Business Development Report: Developing an Innovation Model for Bakery

This report analyzes the development of an innovation model for Oven-Fresh Bakery, a bakery seeking to expand its product line beyond white bread. The report covers key aspects of innovation including the comparison between innovation and invention, the influence of organizational vision, leadership, culture, and teamwork. It delves into the 4Ps of innovation, the innovation funnel, and frugal innovation, providing examples relevant to the bakery. The report further explains the commercial funnel and the application of New Product Development (NPD) for commercialization. It includes the development of an innovation business case and discusses tools for knowledge and intellectual property management. The report provides a comprehensive overview of how Oven-Fresh Bakery can foster and implement innovation to achieve its business goals.

Developing innovation model

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................1
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................3
TASK 2............................................................................................................................................4
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................4
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................6
TASK 3............................................................................................................................................6
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.......................................6
P6 Build an Innovation Business Case for an organisation, including ways to access funding..7
TASK 4..........................................................................................................................................10
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is regarded as the method which is performed through entity for introducing
innovative goods in order to provide within market area. They key intent of innovative items is
to facilitate customers’ requirements while dealing with competition that is present within
marketplace (Ales,Cho and Körpeoğlu, 2020). As per the scenario, the chosen company for this
report is Oven-fresh bakery which was founded by Mr. Wilbur who initiated its business five
years ago and dealing with one kind of white bread. The topics which are covered in this report
are firm’s background and the challenges faced by them, comparison among innovation and
invention, discussion related to how leadership and vision promote team work and formulate
innovative culture. Moreover, 4P’S of innovation, frugal innovation and process of developing
new products are also explained. Apart from this, the business case are developed in respect of
innovative product and various tools applied by firm to develop intellectual property and also
discussed in this report.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Oven-Fresh Bakery is considered as the renowned bakery that renders quality items and on
time facilities for its clients. In addition to this, the entity was establish five years ago through
Mr. Wilbur as well as since present times also providing only singly item that is white bread
because of which its business turnover as well as sales get minimised. Therefore, the owner of
Oven-Fresh Bakery also having the pressure of retailer for exploring its items as this would able
to assists them for grabbing the attention of marketplace as well as audiences. For it, Oven-Fresh
Bakery plan to launch fruit flavoured cookies as it is very much healthy for people of all age
group and also even for diabetic person. As within respective innovative products not any
colours are and sugar are added only real fruit flavoured should be there. So that anyone can
have it without any problem. Moreover, respective innovative products could able to accomplish
the changing needs efficacious and appropriate manner (Byun, Sung and Park, 2020). Therefore,
the ideas of bringing such innovation is considered by market investigations as it have been
identified that audiences are searching having something healthy as well as also tasty. Respective
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innovations aid them to attract many customers, enhance sales and profitability and impacts
optimistically on Oven-Fresh Bakery profitability and sales.
Innovation is defined as the manner of developing, monitoring as well as implementing
ideas into products manufacturing which formulates as well as develop value. Within present
competitive circumstances, this have been identified that innovation be the key attention of
interests for several entities such as small and large.
Inventions: This is regarded as the method of forming some totally new thing which is
useful in attaining expected objectives of person living into society (Dincer, 2020). Moreover, it
has been determined that it is procedure within whole engineering as well as manufacture
development procedures. In addition to this, it might be formulation of goods, machine and many
more which assist to attain whole societal needs efficaciously.
Through adapting the practices of innovation, Oven Fresh Bakery would obtain numerous
benefits. Some of them are described below:
 Attaining competitive advantage: As the bakery industry is developing rapidly as various
competitors are there who are rendering number of bakery products for meeting the
consumers desires that enhances competitions. Therefore, through bringing innovation in
respect of products becomes simple for Oven-Fresh Bakery while dealing with
maximising competition as well as strengthening the base of audiences.
 Enhancement of ROI: The other advantage that Oven-Fresh Bakery would obtain from
performing innovation into their new might enhance investment return. It is so through
providing effective solutions in context of their existent products and also this becomes
simple for them to enhance sales (Expósito, Fernández-Serrano and Liñán, 2020). As
with assistance of this they can able to grab the attention of huge number of audiences.
Differences between Invention and innovation
Basis Invention Innovation
Scope
Its scope is wide as well as its
determined the whole new product
development within new characteristics.
Its scope is narrow as this includes
development upon existent goods,
methods or services facilitated
through entity.
