Exploring the Role of Innovation Funnel in Business Success

The report delves into the importance of innovation for sustaining long-term market presence by continuously updating or developing new products to meet consumer needs. It discusses various strategies businesses can employ to foster innovation through an organized process known as the Innovation Funnel, which includes stages like Ideation, Screening, Development, Testing, and Commercialization. Additionally, it highlights the role of Intellectual Property Rights such as patents, copyrights, trade secrets, and trademarks in safeguarding inventions. By understanding and utilizing these tools effectively, businesses can enhance their competitive advantage and ensure successful innovation management.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1............................................................................................................................................3
P2............................................................................................................................................4
TASK 2............................................................................................................................................5
P3............................................................................................................................................5
P4............................................................................................................................................6
TASK 3............................................................................................................................................7
P5............................................................................................................................................7
P6............................................................................................................................................9
TASK 4..........................................................................................................................................10
P7..........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation means converting an idea into products and services that often creates value
for end-users. In terms of business, it refers to the process of generating new ideas,
methodologies, workflows, product or services. Innovative ideas are applied by business
enterprise so as to satisfy the requirements and wants of customer in appropriate manner
(Baldwin and Von Hippel, 2011). To be called as innovation, an idea should be replicable at
economical cost and must fulfil consumer's expectation. It is similar with risk-taking and
companies that develop revolutionary goods and technologies takes on higher risk as they create
new market. The chosen organisation considered in this project is Unicorn Grocery, that is
worker’s co-operative grocery store, headquartered in Manchester, England. The entire
organisation is run, controlled and managed by its owners or members. This report covers the
significance of innovation, funnel of innovation, 4Ps of innovation and sources of funding as
well as tools which can be utilise by companies to protect intellectual property.
TASK 1
P1
The concept of innovation deals with translating an idea into effective product or services
and for which consumer is willing to pay. It means coming up with new or creative ways of
doing things. For businesses, it can be defined as executing new ideas, generating dynamic goods
or enhancing the existing to get benefit over its rivals in the market. It acts as catalyst for
business success and growth and moreover, helps the organisation in growing and adapting
themselves in the marketplace in an effective manner.
Being innovative does not mean invention. It can be in the form of changing processes
and adapting changes take place in external environment so as to deliver better goods and
services to potential buyers. For making it successful, it should be considered as an in-built part
of company's strategy, in which they often develop a culture in which employees are encourage
to boost up their creativity so company can find effective solution of complex business problems.
It has been believed that organisations who frequently offer innovative solutions are more
effective and efficient as this help them in attract more number of customers. One of the
successful key to any entity is to come up with creative or new ideas to maintain products,
operation and services fresh. Currently, Unicorn Grocery is yielding significant profits for

managing their business activities and day to day operations in a structured manner (Boudreau
and Lakhani, 2013). But however, there are many other firms as well that are delivering same
products or service as the referred one. So, in order to gain high competitiveness level, they need
do something new or creative which distinguish them from their rivals. Thus, their members
have decided to launch online application which leads to reduce the effort, time and energy of
both customers and company. Moreover they are also emphasising on sheer layout which makes
product finding very easy (Drucker, 2014). Given below are the main benefits of innovation:
1. With innovation, Unicorn Grocery can attract more number of customers and can
generate more profits.
2. Effective innovation is one of the great way to develop a unique selling proposition for
particular product or process.
3. Enhanced employee retention, motivation and flexible recruitment.
4. Helps in building a brand
5. Improved performance and productivity and reduces cost
6. Higher profit and sales7. Rapid increase in the satisfaction level of customers.
Comparison between Invention and Innovation
Innovation Invention
It is related with modernisation and novelty. It is related with developing something new
which never exist before.
It is a modern idea which can only be applied
to existing or present situation.
It is practical i.e. can be felt or assessed by
customers.
It is concerned with amalgamation of various
process and products.
It deals with single product or process.
Innovation needs to wider set of strategic,
technical and marketing skills.
It requires scientific skills.

