Business Innovation Report for 4COM: Analysis and Strategies

This report delves into the concept of innovation, its significance, and its application within the context of 4COM, a UK-based SME telecommunications company. It explores the definition of innovation, differentiating it from invention, and highlighting its importance in enhancing productivity, adapting to unforeseen events, and leveraging technological advancements. The report examines how organizational leadership, culture, and teamwork shape innovation and commercialization, emphasizing the role of vision, leadership styles, and collaborative environments. It then analyzes the 4Ps of innovation (Product, Process, Position, and Paradigm) and the use of the innovation funnel, followed by an explanation of developments in frugal innovation. Furthermore, the report discusses the commercial funnel, the application of New Product Development, and builds an innovation business case for 4COM. Finally, it evaluates tools for knowledge development, retention, and intellectual property protection within the organization, concluding with a summary of the key findings and recommendations.

INNOVATION

Table of Contents
INTRODUCTION..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Explain innovation and determine its importance in comparison with invention.................1
P2 Explain how organisational leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................3
TASK 2............................................................................................................................................4
P3 Explain 4Ps of innovation and use of the innovation funnel................................................4
P4 Explain developments in frugal innovation ..........................................................................6
TASK 3............................................................................................................................................7
P5 Explain the importance of the commercial funnel and the application of New Product
Development...............................................................................................................................7
P6 Build an Innovation Business Case for 4COM ....................................................................7
TASK 4............................................................................................................................................8
P7 Evaluate different tools that the chosen organisation can use to develop, retain and protect
knowledge and intellectual property...........................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
The term “Innovation” refers to the outcome and process of generating something new
which ultimately adds value to the final product or services. It mainly starts from identifying
opportunity, ideation to development and ends with final production of sales & marketing,
commercialization and prototyping (Crossan and Apaydin, 2010). It can be defined as an
organizational growth and positive financial that primarily results from the ability of
entrepreneur in order to deliver and develop unique goods, identify business and services
opportunities and ultimately improving position of business within the industry. This report is
based on 4com company, which is a SME telecommunication company in UK. The main of the
company is to provide innovative services to its customers. This report will help in
understanding the innovation and its importance, 4ps of innovation, frugal innovation and
various tools which are used by an organisation to protect and retain intellectual property .
TASK 1
P1 Explain innovation and determine its importance in comparison with invention
Innovation can be defined as translating an invention or idea into final product or services
that ultimately creates value for target customer. The innovative idea must satisfy the need and
demands of buyers and recreated at an economical rate. It mainly involves creative and unique
imagination, derive greater values from company's resources and translate it into useful goods or
services. It is similar to risk-taking and companies that mainly deals in revolutionary
technologies or products take on higher risk in order to create or capture the share of new market.
In order to meet the requirement of customers in an effective way 4COM has created its own
“INNOVATION CENTRE” that aims at providing innovative and unique solution to customer
service problem with the Artificial Intelligence framework. They are providing supportive
services to its potential buyers via Whatsaap, telephone, char or e-mail. This also gives them the
benefit of high competitiveness level over their rivals as none of them are doing this. Following
are the importance of Innovation that has been availed by 4COM:
1. Enhance productivity: It has been believed that if an organisation apply fresh and
original concept on their business processes, products or services then they tend to raise
more growth and profit (Dahlander and Gann, 2010). The best way to increase the
productivity is to apply more innovative and efficient method that lead to maximise final
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output rather than just putting stress on workers. It can start with small change. For
instance, 4COM is using Whatsaap in order to provide effective supportive services to its
customers.
2. Adapting to Black Swan Events: The term Black Swan referred to unpredictable events
or contingency that can not be forecasted (Edquist, 2010). It enables the company to
develop ways in which they respond or adapt themselves according to such changes.
Being innovative means dealing effectively and creatively with such uncertainty that
4COM is currently doing. They are dealing with situations laterally, analytically,
critically and creatively.
