Innovation and New Product Development for FORDWAY: A Report

This report examines the innovation strategies of FORDWAY, a technology solutions provider. It differentiates between invention and innovation, emphasizing their importance for business success. The report analyzes how vision, leadership, culture, and teamwork shape innovation and commercialization. It explores the 4Ps of innovation (product, process, positioning, and paradigm) and the use of an innovation funnel. The report also discusses frugal innovation, the commercial funnel, and the new product development process, highlighting the importance of skilled manpower. The report concludes with a discussion on tools for developing and protecting intellectual property. FORDWAY should focus more on the innovation process rather than invention and employee involvement is crucial for success.

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Difference between invention and innovation and their importance....................................1
P2.Way in which vision, leadership, culture and teamwork shapes innovation and
commercialisation.......................................................................................................................3
TASK 2............................................................................................................................................4
P3 4Ps and use of innovation funnel and examination of this new idea.....................................4
P4 Process of developing frugal innovation in FORDWAY......................................................5
TASK 3............................................................................................................................................6
P5 Importance of commercial funnel and application of new product development process.....6
P6 Innovation building case for FORDWAYS including way of access fund...........................7
TASK 4............................................................................................................................................9
P7 Different tools for developing, retaining and protecting intellectual property......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is very important for a company because it aids in getting success in the
market as well as helps in attracting large number of customers. In today’s competitive
environment, enterprise should adopt innovation and must design their products or services
according to the requirement of customers so that it can achieve competitive advantages over the
rivals (Battisti and Stoneman, 2010). This strategy is very important for small scale organisation
because it concentrates on a limited area and by adopting same, it can provide their merchandise
in an innovative manner for satisfying the needs or wants of customers. This project is based on
FORDWAY which is a small enterprise that provides solution related to technology to its target
market. This report will explain the difference between innovation and invention as well as will
state about how culture, vision and teamwork plays an important in implementing innovation
policies successfully.
TASK 1
P1. Difference between invention and innovation and their importance
Innovation and invention both are different from each other in the following ways-
BASIS INNOVATION INVENTION
Meaning It is a process in which new
ideas, methods or procedures
are implemented for the first
time.
In this, an idea occurs for the
development of products or
services which have never
been spotted earlier.
Concept In this, idea is implemented
practically.
While in this, implementation
is done in theory.
Activities involve This activities are related to
whole organisation.
In this, only research and
development department is
involved.
Concerned with It is related to a large number
of activities.
While, it is concerned with
only single activity.
Skills required For this, marketing, technical
and strategic skills are required
In this, scientific skills are very
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(Borrego, Froyd and Hall,
2010).
important.
In this, some modification is
done in the existing products or
services.
However, with the help of this
process, new goods or
facilities are created.
Difference between innovation and invention can be understood by an example which is
given as follows-
As per the given case study, Apple INC. increased storage capacity in their mobile
phones which can be taken as innovation as well as it introduced mp3 music player that is an
invention because it was launched for the first time.
CEO of FORDWAY analysed that this process provides various benefits to business such
as-
 It increases the productivity of enterprise as well as of its employees.
 With the help of this, company can generate huge amount of profit and sales revenue.
 It aids in utilizing resources in an effective and efficient manner.
From an analysis, it is analysed that FORDWAY should focus more on innovation
process rather than on invention. If company is going to introduce some uniqueness then it
should involve the workers in this process so that they will give their suggestions and make this
process more effective. By doing this, employees will be motivated and do their work as per the
specified standards (Chaudoir, Dugan and Barr, 2013).
Innovation procedure directly affects the life of people who are associated with this
company. It is because; by this process, company generates a huge amount of profit that provides
more growth opportunities to its employees or stakeholders.
In invention process, products are launched in market for the first time which have never
been taken place. For example- When computer was introduced in the market then it was an
invention as earlier, it was not seen in the market. But after some time, laptop came in the market
and then it was known as innovation because it is the second form of computer.
So, from the above discussion, it can be said that FORDWAY should adopt this policy
according to consumer's requirements.
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P2.Way in which vision, leadership, culture and teamwork shapes innovation and
commercialisation
Company brings new changes in their activities on the basis of its long term objectives.
For getting success in the market, FORDWAY should have clear vision and mission statement
because it provides direction to them for taking corrective actions (Damanpour, 2010). For
achieving the desired results, vision, leadership, culture, etc. are very helpful in the following
ways- Leadership- It is an important element that influences the behaviour of others. Leader
should have expertise and capability to motivate workforce so that they can carry out
innovation process successfully. In FORDWAY, there are existing many teams which
have assigned specific task. A team will get success when their leader will have
capability to manage things effectively. Culture- It is another factor which influence the innovation process. Employer should
make a healthy work environment and culture so that employees can perform their job as
per the specified standards and will contribute in attaining the desired results on time. Vision- Innovation process totally depends on the long term objectives of company. So,
FORDWAY should have clear vision statement so that employees will give their best
efforts accordingly and aid the firm in getting specified results. Team work- It is one of the most vital factors by which organisation can reach to its
decided destination. It is said that if people will perform their job collectively then they
would be able to generate positive results as in a team, there are large number of
individuals who have different skills and knowledge. So, by using it, they produce the
desired results. In the given case study, Apply INC. involved all members of company
while developing new features and this is the reason; their products got a positive
response from customers (Ellis, 2014).
