Adidas Innovation: Invention, Vision, Culture, Leadership Report

This report provides a comprehensive overview of innovation and invention within a business context. It begins by defining innovation and invention, highlighting their differences and importance for organizational growth and competitive advantage. The report then explores how organizational vision, culture, and leadership influence innovation and its commercialization, emphasizing the interconnectedness of these elements. It delves into various sources of innovation and discusses key concepts such as the 4 P's of innovation and the innovation funnel, including their pros and cons. Furthermore, the report examines frugal innovation and its benefits, using Adidas as a case study, and discusses the process of commercializing innovation and new product development. Finally, it addresses strategies for protecting innovation through various techniques, outlining their respective advantages and disadvantages.

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Table of Contents
INTRODUCTION...........................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
In such a complex business environment it is necessary for an organization to sustain in market
for long term. This is because it will allow them in their growth and development. Besides that, it
is analysed that with technological advancement there are many new product and service
developed. It has enabled in fulfilling needs of people and allowing business to grow and
expand. With this there is rise in competition among them. Also, it has led to doing various
innovation by business in terms of products, process, service, Model, concept etc. Through this
they are able to survive and compete in market. Moreover, innovation has become a source for
organization to grow and develop. This is because it provide vast opportunity to grow. When
innovation is done it helps in gaining competitive advantage in market.
However, in recent times innovation is hot topic for business. It is because with help of it new
concept and model are emerging. It has brought a change in way of doing business. Alongside it,
this is useful source for business to grow and gain competitive advantage. Innovation not only
provide new product or service but also gives new idea or way of doing business and fulfilling
needs of people. Furthermore, many businesses are highly focusing on innovation so that they
are able to compete. Apart from it, innovation is way through which rapid growth can be attained
in quick time. It helps in generating high revenue. In present times innovation has helped in
generating value of product. It is supporting in designing new process, method etc of operations.
There are many companies who are not able to sustain because they are not doing innovation. It
has led to decline in their growth. Moreover, they are not able to find out innovative ideas of
expansion.
The assignment will describe about importance of innovation and invention to organization
how they both differs from one another. Besides that, it will be explained about how vision,
culture, leadership shape along with sources of innovation. In addition, it will be discussed about
4 P's of innovation and innovation funnel. Also, pros and cons of funnel will be mentioned into
report. Alongside, concept of frugal innovation will be explained and its benefits to Adidas is
described. Furthermore, the process of commercialising innovation and new product
development will be discussed as well. In that a business case of company will be developed. At
last it will be discussed about how to protect innovation with help of various techniques with its
advantages and disadvantages.
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Adidas is a German company having its headquarter in Herzogenaurach, Germany, it was
founded in July 1924. The company is famous for its sports related products and manufacturer
shoes, clothing and other accessories. The company is largest manufacturer of sports products in
Europe and second at global level. It operates all over the world. There are 57016 employee
working in it and revenue generated by company on 2018 was 21.315 billion Euros.
P1 Explain innovation and its importance as compared to invention
Innovation can be defined as the procedure of enforcing new information and
idea in making new process for the products or services. It means that new facts
and data are used to modify something. Innovation gives organization an upper
hand over their competitors; they can simply gain advantage by creating something
unique and different.Innovation allows companies to gain competitive advantage by
developing unique goods to fulfil needs of customers. Also, it is necessary for organisation to
cope up with new market and technological trends. With help of it, they are able to do things in
completely new way.
Customers needs and desires change every day and only through innovation any
business can achieve it. It is also necessary for businesses to meet new market
trends by keeping themselves technologically upgraded. With the help of
innovation, organization can do things in new and efficient ways.
On the other hand invention is defined as something totally new in the world
that doesn’t exist previously. Invention means discovery of a new product, process
or service etc. It is something that has never been before.
Both the words innovation and invention are different terms and it is
described below:-
Basis Innovation Invention
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Meaning Innovation is recognized
as carrying out of
information or concepts to
produce new product,
product or service. It
means modifying
something that already
exists.
Invention is explained as
something totally new
that could be any product,
serviceor some other
concept that doesn’t exist
before.
Concept Innovation is a practical
thought where one needs
to apply the ideas and
concepts to the existing
thing.
It is something that needs
to be understood first
theoretically. This
concept has theoretical
nature.
Skills This concept requires that
a person should have
distinctive, strategic and
unique skills.
Therefore, it only requires
that a person should have
strong theoretical skills
Activities The concept of innovation
is simply applied to all the
parts or areas of business
to make it different from
competitors.
Invention is restricted to
Research and
Development function of
the organisation.
Concerned with It is correlated through
producing something
unique and newprocess
for the existing product
It is associated with
bringing something
completely new that
doesn’t exist.
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and services.
Refer to Innovation means adding
some value to a thing that
exists.
In invention something
new to brought to the
world.
Many times both the terms are misunderstood to be same but they are two
different terms and completely different meaning. Innovation is meant to be adding
some value in an existing product and on the other hand Invention meant is
creating a new product altogether. Innovation is useful in different areas of
business but invention is not.
Innovation is an important factor for businesses that is explained below:-
Building long term growth- By innovation businesses create a new platform for
their long term growth and success. It helps in building strong future by finding
customer wants and desire, this enhances company’s productivity. When an
organization is working for something new, bring change or innovation it means
they are looking for long vision. Future is build when the base in solid. Businesses
can sustain for long term in the market by producing new continuously.
