Innovation Report: Business Innovation Strategies and Analysis

This report examines the concept of innovation and its significance in business, focusing on Mr. John Watches, a small UK-based organization. It explores the importance of innovation in enhancing product value, attracting customers, and improving brand image. The report delves into the 4Ps of innovation (product, process, position, and paradigm) and the use of the innovation funnel to shape innovative ideas. It also discusses frugal innovation and its application within an organization. Furthermore, the report covers the significance of the commercial funnel, new product development, and the creation of an innovation business case. Finally, it outlines various tools available to businesses for developing and protecting intellectual property, providing a comprehensive overview of innovation strategies for business development.

Innovation

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
P1. Innovation and its significance in enterprise...............................................................................3
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation...................5
TASK 2....................................................................................................................................................6
P3 4Ps of innovation and use of innovation funnel to shape innovative ideas..................................6
P4 Development in frugal innovation and its use in organisation.....................................................7
TASK 3....................................................................................................................................................8
P5 Significance of commercial funnel and application of new product development for innovation8
P6 Innovation business case for an enterprise..................................................................................9
TASK 4..................................................................................................................................................10
P7 Various tools that can be used by enterprise to develop and protect intellectual property......10
CONCLUSION.......................................................................................................................................11
REFERENCES........................................................................................................................................12

INTRODUCTION
In modern era, innovation is a process of adding new and innovative values within
existing products with the purpose of making an attractive item. As customers needs and
wants are continuously change as per market trends, implementation of innovation concept
help business to invite larger number of customers by adding something new within their
products (What is innovation?, 2011). Along with this, the main advantage of implementing
innovation concept helps in improving performance level of the company and at the same
time also established positive brand image at market place as compare to its rivals. In this
company should have proper funds and financial resources to implement the concept of
innovation. This will lead in capturing larger market share form its rivals. Present report
discussed about Mr. John Watches, is a small business organization operate their business in
UK with the purpose of attaining higher success. Importance of innovation for business is
mentioned in this report. Along with this, 4P’s of innovation is also discussed here which aid
in enhancing the positive brand image at market place. Furthermore, frugal innovation and its
uses is also given in this project. In the of the project, various tools given which protect
intellectual property of the company.
TASK 1
P1. Innovation and its significance in enterprise
Innovation play vital role in business as it is a process though which company add
features in product to fulfil customers demand as per their requirements. By implementing
concept of innovation on continuous way company easily capture market share form its rivals
by inviting number of customers. For retaining them for longer time period, manager of the
company examines their needs to make quality products accordingly. In addition of this,
innovation also helps in getting strong position at market place by delivering features
products. For attaining benefits, implementation of innovation is must by which company
develop appropriate strategies which may leads in making their brand image popular at
market place. In this c context there are some importance of innovation of Mr. John Watches
are as follows:
Increase efficiency level of the level: The main benefit of using as well as
implementing innovation concept is to enhance efficiency of company. In this company
produce quality products and offer to customers at affordable cost as clients easily get

attracted (Anderson, Potočnik and Zhou, 2014). This will directly contribute in establishing
positive brand image for longer period of time.
Helps in utilising available resources at optimum level: Effective utilization of
resources helps in adding new features in existing products may helps in grabbing customers
attentions. This will contribute in maximizing profitability level at market place (Boons and
Lüdeke-Freund, 2013). In this context, Mr. John Watches prepare an effective plan to make
their quality products to invite larger number of users by effective utilization of available
resources.
Increase effectiveness of communication: Appropriate communication consider
important element in company as it helps in building coordination among all the workers and
activities. By this company attain all the benefits of innovation. If business entity uses
effective communication tool at the time of implementing innovative concept firm reduce the
chances of arising issues in order to enhance number of benefits.
Increase profitability of the company: By adding nee and innovative features in
product line helps in getting number of customers by this they influence and purchase
company products. As it helps in increasing profitability level of the company. Implementing
innovation concept in regular basis helps in attaining set goals and objectives in appropriate
time frame.
Thus, all these are major advantage of innovation for Mr. John Watches as company
easily invite various customers and also build better connection with them. In addition of this
some people think that invention and innovation is same but both are totally different as there
are some differences between them:
Basis Innovation Invention
Meaning Process of making quality
product s by adding new
features is called innovation. It
brings specific modification
within existing products helps
in increasing profitability level
by satisfying customer’s needs.
Invention is referring to totally
new products which is make for
first time is known by invention.
This activity is considered for
the first time.
Concept Concept of innovation is
adding features in products
Invention is evaluating for
fulfilling particular

