Organizational Innovation and Commercialization Strategies: Softwire

This report analyzes the innovation strategies of Softwire, a software firm, examining the importance of innovation, organizational vision, leadership, culture, and teamwork in shaping innovation. It explores the 4Ps of innovation, the use of innovation funnels, and the development of frugal innovation. The report also covers the commercial funnel, the application of New Product Development (NPD), and the creation of an innovation business case. Furthermore, it discusses tools used to develop, retain, and protect intellectual property and knowledge within the organization. The assignment provides a comprehensive overview of how Softwire approaches and manages innovation to achieve competitive advantages in the market.

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Importance of innovation and its comparison with invention...............................................3
P2 Explain organisational vision, leadership, culture and teamwork can shape innovation.......5
TASK 2............................................................................................................................................6
P3 4Ps innovation and use of innovation funnel to analyse as well as shape their ideas............6
P4 Explain development of frugal innovation............................................................................7
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and its application of NPD..............................................9
P6 Innovation Business case.....................................................................................................10
TASK 4..........................................................................................................................................11
P7 Tools used to develop, retain and protect intellectual property and knowledge..................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is a process of modification in product and services which helps to provide
competitive advantage as compare to their competitors at market place. Through this, company
are able to enhance customer's satisfaction as well as high market share. Innovation is a action of
innovating something new according to clients needs and wants. It is a process of translation of
ideas into reality (Adner and Kapoor, 2010). It is a management responsibility to develop
strategies for implementing innovation at work place. Its helps to increase quality of goods that
enhance buyers gratification in long period of time. In this assignment Softwire firm are selected
to analysis impact of innovation on performance as well as productivity. It is a type of network
tunnelling protocol. Softwire established in the year of 2000. they produce software and provide
best digital solution to their potential clients. In this report covers importance of innovation with
in an organisation as well as company vision, culture, leadership, teamwork that can shape
innovation and commercialisation.
TASK 1
P1 Importance of innovation and its comparison with invention
Innovation is a process of converting idea into reality which affect profitability as well as
sustainability in long period of time at market place. It is a management responsibility to make
innovative product and services which helps to attract large numbers of clients. It is very
important for the company to execute creativity among all employees which improve quality of
goods and services. Human resources manager conducting training program in order to enhance
workers skills and knowledge of all staff members. Through this, implementation of innovation
may easy and all employees are able to manage changes which are arise due to creativity in
work process. Some importance of innovation are explain as follows:
 With in an work place various kind of issues may arise which affect performance of the
company. So that, innovation in working process may reduce problem and helps to run
whole business activities in an effective manner (Dahlander and Gann, 2010).
 Through creativity, management of the company may take advantage of globalisation as
well as global entrepreneurship movement that helps to gain high profits.

 Advance and latest technology may provide competitive benefits as compare to their
competitors in same industry. Through this, Softwire are capable to rise brand value it
increase market position.
 Innovation can helps to maximize global connectivity or reachability, through this, firm
are able to attract large number of client at international market.
Invention is a process of developing completely new product and services which are not
introduced at market place. With in an organisation, research and development department
conducting research and make new goods or differential product. Invention is a unique or novel
working process in order to produce services as well as commodity. It increase sustainability of
the company at market place. Comparison between invention and innovation are discus below:
Basis of
difference
Innovation Invention
Significance It is a process of changes in existing
product and services in order to add
some additional value to gain
competitive advantageous at market
place (Davila, Epstein and Shelton,
2012).
Management of the company conducting
research and analysis needs and wants of
the clients and accordingly develop
completely new goods in order to full fill
their demand in an effective manner.
Objective The main objectives of innovation is
a add some value which increase
feature as well as productivity of
goods.
Management of an organisation
manufacturing some thing new that make
clients life easy.
Ability Firm want technical and conceptual
capabilities or skills in their workers.
Science and professional knowledge
required to produce creative product and
services.
Concept When management or individuals
thinks some thing new then
introduced innovation at work place.
Firstly, an organisation analysis needs
and wants of the potential customers and
accordingly produce goods.
Creators All staff members of Softwire are
work together to modify existing
Research and development division of an

