Innovation Report: Exploring Innovation at Unicorn Grocery - BUS 101

This report provides a comprehensive analysis of innovation, focusing on the case of Unicorn Grocery, a co-operative grocery store in Manchester, England. It begins by defining innovation and differentiating it from invention, emphasizing its importance in gaining a competitive edge, increasing efficiency, and fostering customer satisfaction. The report then explores how organizational leadership, vision, culture, and teamwork shape innovation within Unicorn Grocery. It delves into the 4Ps of innovation (product, process, position, and paradigm) and the use of the innovation funnel to examine innovative ideas. Furthermore, the report examines the concept of frugal innovation and how Unicorn Grocery implements it. The analysis includes the benefits of innovation, the role of leadership, and the practical application of innovation models and strategies within the business context. The report highlights how Unicorn Grocery uses innovation to improve its business processes and gain a competitive edge in the market.

INNOVATION

INTRODUCTION
The term “Innovation” means either changing or creating more effective product, process
and ideas. It refers to the process of translating an invention or idea into a product or service that
leads to create value for the customer (Aarikka-Stenroos and Sandberg, 2012). Bringing
Innovation to business help in saving money and time of organisation. Moreover, it aid in giving
higher competitive advantage to the firm so that they can grown and adapt market changes in an
effectual manner. For business entities, this mean employing new ideas, designing dynamic
products or enhancing existing services. It serve as a catalyst for the success and growth of
business. Being innovative does not mean inventing, it describes as changing entire business
model which enables company to deliver better goods and services as per customer requirement.
The chosen firm for this project is Unicorn Grocery which is a co-operative grocery store located
in Manchester, England. As the name suggests, the chosen entity is entirely run and managed by
its workers who focuses on gaining higher competitive edge with their innovative ideas. This
report talks about importance of innovation, 4P's of Innovation, importance of innovation funnel,
ways of funding and lastly tools that is used to retain intellectual property.
TASK 1
P1 Explain Innovation and its importance in comparison with invention
In simple words, Innovation means converting an idea into final goods and services for
which customer is willing to pay to business enterprise. To be referred as Innovation, the idea
must be replicable and creative at economical cost and must satisfy a particular need. In context
of businesses, it act as a catalyst who either creates new product or improve present services so
as to serve various of target audience in an effectual manner. It aid in increasing the likelihood of
business succeeding. It has been believed that an organisation who innovates more, their work
process gets more efficient and their overall performance and productivity gets improved. A
good definition of business innovation includes improving existing process, technologies, design
or developing new goods etc. Most of the business owner, consider Innovation as a synonym of
Research and Development but is far different from the term “Invention”.
The main key to any successful company is being able to come with designing new and
creative ideas to keep products, operation and services fresh (Bagchi-Sen, 2015). For example:
Unicorn Grocery is yielding adequate profits that is sufficient for their survival in the market

place. However, in order to gain higher competitive edge over their rivals, they need to do
something unique which distinguish them from their competitors. Therefore, the company has
designed its online application for its customer which saves time, cost and energy of both
company and potential buyer. Mentioned below are some of the benefits of Innovation:
 Assist in gaining higher competitiveness level
 Comes out as one of the effective method for Unicorn Grocery in context of capturing
large market share.
 It is essential for success and growth of the firm (Chun, D., and et. al., 2015).
 Businesses who are still following the concept of traditional bricks and motor economy
are becoming unprotected to digital era. Thus, innovation serve as a main key for its
survival in the market.
 Innovation help in connecting diverse people with business enterprise
 It also help in making work processes more efficient and effective
 Innovation saves time, money and energy of company as well as of potential buyers.
 Increased customer satisfaction
 Staff Motivation
Difference between Innovation and Invention:
Innovation Invention
It occurs when business owner wants to
improve their exiting process, product,
services, technologies etc. so as to gain higher
competitive edge.
It can be defined as development or
introduction of product or services for the first
time.
For example: By introducing mobile
application, Unicorn Grocery is doing
innovation in its business. It help in expanding
its market share and also increase the size of
target customer.
In context of Invention, IOS was first
introduced by Apple Inc. The software is used
by Unicorn Grocery for successfully execution
of its mobile application.
It deals with modernization and novelty It deals with creating something new
It deals with process of convincing customer to
change their existing habit with the new one.
It is something fresh and the world is yet not
aware about it. It is new for an organisation but

