Developing Innovation and Creativity for Business Advantage - Report

This report examines Stockholm Gas's approach to innovation, focusing on a case study involving a teeth whitening project. It delves into the company's innovation strategies, including discussions on open and closed innovation models. The report highlights the role of the product development manager, Bernard Bing, and his contributions to the project, considering both individual expertise and organizational knowledge. It analyzes the competitive landscape and market trends, evaluating the potential of the teeth whitening product and the strategic decisions made by the management team. Furthermore, the report provides recommendations to the board regarding investment in new product development, considering various viewpoints from different departments within the company. The report aims to provide a comprehensive analysis of the innovation process within Stockholm Gas, offering insights into its challenges and opportunities.

DEVELOPING
INNOVATION AND
CREATIVITY FOR
BUSINESS
ADVANTAGE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1) Stockholm Gases approach to innovation...............................................................................1
2. Role of an member of the team management in teeth whitening project ...............................3
3. Open and Closed Model of innovation...................................................................................6
4. Recommendations.................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................14

INTRODUCTION
Innovation can be defined as process of transforming a idea into product or services that
has some value for consumers in the market place. It involves use of information, imagination
and initiate so that different value can be generated by including resources and converting it into
useful product. In context of business, innovation leads to application of new ideas so that
changing needs and preferences are meet effectively. It involves risk taking as innovation
process uses technologies and resources and comes up innovative product for new market
segment. Innovation process involves transforming new and creative idea into solution that helps
in adding value in perspective of customers so that their needs and wants can be achieved.
Creativity is ability of business to generate useful and novel ideas and convert it into innovation
for some value added product or services (Prajogo and Oke, 2016). Stockholm Gas is company
which deals in selling natural gas, city gas and biogas in different restaurant, households,
automotive sector and industries in various regions of Sweden. Company vision is to have
sustainability in market with focusing on customer and become of leading gas suppliers in
Sweden. The gas network of Stockholm Gas is responsible for operating and maintaining
pipeline of gas in Stockholm, Solna and Sundbyberg (Stockholm Gas AB, 2019). In this project,
Stockholm Gas approach to innovation is included to understand the case study. Role of
management team member will be explained in context of teeth whitening project and their
knowledge and experience of individual and organisation. This report will include open and
close model of innovation that will help in analysing application in teeth whitening project with
justifications. At last recommendations to the Board that investment should be made or not about
new product development.
MAIN BODY
1) Stockholm Gases approach to innovation
Stockholm product is basically an industrial gas company of Sweden which is having a
long glorious history of supplying and providing liquid oxygen to health care markets and also
supply carbon dioxide to the beverages and drinks industry. The company is having more that
32000 employees across 70 countries of world and having a rich history of successful and
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creative R&D department that facilitates effective innovation which lead to its dominant position
in the market from more than 80 years.
The mainly used approach of Stockholm for innovation is making signifiant modification
in its product or developing a new product for teeth whitening market to attract more individuals
and have growing suitability for future (Anwar, 2018). The innovation approach of Stockholm
product includes an effective discussions among all influential and knowledgeable persons
before making any decisions regarding the changes. A group meeting and discussion allows
better innovation and creativity regarding different aspects of operations to have better review
and analysis of a project before its execution which lead to more cost-effective and innovative
and creative discovery of product and new features to get better results and positions in the
market.
The innovative approach of Stockholm incudes analysis and evaluation of view point
made by its employees belonging to different operations. On the project of development of a new
product for teeth whitening market the employees and manager of Stockholm are having diverse
view point. The R&D project leader is having a opinion on its plasma cleaning project that the
result of using plasma as a cleaning agent in form of an ionised gas is promising and convincing.
For evaluating the result of innovation, R&D has conducted an experiment on teeth of Pig which
has shown a dramatic change and discoloured yellow teeth into a shade of White with exposure
and use of Plasma.
The product development manger, Bernard Bing is having a different approx of
innovation which has reflected a gap in market for simple teeth whitening product as a cut throat
and immense competition is prevailing in the market (Clauss, 2017). Thus, the approach of
innovation of product development manager is focused on a product which not only provide a
teeth whitening but also have various other features like fresher breath, healthier gums, etc. to
give considerable amount of competition to other existing multinational organisations like
Colgate Palmolive. The product development manger also added that a product with various
features and innovative technically lead to present better opportunity especially in terms of
licensing technology. Thus, the approach of product development manager involves around a
more scientific research to fully and properly explain the features of product and some business
development managers are also having view point that teeth whitening project is a fad and
Stockholm should look at marketing it as a cleaning tool which lead to more effective result.
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Apart from this, the licensing manger Stefan Boch, that licensing of this new product and plasma
technology guarantee better revenue without any further additional costs. Further, the marketing
manger of Stockholm, Maria Klaus is having a different opinion on this plasma project and
development if a new teeth Whitening product as according to marketing manager a consumer
product like a small plasma toothbrush is much effective option than targeting a dentists with
large cylinders of plasma.