3. Flowing with advances in technology: In the modern era, any business entity can gain
competitive advantage because of technological innovation and advancement. Rapid
progress in digitization enable companies to connect with their target audience in a better
and systematic way. 4COM is adapting themselves as per the technological changes
which enables to build strong relationship with its customer and fulfil their demand
effectively.
4. Ensure that if employee's assist the company to grow, they also grow with them:
Employee's with their creative and unique ideas assist the firm in generating more
revenues or profit. Whereas on the other hand, Companies are require to support their
ideas that motivates and encourage them and as a result increases their efficiency and
productivity which is beneficial for the growth of its both personal and professional
career.
In order to gain higher competitive advantage and to retain for longer period it is important for
every business concern to timely innovate their business processes, products or services. For
instance, Virgin has started their journey from a simple publishing venture to large investment
venture that mainly includes Virgin Money, Virgin Atlantic, Virgin Rail, Virgin
Entertainment Group,Virgin Mobile, Virgin Express,Virgin Blue and Net
Virgin. This constant growth is mainly possible because of its owner
entrepreneurial curiosity and aggressiveness to investigate new horizon and
dimensions of business practices (Hall and Lerner, 2010). Thus, Innovation is
important for the success and growth of every firm. Even 4COM is following
the same path as they innovative their product or services that satisfies
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their buyers the most. But it should be noted down that both innovation and
invention are different from each other which are described as follows:
Basis for comparison Invention Innovation
Meaning This defines as the idea which
occurs regarding the process as
well product. That should be
totally fresh never been
successful earlier.
Innovation describes as the
new creative idea in the respect
of technological process either
product for the first time.
Function It basically creates new
products.
This add some limited value
on something which is already
existing in the surroundings.
Occurs When new concept onset by
scientist.
When company feels to fresh
modifications, improvement in
already existing products .
Concerned With the individual products
either process.
With aggregation of varieties
of procedure and products.
P2 Explain how organisational leadership, culture and teamwork can shape
innovation and commercialisation
Commercialisation and Innovation is not possible in the organisation
without the effective support of culture, leadership, vision and collective
contribution of both workforce and management.
Role of Vision in commercialisation and innovation: In today's competitive world,
both Innovation and Creativity are considered as the lifeblood of business and society. Vision
statement of company depicts what are their future goals and the initiative they have taken in
order to achieve that effectively (Huizingh, 2011). 4COM vision statement states their practices
towards attaining their goals and gain competitive advantage with innovation and creativity. For
instance, using the platform of Whatsaap enable 4COM to deals with their customer in better
way. Even Virgin Vision Statement describes how creatively they fulfil the desire and demand
of target audience. This even assist them to practically think and make strategies to implement
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all these innovation and commercialisation in such a way that leads to generate higher sales and
profits for them.
Role of Leadership in innovation and commercialisation: Companies can not plan
Innovation but it can be pre-determined or fostered. Leaders is the one who motivates and
encourages the personnel or workforce so that they can effectively and efficiently achieve
business objective. Leaders of 4COM enhance the skills and productivity of their employees by
providing them training and motivating them for their good performance (Kline and Rosenberg,
2010). They also focuses on maintaining effective communication channel, promoting team
work, constructive problem solving and conflict resolution methods etc. In-fact if we talk about
Virgin Group, they strongly motivates their personnel by appraising their creativity and
practically implemented it.
Role of Teamwork in innovation and commercialisation: Team work means when
group of people works collectively towards common goal in order to accomplish it more
effectively. Generally organisation create many tasks and allot team for completing each task.
Team work ensures result more effectively because in that case all the team leaders allot their
work and they altogether give the positive result. 4Com is promoting friendly working
environment which motivates their workforce to work more effectively and retain with company
for longer period. Good working culture encourage them to put their best in attaining their
business goals and target. Even Virgin is supporting their workers for creativity and innovation.
They increase the percentage of employee participation ratio which indirectly makes them feel
contributed (Lee, 2015).
Role of Corporate Culture in innovation and commercialisation:
The main challenge that every firm faces is in the form of how they embrace
and accept change. 4COM is promoting healthy working environment that
encourages their employees and improves their efficiency and productivity.
