Innovation Report: Innovation, Strategy and New Product Development

This report provides a comprehensive analysis of innovation and its significance in the business world, using PERSCOPIX, a UK marketing consultancy, as a case study. It explores the differences between innovation and invention, emphasizing their importance for organizational growth and competitive advantage. The report delves into how vision, teamwork, culture, and leadership shape innovation, and explains the innovation funnel and the 4Ps of innovation. It also examines frugal innovation, commercialization strategies, new product development, and intellectual property considerations. The report concludes with a discussion on funding innovation and its importance in driving business success, offering valuable insights for students studying entrepreneurship and business strategy.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explaining the importance of innovation to organisations in comparison to invention.......1
P2. The way in which vision, teamwork, culture and leadership can shape innovation.............3
TASK 2 ...........................................................................................................................................4
P3 Describe innovation funnel and 4Ps of innovation................................................................4
P4 Explain frugal innovation and its importance .......................................................................6
TASK 3............................................................................................................................................6
P5 Commercial funnel and the process of new product development........................................6
P6 Innovation business case and ways of funding.....................................................................7
TASK 4............................................................................................................................................8
P7 Intellectual property and its elements....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
The term innovation is the procedure of converting an idea or thought into the finished
products that are able to create value for its buyers for which they will pay. The concept or an
idea should be replaceable at an economic cost of company. It must also satisfy the specific
needs of its buyers. Along with this, innovation also embroils the deliberative application of
information and imagination. This drives all processes and activities through which innovative
ideas can be generated and converted into finished goods (Drucker, 2014). PERSCOPIX is the
chosen organisation in present report; which is a marketing consultancy in UK . In this
documentation, there will be a discussion on the importance of innovation for business
organisations and 4Ps of innovations. Frugal innovation and the uses of innovation funnel will be
also explained in this report. Further, a new product development plan is created for
commercialisation of innovation.
TASK 1
1.1 Explaining the importance of innovation to organisations in comparison to invention
“Innovation is helpful in creating new or fresh methods for joint venturing, alliance
creation and flexible working hours”. It is also liable in increasing of buyer's purchasing power.
Along with this, innovation is identical with risk taking and business organisations that designs
revolutionary techniques or products take high risk cause they develop new market for their
products. In other words, it means successful exploitation of new concepts and ideas. Apple and
Virgin group are the two big leading firms across globe; they have different possibilities as they
can produce or innovate better. These organisations always tend towards continuous
improvements but that is not able to regularly focuses on competitive advantages of the firm but
continuous improvements can manage the competitiveness of products within target markets in
terms of costs. There are two types of innovations such as product and process innovation.
Product innovation consists with changes in attributes of the product so that it will
become noticeable among customers (Stokes, 2011).
Process innovation relates with changes regarding the production process of product. It
has direct impact on increasing the productivity and reduction costs.
Invention: - The core concept of invention is considered with an object and technique
which displays a component of novelty. But in some circumstances, legal protection may be
1

granted to an invention by the way of a patent. In this sense, innovative products are the engine
of powerful growth of company. No firm can grow without effective and attractive products in
the competitive market. Main credit of Apple is linked with reinvention of mobile phones,
computers and music industry. The firm has a sleek looking device i.e. iPod and a digital music
player; it weights 6.5 ounces and held 1000 songs. Recently, company has launched I Phone 7
and soon it will be introduced as I Phone 8.
Difference between innovation and invention: -
INVENTION INNOVATION
Invention refers to the occurrence of an idea
for a product or process that has never been
made before.
Innovation implies implementation of an idea
for products or services for the very first time.
It is helpful in generating new ideas for the
firm as ; innovation can achieve growth and
success in the target market.
It provides a unique competitive position for
the enterprise in marketplace.
The core concept of invention is an original Innovation consists of core practical
2
Illustration 1: innovation