not for entire world.
Invention is practical, thus it can be felt or
assessed by any people.
It is the modern idea that is applied by business
enterprise to their present situation.
P2 State how organisational leadership, vision, culture, team work can shape innovation
Vision of Grocery Unicorn: “Our vision is to be highly valued by the potential buyers we
serve, our loyal members, the society in which we operate”. This encourage their member or
worker to fulfil diverse needs and requirement of target audience in an effective and efficient
manner (Cunningham and Porter, 2011). The referred company is earning sufficient profit for its
survival in market but due to intensive competition, it is important for them to distinguish
themselves from their rivalry firms so as to gain higher competitiveness level. Thus, the
company has decided to launch its online application which gave them higher competitive edge
over other rival SME's. For instance: They want to sell such product and services that creates
value for customers, thus, be selling products online they save time, energy and money of
consumers.
Culture and Team Work: As Unicorn Grocery is solely run, managed and controlled by their
workers itself which means that referred company is having effective teams whose members
contributes efficiently towards achieving their business objective. They have only 70 employees
who works collectively as a team and yields higher profits for the firm. In UK, they are
considered as the largest independent wholefood grocery store with an annual turnover of 7
millions in pound. In-fact BBC has ranked them as “Best Local Food Retailer” and “Best
Independent Retailer”. It's success is not possible without the contribution of their workforce.
They have a positive working environment where everyone is allowed to give their opinion and
suggestion which help in satisfying customer needs in a better way. In addition to that, they
possess strong communication between employees which automatically promotes healthy work
culture which ultimately promotes innovation. Chances of innovation increases when firm values
their employees as well as their ideas and gives shape to innovation.
Leadership: The leadership style of Unicorn Grocery leaders is Democratic or Participative
which means they values the input of their team and its members. They involve them in their
decision-making process as well which makes their worker realise that their opinions matters too.

As a result, when ideas and thinking of employees consider or values it gives shape to
innovation. Giving freedom to personnel assist in motivating or encouraging them to develop
creative ideas which help the firm in gaining higher competitive edge (Eesley, Hsu and Roberts,
2014).
TASK 2
P3 State the use of 4Ps of innovation and use of innovation funnel to examine innovative ideas
4P's Model of Innovation was framed by John Bessant and Joe Tidd. It is a powerful tool used by
business enterprise so as to examine innovation in product, process, position and paradigm in an
effective and efficient manner. Below mentioned are the brief description of 4P's of innovation
and its uses:
Product Innovation: It refers to the change in product or services offered to end customer's. For
example: By selling organic food and drink they have innovate their product range. In simple
words, it means altering or changing existing product or services of the company as per the
current needs and requirement of potential buyers (Jagoda and et. al., 2016).
Process Innovation: It refers to the way in which product or services is delivered to consumers.
From the ancient time, selling product through humanitarian is considered as an effective tool,
but now with rapid change in technology leads to sell product via online platform. For example:
Referred company has started selling goods through their online website which gives them
higher competitiveness advantage over their rivals. This have given option to their customer to
fill their product basket by simply sitting at home.
Position Innovation: It refers to the way in which product or services changes are
communicated or framed. It describe as a change in which particular product or service is used or
perceived by end-user. For example: Earlier Unicorn Grocery sells all grocery item but now they
have start selling organic with much focus on Fairtrade and local sourcing.
Paradigm Innovation: This “P” refers to the change in the mental models that provide shape to an
organisation. It is the combination of all above mentioned P's. Unicorn Grocery has introduced
their online application which changes the perspective of end-consumer regarding purchasing
product.
Innovation Funnel: This include series of steps that is used to develop or modify product,
process or services. The aim of all innovation is to create product or processes that fulfil market