produce and services. organisation make new commodity.
P2 Explain organisational vision, leadership, culture and teamwork can shape innovation
When person start new business they are set some vision, mission, goals, objectives and
many more in order to run whole enterprises in an effective manner in long period of time. All
employees together develop working culture with in work place which affect performance as
well as productivity of workers. Leaders are able to manage, control, planning and directing team
members effectively in order to achieve common goals and objectives in limited time period.
Various kind of leadership style are exist and leaders are choose one best style according
to their situation as well as requirement (Drucker, 2014). All these elements vision, mission,
culture, leadership and teamwork are create impact on innovation. Some are of important factors
which shape creativity with in an work place are explain as follows: Vision: It is most important element which affect organisation function as well as
working process. Vision is a long term aim which are follow my management of the
company in long period of time. Through this, they know what is company want to be
and accordingly develop strategies and plan in order to achieve sustainability and market
share. Leadership: Leaders have capabilities to influence their team members behaviours as
well as perception about firm and product. Through this, they motivate staff member to
make innovative in work, and provide high quality goods and services. Strong leadership
style may influence innovation by managing individuals performance and productivity. Teamwork: Each and every enterprises wants that their employees are work together in
order to achieve goals and objectives in specific time period. Manager of Softwire has
develop strategies to manage and control workers in an effective ways which helps to
increase market position. Their are various kind of issue and conflicts are arise which
affect changes and innovation at work place (Gassmann, Enkel and Chesbrough, 2010).
 Culture: Employees are come form different location, area, countries etc. with various
kind of culture. These all together may affect overall organisation culture. Some elements
of culture are norms, values, beliefs, rituals, ceremonies and tradition or many more.

TASK 2
P3 4Ps innovation and use of innovation funnel to analyse as well as shape their ideas
Enterprise beholder often purpose over innovation for making new modification within
the organisation. Softwire requires various kinds of innovation for distinct conditions which aid
them in changing as well as altering their approaches, strategies, structure or changing methods.
Their are different forms of innovation which are used in Softwire for various purposes. Some of
main kinds of innovation are discussed below: Breakthrough Innovation: It occurs within company when they work over particular
services that include various features in specific commodity. Sustaining Innovation: For retaining of previous goods within market, creating a value
is marked by company with the aid of adding improvement as well as new changes
within services (Hall and Lerner, 2010). Disruptive Innovation: It defines the formation of new technology within working
conditions of marketplace. It is very expensive as well as complex king of innovation.
 New market innovation: For expanding enterprise, this kind of innovation are used
while working. This performance of establishing of products as well as services within
new trade.
Therefore, these approaches help in increasing productivity of goods and services which
is served by Softwire. For achieving a accurate innovation in appropriate domain, Softwire
require to measure innovation mix which are discussed in detail below: Product Innovation: Alterations can be consider within system of producing which is
require to develop for gaining higher customers within promotional as well as marketing
activities (Hjalager, 2010). Process Innovation: Their are various services which are positioned by organisation.
Softwire is improving new market products as well as creating many factors of services
which aid in evolution along with its development within a competitive market. By this
re-branding, company can enable to achieve credibility level within company. Paradigm Innovation: It is primal to provide society discovery as well as new invention
sometimes. It is an phenomenon of innovation which is interlinked with a model of
mentality or perception of persons. This aid in a way by which enterprise objectives can
be meet in an proper way.

(Source: 4Ps of Innovation, 2017)
 Position Innovation: This assist in reconfiguring as well as repositioning of services and
products in a new or existing market. It is linked with a deal of innovation that assist in
resolution modification along with developing innovation (Why are innovation and
strategy most important factors of success, 2015).
By this context of innovation, Softwire can expand their research as well as improve
services of enterprise by the assist of 4Ps of innovation mix.
P4 Explain development of frugal innovation
Frugal innovation is very famous term which help in utilising for development of goods
as well as decline the cost of services by using cheaper techniques along with modification. It
mainly maintain declining in non important features of services that assist in increasing of sales
services of Softwire. These are the form of innovation which assist society in many way such as
declining cost of overall production, less use of electricity and less cost of products as well as
services for providing appropriate services and price. For instance. Softwire is utilizing the
technologies of frugal like as websites of social media for reaching broad reach of customers in
lower product cost.
Frugal innovation require to shape the mindset to adopt the available opportunities for
development for concentrating over the value of innovation. It assist organisation such as
Softwire for sustaining within competitive enterprise by cutting cost of manufacturing services
which are provided it to them in lower price within market (Yin, Shi and Yan, 2014). Their are
main sic frugal innovation which are discussed below:
Illustration 1: 4Ps of Innovation, 2017

