Vodafone Limited: Innovation, Invention, and Frugal Innovation

This report focuses on innovation strategies at Vodafone Limited, a leading telecommunications company. It begins by differentiating between innovation and invention, emphasizing the importance of innovation for business growth and competitive advantage. The report explores how organizational vision, leadership, cultural factors, and teamwork shape innovation within a company. It then delves into the 4Ps of innovation (product, process, position, and paradigm) and explains the use of the innovation funnel in new product development. Furthermore, the report defines and discusses frugal innovation, highlighting its principles and significance in generating value with limited resources. The analysis includes examples from Vodafone and its competitors, such as Apple and Virgin Group, to illustrate key concepts and strategies.

INNOVATION

INTRODUCTION
Innovation means brining new methods of doing things. In context of business
organisation, innovation is time and cost effective and also helps a company to achieve more
competitive advantage. In addition, it refers with changing entire processes for generating
effective products and services. Innovation could be catalyst for the advancement and vitality of
business organisation; it aids them to grow and diversify in target market (Agnete Alsos,
Ljunggren and Hytti, 2013). The present report is based upon Vodafone Limited, it deals in
telecommunication and network service. This is second largest mobile phone company in entire
world. Apart from this, the assignment will be describe significance of innovation in comparison
with invention. The role of frugal innovation in organisational context is also explained in this
report. Readers will also come to know use of commercial funnel and the process of new product
development. It is essential for managers build an innovation case so as to funds.
TASK 1
P1 Significance of innovation in comparison with invention
Innovation:- Business innovation plays an very eminent role in its growth and
development. It involves the concept of improvement in business ideas, processes, marketing,
designs and products in order to reach maximum number of customers. Along with this,
innovation is also known as an idea that can be replace for getting business goals and objectives
in a certain time period. For example- in order to satisfying customers needs and desires Apple
and Virgin Groups are always focuses on producing something new and unique. For this
purpose, both leading companies focuses on market research and development so as to satisfy
buyers wants in an effective manner. Therefore, it can be said that research and development is
the main contributor of innovation. It is process of boost up existing process by implementing
effective technologies so as to achieve company's goals and objectives. For instance – Recently
Apple has launched a sleek looking device, i.e. iPod. It is a digital music player by having a
weighted just 6.5 ounces. Whereas Virgin Group is continuously also generates new mobile
phones and other electronics in order to explore in new target market.
Invention – An invention could be a new process or composition that is derived from
pre-existing model. Often, inventions can exceed the boundaries of human experience and
knowledge; it is obtained from legal protection to findings (Candelin-Palmqvist, Sandberg and
Mylly, 2012). Therefore, it can be said that invention go beyond just technology so as to get
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unique outcomes in the best possible manner. It drives economic and technological growth of the
firm.
Importance of innovation and invention: -
Helps in achieving high competitive advantage
The prime role of invention is to generate new and qualitative products for satisfying
customers needs. Team leaders of Vodafone Ltd. are using effective innovative techniques so as
they can produce better in comparison to their competitors. Apart from this, business innovation
relates with improving current processes or operations of the firm so as to achieve business goals
and objectives. Furthermore, innovation and invention both are assistive in attaining
organisational goals and objectives in an adequate manner.
Generate effective tools and techniques of production
With the assistance of innovation and invention, managers can get new tools and
techniques which will contribute to make unique or novel products. If a firm is produced
innovative products then it will help in increasing its sales and profit in target market (Carlborg,
Kindström and Kowalkowski, 2014). Apple and Virgin Group has effective machinery that
makes their services more completable in comparison to others.
Driven up business growth and success
In order to get high market expansion and advancement, Vodafone Ltd. is now adopting
innovative concepts and ideas. This will help it in getting high market growth and success in
short span of time. Products and services which are capable to gain higher level of customers
satisfaction are always profitable for business entities.
INNOVATION INVENTION
It introduces better and newer solution towards
business problems which meets current market
needs and buyers' requirements.
It can be an unique product, idea, concept,
processes, activity etc.
Innovation requires competence and technical
knowledge for market trends as well as
financial condition of the firm.
An adequate invention is required economic
growth, financial aid, active skills, technical
knowledge etc.
This can be only induced. This can be induced as well as autonomous.