Providing high tech and advance Tool- As Innovation means change in process
or creating something new, so it refers to the new modern tool for businesses.
Existing processes are redesigned with using new tools. This requires more
effective and efficient workforce, by providing proper training the organization can
achieve their goals. In this way employees will get something new to learn, gain
knowledge.
High Quality Goods- It is one of the major advantages of Innovation that provides
high quality products and services. As something new or can say something has
improved in the quality of the product. Redesigning the old process allows
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removing deviations from system and fastening the working process. Firms
Productivity is enhanced and with it employee performance is also improved that
leads to higher efficiency. Unique products tend to attract more customers, as they
are offered something that they actually desire. In this way value is added to the
product and customers are retained.
Therefore, Innovation provides organisation a platform form growth and
sustainability. It helps the businesses in getting an upper hand and gain competitive
advantage.
P2 How organization vision, leadership and teamwork influence innovation and
commercialization
Innovation can be highly influences from various aspects that are culture, teamwork vision etc.
Here, they are interlinked with each other and any change on one highly effect on another. Thus
it is necessary for company to maintain all of them so that innovation is implemented. It can be
useful in giving shape to innovation as well. Thus, they are explained as below
Vision- this is main factor which shape innovation. A vision is built on long term plan. It reflect
what an organization want to become. When vision support innovation then it is easy to
implement it. Besides that, it provide a framework of how value will be generated through
innovation in organization. Alongside, vision helps in setting of goals and info on basis of which
innovation is based. Thus, in this way vision shape innovation.
Culture- the culture reflect organization value and ethics. These provide a direction for company
to implement innovation. When there is positive culture within company it automatically support
ethics and value. The employee understand that innovation is valued and an environment of
change is developed. This forces in implementing innovation in effective way. But if culture
does not support in innovation then it is difficult to deal with it. So, when culture shapes it brings
in change in values and ethics.
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Leadership- there is a significant role of leadership in shaping innovation. This is because with
help of leadership change is implemented. However, leadership style depends on culture. An
effective leadership style will be useful in providing direction and leading to execute innovation.
The employees will be able to accept change and work with it. Leader are front line people on
which implementation depends. They provide long term vision for company to focus on. They
find out new ways of dealing with innovation.
Team work- Likewise, teamwork also supports in shaping innovation. when working in team
each member is able to contribute towards performing their roles. However, in innovation goals
are allocated to team. so, having high effective and qualified teams support in implementing
innovation. It also requires to have diversified people on team so that they learn and support each
other in working with change and carry out the things effectively and efficiently. Teamwork
plays vital role in shaping innovation and buildingpositive culture. In firm, each
employeeisassigned new task and roles.
So, it is evaluated that culture, leadership, teamwork are related to one another and highly
useful in shaping innovation. They all needs to be integrated so that innovation is implemented in
effective way. Culture is shaped from team work and leadership and vision reflect on values of
organisation.
Sources of information
Innovation is consider as a far deeper process that changes as well as improves the long
lasting as well as full of impact. Thus Innovation has also becomes buzzworld within the 21
century.
The unexpected
Innovations are takes place unexpectedly as it can also happen through chance. For example the
dynamite as there are very long list of the innovations that are unexpected innovation where
humans also stumbled, several other exams also focused various several innovations within
history.
Incongruities- when there is a requirement is incongruent accompanied the supply ,innovation
takes place. Within the innovations the populations of the cars grew as there was shortage of the
parking area. Small car is also fit within the small places.
Market structure- A present market structure can also increase the chances for innovation.
Google was born something like that. Google also shaped the market of the search engine.
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Necessity- It is also called as mother innovation but at the same time it is also called as the
mother of innovation. Microscope also born out of the requirement to delve deeper within the
world of the microbial. Requirements always set us thinking with innovation. As Innovation is
also based upon the ideas that are bright ideas. As Humans are always thinks new creative things
that can be better accomplished the existing requirements. Within the process , humans also
filling the needs within new ways as well as devising new mechanism as well as products.
Demographics
Lifestyle can also be a basis of the innovation as nowadays everyone has a lifestyle such as w
feel the requirement to smoke as smoking is dangerous as nowadays e-cigarettes are in trends
to satisfy the requirements of the people. The requirements of the people are also small needs as
well as their requirements.
New knowledge- It is also called as a innovation’s source .whether it is biotechnology,
nanotechnology as well as even also the artificial intelligence and also new knowledge within
any areas that falls under the source of innovation.
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REFERENCES
Books and journals
Ghezzi, A. and Cavallo, A., 2020. Agile business model innovation in digital entrepreneurship:
Lean startup approaches. Journal of business research, 110, pp.519-537.
Garcia‐Macia, D., Hsieh, C.T. and Klenow, P.J., 2019. How destructive is
innovation?. Econometrica, 87(5), pp.1507-1541
Atkeson, A. and Burstein, A., 2019. Aggregate implications of innovation policy. Journal of
Political Economy, 127(6), pp.2625-2683.
Radziwon, A. and Bogers, M., 2019. Open innovation in SMEs: Exploring inter-organizational
relationships in an ecosystem. Technological Forecasting and Social Change, 146,
pp.573-587
Garcia‐Macia, D., Hsieh, C.T. and Klenow, P.J., 2019. How destructive is
innovation?. Econometrica, 87(5), pp.1507-1541.
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