 Engage and Iterate: Through this process, a company can repeat same procedure of
innovation in products. Along with this, a company doesn't require to alter techniques for
production of same commodities. Asset Flex: In order to gain sustainability at marketplace, Software requires to adopt
better and appropriate strategies. This would help in meeting set goals and targets in a
limited period of time.
(Source: Innovation funnel, 2018) Sustainable Solution: This process helps in finding a suitable solution of issues occur in
development procedure of SME (Huizingh, 2011). Shape Consumer Behaviour: Identification of customers' demand and choice as well as
their purchasing power, helps companies to provide services accordingly. This process
aid to gain high customer satisfaction and retention towards products for a longer period
of time. Creation of consumer value: It is a process of interaction of an enterprise with customers
which helps in getting reviews of them on services of company.
 Innovation Stakeholders: By coordinating with stakeholders, a firm can improve its
functions and take necessary actions in development process.
TASK 3
P5 Importance of commercial funnel and its application of NPD
It refers in a process of discovering a new approach and ideas for manufacturing or
helping new goods and services. This process is carrying out firms plans by undertaking different
Illustration 2: Innovation funnel, 2018

strategies, ideas and plans. This can assist in giving a idea of project within a limited period of
time. An business face several problems as well as challenges for achieving future results.
Mainly organisation is concentrating over expansion of their enterprise along with that increase
the reach for achieving potential buyers as well as target consumers. As it is needed to assess the
process of funnel which are given below:
 In first step, ideas is been generated by Softwire for recruiting and selecting of
employees (Leiponen and Helfat, 2010).
 Companies can improve many of various ideas as well as concepts for innovative
services along with goods.
 Final selection of idea is made as per environment Launching of product is applied within company for further developments.
New product development plan New product strategy: As for developing a new strategy of a new innovated product
within a market have to analysed a whole market before launching a product in a market. Idea generation: Softwire is concentrating over new generation of idea according to its
needs of customers as well as their demands. Organisation can develop a system of
rewarding for best hiring. Idea screening: Screening as well as presentation of rewarding innovative ideas is
organised for analysing reviews along with their opinions of customers for evaluating
limitation of entire plan (Manso, G., 2011). Business analysis: Analysing a business will help in evaluating a whole business as the
before developing a product within a marketplace.

(Source: New product development process, 2017) Development: In this context, they develop services for final results. After that they
develop more within product after experiment of an modified products. Testing: It is an next stage after screening is testing of new product and services which
are made for developing a finished or modified goods. Before launching a product within
market they have to test a product within limited numbers of customers. Commercialisation: Softwire will will make a various promotional as well as marketing
tools for attracting customers along with their sales of modified products. It is very
necessary to promote their innovated products as innovation is nothing without
commercialisation.
 Launching: This service program will launch within this stage by assisting components
of marketing as well as promotional. At last they launch their innovated product within a
market as well as make aware about their new services along with its product as well.
Therefore, by using above process in more disciplined as well as conduct way, Softwire can
optimise innovate along with that opportunities of its product and services of idea. This
manufactured good would be much accurate as well as effective leaving influence on customers.
P6 Innovation Business case
In UK, all SMEs including Softwire use special techniques and methods of innovation
in order to move their business on international level. For this assistance, they need to develop a
business case study. Since business of Softwire is based on customer service therefore, its
business planning can be explained as:-
Illustration 3: New product development process,
2017

 Executive Summary: Company is a software developer company that helps customers in
resolving their problems. For expanding its business, this firm needs to develop an
effective plan for innovation which helps in gaining sustainability. Need: As seen, this SME has taken as best service provider in UK. But to rise in
competition, Softwire need to modify and develop its production (Melville, 2010). Solution: In order to gain high satisfaction of customers and their retention, this software
company requires to adopt effective marketing techniques. It helps in promoting brands
and new products or services of company to acquire minds of customers. Market Evaluation: Apart from making modifications and adopting marketing
techniques, SMEs are required to identify needs and demands of consumer as well as
trends of marketplace. This process helps in making products according to requirement so
that they can fulfil demands on time. Along with this, it enhance budget of company also. Planning & Evolution: In planning and evolution process, development of planned
activities are being made. Financial Requirement: In order to carry all operations of business plan, a company
requires to arrange finance accordingly. Managers should identify sources from where
they can raise funds on low interest such as loan from bank and other financial
institutions.
 Expected Benefits: Small and medium enterprises are required to get reviews of
customers and persons associated with their firms after planning and budgeting
procedure. This would help in comparing expected result with future outcomes.
TASK 4
P7 Tools used to develop, retain and protect intellectual property and knowledge
Intellectual properly (IP) is a part of legislations of UK which includes patents,
trademarks and copyright. It gives rights to people who invent to earn financial benefits. SME
companies like Softwire has provided software and customer service in a unique way so it needs
to protect by claiming over Intellectual Property Rights. This procedure gives advantages to
enterprises to develop and protect its functions in a profitable way.
Role and Rights of Intellectual Property