Thus, the overall invocation approach of Stockholm is based on development of new
product for teeth Whitening market and plasm cleaning project for which a panel of employees
and specialised manger is developed to have better decision making for sustainable innovation
and enhancing creativity level of organisation to get better result, more competitive power and
efficient and sustainable position in the market (Hon and Lui, 2016).
2. Role of an member of the team management in teeth whitening project
For this part of report the member chosen form the management team is Product
development manager of Stockholm i.e. Bernard Bing. The product development manger plays
an important and most vital role in creating and developing any new product. The important role
played the product development manger of Stockholm in teeth whitening project with properly
considering its individual and organisational knowledge and experience is provided with below.
Role of product development manger
The Bernard Bing who is the product development manager of Stockholm plays a crucial
role in teeth whitening project as a statistical is produced by him that reflects and demonstrate
the gap prevailing in the market and also explained ways and strategies for capturing lucrative
and growing market with applying and making efficient use of his individual knowledge and
experience with proper coordination with organisational knowledge through providing due
importance and considerations to view point and opinion of its team members and other
employees of organisation which has lead to improvement in viability of a project (Mårtensson
and Westerberg, 2016). The important role played by project development manger in respect of
its teeth whitening project are described as follows:
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Ideation- Product development mangers is having a crucial role in solicits ideas
regarding new product and contributes a grate level of its skills and knowledge for creating idea
for development of a new product (Dodgson and Gann, 2018). With regard to the current plasma
project and development of a new teeth whitening product, the product development manger of
Stockholm (Bernard Bing) has efficiently played his role of Ideation through providing an
evaluation that only a teeth whitening product is not sufficient to meet the current market
dimensions but a product with more diversified feature like creating healthier gums, breath
freshener, etc. is required. Beside this, with the use of his individual knowledge and experience
he develop an idea that a more effective research and fully proved and defined product is need to
have better growth. Along with this, on the basis of organisational knowledge of product
development manger i.e. through discussion with all other business development mangers the
idea of marketing a cleaning tool in place of a just teeth whitening is developed on the basis of
their combine organisational skills and knowledge. An idea of licensing its new plasma
technology has also been evolved by product manager of Stockholm as it ensure better success
and revenue in future for the whole organisation.
Market and competitive analysis – A vital role is played by an product development
manger in conducting constant surveillance for having a better awareness of the market to
effectively evaluate and identify and the needs and current trends of markets and customers.
Apart from this, product development manager is also responsible to gather and collect all
relevant information about the existing and potential products of competitors along with
capabilities and strengths of competitors exists in the business market (Product Manager Role
and Responsibilities, 2019). The product development manager of Stockholm is also playing this
crucial role of market and competitive analysis. An important role is played by the product
development manger of Stockholm in identifying the trends and demand prevailing in the market
and through proper analysis of this collected data by making use of their knowledge and
experience it has been concluded by product development manger that coming up with just a
tooth whitening product is not sufficient as per current market trend and a more diversified and
well featured product is required to counter the current demand of customers and market. Beside
this, with the help of organisational knowledge of product development manger it has been
evaluated that a high level of competition is prevailing in the market and the multinational
organisation like Procter & Gamble, Colgate – Palmolive, etc. are having huge power in the
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market thus, it become necessary for Stockholm to develop better featured product with
diversified advantages.
Strategy development- The another important role played by product development
manger is associated with formulation of effective strategy for betterment of an product and
overall organisation. Thus process of strategy get started from the market research as it is the
process that is related with the information collection and include the analysis of present and
potential market trends and customers desires (Saguy, 2016). Market research comprises a
detailed study about customers spending and buying habits and also creates awareness about
attitude of customers towards a particular product or services which forms the base of product
strategy through product development manager. Product strategy is a basically a documented
written road map that provide a strategic roadmap to control and direct the production
department effectively.
The product development manger of Stockholm is also performing this role of strategy
development as preform a crucial role in meeting the objectives the vision of this organisation.
The strategy formulated by Bernard Bing (the product development manager of Stockholm)
included more emphasis on its research and development department to conduct a more in-depth
research and evaluation about its new plasma project so that the findings can be more easily
understood to have an effective strategy to achieve the targets through providing proper guidance
and directing employees in a right way. It has been evaluated by the personal knowledge and
experience of Bernard Bing that without proper research and without performing proper testing
of any newly developed technology it is also risky to start production on the basis of new
technology as it lead to bad effect to health of any customers which is also risky and can also
lead to a threat of legal consequences in future (Mcmullan and Kenworthy, 2016). Thus, use of
efficient skills, knowledge and experience is made by the product development manger of
Stockholm before formulation and leading any strategy. Beside this, For gaining better strength
and more competitive power in respect of these multinational organisation a strategy of licensing
technology is also adopted by product development manager of Stockholm on the basis of his
knowledge and experience. Apart from this, on the basis of organisational experience and
knowledge it has been formulated by the product manager of Stockholm that strategy of teeth
whitening product was a just result in a fad thus, a strategy of marketing a its new plasma
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technology as a cleaning tool is a more beneficial strategy for Stockholm as per the
organisational knowledge of product development manger of Stockholm.