So, after analysing all above mentioned factors, it is recommended to FORDWAY that it
should consider all elements while implementation of innovation as it will help in attaining the
desired goals in the most effectual manner.
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TASK 2
P3. 4Ps and use of innovation funnel and examination of this new idea
In today’s competitive environment, innovation is very essential for a company as if it
will introduce some unique ideas in their products or process then it will be able to attract large
customer base as well as will get its desired result. With the help of this procedure, firm will be
able to satisfy the needs or wants of consumers and will be able to achieve competitive
advantages over its rivals (Evangelista and Vezzani, 2010). For implementing the concept of
innovation, it is required that enterprise will apply 4Ps in its process so that it can get specified
goals. 4Ps of innovation are explained as below- Product- It is tangible in nature which satisfies the needs or wants of target market. It
includes product innovation in which company brings some changes in their existing
products by adding some new features which are helpful for a company because it aids in
attaining competitive advantages over its rivals. Every person wants new goods and if
company will offer unique products then they will be attracted towards it and will only
prefer to purchase its merchandise. For example- In the given case study, Apple increased
storage capacity of iPod as well as introduced mp3 player. It will be known as product
innovation. Process- In this, main focus is given to improve the processes by which goods or services
are designed. In this, manufacturing process is modified in that manner by which
production can be done at minimum price. Being the CEO of FORDWAY, it is
recommended that company should change their procedure in that way in which war
material and manpower can be utilized effectively and efficiently. Positioning- In this, organisation tries to do repositioning of their products so that firm
can generate more profit. Repositioning refers to a process in which company creates a
positive perception in the minds of people.
 Paradigm- It is related to some specific models which shape an organisation. Firm should
design innovation process after considering all important factors so that this procedure
can be carried out without any disturbance (Hwang and Tsai, 2011).
FORDWAY which provides technical solutions to the people and for this it wants to set
up research team which will contain skilled individuals who will provide assistance in innovation
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process. So being the CEO, it is suggested that small firm should not invest their money in hiring
research team because it will be a costly affair for organisation.
P4. Process of developing frugal innovation in FORDWAY
Frugal innovation includes set of activities which removes all complexities from the
procedure and generates better quality of goods or services at minimum cost. Generally, it
removes all non-essential features from the merchandise or offers of company. This concept
creates more growth opportunity for a business and with the help of this, firm can provide its
goods or services to poor and middle class people because this concept reduces price (Jamshidi,
2011). For the development of frugal innovation, FORDWAY should follow a process which are
given as below-
 Before making a plan, it should have detailed knowledge of process regarding innovation
so that it can work accordingly and can attain its desired results.
 It should hire skilled and capable employees who will be able to carry out process
effectively and will give their contribution in the success of company.
In the given case study, Apple INC. used manpower in the most optimum manner and
introduced that product which was within the budget of company as well as of target market.
Innovation can be done in various ways like by adding new features in existing products or
process which provides various benefits to company which can be explained as below- For expansion- Main motive of business of doing innovation is to expand their existing
product line because in this process, new products or services are created by which needs
or wants can be satisfied. Reduce cost of production- Innovation uses the latest technology and processes by which
cost of production process can be decreased.
 Make product more featured- One of the basic reason of innovation making one product
more featured or effective. It is done to increase the convenience of consumers or people
of using product.
From the above discussion, it is concluded that for getting success in innovation process,
company should hire skilled and experienced manpower so that they can carry out business
operations according to the norms of firm. Manpower is only one who can drive company in the
right direction or on the right pathway of success (Kelly, Lesh and Baek, 2014).
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TASK 3
P5. Importance of commercial funnel and application of new product development process
Commercial funnel includes a process by which potential customers get convert into
actual that supports company in generating more sales or revenue as well as market share.
New product development is a process in which new products or services are created for
the market. While developing new offers, firm has to follow some steps which starts from an
idea generation and ends on commercialization (Kesidou and Demirel, 2012). Products will be
tassumed new when-
 Some modifications are done in the existing goods.
 New products are launched which have unique and different features from existing
products will be known as new products.
New product development process-
With the help of this development, market situation can be analysed in which demand of
products is observed. It creates opportunities for company by which it attains competitive
advantage over its rivals. While developing new products or services, company should conduct a
survey in which it will know about the requirement of target consumers by which it will be able
to produce that goods that will satisfy the needs or wants of customers. If new firm will generate
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(Source 1: Stages of New Product Development, 2017)

products with high quality at minimum price then it will be able to attract large number of clients
(Pande, Szewczyk and Grover, 2010).