idea that tends towards producing new and
attractive products for the company. .
implementation with fresh ideas and thoughts.
It is concerned with a single product or
process.
It is related with the combination of divergent
products and services.
Its activities are limited only to research and
development department.
However, innovation is spread across the
business organisation.
Importance of innovation and invention in context of business organisation: -
 In PERISCOPIX, innovation helps in ensuring a wide range of key business outcomes. It
includes motivating as well as engaging people to invent or innovate new products and
process that increases return on investment to shareholders.
 Innovation and invention are also accessible in achieving business growth and improving
bottom line results (Huizingh, 2011). It also provides the competitive edge that is being
able for companies as they can easily enter into new markets faster and deeper.
 It adds value in existing products, services and markets in order to differentiate the
business from its rivals and also, to maximise the perceived value for consumers and
markets.
P2. The way in which vision, teamwork, culture and leadership can shape innovation
In the business organisation, there are many factors which gives shape to innovation as
well as commercialism that are stated as follows: - Vision: - The vision and mission of company put a huge impact upon innovation. It
should be achievable that encourage managers to produce innovative and creative
products. Along with this, it is important for the CEO to have clear vision of aim, targets,
mission and values. For example: vision of Apple is to be the best seller of computers
over the globe. The firm leads digital music revolution with its iPods and iTunes online
store. So as same PERISCOPIX also has introduced with its vision and tend to produce
innovative goods and services for its potential market growth. Teamwork – It is essential for every business entity to manage teams and group members
as they can execute its activities in well-being mannered. Innovation and
commercialisation rely upon the teamwork. There is successful manpower behind the
3

implementation of new projects and tasks. In addition, an adequate teamwork renders
assistance to all its members as they can finish their tasks effectively. Teamwork also
forces people as they can adopt changes. This is liable to abolish cooperation and
coordination among staff members so that all can work together (Patton, 2011). Apple
and Virgin group focuses on teamwork and both have innovative team leaders who give
ideas regarding the way to develop business in specific market. Therefore, PERISCOPIX
also need to hire well skilled and talented team leaders so that it can invent some
innovative products and services for its target customers. Leadership- Business leaders are liable to manage and organise all working activities.
Leadership is the process where a person influences attitudes and behaviours of others in
business entity. It is the way of bringing authorities to an organisation by inspiring and
initiating actions (Amit and Zott, 2012). Apple and Virgin group has effective leaders
who are the main key of their growth and success. Good leaders in an industry are
responsible to set directions for rest of the employees; they help them in achieving the
goals and objectives of the company from target market. Along with this, leadership also
has an important role in encouraging and motivating employees as they can retain in
company for a long term period.
 Cultural – An organisational cultural decides the way by which employees can interact
with each other. A healthy cultural of the company encourages its workers in order to
stay provoked as well as loyal for the management. Organisational cultural of Apple and
Virgin group represents certain predefined policies that helps in guiding the employees
and gives them a sense of direction at the workplace.
TASK 2
P3 Describe innovation funnel and 4Ps of innovation
Innovation funnel: - This strategy is used by companies in the new product development
process. It is the main goal of every product is to meet specific needs of markets in the cost
effective manner. Along with this, the funnel renders a graphical representation that is linked
with generation of alternative improvement options. It expands its base of knowledge
information so as the quantity of new products can be increased easily. Innovation funnel
generates many ideas that should screened whereas its resources also tend towards attractive
future opportunities. The core process of innovation funnel is starts with strategic thinking.
4

Apple and Virgin group has so many resources as its intent is to enhance the value of overall
organisation. Hence, final aim of innovation funnel is to develop strategic advantage that is able
to add values within the objectives of PERISCOPIX.
4Ps of innovation are stated as follow: - Press- It involves those factors which affect internal as well as external environment
across the firm. In addition, internal factors consists the cultural and communication
process so as employees and managers can interact with each other. It is the main
responsibility of the PERIS' is to provide effective organisational cultural to their staff
members this is helpful in attaining and retaining all workers over the company. Apart
from this, external factors encompasses with political, environmental, social, legal,
technological and economical elements that will persuade organisation performance as
well as its market reputation in potential market. Therefore, cited firm needs to work
under the rules and regulations of UK government. In technological, the company have to
use effective tools and techniques as it can produce better and make able to compete with
external rivals (Rosenbusch, Brinckmann and Bausch, 2011). Product – This is necessitate for companies produce innovative and qualitative products;
this will helps in accomplishing goals and objectives. Apple and Virgin group have best
and value added products as both can cover a large market share worldwide. So as it is
also essential for PERISCOPIX is to timely upgrade as well innovate new products for
their customers. Product of the company must able to highly satisfied the needs and
wants of people. Process – This element of innovation mix is related with the process that is used by the
company in manufacturing goods and services. In this modern dynamic world, business
organisations are utilising innovative tools and techniques for fast production; this will
also reduce wastage and the cost of production for the company. Apple and Virgin group
continuously change their techniques and adopt new ones so as now both are the top
compute software industries over the globe.
 People – In commercial entities, it is needed to maintain and organise new inventions; for
that they requires talented personnels. Apple and Virgin group has well skilled staff
members who are able to solutions that how to beat rivals in competitive market.
5