with the purpose of increasing
the profitability level of the
company (Breznitz and
Murphree, 2011).
requirements of customers as
old products are not efficient to
satisfy them. This is a big
reason for carry out invention
concept.
Required skills Innovation concept required
requires specific knowledge to
implement the innovation
within the business.
Under this concept, for
implementing new and featured
products develop as it required
huge skills and knowledge for
implementing the concept.
Activities This concept of innovation
covers all the spilt between
departments as it helps in
providing variety of products
which helps in maximizing
benefits.
This is cover limited research
and development for
implementing the invention as it
may contribute in developing
the brane image of the
company.
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation
Innovation concept is important and wider activity as it directly affects t the entire
activities of the company. It also impacts on decision making process of business entity.
Thus, it is important duty of manager to effectively implement all the activities of innovation
process as company easily attain favourable results (Brown and Osborne, 2012). Along with
this, teamwork, vision, culture and leadership are also considered important factors that
highly shape innovation for attaining better outcomes. Basically, it is main procedures
through which firm implement appropriate strategies before producing quality and new
products.
Innovation and leadership: Leaders play big role in developing effective process of
implementing the innovation concept. As it is also important that proper and appropriate
direction should provide to workers at the time of implementing the innovation concept. This
will help in improving their performance. In addition of this, leader is responsible for using
appropriate and right approach of leadership to motivate as well as encourage workers so that
they effectively attain set targets.

Culture and innovation: Organizational culture play vital role in which company define
workers roles and responsibilities. Along with this, it is important that culture of the company
should be effective as workers are encourage and effectively implement the concept of
innovation within their firm (Brynjolfsson and McAfee, 2012). When business entity
provides health and safety environment at workplace so that employees are perform their
duties effective and attain desirable results.
Teamwork and innovation: It is important for workers to working in a team for
attaining common goals and objectives. As a teamwork helps in completing the overall
business project in systematic manner. Thus, manager have to provide guidance as well as
direction to team members as they easily implement the concept of innovation (Cross, 2011)
(De la Mothe and Paquet, 2012). With the help of this all the team members are easily
attaining set targets.
Innovation and vision: Under this, vision of the company define the future team where
company wants to see itself and company implement innovation for attaining the same in
appropriate manner. In this context, the main vision of Mr. John Watches of to produce
features watches to its customers at affordable cost. By this company easily retain customers
for longer period of time. This will directly contribute in maximizing the profitability level.
Therefore, all these are important elements which directly affect the innovation process. So
that it is important for manager to effectively evaluate all these factors while implementing
the innovation concept as firm attain competitive advantage at market place.
TASK 2
P3 4Ps of innovation and use of innovation funnel to shape innovative ideas
Model of innovation includes 4P’s which develop by John Bessant and Joe Tidd in
1960 with the purpose of attaining desirable goals and objectives. It defines product, process,
position and paradigm. As all these are used by company to enhance their performance level
through arranging activities in systematic way. In context of Mr. John Watches, they also use
4P’s of innovation for innovative as well as attracting customers which aid in gaining
competitive edge. This will also help in establishing positive brand image at market place.
4P’s of elements are as follows:
Product innovation: It is one of the important element in which all the modification is
done in appropriate way by adding features and effective values which helps in deceiving to