needs in economic and manufacturable form. Basically the concept of innovation funnel deals
with taking an idea from the concept and converting into a reality i.e. in the form of final goods
and services that fulfil diverse requirement and need of consumer in an effective manner. In its
initial or starting stage, some ideas are gathered which further through the refinery system. Once
they are done with refinery, few ideas are left, which company finally implements. It denote the
time to commercialization and the fact that ideas, technologies, opportunities and product all
have distinct development cycle and can enter the funnel at different point of time.
Use of Innovation Funnel: It is mainly used by business concern to evaluate their creative ideas
& conceptualize products. In addition to that, company uses Innovation funnel so to manage the
process of New Product Development in an effective and efficient manner (Ke and et. al., 2016).
With the help of this funnel organisation can assess market opportunities available for their
upcoming product, they can also conduct mini-research so as to determine the requirement of
customer and lastly they will figure out whether their new product will be accepted by potential
buyers or not.

(Source: Innovation Funnel, 2017)
P4 State the development of Frugal Innovation
Frugal Innovation refers to the process by which company reduce the complexity of
production and cost of goods. Here the innovators consider resources not as a liability but as an
opportunity that tends to increase their overall efficiency and productivity (Kuratko, Hornsby
and Goldsby, 2011). It doesn't mean selling technically sophisticated goods but it deals with
generating good quality solution that delivers great value to the end-users at minimal cost. There
are many business enterprise who not only radically change their business model but also change
the mental model of their workers so as to embed frugality into corporate.
Illustration 1: Innovation Funnel

Today, most of the firms operates linear value chain in which goods are produced,
designed, consumed, sold and end-ups in landfills. However this model is costly,
environmentally unsustainable and wasteful. Therefore, business owner have decided to reinvent
their value chain which means they are going to operate in circular manner by embracing new
sustainable methods like C2C or industrial symbiosis. With the help of this circular technique,
companies can reuse their components, material, parts or even waste. Taking the advantage of
this, Unicorn Grocery is also following this business practices in their operation.
Development of Frugal Innovation: Find opportunity in adversity: At this stage, organisation reframe the problem. Here the
employees of Unicorn Grocery turn threat into an opportunity which help them in gaining
higher competitive edge. For example: Taking the risk of adopting high end technology
and implementing in business operation is a challenging task. Do more with less: Here the employees of Unicorn Grocery examine available resources
first, then create better possible solution rather than asking for something new. This assist
in using their existing resources in an optimum manner. For example: Employees of
Unicorn Grocery first figure out among all other workers who have good knowledge,
skill and experience in terms of dealing with latest technology. Think and act flexibly: At this level, it is better to be improvisational rather than being
rigid. Keep it simple: Complexity may generate problem that is not a good sign for the image of
Unicorn Grocery. It is always better to have fewer choices rather than having multiple
choices (Walsh, 2012). Instead of making its mobile application complicated, Unicorn
Grocery prefer to keep it simple so that everyone can use it easily.
 Include the margin: It is essential for Unicorn Grocery to know their end-customer and
involve them in process of problem solving. Like they can take feedback of customer
regarding their current need or requirement. Also before launching its application,
Unicorn Grocery can try it selected group of target customer.

TASK 3
P5 Importance of commercial funnel and application of new product development
Commercial Funnel: It can be defined as an effective process by which Unicorn Grocery tries to
determine accurate sources that provides innovative product or services to end-consumer in
marketplace (Xiao, and et. al., 2016). Basically it is the representation of idea to end customer in
the form of goods and services that meet their diverse needs and desire in a proper manner. It is a
kind of customer-centered approach that mainly emphasize on satisfying the needs and wants of
end-customer. Manager of Unicorn Grocery is responsible for selecting better distribution
channel for their both existing and new products. This will assist in yielding higher profit and
turnover easily.
Unicorn Grocery uses product development process which is essential for them so as to
introduce their new business activities to customer in an appropriate manner. Following are the
steps of this model:
Idea Generation: This is first and foremost level, where idea is generated or originated. It can
come from anywhere or at any palace. For example: Idea can come from any employee of
Unicorn Grocery.
Idea Screening: At this stage, Unicorn Grocery will determine the market where they will
introduce their product or services.
Concept testing and development: At this stage, employees of Unicorn Grocery will test whether
their product will be accepted by end-user or not. Basically testing of product is done at this
stage on selected group of target customer.
Market development and its strategy: At this level, Unicorn Grocery design or select accurate
strategies for marketing their goods and services in the market in an effective and efficient
manner. Here its employees will determine their target market, promotional tool, product
positioning etc.
Analysation of business and financial: It is completed once the firm done with examine sales
volume of particular goods and services as per its quality or size.
Commercialisation: It is the last level in which Unicorn Grocery will actually introduced or
lunched their product or services in the market place.