P4 Explain frugal innovation and its importance
Frugal innovation – It seeks with the capabilities that how business enterprises are
generated social value by reducing the use of deficient resources. Frugal innovation is also
knows as game changing strategy that impact upon economical conditions of the company.
Furthermore, it is a flexible approach that focuses on maximum utilisation of available resources
as it is the growth opportunities for the company. Along with this frugal innovation is the
technique that provides ideas and directions to develop a product in an effective manner. It is
essential so as managers can analyse that the product is able to achieve growth and success in the
potential market of the company (Ariga and et. al., 2013). Now a days, business organisations are
used various tools and techniques in order to make their product more effective and innovative
and the core concept of frugal innovation is also do the same.
TASK 3
P5 Commercial funnel and the process of new product development
Commercial funnel is an important aspect of innovation. Every new product that is
launched in market must need commercialisation as customers can know its uses and advantages.
In addition, the core approach of commercial funnel that focuses that the process of new product
development should be done in cost effective and the product able able to increase market share
of the company.
New product development is process that covers all stages that are involved in launching
a new product to marketplace. It also recognise the demands and requirements of buyers as to
attain large market share. There are given following stages of NPD
Process of new product development - Idea generation – It is the initial stage of new product development process. It is
essential that company have good ideas because they are liable for the viability of the
firm. Along with this, these ideas can come from divergent directions and sources
(Gordon, 2012). PERISCOPIX also have to develop new ideas and concepts as its
products can be more effective among customers. For that, companies can conduct
market research and also studying the new products of competitors; this will helps it to
achieve goals and objectives.
6

 Idea screening – This step relates that, managers have many ideas in which many of
them are suitable and many are not. Those ideas are not useful, are rejected whereas
adequate ideas are adopted by the company. Concept development and testing – concept testing includes that whetehr product is
useful for customers or not. For that, a few number of persons are selected and they are
provided overall information about the uses of products. And then asked them that what
they think about such new product. Therefore, the concept testing means to understand
the reaction of potential users of the product after consuming it. Business analysis- It is concerned that product is economically beneficial for the
company or not. It also emphasis on a elaborated marketing strategy that is helpful in
highlighting the product positioning in the target market. Additionally, business analysis
also involves market demand of the products and determination of the break even point. Product development and test marketing – In this stage, the operational department of
the company make plans as how it will produce the product whereas finance department
helps in rendering economical help to the goods (Strayer, 2012). Apart from this, test
marketing involves that implement the product among the small group of people. It helps
managers by reducing the risk of marketing on large scale.
 Commercialisation and launching – At last, marketing managers develop strategies and
policies regarding advertising or promotion of the product. As along, prices of that
specific product is are also decided during commercialisation. After that product is ready
to launch in competitive market which provides new heights of growth and success to the
company.
P6 Innovation business case and ways of funding
Innovation business cases offers a novel approach that how to handle the problems and
issues which are come within innovation process. The model is assistive in making an effective
innovative that is able to compete with external market of the company. Along with this,
business case includes vision, mission, sources etc. of the product that are involved in the
production process. The core concept of effective business innovation needs the area of
transparent discussion. It also refers with cost benefit and factors analysis, elucidative
opportunity needs as well as uncertainties, evaluating the interest of stakeholders etc. innovation
7