Innovations and creativity in products or services of a company helps in gaining high
return on investment. In the present scenario, return on production unit of Softwire is less than
expectation (Sartori, Favretto and Ceschi, 2013). Therefore, it needs to invest in IP which
provides better insurance of knowledges i.e. protect legal rights and helps in gaining high return.
Along with this, it aid SMEs to boost their productivity and get royalty in a legal manner.
Tools of IP
IP has provided various tools which help in protecting rights of SMEs and other firms in
following way:- Trademark: It reflects identity of industries which is generally presented as graphically.
It helps customers to distinguish products of a company in a proper manner by giving
guarantee of consistent and high quality (Teece, 2010). Patent: It is a specific and unique source of information of techniques used by an
organisation in business planning. This would help small and medium enterprises to
avoid unnecessary expenses as well as identify technologies used for licensing. Along
with this, patent aid to locate business partners and track activities of competitors.
 Copyright: IP also keep protects functions and strategies of company in the form of
copyright through registration.
Since Softwire Company is a software firm so, it is necessary to invest in IP and
appropriately use its tools for protecting creative services.
CONCLUSION
From this discussion on innovations, it has observed that innovation plays an important
role in widening the productions of a company. Rapid changing in technologies is a result of
innovations that drives a paramount proportion used to develop products or services. It assists
enterprises to make changes in strategies, policies and organisational culture in order to enhance
productivity and profitability. Furthermore, the above report also shows basic difference between
invention and innovation which are seems to closely related. But inventions creates a new
product while innovations used to improve it. Along with this, commercialisation and innovation
are much affected by various elements present within the business environment of an
organisation. Therefore, firms are required to invest in Intellectual Property which helps in
protecting various rights such as brand copyrights, trademark, patent, benchmark etc.

REFERENCES
Books and Journal
Adner, R. and Kapoor, R., 2010. Value creation in innovation ecosystems: How the structure of
technological interdependence affects firm performance in new technology
generations.Strategic management journal.31(3). pp.306-333.
Dahlander, L. and Gann, D.M., 2010. How open is innovation?.Research policy.39(6). pp.699-
709.
Davila, T., Epstein, M. and Shelton, R., 2012.Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation.R&d
Management.40(3). pp.213-221.
Hall, B.H. and Lerner, J., 2010. The financing of R&D and innovation.Handbook of the
Economics of Innovation.1. pp.609-639.
Hjalager, A.M., 2010. A review of innovation research in tourism.Tourism management.31(1).
pp.1-12.
Huizingh, E.K., 2011. Open innovation: State of the art and future
perspectives.Technovation.31(1). pp.2-9.
Leiponen, A. and Helfat, C.E., 2010. Innovation objectives, knowledge sources, and the benefits
of breadth.Strategic Management Journal.31(2). pp.224-236.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Melville, N.P., 2010. Information systems innovation for environmental sustainability.MIS
quarterly.34(1). pp.1-21.
Sartori, R., Favretto, G. and Ceschi, A., 2013. The relationships between innovation and human
and psychological capital in organizations: a review. The Innovation Journal. 18(3). p.2.
Teece, D.J., 2010. Business models, business strategy and innovation.Long range planning.43(2).
pp.172-194.
Yin, W. J., Shi, T. and Yan, Y., 2014. Unusual defect physics in CH3NH3PbI3 perovskite solar
cell absorber. Applied Physics Letters. 104(6).p.063903.
Online
Why are innovation and strategy most important factors of success. 2015. [Online]. Available
through: <http://liveyourdreams.tips/business-success/why-are-innovation-and-strategy-
most-important-factors-of-success/>.