Culture is accountable for the innovation and commercialisation in the
company of 4com. For instance, Virgin group supports the ideas and
creative thinking of their employees and then implement it. This promote
healthy working culture within their business premises.
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TASK 2
P3 Explain 4Ps of innovation and use of the innovation funnel
The framework of 4P's of Innovation model is popularly known as Innovation Funnel. It mainly
includes:
 Product innovation: The first question that comes under this is how you innovate your
product or services in order to gain competitive advantage over their rivals. This usually
improve and launch new fresh product and services. They research and innovate products
to achieve their goals of the company. 4COM deals in providing phone system,
broadband & internet, call& lines and software and application (Park and et. al., 2016).
They Innovative their product by meeting the requirement of customers in an appropriate
way. In-fact Virgin is also doing the same they expand their business vastly in to capture
high market share.
 Process innovation : Process means optimally using company's resources in optimum
way that leads to achieve higher results within time-frame. Basically it deals with product
life cycle. At its declining stages, company start redesigning its entire process and modify
it as per the current needs and demand of target audience. 4COM is doing process
innovation by taking the advantage of Whatsaap in order to improve the supporting of
customer services. 4Com company make them in very efficient way in concern with the
quality. Workers are responsible for all these process this helps them to enhance their
skills and productive activities. Even Virgin group has redesign its entire process in
order to capture large market share and gain high competitive advantage.
 Position innovation: The term positioning is related with promotion. It basically include
how company promotes or markets itself in order to attract large pool of customer who
ultimately maximise their sales or revenues. It generally describes the promotion platform
via which company advertise about their product or services on vast level. 4COM is
currently promoting their product via social networking sites such as facebook, google+,
YouTube, instagram, twitter etc. Similarly Virgin Group is also promoting their product
by using social networking sites as this is the platform where large number of people
spends their maximum time (Yoon and Park, 2010).
 Paradigm innovation: This innovation deals with specification or something radical
that affects on the entire functioning of company. 4COM adds specification in their
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product as per the demand of customer such as Dual camera both front and back etc.
Virgin Group has tremendously expanded their business by entering into new business
process.
Innovation Funnel assist the company to focus and concentrate more
effectively towards the dynamic needs and wants of target customer. 4COM
is applying this innovation funnel in their business practices and operations.
Not only 4COM, Virgin Group follows this innovation when they are on their
growing and expanding stage. Virgin Group promotes the idea and
creativity of their personnel and if company founds it realistic and reliable
they gather funding for the same. This promotes motivation among their
workers and make them feel contributed and dedicated towards business
entity (Leonard and Rayport, 2011).
P4 Explain developments in frugal innovation
Frugal Innovation deals in redesigning business processes, product or
services, value chain in order to accomplish business target and goals more
effectively and efficiently and satisfy the customer by providing them
exactly they desire. It removes the constraints factor that obstruct
company's growth and success. With this model, organization usually
decrease the cost of production and complexity related to particular product
or services. This often enhance the durability of product and services.
4COM is also applying the concept frugal innovation in their business
practices and operations which are described as follows:
Assist to innovation and their additive property: This important tactics of the innovation is
used by the 4com troupe. This help them to improve their brand image by modifying their goods
and services in the systematic order to gratify the clients along with this also enhance their
margin of profit and business environment . These innovation in the 4com organisation provide
special experience for their clients regarding phones and gadgets with latest technologies.
Example – Virgin Group they can bring out new technologies and practical application with the
great software may attract to the consumer. This not so complicated phones may be create good
relations with their gadgets and indirectly with the company too which enhance their image.
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Distribution of product line: It is essential for every form to produce goods and services as per
the requirement of customers. 4com company introduced some new fresh technology in the
market in the concerned with the target consumers of the markets. When Virgin group expanded
their product and business line, they research and identify the needs and wants of potential
buyers. This will help them to the frugal innovation which help to the company so they can
increase their product line and distribute them equally so they can help them in catch up the
growth of company (Leonard and Sensiper, 2011).