business case is a well structured approach that helps in identification and realization of potential
market needs of customers (Jiménez-Jiménez and Sanz-Valle, 2011).
Ways of funding Crowdfunding – It is the alternative way of finance that raises the funds of a project or
venture by the contribution of wide number of people. Crowdfunding has been used by
entrepreneurial ventures as they invest in creative invest, medical expenses etc. The core
success of crowdfunding is based upon the idea or the concept. Bank loans – Many multinational banks i.e. private and government are able to provide
loans and credit as to increase the funds of the company. Mostly banks are needed an
effective business plan and market history of the business before giving loans to
managers. Venture capitalists – These are the group of people who invest their funds by new
technologies. Venture capitalists are also able to provide some suggestions and guidance
regarding expand the business in competitive market. They invest in companies with the
hope of high return of profits.
 Angel brokers – They offers large amount of money to the business entity and take some
percentage in ownership. If managers do want to give ownership or share to these angel
brokers as they will not provide money to them.
TASK 4
P7 Intellectual property and its elements
Intellectual property refers the conception of minds such as- music, artistic work,
inventions, symbols and designs etc. It is protected by law that enable peoples as they can earn
financial benefit with the help of their creations and inventions. Along with this, the main aim of
intellectual property is to flourish the innovative and efficient business environment. It is granted
with the development of specific rights. There are given some elements that are included in
intellectual property of the company, such are stated as follow: -
Industrial designs – It constitutes the aesthetic respect of an article. There is no right to any
person to copy the design, logo or symbol of the company; a product's design may involves
shape, surface, patterns and lines or colours. Copyright – It is a legal term that describes the rights of creators over their artistic as well
as literary work, but this is only for a limited time period (Manso, 2011). A copyright
8

only defend the original and exclusive ideas or innovations. It is not underlying thoughts
themselves. Patent – It states in all fields of technology and provide a right to inventors upon its own
creations and innovations. But patent owner must need to provide all information in the
published patent document. At last, patents gives a novel rights to an invention.
 Trademarks – It is a symbol or a logo which distinguish the goods of one firm form
another ones. Trademarks are able to identifies the owner of the brand and it can be
licensed to others. The owner may prosecute legal action if infringement of the
trademarks.
CONCLUSION
From the above mentioned report, it has been founded that innovation and invention are
the indispensable aspects of business organisation. Both are helpful in generating new products
and services for the company as it can accomplish its goals and objectives from target market.
The present report has described that how organisational cultural, teamwork and leadership
impact upon commercialisation and innovation. Along with this, commercial funnel, frugal
innovation and the process of new product development is also discussed is this assignment. 4Ps
of innovation mix, innovation business case and intellectual property are also briefly explained
within this assignment.
9

REFERENCES
Books and Journal
Aghion, P., Van Reenen, J. and Zingales, L., 2013. Innovation and institutional ownership. The
American Economic Review. 103(1). pp.277-304.
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review. 53(3). p.41.
Ariga, K., and et. al., 2013. Layer-by-layer nanoarchitectonics: invention, innovation, and
evolution. Chemistry Letters. 43(1). pp.36-68.
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.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gordon, R. J., 2012. Is US economic growth over? Faltering innovation confronts the six
headwinds. (No. w18315). National Bureau of Economic Research.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Lichtenthaler, U., 2011. Open innovation: Past research, current debates, and future directions.
The Academy of Management Perspectives. 25(1). pp.75-93.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Patton, M. Q., 2011. Developmental evaluation: Applying complexity concepts to enhance
innovation and use. Guilford Press.
Rosenbusch, N., Brinckmann, J. and Bausch, A., 2011. Is innovation always beneficial? A meta-
analysis of the relationship between innovation and performance in SMEs. Journal of
business Venturing. 26(4). pp.441-457.
Schaffers, H., and et. al., 2011. Smart cities and the future internet: Towards cooperation
frameworks for open innovation. The future internet. pp.431-446.
Spithoven, A., Clarysse, B. and Knockaert, M., 2011. Building absorptive capacity to organise
inbound open innovation in traditional industries. Technovation. 31(1). pp.10-21.
10