P6 Design an Innovation Case and access the way of funding
Organisation uses Business Case so to justify or determine the risk of investing in
innovation (Yin, Shi and Yan, 2014). It ensure that company should think logically through
everything. Here the chosen organisation has decided to launch its online application so to
capture large market share and maximise sales volume. There are various steps involved in
building an innovation case which are defined below:
Executive Summary: Basically this is last stage where company will give one page snapshot of
its entire business case.
The Need: At this stage, Unicorn Grocery will determine their problem that they are facing. For
example: The sales of company is going down as because there are number of other grocery store
too that offers sane product as referred company, thus making customer think where to shop.
Also they need to attain the benefit of higher competitive advantage over their rivals (Stroke,
2016).
Your Solution: The come up with selling their product through online i.e. they have decided to
launch their mobile application through which customer can easily their product basket with the
necessary items they need by simply clicking at product.
Why it is Innovative: In order to gain higher competitive edge in the market, it is essential for
firm to find innovative solution to their problem. The solution given by company must be super
easy such that it can be understand by cytometer in an effective manner. New or innovative ideas
creates value for the customer. Even the vision of referred firm is to deliver products and
services in such a manner that creates value for their customer.
Customer Research: At this stage, company will do mini-customer research by survey, focus
group, questionnaire etc. so as to determine the current needs and desire of target audience.
Investment Requirement: At this stage, company will determine investment needed for
converting their idea into practical world.
Expected Benefit: At this, company will identify the impact of innovation of society,
environment and customers.
The Ask: This is the last stage, at which referred entity is expected to take feedback from its
target audience regarding its innovative product.
Ways of Funding: There are two sources in which company arrange its funding one is Internal
and the other is external.

Internal Sources: In this finance funds are found within the business only. For example: Profits
can be plough back for its further expansion (Thomson, 2014). In addition to that, company can
sell their asset also mainly long term asset.
External Sources: These are sources that are available outside the organisation which provides
financial assistance to company so that they can perform their businesses operation in an
effective manner. For example: Creditors, banks, investors, government, agencies, international
organisation, business angels and individual donors.
TASK 4
P7 Tools used to retain and protect intellectual and knowledge property
Intellectual Property describes as creation of invention, mind, artistic work and literary.
In simple words, it is a kind of intangible property that comes out as a result of creative or
innovative idea. Intellectual property rights are just like any other property right (Wilson, 2017).
These allow owner or creator to copyrighted, patent or trademarks works so as to attain benefit
from their own work. There are various tools that protect intellectual property in an effective
manner. It enable Unicorn Grocery to gain recognition and financial benefit from what they have
created or invented. Some of the common tools used by Unicorn Grocery are listed below:
Tools of Intellectual Property:
Copyright: It is a legal term that is used to define the rights of innovator or creator over their
artistic or literary work. Works covered in this tool ranges from music, books, painting,
sculptures, films. Computer programs, databases, maps, technical drawing, advertisements etc.
Creators or right holder posses exclusive rights regarding the use of particular work or authorize
other to use their work as per their terms and condition. As Unicorn Grocery has decided to
introduce its own mobile application so they can use this tool so as to protect its mobile
application and it also provides legal right to use it universally.
Patent: It is an exclusive right mainly granted for invention, Basically it renders right to the
patent owner to decide how or whether their invention is used by others. In exchange for patent
right, patent owner provides technical information or data about its invention and make it
available publically in published patent document.
Trademark: A trademark refers to the sign that is capable enough to distinguish the product or
services of one business enterprise to that of others. It has been used by business enterprise from