for achieving attention of customers and enlarging
market share, robotic furniture would be perfect innovative idea for company.
Funding
Financial resources are required so that company may attain funds for meeting
operational tasks. Funds can be acquired from issuing equity, bank loans,
Equity- It is common form of raising finance by issuing shares to investors. It is secure
way of attaining funds as no liability arises to pay in the future.
Bank loans- Borrowings can be taken from banks and financial institutions so that
operational task can be met by paying minimum interest rates along with principal amount.
Hence, funds may be obtained by IKEA to introduce robotic furniture to lure customers and
achieve profits.
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TASK 4
P7. Different tools that organisation can use to grow, retain and protect knowledge and
intellectual property
IKEA uses different tools in their business like making long-term strategies, short-term
strategies which helps to develop their business and also increase their performances (Berry, and
Berry, 2018). . These strategies are very helpful in maintaining business sustainability. They use
online marketing to sell their products.
This company’s main motive to making new ideas related with product development and sell in
effective way (Wolin, 2016). They also maintain product value as well as customer value.
Intellectual Property is very helpful in protecting knowledge of products it refer with
patent means it is important for other company or not follow IKEA similar strategies so some
time they copy right their own product, ideas. They protect their assets value through reduce
cost own IP address it helpful for save money with patent. This company makes some unique
words, symbols, images are applied their product or used for identify their services or sources. It
is also known as trade marking it helps to identifying their product or other people do not right to
copy as similar. Sometime this organisation is use to copyright it the also to protect their ideas,
expression, artistic, musical work. Therefore, this industry also establishing patent, trademark, or
copyright it is helpful for no anyone use ideas it is legal, help to protect this firms, and help to
make profit for this intellectual property.
IKEA use this Intellectual Property Right for developing their products and also earn
more profits (Johnstonand and Marshall, 2016). Therefore, it will be helpful in protecting
product names, ideas, plans and market strategies and other intangible assets prominently.
CONCLUSION
From the above report, It can be concluded the some differences take place between
invention and innovation. It can be seen in the report that it is very important to introduce new
product in market for building and sustaining competitive position over others. Besides this, it
can be inferred that through the means of innovation Ikea can generate more profit and ensure
stability pertaining to the operations significantly. IKEA is also focusing on innovation concept
with an objective to enhance customer base and achieving success. Apart from this, it can be
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summarized from the evaluation that through using intellectual property aspects such as
trademark, patent and copyright Ikea can secure its innovative offerings or ideas.
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REFERENCES
Books and Journals
Drucker, P., 2014.Innovation and entrepreneurship. Routledge.
Berry, F.S. and Berry, W.D., 2018. Innovation and Diusion Models in Policy Research.
In Theories of the policy process(pp. 263-308). Routledge.
Wolin, S.S., 2016.Politics and vision: Continuity and innovation in Western political thought.
Princeton University Press.
Union, I., 2014.Communication from the Commission to the European Parliament, the Council,
the European Economic and Social Committee and the Committee of the Regions.
Brussels.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Tukker, A. and et.al., 2017. System innovation for sustainability 1: Perspectives on radical
changes to sustainable consumption and production. Routledge.
Wallace, D., 2017. Environmental policy and industrial innovation: Strategies in Europe, the
USA and Japan. Routledge.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review,93(12), pp.44-53.
Amabile, T.M. and Pratt, M.G., 2016. The dynamic componential model of creativity and
innovation in organizations: Making progress, making meaning. Research in
Organizational Behavior, 36, pp.157-183.
Online
Frugal innovation. 2018. [Online]. Available through: <
https://link.springer.com/article/10.1186/s40669-016-0005-y>.
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