Exploring Innovation and Intellectual Property in Business Models

The role of innovation is pivotal in shaping contemporary business practices, driving growth, and maintaining competitive advantages. Leadership styles such as transformational leadership significantly contribute to nurturing an innovative environment within organizations. Intellectual property rights play a crucial part in protecting these innovations, thereby encouraging further investment in research and development. This paper explores the intersection of innovation with business models and highlights how legal frameworks support intellectual property protection. Additionally, it examines the influence of organizational structures on promoting or hindering innovative processes, providing insights into strategic management practices that effectively leverage innovation.

INNOVATION

Table of Contents
INTRODUCTION............................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and its comparison with invention. .....................................................................3
P2 Shape of commercialization and innovation through different factors..................................4
TASK 2............................................................................................................................................5
P3 4P’s of Innovation and Innovation Funnel.............................................................................5
P4 Importance of frugal innovation ............................................................................................7
TASK 3............................................................................................................................................8
P5 Commercial funnel and the process of new product development (NPD).............................8
P6 Build an Innovation Business Case for World Remit including ways to access funding......9
P7 Different tools use to develop, retain and protect knowledge and intellectual property....10
CONCLUSION..............................................................................................................................11
REFERENCES...............................................................................................................................13

INTRODUCTION
Innovation can be defined as applying new ideas to products, procedures, process or any
other activities related to a firm that results in value addition. Innovation helps an organization to
be figurehead in the market by providing latest and customized goods and services to customer as
per their frequently changing taste and preference. WorldRemit is one of the leading online
operator firm for providing money transfer services to people who can send and receive money
from their friends, relatives living anywhere in the world. It was established in 2010 with its
headquarters in London, UK This project focuses on giving a brief introduction about innovation
and how it differs from invention. Further it will describe how a firm’s vision, culture and
leadership style is adopts helps in shaping innovation and in its commercialization. Moreover it
will discuss about 4P's of innovation and significance commercial funnel along with its
application in new product development (Baden-Fuller,and Haefliger, 2013).
TASK 1
P1 Innovation and its comparison with invention.
Innovation as describes above can be seen as an ability of a company to identify an
opportunity, develop it into something new and take advantage of it. With the fast pace of
technological changes and frequent modulation in needs and wants of people; it has become vital
for business firms to be innovative so as to gain competitive edge and to secure approach to
defend strategic position and success (Bogers and West, 2012). Invention on the other hand can
be defined as finding or discovering something entirely unique and new that has not been
invented by anyone else before. It might be a product, process or technology. Below are some
key points that differentiate between innovation and invention-
BAISIS FOR COMPARISON INVENTION INNOVATION
Definition Invention is the process of
creating something that is
absolutely new and has never
been made by anyone before
Innovation is introducing
something unique and new in
the existing product, process or
something for the first time.
Meaning It lead to creating or making
something new.
Invention leads to making
modification in the existing

product that adds values to it
Concept It is related to discovering or
coming up with new idea.
Innovation is about applying a
new and creative idea to make
something better from its
present state
Concerned with Invention is generally
concerned with a single
product or process and is
related to research and
development department only
Single process or product.
It includes combination of
various products and process
and is not specific to just one
department .
Mentioned below are some points explaining the significance of innovation for an organization:-
Responding to fast modulation in customer’s needs and preferences : Innovation
enables a firm to be proactive in catering the frequently changing needs and aspiration of
customers. Thus, it make it easy for affirm to attract new consumers and retain the old ones.
Helpful in creating an edge: Innovation is of vital importance as it helps company in
market penetration and leads it to getting better opportunities to grow and thus maintain an edge
over business rivals. Innovation can benefit WorldRemit in differentiating its products from that
of available in market (Camisón and Villar-López, 2014).
Implement best method for organizations: Innovation involves in-depth study of
market analysis, surveys related to frequently changing consumers taste and fashion. Thus it
leads to identifying and implementing best method for developing new product which helps in
generating maximum outcome and getting higher profits.
P2 Shape of commercialization and innovation through different factors
Every organization conducts its business with the motive to continue and earn profits for
the long run. They strive to make innovation by identifying opportunities at right time so that
they can cater the frequently changing needs and requirements of consumers. All innovation
activities can be tracked back with the efforts and behavior of employees. Therefore, employees
becomes the center of focus if a company wants to improves its innovation ability. This can be