P2
Vision: Their vision is to “server high valued product to customers to get their satisfaction and to
sustain them for long time”. According to their vision statement, it can clearly figure out that the
organisation is focusing towards meeting the requirement of customer in an effective manner
(Goldberg, 2013). In today's market where needs of potential buyers are changing frequently,
members of Unicorn Grocery have formulated various strategies that enable them to anticipate
changing needs and wants of the buyers. For example: They have figured that most of people
prefer to buy products even grocery items via online which creates an urge for them in context of
launching their own online application.
Leadership: The leadership style followed by Unicorn Grocery is democratic which enable them
to engage all members or workers in decision-making process which makes them feel valued and
important. Moreover giving freedom to employees motivates them to generate more creative
ideas in order to gain high competitive advantage.
Culture: As the firm is solely managed, controlled and run by its members which means that
entire functioning of the entity is controlled by the contribution of their members. Company is
operating with 70 workers but still is known for its quality products. Further it ranked itself
among “Best Independent Retailer” and “Best Local Food Retailer”. The growth of the
organisation cannot be possible without the collective efforts of its members. Chances of creating
new ideas increases when enterprise values their employees.
TASK 2
P3
4P's of Innovation was given by Joe Tidd and John Bessant. This tool is often used by
organisation in order to analyse innovation in process, product, paradigm and position. These can
be better understood by the given description:
Product: This cover modification done in goods often given by organisation to its end-users. For
instance: By offering organic drink and food, Unicorn Grocery can innovate their product line. In
simple words, product innovation leads to changing the features of product as per the current
requirement of target customers.

Process: It describes the manner in which products and services are delivered to potential
buyers. From ancient days, organisation offer product to customers through humanitarian. But
now with increased competition and advanced technology, they are require to change their
process of delivering goods (Huizingh, 2011). For example: Unicorn Grocery has decided to sell
their product with help of online platform in order to gain the advantage of high competitiveness
level. With their online application, consumer can buy their products by just one click.
People: This aspect indicate the individuals who use their abilities, skills, environment and
motivation to develop a unique product or feature. It is very difficult to examine the creative sills
of an individual but these can be measure by Divergent thinking model. (Jain and et. al., 2013).
Press: It is another P of innovation and this indicate the climate or environment in which
individuals perform various activities to develop the product. Mainly this refers to the condition
of creativity. Major areas cover under this element are resources, climate exist in an organisation
and many more.
Innovation Funnel: An Innovation Funnel is used to define the series of steps that taken in
account while develop products with unique features. The main purpose of this innovation is to
fulfil the need of market and their members in an effective manner.
Use of Innovation Funnel: It is primarily used by enterprises to examine their innovative ideas.
Further, this ensure effective execution of process of new product development. This make easy
for enterprises to grasp the opportunities exist in market which contribute more in success of
entity. Moreover, it also assist in conducting research so as to identify customer's needs and
expectation.
P4
The concept of Frugal Innovation deals with the procedure through which organisation
tries to reduce or minimise cost of production and goods sold. Innovators considers current
resources as an opportunity not as a liability. This is not relate with selling concept, rather it
deals in creating and provide good quality solutions customers that delivers high value at
minimal cost. There many organisation who change their business model radically but also
changes it mental model as well. Major objective of frugal innovation is to make the new
products in a way that every person can reach it this can be possible by minimise the cost of
innovative products and maintain its value. Feature of this concept is that it provides
developmental opportunities to different organisation. This support company in generate more

