Developing Innovation Business Case for Warburtons

Developing Innovation
Business Case

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Section 1..........................................................................................................................................4
Background of Warburtons and challenges faced by the company.............................................4
Ways in which innovation is sourced and fostered.....................................................................4
Leadership supporting and promoting teamwork for the development of innovative culture and
environment.................................................................................................................................5
Identification and comparison of different types of innovation..................................................6
Critical analysation of innovation and their successful used for processing developing and
embedding through innovation funnel.........................................................................................7
SECTION 2.....................................................................................................................................8
The Executive Summary..............................................................................................................8
The problem faced by company and the need for new product development.............................9
Risk and benefits of new product................................................................................................9
Requirement of investment and sources of investment.............................................................10
Critical evaluation of the intellectual property rights application ion NPD of the company....11
Financial return prospective on investment funding.................................................................12
Recommendations......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation refers to the introduction of new process, products or services in the market
by organization to positively affect the business. This will include improvement in existing
products or services or introduction of new product line. The ultimate goal of the organization is
to expand its business line and attract more customers. This will result into higher profit margin
and enable company to achieve competitive advantages. The innovation in organization would
enable company to increase market shares and maintain position in the market. The purpose of
innovation is to create value which would attract customers and help in expansion of business.
The project highlights the challenges faced by Warburtons and the ways through which
innovations are sourced. Further, the discussion about the different types of innovation and
methods used by organization to process them. There will be analysis of risk and benefits of
innovation and different tools used to develop, retain and protect intellectual property rights.
MAIN BODY
Section 1
Background of Warburtons and challenges faced by the company
Warbutons is a British bakery company which is engaged in five categories of products
i.e. bread, roles, gluten free, weight watchers and bakery snacks. The founder of the company is
Thomas Warburton and headquarter is in Bolton, England. The products of the company is
second largest food and drink brand in UK. Company provides products according to the
customers' taste and preference and invest a huge amount to understand its customers' needs. The
increase of competition has become a major threat for the company. Company has to continue to
innovate and make opportunities for the customers with its new products so that it can maintain
its position and increase market shares. The changing trends and preferences of the customers is

a challenge for the company who provides products according to the customers' needs. As the
customers are becoming health conscious and preferring organic and low calorie food and
beverage products, company has to introduce product which are healthy and low calorie muffins
(Buhl and et.al., 2019). The increase in pressure of competitors company is forced to introduce
new products with competitive advantage of reduction in sugar and salt level in its products. The
another challenge faced by the company is that it is not able to maintain good level of customer
service. This is because it is not able to provide its customers products at right time. Company is
searching for innovative delivery channel which ensures the reach of products at right time.
Ways in which innovation is sourced and fostered
The different sources of innovation are:
Unexpected: Innovation can occur surprisingly or coincidentally. This may occur while
evaluating the reason for success or failure of organization. The failure of Sony's Betamax VCR
and success of industry standard VHS format has made the CEO of Sony to pay more attention
on developing products in industry standards line.
Incongruity: In an attempt to resolve the reason for the gap between actual outcome and
forecasted outcome there may be scope for innovation (Philipson, 2020). The innovative idea of
South west airlines who introduced a different approach for airline service.
Market structure: The change in the existing market may give rise to chances of innovation.
The need for adapting the new fast growing market there may be need for innovation.
Necessity: Necessity will give rise to innovation in the business. In the process of recovering
from deficiency and minimizing the gaps innovation is essential.
Demographics: The diverse lifestyle and change in preference of people also give rise to
innovation.
Changing perception: Changing perception of people regarding anything can also give birth to
innovation (Demircioglu, Audretsch and Slaper, 2019). For instance, people moving towards
healthy living has resulted into introduction of healthy food products in market.
New knowledge: The new knowledge of anything can also be source of innovation. For
instance, advancement in technology also give rise to innovation.
Foster innovation in organizations
 Make innovation part of business strategy
 Develop a plan for innovations