final customers for fulfilling their needs. Thus, it is vital for management to use all the
resources at optimum level to improve their productivity level (Gawer, 2011). In addition of
this, manager should evaluate customers’ needs for effectively modify the changes in order to
make attractive products.
Process innovation: In this stage, company should make an effective procedure for
adding new and innovative features in existing products for making its more attractive. As
this is not much easy process which directly affect the overall process of manufacturing of
products. In addition of this, company have to measure all the changes impact before creating
any kind of modification. This will reduce the chances of arising risk factors. As manager
also needs to formulate effective plan to making innovation process more appropriate which
consider various steps such as designing, arranging available resources, assembling and many
more (Gennaioli, Shleifer and Vishny, 2012). It helps in making alternation in systematic
way.
Positioning innovation: Under this phase, final products is offer and launched in market
by changing necessary changes in order to fulfil customers demands. As manager have to
make some alternatives marketing strategies to make this process easily and appropriate. It
helps in improving the customers bade within the company and its products. Along with this,
repositioning of the company products helps in determining the customers views for
improving the performance level of the firm. As Mr. John Watches needs to make their
products attractive so that number of customers are consumed and maximize the benefits.
Paradigm innovation: Under this last element of innovation in which company make as
well as crate changes in products. Mainly it is not easier but at the same time it helps in
inviting various people towards company products which may contribute in improving
positive brand image.
Use of innovation funnel in shaping innovation
Innovation funnel is play big role in developing all the elements of innovation in
systematic way. Basically, it defines various techniques by which company modify its
products and services for enhancing the chances of maximizing benefits. Thus, Mr. John
Watches use this technique to effectively execute all the 4p’s in order to reducing the chances
of arising any kind of issues and obstacles. As this type of techniques includes various steps
to manage all the adverse impact of changes. In initial stage, manager of marketing gather
data towards public demand. This can be helps in making all the necessary changes

appropriately. In second step, workers analyse necessary changes in order to prepare an
effective plan (Gunday and et. al., 2011). In another step, production team needs to utilize all
the resources in appropriate way for eliminating the chances of wastage. Along with this,
final step refers to narrow segment, in which manager should assess the overall quality of
innovative products for ensuring that its is based on customers’ needs and or not.
P4 Development in frugal innovation and its use in organisation
Frugal innovation is considered as an important at the time of producing new products to
deliver its customers. One of the main reason behind of using is to cut down the product cost
by maintaining its quality. Along with this, company focus of making features and innovative
products to offer customers in order to enhance profitability level (Jiménez-Jiménez and
Sanz-Valle, 2011). In this, Mr. John Watches also offer various quality products to middle
class people as they bring down its cost for inviting customers towards the products. In
addition of this, some particular principle of frugal innovation are as follows:
Identify opportunity in adversity: In refer to determining the way through which
researcher understand issues and transform all these in effective way to resolve problems in
effective manner.
Do more with less: By this principle researcher put all best efforts to affine better
solution in appropriate way.
Thinks and act flexible: Under this, researcher have to think flexible at the time of
evaluating the solution of the issues.
Keep it simple and attractive: By this methods researcher tries to make effective solution
to evaluate the proves attractive and simple.
Include the margin: it focusses on retaining customers by providing them solution of
their issues and problems.
Follow your heart: Under this, employee and manager focus on performing their job and
attaining goals.

TASK 3
P5 Significance of commercial funnel and application of new product development for
innovation
Commercial funnel is an important concept which refer to the ways by which company
increase their profitability level at market. With the help of this company easily survive in
market foo longer period of time by attaining competitive advantage. Along with this, for
effectively implement this number of strategies are used as well as formulate by firm to
enhance their productivity level (Kleinknecht, 2016). In the main advantage of commercial
funnel is to generate profits by determining new and innovative ideas. In this the main steps
are there which consider in this concept are as follows:
In first step, entire thoughts and ideas are evaluate by the firm with the purpose of generating
profits. In this some factors are must that helps in developing a product such as its cost,
conversion rate, strategies implementation and so on. As Mr. John develop new strategies
with the aim of enhancing their income level at market place.
Procedures of new product development:
It is not easy for manufacture and offer innovative products to consumer as there are
some important steps which used by company to develop new products (Lundvall And et. al.,
2011). As all these are follows:
Idea generation: At the time of develop new product various ideas are comes and
generate for manufacturing quality products. As all the customers needs and also consider in
this step.
Idea screening: In this stage all the analyse is complete for make plan for decide the
final products to take future action ineffective way.
Concept development: In this all the ideas are transformed in report in which firm use
various technologies to make effective process of production.
Strategy development: In this various strategies and plans are formulate to convert
ideas into real life.
Analyse business situation: This step is important which helps in determining the
market trends before implement the innovation. This will help in enhancing sales of
innovative products.