profits as this provide an opportunity to offer products to more number of customers Following
are the principles of frugal innovation:
1. Find opportunity in adversity: At this level, workers reframe the current or existing
problem. Members of Unicorn Grocery have effectively translate the threat into
opportunity in order to gain high competitive edge (Jiménez-Jiménez and Sanz-Valle,
2011). Threat related with the issues are then converted into opportunities as this help in
deal effectively with the problem.
2. Do more with less: At this employee will first examine the existing resources and find out
the ways to utilise the same in effective manner. Maximum efforts are done by all
individuals involved in research in order to form an idea from available information.
3. Think and act flexibly: At this stage, it has been believed that it is better to be
improvisational rather than being rigid (Manyika, and et. al., 2011).
4. Keep it simple: Any issue disrupts the entire execution of business activities which is not
a good sign. Therefore, it has always been recommended to have less and best choices.
5. Include the margin: It is essential for an organisation to be well aware about the needs
and expectation of end-consumer. They can take feedback and suggestion from customer
at this stage. Involvement of customers improve the process and help in find a better
solution of problem.
6. Follow your heart: An individual requires to be dedicated and passionate about the work
which he do.
TASK 3
P5
Commercial Funnel: This is explained as a cost-effective process through that referred
organisation tries to identify accurate sources which assist them in offering their featured product
to end users in a structured and through manner. Members are responsible for choosing
appropriate channel of distribution which aid in yielding higher revenues and profits.
As the referred company has decided to launch its new online application, they have to
undergo new product development process which is important for them as they are introducing
innovative business activities that enable them to meet customer requirement in an effectual
manner. The NPD process is compromises of several steps which are discussed below:

1. Idea Generation: In this, idea is generated or formulated. Ideas can be generated from
various sources.
2. Idea Screening: Ideas are many but among them very few are good. At this step, the
main responsibility of worker is to find those feasible and good ideas and discarding the
remaining. Factors such as customer's needs, company's strength and weakness,
affordability will taken into consideration (Rosenbusch, Brinckmann and Bausch, 2011).
In this step, Unicorn Grocery examine different ideas developed in first stage in order to
implement the best one for attain set business objectives. It is very essential for managers
to examine the tools, resources and funds available to company during this stage so that
best idea can be implemented at workplace.
3. Concept testing and development: This is the third stage which consists testing and
development. Basically it is a blueprint of entire innovative idea. Ideas that passed from
the screening stage, will now translate into concepts for examine it. Some of the selected
clients from the target group is selected and testing of concept happens. Information is
offered to them which aid them in picturing the goods. Their feedback is plays significant
role whether to continue the concept further or not. Unicorn grocery, in this stage,
examine and test the concept of online marketing from organisation point of view in
order to attain set objectives and to maintain its position in market.
4. Market development and its strategy: After getting satisfactory result from testing, the
prime responsibilities of employees is to formulate effective business strategies. At this
stage product profitability is anticipated, branding strategies and marketing mix are taken
into account. Pricing strategies also made by the firm (Strayer, 2012). This is the next
step, in this, company formulate policies and strategies in order to execute idea in well
manner and to get maximum benefits of innovation. Formulation of effective strategy not
only ensure effective implementation on innovation idea but also contribute in company
growth.
5. Analysis of business and financial: At this stage, employee will examine the actual
sales of the product and match it with pre-established sales objective. Funds are known as
one of the most essential resource require by entity to operate in market and to serve its
target customers. it is very important for company to have adequate amount of funds
otherwise it will create delays in business activities.

6. Commercialisation: This is the last stage in which company finally launches their
product or services in the market. In this company make its customers aware about its
new offering in order to attract more customers. Unicorn Grocery in this stage can make
its customers aware about its online presence.
P6
Companies are using Business Case in order to determine the risk related with financing
in innovation. It ensure that organisation should think practically or logically to each aspect.
Unicorn Grocery has decided to create its mobile application so as to increase their sales and
profits. Following are the major steps included in the process of building innovation case:
 Executive Summary: In this company brief about its innovative idea and explain full
business case.
 The Need: This is the first stage, at which company determines the need for innovation
or change This can only be possible, once the entity is aware about issues or problems
that they are currently facing. For instance: Sales of referred enterprise is decreasing due
to availability of others competitors who are offering same product or services. Now-a-
days customers prefer to purchase product by simply sitting at home which saves their
much time and efforts. Keeping in mind the current trend, members of Unicorn Grocery
has decided to launch its online application which enable buyers to buy their product by
just one click. In fact, their employees will deliver the product to customer which reduces
most of their time, efforts and energy (Wolin, 2016).
 Your Solution: The company has decided to sell their goods through online platform i.e.
they have launched their mobile application which gives access to customers to buy
products by just one click. All products are listed with their detailed information
regarding its ingredients and composition.
 Why it is Innovative: It is important for a company to find creative or innovative
solution for their problem which gives them high competitive edge over their rivals. The
solution identify by business concern must be easy and understandable. Innovation
creates value for the customer and enable them to pay more for the product if the
innovative products fulfils customer requirement in more effective and efficient way
(Stroke, 2015).