done by providing employees with a working environment where they feel comfortable and
encouraged to give their ideas, suggestions without fearing about its impact on their employment
or image. Thus, an effective leader or manager plays a key role in motivating its workforce to be
proactive and participate in sharing their ideas as this will result in producing or developing
something unique to capture the attention of customers toward buying it leading to achievement
of company’s goals and customers’ satisfaction. Mentioned below are some factors which
contributes in enhancing employees participation.
Vision: Vision is the future picture that an organization strives to achieve in long term.
WorldRemit works with an objective of providing fastest, easier, more secure and low cost
alternative services to its people.
Leadership: Leadership is the quality of a manager to influence and motivate its
employees to work with best of their abilities to achieve organizational objectives. It is the
efficiency and effectiveness of a leader that encourages employees to feel comfortable to share
their ideas, thoughts and suggestions for adding out something new or to modify the existing
system of organization which leads to company doing new innovations (Dewald and Truffer,
2011). Leaders of World Remit used to determine and play important role while any kind of
modernization lead to take place. This will assist and provide support in deriving better and
effective outcome so that beneficial gains could be underpin which enables in implementing the
innovation properly.
Teamwork: A team is a collection of employees having different and unique skills,
knowledge and talents which can be utilized effectively in the direction for manufacturing
extraordinary results. A manger can give innovative ideas to his employees that can be
implemented and taken into consideration while developing strategy for inventing a new product.
WorldRemit has a proficient team of around 150 people who works across different business
operation including product development, marketing, IT, finance and so on to give it customers
trouble free services..
Culture: It is the values, belief, norms and attitude of people working in a company
which greatly have an impact on innovation. UK having culture diversity can benefit World
Remit to have an advantage of utilizing different ideas, and creative opinion of its employees in
developing its product.

TASK 2
P3 4P’s of Innovation and Innovation Funnel
The 4Ps of innovation; also known as innovation mix are described below:-
Product: Product innovation is the capability of a firm to provide a new and improved
product or service to its customers in constantly changing market environment. By being
proactive in launching advance products earlier than competitors can lead to creating addition
value for customers and greater profits for firm.
Process: One of the major responsibilities of a manger is to develop a suitable procedure
for product manufacturing by eliminating unnecessary steps and scrutinize best process from
other available alternatives. Process innovation is all about producing and delivering a new
product or service through a resourceful method or process that helps in reducing supply cost.
Paradigm: Paradigm innovation involves making modulation or alteration in the way
business operations are being carried out as per convince of its customers. It is related to people
accepting something new that has not been previously used by others (Drucker, 2014).
Position: Position innovation is concerned with finding out the most appropriate target
audience for the new product or services that has been developed by a company. This increases
firm’s efficiency to reach out its audience by adopting most appropriate methods of sale
promotion to attract its customers.
Innovation funnel: Innovation funnel explains the procedure that is used in new product
development. In innovation funnel, the manager from the plethora of ideas and opinions has to
select and implement best suitable procedure that besides meeting customers requirement is
economic or cost effective for an enterprise. The three stages involved in innovation funnel are:-

 Focuses on wide mouth of funnel: This happens to be the first stage which involves
increasing information and knowledge about market, it’s prevailing trends, latest
technological updates etc. Various sources like research, university connections,
information from competitors and existing partners etc are taken into consideration for
gathering as much information a possible. After collection of data they are explored and
analyzed in relation with the per-determined goals and objectives of the company.
 Narrowing part of funnel: In this stage all the ideas that are gathered are screened by
matching them ideas and information with aims and objectives of company. Assessment
about the feasibility of the ideas in context of risks associated with them and probable
return sit can provide is also done (Edquist, 2013).
 Narrow segment of funnel: In this stage after ensuring that chosen ideas are in
alignment with company’s future goals the company launches new product or service in
the target market.,
Illustration 1: Innovation Funnel, 2018
(Source: Innovation Funnel, 2018)