Reduce the production cost: This method will leads to the decrease the value of the
commodity. It is in the favour of fresh technologies and tools which will be more reasonable and
affordable for the consumer and it will automatically leads to the increase in the sales. Reduction
in the product cost so, the company tends to the low value price of the raw materials.
If the raw material will available in the low cost then it will be beneficial for
the company and they can easily make the marginal profit while setting the
price of the product (Lundvall, 2016).
TASK 3
P5 Explain the importance of the commercial funnel and the application of
New Product Development
New Product Development promotes future growth and success. This
is mainly done by organisation in order to capture the market share of other
international countries. For instance, 4COM is adopting HI-Hi technology
that gives them the benefit of high competitiveness level. In-fact Virgin is
also doing the same in context of providing or altering existing product or
services that satisfy the need of customer in an effective and efficient way.
4DCOM is developing its new product or device that increase the speed of
their Wi-Fi signals in an effectual manner.
Importance of Commercial Funnel:
1. Organise Investigation Program: Manager of referred firm tries to
gather all relevant information and data which assist in modifying
their marketing strategies in an effective manner. An organisation
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needs to implement necessary technology so to gain higher
competitive edge.
2. Reputation: It is essential for all business enterprise to establish
good image in the mind of target customer and society as well i.e.
they are require to maintain strong goodwill in the market.
3. Tools for analyse mind: Companies will also desire to examine the
needs and demand of consumer whether they are international or
domestic for generating innovative and creative products or services.
4. Remove all loss amount: It is important for a business concern to
eliminate unwanted expenses that posses direct impact on the
functioning and operation of businesses.
Superior take care that employees are manufacturing standardised
products and services by using innovative tools, and thereby fulfil
customers demand. Companies uses commercial funnel through which they
are able to launch new services in marketplace and position themselves
superior than other rival firms. This help management to enhance their
productivity and profitability of organisation by enlarging their business in
different nations. As a result, 4Com is able to increase their customer base
by providing items globally.
Therefore, administration formulate strategies through which they are able
to provide brand new offerings to customers. These are various steps which
superior follow for new product development are stated beneath: Idea Generation: It is the first and foremost step in the process of
New Product Development. New Ideas can be generated by
conducting market research, inviting suggestion from employees,
getting feedback from client, studying competitor product,
brainstorming suggestion by employee etc.
 Idea screening: Manager estimate fluctuations which have occurred in their plan, so that
they can make changes appropriately. Most of the firm have “Idea Committee” who
carefully studies and analyse all ideas. They select the best one and reject rest of the
following. But before selecting the idea, they need to consider following questions:
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1. Is it important to launch new product?
2. Can existing technology can be used so as to make new product?
3. When can the new product break even? Testing the concept: According to this, superior check that theories that they have
applied in system is correctly functioning or not. If there are any defects, then sort it
accordingly. Analyse product and services: In this management find that whether products offered to
customers are satisfactory. This also states organisation ability to earn adequate amount
of revenue for their business.
 Product development: At this stage, company decided to launch its new product in the
market. It will take all essential steps to distribute and produce the new product. The
manufacturing department will frame or make relevant plan so as to produce the new
product. The advertisement department will take care of promotional activities. Test Marketing: At this stage, company will introduce their new product in the market
but on very small scale. If the new product or services is successful or being liked by the
customer, then the company will launch it on vast scale. Commercialisation: Superiors are able to increase their customer base by expanding firm
globally. This benefit 4Com to enhance their market position.
 Product launch: This is last step of new product development in which superior provide
items and services in marketplace which customers can purchase according to their
demands.
Hence, commercial funnel advantage 4Com to launch services appropriately
through which they are able to attract customers and satisfy them by
offering quality items.
P6 Build an Innovation Business Case for 4COM
4COM was established in the year of 1999 with an aim of enhancing
the communication service of entire UK SME's (Melville, 2010). Business Case
is mainly develop in order to determine the risk factor that is related with
an innovation of product or services. Following are the example of this:
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Business Case
Executive Summary: 4COM deals in providing telecommunication services to its target
audience which mainly cover the entire region of UK. They basically deals in providing services
related to business phone system, business internet and broadband and software and application.