Product development- Apart from strategy development, product development is also
having a responsibility of product development which includes finalising the features and criteria
of product. Decision regarding the pricing strategy is also a form a part of role of product
development manger (Cruickshank, 2016). The Bernard Bing who is product development
manger of Stockholm is also analysing and evaluating various pricing strategy with respect the
price and features offered by competitors so that a best suitable price can be adopted or finalised
for its new product. Apart from all the role played by product development manager of an
organisation development and selection of an efficient distribution channel for product is also a
responsibility of product development manger. It is essential for a product manger to work
efficiently with existing distribution channels to find out the loopholes in existing distribution
channels so that efforts can be made to improve current distribution channels. In respect of
Stockholm it has been founded that a issue is faced regarding deciding its target professional
market. A decision should be made by Bernard Bing regarding the size of the product that either
it is distributed as a large cylinders of plasma to dentist or should be directly distributed to the
consumer as a simple micro cylinders product. Use of its organisational knowledge and
experience is made Bernard Bing to reach a decisions about the size of product so that an
efficient supply and distribution channel can be adopted by Stockholm (Lampel and Germain,
2016). The personal experience and knowledge of Bernard Bing as a product development
manager of Stockholm is facilitating him to take a decision of marketing its product as a cleaning
tool directly to its customers to have a better target audience and more customer base.
Thus, on the basis of above description it can be evaluated that product development
plays a crucial role in ideation, market analysis, strategy formulation and finally in product
development through making use of its personal knowledge and experience together with its
organisational support and knowledge to ensure achievement of targets and objective of
innovation and having better strength in the market through getting competitive strength.
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3. Open and Closed Model of innovation
Innovation can be defined as feasible and relevant product, service, process or experience
which is valid according to business model and adopted by consumers in the market place. It also
helps organisation to add value in terms of revenue and brand image or goodwill that assist in
sustainability in market place (Lii and Kuo, 2016). In case of Stockholm Gas, Research and
Development department has come up with Plasma which is an ionised gas and capable of
conducting and absorbing electricity. In turn it vibrates faster leading to scrub surface resultant in
whitening of teeth and convert it into viable business model. Innovation can be defined as open
and closed model which helps in defining different ways of targeting market and convert ideas
into business model for sustainability.
Open Innovation Model: This can be described as combination of internal and external
ideas which helps companies to advance development of technologies, processes, product,
services and operations. It is process by which innovation is based beyond the boundaries of
company so that potential can be increased with strategically using external environment. Thus
in such case innovation arises with the interaction of internal and external ideas in order to
develop promising products or business model. In this place of innovation is both inside and
outside the company premises (Gudiksen, 2015). This exchange of knowledge in open
innovation does not allow any type of free access to technology and knowledge of company. In
such only collaborating networking is used which also involves cost and licenses of intellectual
property. There are two types of open innovation, are as follows:
Inbound Open Innovation: This relates with sourcing and acquiring professional and expert
outside the walls of business so that external environment is scanned successfully. This will help
in identifying, selecting, utilising and internalising ideas (Rangus and Slavec, 2017).
Outbound Open Innovation: Such is concerned with commercialising purposely and capturing
ideas that are developed internally with view of external environment. This can be done by
selective revealing of product and reviewing selling so that feedback can be get.
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Coupled Innovation Process: It combined both inbound and outbound innovation as companies
work together so that ideas or solutions can be developed (Mitra, 2019). Same can be done by
joint venture, loose affiliation, etc.
(Source: Open Innovation, 2019)
There is need that businesses adopts open innovation so that they are able to manage and
minimised cost and risk related to new product development. They assort to such collaborations
to continuously innovate and gain knowledge from external environment so that they have
competitive advantage. Main advantage of open innovation model is that it provides flexibility as
there are different forms which innovation model can pursue (Hall and Williams, 2019). Some of
them are collaboration, ecosystem and networks by which ideas can be developed and same can
be taken into makret place by many ways. For example, corporate venture, licensing, joint
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Illustration 1: Open Innovation

research and development agreements and joint ventures. This helps organisation to get
additional benefit from collaboration with assurance of adequate innovation capacity.
Closed Innovation Model: When the innovation process is carried out in boundaries of
company like from generating ideas, developing it to marketing tools all exclusively takes place
in company. Such innovations does not have any interference and involvement of external
environment and are defined within organisation. All the concern resources, technology,
processes and property are in direct control of innovative business. For such companies invest
huge amount on Research and Development activities so that internal department can be
established. This functional unit helps significantly in technological inventions that resultant in
products and innovative solutions (Popescu, 2015). As a result it can characterised as closed
system which has fixed boundaries and activities related to research and development internally.
There are number of factor which needs to be considered while implementing closed innovation
model in organisation as employees should be highly qualified and company should be effective
in protecting intellectual property. Such ideas and innovation are operated by employees of
company and the whole process from idea generation to development. Research and
development department is responsible for in – house innovation process can will be helpful in
offering sustainable competitive advantage in industry.
(Source: Closed innovation model, 2019)
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Illustration 1: Closed innovation model