Product development: In this product are products for fulfilling customers wants for
satisfying them.
Test marketing: Under this, products offer in particular areas for determining its
demand and acceptancy by customers and market.
Commercialisation: Under this last step, promotion of the product is make for
customers to aware about new products (Manso, 2011). In this various channel used by
company to communicate with customers.
P6 Innovation business case for an enterprise
It is important for business organization to adopt innovation within their process for
improving overall performance of the company as it define various opportunities in which
firm serve quality products to final customers. As Mr. John Watches is small business which
needs to implement the innovation concept for capturing larger market share from its
competitors (Metcalfe and Miles, 2012). In this context, there are a business case which
develop by company is can be understood by below mentioned:
Executive summary: Mr. John Watches is small company which operate their business in
UK. A they serve their products in local areas for fulfilling customers requirements. In this
the main aim of company is to make their organizational structure innovate for attaining
competitive advantage.
Objectives: By implementing new technologies company produce quality watches at
affordable cost for every type of customers. As they easily consume it and satisfy their
needs.
Solution: It is important in which major changes are implement in existing products to
making it innovative and attractive. By this company easily invite customers for fulfilling
their requirements according to their needs.
Why products are innovative: In this product should be new and innovative with more
values and features which develop number of demand in market (Rosenbusch, Brinckmann
and Bausch, 2011).
Customers research: Under this, manager of company undertake research to evaluate and
determine the target customers for attain their satisfaction as it directly contribute in
achieving higher success at market place.

Funding: Companies needs to manage as well as arrange proper funds to make and bring
changes in the product line to make it attractive.
Expected benefits: In this business define various benefits which leads in increasing sales
and profitability level by offering innovative product in market.
TASK 4
P7 Various tools that can be used by enterprise to develop and protect intellectual property
Number of tools are implement by the company to protect their intellectual property in
effective manner. As Mr. John Watches is famous company in UK as it offers variety of
watches to its customers to attaining their satisfaction level. Along with this, company also
make their products attractive which may lead in capturing larger market share. For attaining
the same, firm needs to gather and collect information towards laws and legislation. It helps
in protecting the company intellectual property. These can be understood by following points:
Trademark: It is important tool which used by company for producing as well as making
products unique which is different form others. Under this company use various symbols and
sign that make products identity which is differ from other companies (West and Bogers,
2014).
Patent: It is referred to specific right which evaluate by legal bodies which is valid for
particular period of time as it defines opportunities in which company protect their products
which can not be copied by others.
Copyright: This tool is developed as well as define by government authorities to protect
the manufacturers interest towards the product.
CONCLUSION
As per above mentioned report, it can be summarised that innovation is one of the
important activity by which company enhance their performance level by serving new and
innovative products to larger number of customers. It is important duty of manager to
effectively analyse all the factors before implementing innovation within the company. With
the help of this company easily attain long term benefits in systematic manner. Along with
this, concept of innovation defines various opportunities to enhance the productivity level at
market place. In addition of this, various steps are also including in new product development
to attract larger number of customers towards the company products. Tools and methods are

used by firm to protect their intellectual property as company attain higher success at market
place.

REFERENCES
Books and journals
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding
framework. Journal of Management. 40(5). pp.1297-1333.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45.
pp.9-19.
Breznitz, D. and Murphree, M., 2011. Run of the red queen: Government, innovation,
globalization, and economic growth in China. Yale University Press.
Brown, K. and Osborne, S. P., 2012. Managing change and innovation in public service
organizations. Routledge.
Brynjolfsson, E. and McAfee, A., 2012. Race against the machine: How the digital
revolution is accelerating innovation, driving productivity, and irreversibly
transforming employment and the economy. Brynjolfsson and McAfee.
Cross, J., 2011. Informal learning: Rediscovering the natural pathways that inspire
innovation and performance. John Wiley & Sons.
De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol.
14). Springer Science & Business Media.
Gawer, A. ed., 2011. Platforms, markets and innovation. Edward Elgar Publishing.
Gennaioli, N., Shleifer, A. and Vishny, R., 2012. Neglected risks, financial innovation, and
financial fragility. Journal of Financial Economics. 104(3). pp.452-468.
Gunday, G. and et. al., 2011. Effects of innovation types on firm performance. International
Journal of production economics. 133(2). pp.662-676.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Kleinknecht, A., 2016. Innovation patterns in crisis and prosperity: Schumpeter’s long cycle
reconsidered. Springer.