 Customer Research: At this level, company carry out investigation in order to ascertain
the existing needs and expectation of potential buyer. This can be done through survey,
questionnaire, focus group, interview etc.
 Investment Requirement: At this stage, Unicorn Grocery will figure out the total
investment needed for converting their idea into reality or final goods and services.
Members of referred firm will take into account all essential aspect regarding this.
Ways of Funding: There are two ways or sources through which organisation can
arrange their funding. One is Internal & other is External:
1. Internal Sources: In this, adequate funds are available for within the organisation
only. For instance: Profit can be used for future expansion or diversification of
business. Retained earning can also taken into account. Moreover, manager can
sell long term asset as well that are of no use.
2. External Sources: In this, funds are available outside the organisation that
provides assistance to company's so that they can run their day to day operation in
an effective manner. Banks, Creditors, International organisation, individual
donors, business angels, investors are some of its example.
 Expected Benefit: Impact of Innovation on customer, society and environment is
measured at this stage.
 The Ask: This is the last and final stage, in which company will take feedback from
customer after implementing their innovation. It enable them to know whether their
innovation has been easily accepted by customers or not (Wilson, 2014).
TASK 4
P7
Intellectual Property Rights are the rights of person given to them to protect their invention
or discoveries. It means exclusive rights are given to person for their idea or plan. These rights
include trademarks, copyright, trade secret and patent. It is much similar to any other property
rights. With the help of these intellectual tools, inventor can gain recognition and monetary
benefit from their discoveries. Mentioned below is the detailed explanation of all these tools:-

1. Patents: Such types of property rights are given to person for their invention. It allow
patent holder to eliminate others from selling, making or using invention without their
knowledge (Lee and Knight, 2015). With the help of Invention, many businesses can
become successful as they can develop better or new processes or products that often
create high competitive advantage in the market place over rivals. Patent is mainly
acknowledged for specific field in particular country and for maximum 20 years in return
for the full detailing of the invention among public and disclose about its technical
details.
2. Copy-rights: Under this intellectual property tool, rights are given to the creator or
inventor for their original musical, dramatic, artistic and literary work that allow them to
control their subsequent use. With the help of copyright protection, the inventor gets
exclusive rights regarding display, modify, perform, copy or distribute their work.
3. Trade-Secrets: It is a process, device, formula or any other business information that
organisation keeps private and which provides them business advantage over their rivals.
Unlike any other Intellectual Property Tools, trade secret cannot be acquire by
registering. It lasts till the person does not share its confidentiality with others. Their
protection level differs significantly from county to country.
4. Trademark: A trademark is a symbol, word, design or phrase that helps in
distinguishing the product or services from that of competitors. The chosen mark or sign
must be distinctive. Its main aim is to establish in customer's mind so that they can easily
identify the product with their distinctive mark among competitors (Wilson, 2013).
CONCLUSION
As per the given report it can be concluded that, in order to sustain for long time in the
market, it is important for every organisation to keep updating their existing product or develop
new product as per the requirement of consumers. Various tools and techniques are there which
aid business entity in innovation and commercialization. With help of Innovation Funnel,
company can easily determine the needs of potential buyers in an effective manner. Moreover,
the there are various intellectual property rights tools that help in protecting the ownership of
inventor for their invention or discoveries.

REFERENCES
Books and Journal