Occurrence The product invention is generally It basically occurs when there is need
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undertaken when new demand if
produced into market area or new ideas is
being determined for transforming it into
reality.
of implementing development into
existent firm’s offerings for meeting
clients desires.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Within all entity, longer duration sustainability and growth is considered as two key aims
which must be attained in appropriate and proper way (Lenzi and Perucca, 2020). Therefore,
there are numerous aspects which assist Oven-Fresh Bakery for attaining their specified
objectives. Few are described underneath:
 Vision: It is defined as the aspects which provide assistance in developing creative and
unique ideas for business organisation to achieve goals. Additionally, it have been
identified that it is using their vision as a tool in order to communicate its targets, in
context Oven-Fresh Bakery, it has vision to render something healthy to its clients so that
it may become competent for retaining and rendering satisfaction to them. It also leads
towards accomplishing client’s loyalty and trust towards business.
 Leadership: It is aspects which essential deals with the ways as well as direction to attain
firm’s objectives. As efficacious leader is one who possess quality for influencing as well
as inspiring workers towards achievement of specified goals. In context of Oven-Fresh
Bakery, for its unique items to introduce transactional and transformational style of
leadership that would be applied for encouraging workers to work towards innovative
items efficaciously (Li, Gagliardi and Miles, 2020). Additionally, its leaders
answerability is to ensure that their worker’s attitudes towards creative goods have to be
optimistic as it assists them for maximising their levels of productivity.
 Culture: The firm’s culture has to be flexible so that they can perform any innovation.
Such as the cultures of Oven-Fresh Bakery have to be in such a manner so that they and
their staff would opt innovations that are performed into existent product. Moreover, the
culture of entity should motivate innovation as well as creativity that they plan to bring
into their operations.
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 Teamwork: This is considered as individuals collaborations within group that would
drives in accomplishment of pre-determined gaols. Moreover, in case the firms are very
supportive as well as hard working they would drives towards performing innovation
with much feasible and ease way. Moreover, the supportive team work would aids entity
like Oven-Fresh Bakery to execute as well as provide needed suggestion regarding
innovation.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
Innovation 4P’s is formulated and used by firm in order to execute their task on time which is
associated in innovation (Molnar, 2020). So, whole 4P’s are explained in context of Oven-Fresh
Bakery are explained below:
 Product: It is essentially the items that are rendered to clients in exchange of money.
Moreover, unique items which would be launched by Oven-Fresh Bakery to grab
attention of large clients that renders an optimistic on their profitability and sales.
 Position: It deals with segment of target wherein unique products which would be
positioned. In relation to Oven-Fresh Bakery is going to be launch innovative products as
it assists to improve reputation of brand and market performance enhancement. In
addition to this, overall development procedures for positioning its innovative goods is
different from the existing one so that it is vital for them to concern upon positioning its
unique products.
 Process: It is regarded as answerability of firm to concentrates on adopting as well as
evaluating the developments of new offerings. In addition to this, the overall procedures
which might be applied in order to launch innovative product that is fruit flavoured
cookies. For instance, this might be also used channels like offline as well as online. It
might enhance the clients’ base level that has effect on productivity as well as
profitability.
 Paradigm: It is defined as the aspects which are used for ascertaining several
expectations that has been developed in order to maximise functioning of entity
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(Moreddu, 2020). In Oven-Fresh Bakery, it is ascertain that this assists them to obtain
knowledge related to innovation requirements at future time period.
Innovation funnel
It is also regarded as procedures that are utilised through enterprises for formulating new
goods. almost whole entity are trying to accomplishing its long time gaols through utilising
innovation funnel by which creative as well as effective plans could be formulated for
performing several practices (Öberg, 2020). Therefore, in order to manage new product
formulation Oven-Fresh Bakery utilised innovation funnel which are explained below:
 Investigation: herein, Oven-Fresh Bakery could accumulate information that is required
for developing fruit flavoured cookies which would be helpful in formulating as per
desires.
 Market research: At this stage, business would determine its segment for that it has to be
introducing innovative products. By aids of it, they might become competent for
ascertaining its objectives well defined way.
 Delivering products: It is stated as last stage, wherein Oven-Fresh Bakery could able to
formulate decision regarding innovative products that deliver to clients appropriately.
Herein, it has to be clear associated with that it has to develop and how to deliver that
within competitive market.
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P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is defined as methods of averting and minimise the price of
manufacturing, issues and many more in efficacious and effectual manner. Basically, it is
regarded as methods for obviating undesired aspects into durables goods in order to sell it into
developing countries (Park and Lee, 2020). Along with this, it is formulation of unique products
from various areas which might increase cost and while selling items, distribution cost could also
get maximised. For example: Oven-Fresh Bakery would introducing fruit flavoured cookies into
marketplace so that adoption of this assists respective business to focused on goods quality and
their cost are to be reasonable. In addition to this, this minimises additional cost that impacts
business revenuer unfavourably.
Instead of this, there are some phases how this could be used into firm:
 Hatch aback order: In order to accomplish desired results efficaciously, for it, Oven-
Fresh Bakery manager has to do marketing research that could assists them in obtaining
information related to expectation of marketplace.