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Innovation is the mechanism through which
intellectual property can be applied so as to
make successful business practices.
Intellectual property is the key of success and
also provides a sustainable advancement and
growth of business entities.
P2 How organisational vision , leadership, cultural and teamwork can shape innovation
Innovation is an intermixture of certain factors that make its more effective. While
innovating new things, it is must for the managers of Vodafone Ltd. to set its certain goals and
objectives. Along with this, business owners also have to provide training and development to
their subordinates as they can improve their current skills and abilities so as to get sustainable
benefits from target market. Below described certain important factors that must include in
inventing new things: - Vision – Apple and Virgin Group, both leading companies have their own mission and
visions which they want to achieve. While producing something new and innovative
decision makers have to set their own visions and objectives; this will gives strength to
company's functions and operations (Choi and et. al., 2011). In addition, pre-determined
goals will also assistive for Vodafone Ltd. as it can make strategic planning in order to
achieve them in a systematic manner. For example- the prime vision of referred company
is to become largest telecommunication firm across the world. It this regard, it will
generate new and unique products and also fulfil social responsibilities so as to get
customers interest and loyalty for a long term period. Leadership – Strong leaders are the key of attaining and retaining market growth. Apple
and Virgin Group has well qualified and skilled leaders who are liable to manages its all
functions and practices. Therefore, managers have to conduct regular various leadership
programmes so as employees can learn them and apply its theories in their day to day
activities. Adequate leadership forces employees to do well, it is also liable in delegation
of authorities which is vital for growth and success of business entity. Organisational cultural – An unique organisational cultural will be contribute in
establishing unity at workplace among various demographics. In business entities there
are many people who belongs from different background, traditions and all of them are
having divergent cultural, values and beliefs. In context of innovation, organisational
structure will aids in motivating and encouraging employees to perform in well being
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mannered (Thongpapanl, 2012). Therefore, it is an ethical responsibility of managers to
provide healthy and positive working environment to people at workplace in order to gain
better future outcomes.
 Teamwork – Apple is famous for its effective team management. So that, it is also
advised to other commercial enterprises to manages their teams for achieving business
goals and objectives. Strong teamwork also offers staff members as they can come
together and familiar with each other. Teams are liable to develop systems which allows
a people to complete their tasks effectively (Crumpton, 2012). Apart from their, there are
certain type of people are worked in team; all of them are having new ideas and concepts
to a business organisation so as to get high market growth.
TASK 2
P3 Explain 4Ps of innovation and the use of innovation funnel
Below mentioned 4Ps of innovation: -
(Source: Dimensions of innovation, 2017)
 Product innovation – This type of innovation is consists with improvement in prevailing
products and services of the firm. Apple and Virgin group has effective and efficient
products that are responsible for their market vitality. It is very essential for a firm to
make regular inventions in its products and services so as to gain sustainable benefits
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Illustration 1: 4Ps of innovation

from competitive market. Along with this, qualitative and value added trades are
accessible in order to get customers' loyalty and their interest as well. Apple has
produced a digital music player that is weighed only 6.5 ounces; but is capable to handle
1000 songs. There are several I-Phones and I-pods are also generated by Apple that are
very popular among customers. Such products are helpful in enhancing sales of the firm
and make higher profitability for it. Process innovation – Implementation of certain tools and techniques within business
organisation so as to make deliver effective products and services to customers.
Vodafone Ltd. has to try new and innovative with which it can gain higher volume of
production. Apart from this, managers also have to use effective tools and techniques so
as to deal with people in the best possible way. Apple and Virgin Group are depended
upon other small business entities for purchasing raw materials. Both companies are
utilising effective marketing strategics or processes while launching their products in
target market. It will help them to reach maximum number of buyers (De Massis, Frattini
and Lichtenthaler, 2013). Position innovation – This the third segment of innovation mix. Positioning is concerned
with recognising market position of products; for this purpose managers are focused on
manufacturing qualitative products. Position based innovations is also assistive in
gaining higher level of consumer' satisfaction.
 Paradigm innovation – Such innovations are related with practical models of ideas that
gives shapes to company's functions and operations. Paradigm based concepts are helpful
as they adds values over products for the better growth and success.