The Need: Their main need is to effectively satisfy the demand of customer or clients that
mainly deals in 4COM product or services. Also they want to capture large market share of
international market.
Solution: After identifying the need for innovation, it is essential for company to find or
develop the path according to which they can innovate their product or services. They are
require to evaluate the needs and demands of customer so that they can make product
accordingly.
Why product is innovative: This stage depicts why product or service is innovative. For
instance, 4COM is taking the advantage of HI-HI innovative technology which enables their
customer to make video call via their phone system.
Customer Research: They are require to research about how customer has adapted their
product.
Design and Development Plan: After determining various needs of customer, 4COM is
required to modify their product or services as per the customer demand or preferences.
Requirement of Funding: This also states various sources via which they are arranging or
managing their funding.
Company can take help from various financial institutions, banks so that they are able to carry
out appropriate business operations. If firm is having strong market image, than they are able to
take funds from various sponsors who are ready to invest their money to get sufficient amount
of return for their offering.
Ways of Funding: There are two ways via which company arrange their funding one is Internal
and other is External.
Internal Sources: These funding sources are available within the company only. For instance:
Profits or Revenues can be plough back so as to finance expansion. Similarly, business entity can
sell their asset as well. It is preferable to sell those assets who are no longer required.
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External Sources: These are the sources that found mainly outside the business. For example:
Creditors, financial institution, bank, investors, government agencies, business angels and
individual donors. In addition to that there are other external sources of funding as well such as
International Development Fund and Global Innovation Fund
TASK 4
P7 Evaluate different tools that the chosen organisation can use to develop,
retain and protect knowledge and intellectual property.
Intellectual Property refers to the product category that mainly includes
intangible creation such as human intellect, patents, copyrights and
trademarks. It also covers other rights in the form of publicity rights, rights
related with unfair competition, trade secrets etc. These are usually in the
form of designs, signs or symbols (Patti and Yanes, 2015). Both 4COM and
Virgin Group used various methods in order to gain the benefit of high
competitiveness level. This usually states that company is solely having
stake on its product or services. Following are the different types of
intellectual property:
1. Copyright: It is a legal term that generally depicts the right of owner
or creator of particular product. These are mainly used by artistic,
literary workers or authors. It states that they are owner and creator
of that specified product. These are mainly suitable for books,
paintings, music, sculptures, advertisement etc. With the help of this
4COM is protecting their product or services from rivals firms so that
they cannot use it with their own name (Siuzdak, 2012) .
2. Patent: These are the rights granted for any new invention or
creation. Basically it provides right to the owner or creator in context
of how their invention can used by other firms or person as per their
rules and regulation. For this, creator usually print patent document
that defines the right given to other person in context of using their
invention.
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3. Trademarks: This is often used by business enterprises as they
distinguish their product or services from that of competitors. It
mainly describes that the entire product range belongs to particular
company.
Both 4COM and Virgin Group is having copyright and patent for their
product and services which gives them the advantage of higher
competitiveness level.
There are some differences amongst open source and open
innovation. This will be understand by the following description:
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Basis Open innovation Open source
Objects Goods or services are include
into this as an object.
This will comprise software as
a object.
Economic and legal
framework
They leave things openly, each
thing will depend on the
situation.
They provide a proper
structure for this.
Diversity There is huge diversity. It will cover enhancement of
software.
CONCLUSION
From the above report is has been concluded that, innovation is required in product and
services to satisfy their customer existing customer and prospect customer as well. Although the
innovation part is helping firm to attain their vision. Thus leadership, team work is also helping
in bringing innovation funnel in organization. the 4P's of innovation also help in bringing
creativity in effective manner. Hence such thing also make company to earn higher profit and
lead to attain their goal and objective. Technology also make firm to bring innovation and
creativity in their product and services in right context.
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