 Screening new ideas: In it, Oven-Fresh Bakery would develop effectual plan of product
based upon the targeted client’s desires.
 Testing: It is vital for testing innovative product which are going to be launched that
assists Oven-Fresh Bakery for acquiring favourable outcomes whether product is
efficacious or not.
 Review market area: At end stage, Oven-Fresh Bakery must review which its unique
products in attaining clients desires or not.
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel is considered as the whole consumer’s journeys which are associated
with buying firm’s gods. Moreover through developing usages of commercial funnel, Oven-
Fresh Bakery become competent for gaining attention of their clients for influencing them to do
purchases. Along with this, there are various stages which are incorporated into commercial
funnel like conceptions, preferences, buy and others (Rasiah, 2020). Whole these components are
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being employed through audiences for developing decisions. The execution of commercial
funnel would support Oven-Fresh Bakery in developing innovative goods that develops longer
relations with clients that would assists in obtaining higher profit.
Beside this, Oven-Fresh Bakery adopts new process development for their innovative
goods which is Fruit flavoured cookies. Whole stages are explained below:
 Idea generation: Herein, Oven-Fresh Bakery could bale to generate unique ideas for
introducing innovative products like Fruit flavoured cookies.
 Screening: Herein, Oven-Fresh Bakery has to do screening method which they adapt in
order to launch innovative items. Therefore, their administrative would have to undertake
regular recommendations from customers, stakeholders and many more.
 Testing the concept: Within it, Oven-Fresh Bakery would have to do determine with
assistance of SWOT analysis in order to ascertain their both intrinsic as well as extrinsic
factors which exists within competitive marketplace (Servajean-Hilst and Calvi, 2020).
 Business analytics: Within respective stage, before launching innovative products as they
perform determination of whole market area that aids them in ascertaining opportunities
of the business development.
 Marketability testing: In this phase, Over-Fresh Bakery do testing for gathering relevant
and effective data from marketplace for acquiring knowledge related to audiences’
responds to their innovative products.
 Product development: Within it, Oven-Fresh Bakery perform the market testing in order
to develop new product based on customers’ requirements.
 Commercialisation: At this end phase, Oven-Fresh Bakery would adopt several
techniques of promotion so that this might perform efficacious procedures of
commercialisation in order to grab new audiences.
Hence, it assists Oven-Fresh Bakery for launching their innovative goods efficaciously as
well as attracting both existent and new consumers. Additionally, this aids them to maximise
profit as well as sales.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Innovation plan is considered as the set of practices that are utilised through entity for attaining
their goals of executing goods as well as accomplishing them at stipulated time duration (Teece
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and Leih, 2020). Therefore effective innovation plan in respect of Oven-Fresh Bakery are
described below:
Steps Description
Summary The respective project is whole regarding formulation of new
product that depends upon innovative functioning of Oven-
Fresh Bakery. Moreover, the goods is associated to fruit
flavoured cookies that is going to be rendered through
respective entity in respect of overcoming from their present
situation that is minimisation into sales.
Objectives The Oven-Fresh Bakery key objective related to innovative
product development is to enhance its revenue by 20% within a
year by rendering fruit flavoured cookies.
Mission The respective entity present mission is to grab the attention of
huge audiences as well as satisfying its expectation as well as
desires into marketplace.
Vision The respective entity key vision is to develop effective
reputation of brand into marketplace so that they could simply
compete with their rivals.
Solution Oven-Fresh Bakery is planning to introduce innovative product
so that they could simply manage the present condition as well
as could develop their operations into market area.
Innovation in product Oven-Fresh Bakery would plan to introduce fruit flavoured
cookies that provide assistance to them for dealing with present
challenges.
Funding For gaining more funds, entity would utilise several forms of
promotional practices so that they could simply executed into
marketplace in which they would utilise funds from commercial
banks as well as retail advance payments.
Benefits Respective innovation plan is aids to entity to grab the
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attention of huge consumers into marketplace in which Oven-
Fresh Bakery could simply attain higher growth as well as
profitability. It would also aids firm in grabbing attention of
huge number of clients so that they could enhance their sales as
well as re-develop reputation of brand.
Monitoring and controlling The monitoring as well as controlling vital aspects of each
entity in which type is utilising effective system for managing
accountabilities and assure that plan would executed effectively
and efficiently.
STP  Segmentation: Within segmentation procedures, entity
is utilised for developing few smaller goods that aids
them to attain business project at distinguish areas so
that firm could attain their goals as well as maintaining
functions.
 Targeting: Entity would be utilised for targeting various
group of age’s individuals so that they could develop
their activities as well as attain their goals.