Innovation funnel: - Innovation funnel is the process of describing ideas and concept
that are used in the process of new product development. It has a very important role for
commercialisation or marketing of new innovations in order to gain high competitive
advantages.
P4 What is frugal innovation
Frugal innovation – While developing any idea or concept, managers need to recognise
whether it is economical for them or not. Frugal innovation is related with better, cheaper and
faster inventions; it is fuzzy. Along with this, it includes that how business owners are funded for
new trends so as to rise at marketplace. It is also defined as inclusive and constraint based
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innovations for producing technological products at low rates. Frugal innovation is also known
as a new business paradigm which emphasised on manufacturing at high level.
Furthermore, frugal innovation is the ability of generating social and business values by
diminishing the use of scarce resources. It can be seen as output of an application which has low
demand in terms of other products. It also aids managers in finding various business models and
redesign products so as to supply for users in a very sustainable manner (Drucker, 2014).
Vodafone Ltd., also uses frugal innovation which gives strength to its functions and make them
cost effective. Beside this, several business organisations, i.e. Apple and Virgin Group are
endorsed the concept of frugal innovation because it will help them to remove external elements
which takes huge spaces within goods. Frugal innovation is known as the game changing
strategy which helps a firm to gain high competitive advantages in capital market. Its main aim is
to reduce prices of products and make them affordable of all people of the society, therefore
Vodafone Ltd., has to produce such products which can gives it better customers satisfaction.
Frugal innovation is also assistive in gaining new market segments.
Six principles of frugal innovations: -
 The first principle of frugal innovation is engage and iterate. It refers that managers need
to focus on fulfilling customers wants rather than conducting market research. They need
to observe buyers' behaviour and attitude.
 Managers need to think what they actually have ; so that appropriate solutions can be
created in an effective manner.
 Be improvisational rather than rigid.
 Another function related with reduction of complexities because generate various
problems in working activities.
 Be determine and passionate and usage different areas in order to move ideas forward.
 Find opportunities and chances in adversity.
TASK 3
P5 Importance of commercial funnel and process of new product development
Importance of commercial funnel: - Commercial funnel is the tools that helps in
promoting products and services of the firm. The prime objective of any product is to get higher
market position by meeting the requirements of its end users. Along with this, commercial funnel
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is concept which dictates that managers have to adopt effective and flexible marketing
strategies ; it will helps in gaining maximum sustainable benefits from target market.
Commercial funnel also provides a strategy for companies so as with which they can examine
market potentiality and growth of the product which is going be launched by it (West and
Bogers, 2014).
Process of new product development - Idea generation – It is the first step of the process of new product development. In
which, managers needs to use internal and external market analysis so as to generate
various ideologies and thoughts. Such ideas can come from different directions or
methods. In order to generate effective and innovative ideas, Apple and Virgin Group
conduct SWOT analysis so as to examine their current market position. Vodafone Ltd.,
can also use market research, it will helpful for it in finding an appropriate business
strategy (Keupp and et. al., 2012). Idea screening – Afterwards, all ideas are screened by the team leader, in which
unsuitable ideas are rejected. Only effective and adequate ideas are considered which are
assistive in achieving aims and targets of the firm. For this purpose, several companies
set specific criteria, i.e. market research, affordability, ROI and market potency etc. Concept testing and screening – When a idea is selected, the it is going to be tested in
target market. In this, buyers needs, attitudes and intentions are measured. The concept of
concept testing will be help in confronting costly mistakes. Business analysis – One an idea is finalised, it is send to customers in order to determine
that whether it is beneficial for firm or not. For example- using a small group of people
so as to know their action upon this particular idea. Product development – In this stage, the product is passed for development and technical
stage. Managers are created production model so as to give an effective design to its
products and services. Test marketing – It is a process of selling products in small number of persons or a
selected area. It will be assistive in obtaining actual performance of products as it is
working as per the marketing plan of the firm.
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 Commercialisation – When a concept is evolved and all final decisions are made up then
the product is tend to launch in market (Klewitz and Hansen, 2014). In this regard,
managers create an effective marketing strategy by evaluating all future challenges.
 Launch – At last, a detailed policy is adopted in order to launch a product in target
market. In addition, managers also have to review the progress of products so as to gain
high competitive advantage.