FORDWAY wants to capture new market but before entering in an unknown area, it
conducts survey on consumer’s demand so that it can produce goods accordingly. For getting
attention of people, it has adopted a strategy in which it will sell their merchandise at minimum
price. Organisation has to follow that technique which is helpful in minimizing expenses and is
beneficial for company because amount can be invested in new area which will provide profit to
the firm.
4Ps of innovation is very beneficial for a company which provides various benefits to the
firm as given below-
 With the help of process management, complete work can be completed on time and in
an effective and efficient manner by which company attains its desired result.
 By offering new products or services, organisation can capture a large market share.
 These 2Ps have significantly helped company to grow and rest two, Ps are the part of
future mission of FORDWAY.
New product development process provides support to company in making better quality
of products or services which help in satisfying needs or wants of consumers along with which it
can know that whether this product will get positive response or not (Prahalad, 2012).
P6. Innovation building case for FORDWAYS including way of access fund
Most of the companies make building case which has the main objective to invest time
and money in a project rather than in competing one. It is a fundamental concept which is used in
the new product development process. For creating building case, organisation has to follow
some steps that are given as below-
 Understand the objectives- To identify goals is an important aspect for planning because
if company will know about its vision statement then it will be able to plan accordingly
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Illustration 2: Process of Building case, 2017

which will help in achieving the desired results and success in the market. This business
case is beneficial in carrying out operations effectively (Rabosky, 2014). Gather input- In this, necessary information is gathered that will provide support in
making business case. With the help of these resources, financial model is made. Analysis- After collection of the relevant information, FORDWAY should conduct
analysis in which it will analyse these material which will aid in deciding the best
alternatives by which company will be able develop business case effectively and
efficiently.
 Tell the story- It is the last step in which business case is presented to decision maker.
This information can be presented through presentation in which person will explain all
things verbally or through graphics. While giving presentation, presenter has to face too
many difficulties like keeping information clear (Rogers, 2010)
A company can raise funds from various sources for investing in innovation process that
is given as below-
 Personal retaining
 Reserves
 Financial institutions
 Venture capital firm which provides high amount of money in exchange of share of the
company. These capitalist are risk taker who takes risk by investing into highly risky
investment.
 Business Angles
TASK 4
P7. Different tools for developing, retaining and protecting intellectual property
Intellectual property rights are intangible in nature which provides exclusive right to its
owner. It may include idea, plans or any other intangible assets. It includes various assets that are
given as below-
 Trademarks
 Patent
 Copyrights, etc.
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There are various ways by which enterprise can protect these rights that are given as
below- Professional help- FORDWAY can hire a professional who will aid in retaining and
protecting to these rights. They can protect to these assets by providing password to the
company that can be only accessed by its owner. Rights about intellectual property- Proprietor of assets should have sufficient
information regarding their rights and duties because if he will be aware about it then he
will protect his property from any fraud person. Keep information or idea secret before getting patent- Owner should not disclose any
information before getting exclusive right otherwise, other person can copy it.
 Be realistic- Complete information related to intellectual property cannot be protected.
Only specific data can be saved from the fake people (Schubert, Van Langeveld and
Donoso, 2014).
Above mentioned are the ways by which intellectual property can be protected easily and
effectively.
Innovation can be bring by company if it will haveinformation, figures and facts about
recent trends in the market. Firm can collect data through various ways which are given as
below-
 Research and development- Enterprise should conduct research related activities so
that it can gain all relevant information regarding market.
 Information of internal environment- Internal source of company also provides
various vital information about trends that are going in the market.
 Customer information- Customers are the people who take goods or services from
company. It is the most important source of collecting information. In this, company
asks to their consumers about products or services and sometimes, they provide great
idea regarding innovation.
 Knowledge through professional association- In this, company can collect
information from books and journals.
 Data through third party- Sometimes, enterprise uses third party to collect relevant
content about company and about its competitors (Tortoriello and Krackhardt, 2010).
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From the above mentioned sources, FORDWAY can collect information about market
trends by which it will be able to design the innovation process.
CONCLUSION
From the above report, it can be concluded that innovation is an important factor which
helps company in getting success in the market. Without having this, firm will not be able to
achieve its desired results because every person wants some new products which can satisfy their
needs. In this assignment, it is stated that invention and innovation both are different things and
FORDWAY can capture a large market share by providing unique products or services to them.
If firm wants to implement innovation policies effectively then it can use 4Ps concept which will
direct to the company how to carry out innovation tactics. There are various intellectual property
rights like copyrights, patent, etc. which provide exclusive rights to its owner and no one can use
it without getting permission from its proprietor.
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