P4 Importance of frugal innovation
Fugal innovation (FI) is the process of eliminating the unnecessary features of product or
services to make it more durable, having higher quality and cost effective. It is done by finding
out new business models, redesigning supply chains and making modification in the product so
as to reduce the cost of production and producing it in fewer resources so as to increase the
productivity while getting maximum outputs and returns. Significance of FI are listed below:
 FI serves as an opportunity for the developing countries for producing innovative and
quality products with lesser resources, cost and better techniques. This helps in capturing
attention of new customers by catering their demands at reasonable prices.
 It serves as an effective tool in dealing with maturity stage of a company’s product life
cycle. By deducting or removing cost incurred on research and development as well in
manufacturing process, it assists company to manage its limited funds and resources to
make innovative products (Fischer and Qaim, 2012).
 It make use of bottom ups approach and target customers who are looking for goods and
services that they can afford and are sustainable and qualitative. Thus it helps in
attracting new customers and retaining the old ones.
 It helps in increasing the sales volumes of company as they have ready demand of
customers to buy their products and services.
Renault and Dacia are the two leading automobile brands who by making use of frugal
innovation came out with an entire new segment of vehicles in automobile industry that’s
perfectly amalgamate quality with affordability. By launching their low cost brand these
companies have become car maker's cash cow attracting more and more customers. Similar to the
other sector of business, management of World Remit also have to underpin and understand
about frugal innovation properly so that better and define targets could be accomplish in better
and supportive manner. Thus, frugal innovation benefits in enhance sales and volume of a
company which depicts and support in providing better return.
TASK 3
P5 Commercial funnel and the process of new product development (NPD)
Commercial funnel also known as sales funnel; is the visual depiction of the purchasing
process that business uses to guide its customers through while converting them from being a

potential customers to actually making a purchase. With the help of this approach, a firm is able
to enhance its sales and productivity by attracting its target audience (Hausman and Johnston,
2014) . World Remit; by implementing this concept can develop various strategies to target its
market segment and to earn more revenue. Mentioned below are some key importance of sales
funnel:
 This is the first and foremost stage which involves company's identifying and analysing
the existing solutions for the repeated problems that are been faced by the prospects.
 This stage is concerned with finding out interests and knowledge of target segment about
company's products and services. .
 In evaluation process probable customers explores and investigate about all the available
solutions that are been provided by various competitors. This process leaves prospects an
inch away from making final purchasing decision.
 It is the stage of final purchase of product. The consumers in this phase are ready to buy
and starts making comparison of all the solution that are available in market. This phase
is crucial for company as they have to convince prospects to buy products from it rather
than from its business rivals. Here clients starts negotiating. This is the last stage where buyer make the purchase .
New product development process
New product development involves a systematic process with different stages that are
carried out for developing an entirely new and innovative product that can provide an edge over
competitors. Below are the stages conducted in new product development :-
 Generation of idea : This is initial phase that is concerned with nurturing a business idea
and testifying its feasibility to be carried out through business models like SWOT
analysis to make sure that they are practical, real and logical to be put into action.
 Screening of idea : It involves scrutinize best and most prominent business idea and
eliminating and rejecting the non feasible alternatives.
 Funding : To convert plans into actions, every fund requires some funds to invest to
conduct business operations. Thus its important for a firm to explore and persuade
stakeholders to invest in its business idea. Development and testing : This phase is concerned with developing and testing the
probable reaction of target market segment about the new product concept. It is done by