 Positioning: For positioning the products into
marketplace, the firm would utilise their existent
reputation of brand so that they could execute
positioning procedures.
Source of funding
 Government assistance: The policies of government are directly associated for entity
functioning in which there are huge amount of investors (Uyarra and Ramlogan, 2020).
Moreover, the firm is utilising unique ideas that promotes small scale industries and aids
them to grab the government attentions as well as obtaining their assistances.
 Bank Loan: Bank is considered to be one of the most efficacious sources of funding in
which they may utilise for lending loans from commercial banks for performing their
activities as well as accomplishing its funds needs. Moreover, this is also regarded as the
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safest method in order to accomplish the firm’s needs as they could able to perform their
business appropriately wherein they could perform activities based upon desires of
customers and market.
Therefore, form the above discussed option of funding sources, bank loan is effective for
Oven-Fresh Bakery this is the safe option for them as it have fixed interest and also having
complete paper work form bank side.
TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
Intellectual property is considered as the assets that are owner through entity for defending
innovation as well as reducing product copying threats (West, 2020). There are various methods
that could be utilised through Oven-Fresh Bakery for safeguarding its innovative products from
rivals:
 Patents: It is considered as the effective tool that could be utilised through business for
protecting its products or ideas from copying. Moreover, it needs to be renewed after
certain time period. They key benefits of this for Oven-Fresh Bakery is that they can able
to protect their innovative ideas to get copied.
 Trademarks: These are considered as the signs, symbols, logo and others that are utilised
through entity for differentiating its goods from its rivals. Moreover, the key benefits of
this for Oven-Fresh Bakery is that they renders them as separate identify to its
enterprises. Also, in context of drawbacks, this is simple for anyone to defame its firm’s
logo.
CONCLUSION
From the above report, this has been concluded that both innovation as well as
commercialisation plays vital role into sustainability of product as this assists in dealing with
modifying consumers desires and also the challenges through competitors. Also, Commercial
funnel is considered as the whole consumer’s journeys which are associated with buying firm’s
gods. Moreover through developing usages of commercial funnel, firms become competent for
gaining attention of their clients for influencing them to do purchases. Moreover, innovation
funnel is used as this assists firm to execute innovation in effective manner. Apart from this
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through using new product development process successfully, entity can able to gain their
objectives effectively and efficiently. Along with this, frugal innovation assists them to formulate
of unique products from various areas which might increase cost and while selling items,
distribution cost could also get maximised. Intellectual property tools aids owner of entity for
defending innovation as well as reducing product copying threats.
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REFERENCES
Books and Journal
Ales, L., Cho, S.H. and Körpeoğlu, E., 2020. Innovation tournaments with multiple contributors.
Available at SSRN 2277215.
Byun, J., Sung, T.E. and Park, H.W., 2020. Technological innovation strategy: how do
technology life cycles change by technological area. Technology Analysis & Strategic
Management. 30(1). pp.98-112.
Dincer, I., 2020. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Expósito, A., Fernández-Serrano, J. and Liñán, F., 2020. The impact of open innovation on
SMEs’ innovation outcomes. Journal of Organizational Change Management.
Lenzi, C. and Perucca, G., 2020. The nexus between innovation and wellbeing across the EU
space: What role for urbanisation?. Urban Studies. 57(2). pp.323-349.
Li, X., Gagliardi, D. and Miles, I., 2020. Variety in the innovation process of UK research and
development service firms. R&D Management. 50(2). pp.173-187.
Molnar, A., 2020. Giving kids the business: The commercialization of America's schools.
Routledge.
Moreddu, C., 2020. Public-private partnerships for agricultural innovation: Lessons from recent
experiences.
Öberg, C., 2020. Let’s talk about innovation. IMP Journal.
Park, C. and Lee, H., 2020. Value co-creation processes—Early stages of value chains involving
high-tech business markets: Samsung–qualcomm semiconductor foundry businesses.
Journal of Business-to-Business Marketing. 22(3). pp.229-252.
Rasiah, R., 2018. Innovation Policy, Inputs, and Outputs in ASEAN. Innovation Policy in
ASEAN, pp.285-286.
Servajean-Hilst, R. and Calvi, R., 2020. Shades of the innovation-purchasing function—the
missing link of open innovation. International Journal of Innovation Management.
22(01). p.1850008.
Teece, D. and Leih, S., 2020. Uncertainty, innovation, and dynamic capabilities: An
introduction. California Management Review. 58(4). pp.5-12.
Uyarra, E. and Ramlogan, R., 2020. The impact of cluster policy on innovation. In Handbook of
innovation policy impact. Edward Elgar Publishing.
West, J., 2020. Challenges of funding open innovation platforms. New frontiers in open
innovation, pp.22-49.
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