P6 Build an innovation business case
Evolving an innovation business case is really beneficial for managers, it provides them
all necessary information about stakeholders of the firm. This provided information is totally
transparent which helps leaders in their decision making process. Along with this, it is needed as
to examine future risk and then convenience to management as it can generate more logical ideas
and thinking. Business case is also utilise in implementing certain business tools so as to start
effective processes (Perks and Roberts, 2013). On the other hand, innovation business case also
recognise financial needs of the firm, i.e. project management, marketing activities and project
designing. Apple and Virgin Group are using business cases that can be used in the process of
new product development. Every year Apple launches new products and improve its existing
products whereas Virgin Group produces products as per market trends with an aim of
maximising market share. Therefore, it is essential for Vodafone Ltd., to adopt such kind of
business strategy by conducting a market research.
In order to implement business case, organisations need to take particular for which it is
going to be innovated. For example – Vodafone Ltd. Is producing a smartphone with new and
effective features in order to attract more and more customers from target market. It will also
helps companies to increase their sales and profitability in a certain time period; through which
managers can easily achieve their goals and objectives in an effective manner. Apart from this,
the for this invention, managers need to emphasis on marketing research and determine
customers need as well as their expectations. This product is required high capital so that
decision makers have to develop their strategies in order to attract shareholders. It could increase
funds and cash flows. In order to regulate, invention concept, managers need to provide training
and development assistance to their employees. In other words, human and capital resources are
foremost requirement of effective implementation of innovation process. Furthermore, higher
authorities need to set a time framework for each and every activity for effective completion of
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tasks. At last, by taking feedbacks and customers' reviews managers can easily recognise growth
and success of their products.
Various ways through which can generate funds, such are described as under: - Crowdfunding – It is the best method of getting huge popularity in a short time of span.
It seems like taking a loan or investment from more than one person in a short time of
span. Venture capital – Venture capitalist are liable for managing investments of the firm and
they have wide potentiality. They provides expertise and mentorship to the organisation
by monitoring firm's scalability as well as sustainability point of view (Randhawa,
Wilden and Hohberger, 2016). If companies do not have long run then venture capitalists
take their money back .
 Angel investment – Angel investors are those individuals who can provide fund to
business organisations which have innovative and new ideas. They can also offers
advices for alongside capital by gaining a specific percentage in profits. Angel investors
are worked in groups and they have long chain of networks over the country. Basically,
they helps for start-ups or small business enterprises if they have unique concept or idea.
TASK 4
P7 Different tools to protect intellectual property
Intellectual property refers with creation of mind, i.e. designs, symbols, names,
inventions, literary, images and artistic work. It is protected by several laws and regulations, for
instance – trademarks, copyrights and patent. Along with this, it enables people as they can earn
financial benefit for long term period for what is invented by them. The main aim of intellectual
property is to foster an environment by flourishing innovation and creation (Sawyer, 2011).
Below mentioned different types of intellectual property: - Copyrights – It is legal term that can be used in order to describe the rights of creators
towards their works and inventions. Copyright means only original creator has right to
reproduce such kind of product. Its law gives further materials and exclusive rights to
people by developing effective and innovative products. It covers the such areas, i.e.
databases, music, books, advertisements, technical drawings and maps.
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 Trademarks - It is a sign which distinguish products to its other substitutes in target
market. Trademark are developed for the sake of firm's identity and reputation (Stokes,
2011). Apple's trademark is put on its building as well as other products.
 Patents – It gives privilege right to the owner of invention for a certain time period.
Patent renders a right to its owner whether the information could be used by others or not.
CONCLUSION
From the above mentioned assignment, it has been founded that innovation plays a very
significant role in growth and success of business entities. It helps managers to get higher
competitive advantages by providing unique products to customers. Along with this, innovation
is consists with improvising existing products or ideas whereas invention dictates to produce new
products which is able to satisfy needs of maximum people. In addition, there are certain
components that gives shapes to innovation and commercialisation, such as- organisational
cultural, teamwork, leadership and vision. There are 4Ps of innovation, i.e. product, process,
paradigm and position; the role of commercial funnel is also described in this report. The
procedure of new product development will be aid in goals and objectives of the firm. Managers
needs to use various tools in order to protect or retain the right of innovation and inventions.
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REFERENCES
Books and Journal