providing information to selected customers and asking their feedback and opinions If the
results are positive the concept is been passed for further executing it.
 Business strategy analysis : This analysis is concerned with finding out the probable
profit of converting selected business idea into a new product, It is done by conducting
surveys and market research. Product Development:- Strategies related to finance, marketing, production , advertising
and many more are formulated along with the production of new product with all
specifications that are decided as per customers taste and preferences. Test marketing: It involves introducing new and improved product into specific target
market to monitor its success. Reverts and opinions are taken and considered if any
modification is requisite in product. Commercialization: In the final phase product is launched in whole market and activities
and strategies related to promoting goods and services initiates by using marketing mix.
 Introduction: Final introduction of product in market is done (Manyika and et al, 2011).
World Remit need to determine this process of NDP so that they lead to manufacture
effective and better quality products and services. Although, this will assist them in deriving
better and effective outcome so that business could become able to reach wide range of
customers in a define and better manner.
P6 Build an Innovation Business Case for World Remit including ways to access funding
Business case:
World remit is an online service provider whom further will going to expand business. Now
they want to diversify their operations in online retail section. For this they need to modify their
application which assesses money. Thus,management evaluated that bank loan and some other
aspect as better source of money. This expansion will directly support them to do something
over new at other field which define as a kind of innovation for their own work. Apart from this,
company has applied some kind of creative factors within their process especially in the
software which they are providing. They have created application for their various kind of
service which they provider so that people can easily access the procedure which is being
followed and thus can get assurance that their money is into right hands. This in turn creates
transparency and allows company to have long term relations with customers.

These kinds of modifications are being done on the behalf of funds which are being
allotted by company for certain modifications and those kind of funds can be arranged through
various kind of ways which are being described below: Govt. Loan: Conventional banks make independent company credits. Be that as it may,
they regularly require a reputation and will frequently need the credits secured with
resources Venture Capital: These organizations give beginning time subsidizing, however are
normally hoping to make moderately vast ventures and take a critical offer of the
organization - regularly a controlling interest.
 Angel Investors: These individuals are commonly princely people willing to put resources
into organizations. Progressively, blessed messenger financial specialists are framing
speculation gatherings to spread hazard, and to pool explore. Look online for
neighbourhood heavenly attendants or converse with your assembly of trade. The nearby
chamber may know who is keen on subsidizing new pursuits and thoughts.
P7 Different tools use to develop, retain and protect knowledge and intellectual property
Intellectual property can be stated as one of the property which mainly includes intangible
creations of the human intellect. There are various kinds of rights like trade secrets, publicity
rights and moral rights. Number of law has been created to protect the intellectual property and
the main motive behind these kinds of laws is to encourage the creation of large variety of goods.
To achieve this, the law gives people and businesses property rights to the information and
intellectual goods they create, usually for a limited period of time. Because they can earn profit
from them, this gives economic incentive for their creation. This provides help to small business
like World remit where they have many of the intellectual property which needs to be secured.
This is mainly used by small business owners who is developing their product or services and
thus has the wish to protect it from customers. There is high need of determining that the idea
which is being created or the service is not taken by any of the competitor because if it is then
there are high chances that the competitor can file a law suit against the company. So, it is highly
essential for the mentioned company to have a research conducted before engaging the services
of patent along with trademark attorney (Goldberg, 2013). Below described are the factors which
play essential role in intellectual property:

 Patents: A patent is a type of right conceded by the legislature to an innovator, giving the
proprietor the privilege to prohibit others from making, utilizing, pitching, offering to
offer, and bringing in a creation for a constrained time frame, in return for the general
population exposure of the development Trademarks: A trademark is an unmistakable sign, outline or articulation which
recognizes items or administrations of a specific merchant from the comparable items or
administrations of different brokers.
 Copyrights: A copyright gives the maker of unique work selective rights to it, as a rule
temporarily. Copyright may apply to an extensive variety of imaginative, scholarly, or
aesthetic structures, or works. Copyright does not cover thoughts and data themselves,
just the shape or way in which they are communicated.
CONCLUSION
From the project undertaken it is concluded that innovation plays a major part in
development and success of a firm in the long run. Innovation ad invention are two different
concepts and a business while making the choice should considered the available resources it has
with it. Also vision. Team work, culture and leadership plays important role in innovating a new
product. Moreover, there are various legislation and rights that are been formulated by
government to protects intellectual property and innovation of a firm.