Factors Shaping Innovation: A Report for Mr. Johnson Watches

This report provides a comprehensive analysis of innovation, focusing on its significance to businesses, particularly Mr. Johnson Watches, and its comparison to invention. It explores the factors shaping innovation, including leadership, teamwork, culture, and vision. The report delves into the 4Ps of innovation (product, process, position, and paradigm) and the use of innovation funnels to shape innovative ideas. Furthermore, it examines frugal innovation and its application within organizations. The report also covers new product development, the commercialization funnel, and innovation case studies, including accessing funding. Finally, it discusses tools for developing, retaining, and protecting intellectual property and knowledge within a firm. The report aims to provide practical insights and strategies for fostering innovation and achieving commercial success.

Innovation

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its significance to enterprise with comparison of invention..........................1
P2 Leadership, teamwork, culture and vision shape commercialisation and innovation............3
TASK 2............................................................................................................................................4
P3 4Ps of innovation and use of innovation funnels to shape innovative ideas..........................4
P4 Developments of frugal innovation and its use in organisation.............................................5
TASK 3............................................................................................................................................6
P5 Application of new product development for commercialisation and significance of
commercial funnel.......................................................................................................................6
P6 Innovation case for enterprise and ways to access funding....................................................7
TASK 4............................................................................................................................................8
P7 Different tools that a firm can use to develop, retain and protect intellectual property and
knowledge....................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
An innovation is known as the process of add new or unique features in current or new
product. In present business scenario where needs and wants of customers are changing on a fast
speed, implement the concept of innovation and offer something new to customers is become an
essential one. One of the main benefit of innovation is that it help in attract large number of
customers and create goodwill of firm (Anderson, Potočnik. and Zhou, 2014). For execute the
concept of innovation in an effective manner it is very essential that firm should have required
resources and funds. Mr. Johnson Watches, a small firm based in UK. Importance of innovation
for a business entity and various factors that shape innovation is all included in this report.
Innovation funnel with 4 Ps of innovation is all mentioned in this. Further, frugal innovation and
its use in an enterprise is given in this. In addition to this, various tools to protect intellectual
property is also included in this.
TASK 1
P1 Innovation and its significance to enterprise with comparison of invention
Innovations is known as the procedure of add new features in a product for better satisfy
the needs of customers. Continuous innovation help firm in increase its market share and at the
same time support in retain customers for a long time period. Innovation help firm in get a
effective position in market (Brynjolfsson and McAfee, 2012). For get all benefits of innovation,
it is very essential for firm to develop and implement an effective strategy. Importance of
innovation for a business organisation can be understood by the following points:
 Enhance efficiency of firm: One of the major benefit of innovation is that it help firm in
manufacture quality products and offer the same at lower prices to customers. All this
make the product more reliable and help in attract more customers (Boons, Lüdeke-
Freund, 2013). All this strengthen positive image of brand and provide various other long
term benefits.
 Help in utilise all resources at an optimum level: When firm add new features in its
existing product or manufacture a new product for its target customers then it help in
utilise all business resources at an optimum level which enhance efficiency of production
process. For attract more customers towards its products it is very essential for Mr.
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Johnson watches to make a plan as in this way entity can ensure effective utilisation of all
resources.
 Increase effectiveness of communication process: Communication is known as one of the
most significant element of every business process. It is very important that right tool of
communication should be use by firm as this bring cooperation among various activities
and help firm in get all benefits of innovation. When firm use right tool of
communication then it decrease the chances of rise conflicts and provide maximum
benefits to firm.
 Increase profits of business entity: Something unique and new always help firm in get the
attention of large number of customers (Cross, 2011). All this increase profits of firm and
ensure its long time survival. By implement the concept on innovation on timely basis
Mr. Johnson watches can attain its set business objective.
All these are the major benefits of innovation. Large number of individuals think that both
invention and innovation are the same thing buts there are various differences between both
these terms as given in the following table:
Basis Innovation Invention
Meaning Process of make a specific
product more reliable by add
new features in that is known
as innovation. Specific
modifications are introduce
by firm for increase the sales
of product and to better
satisfy the needs of
customers.
When a new product or
service come into existence
for the first time is known as
invention. every activity is
carry out for the first time.
Concept Under concept of innovation,
new features are added in a
product for increase its
usefulness which enhance its
sales and profits.
Invention is carry out for
fulfil the specific
requirements of customers
which existing products are
fail to satisfy the same. that’s
why a new product is
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manufactured under this.
Skills required Concept on innovation does
not require huge amount of
skills. Some specific
knowledge is needed to
implement innovation.
A totally new and featured
product is developed under
concept of invention and for
this, it is very essential for an
individual to have adequate
amount of skills and
knowledge. Mainly technical
and scientific skills arte
require to implement this
concept.
Activities Activities cover under the
concept of innovation are
spilt among all departments
of entity. All this help in
execute innovation in
effective manner and provide
its various benefits to entity.
Activities and operations
carry out under the concept
of invention are only limited
to research and development
department.
P2 Leadership, teamwork, culture and vision shape commercialisation and
innovation
Concept of innovation is a wider one as various activities are perform under this that affect
the actions and decision making process of entity. For ensure effective execution of innovation it
is very important for manager to identify and examine the factors that largely affect the process
of innovation. Teamwork, vision, culture and leadership all are the factors that largely shape
innovation and also affect its outcomes. It is very important for firm to formulate and implement
effective strategy before introduce a new product or service in market.
 Innovation and leadership: Employees of entity play a big role in shape the innovation.
So it is very essential that proper guidance should be offer to them so they can perform
their roles and responsibilities in effective manner (De la Mothe and Paquet, 2012). It is
very important for leaders to adopt right approach of leadership and he should always
encourage employees to think creatively so entity can attain its set objective.
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 Culture and innovation: Organisational culture defines the various roles and
responsibilities of employees and highlights the way in which communication flow in
entity (Gennaioli, Shleifer and Vishny, 2012). It is very important that culture of entity
should be that which encourage concept of innovation. When entity provide a healthy and
positive working environment to its employees then it encourage employees to work
well.
 Teamwork and innovation: Working of teams at workplace play a big role in complete
business project and provide various other benefits. Teams play a big role in implement
the concept of innovation. So development of teams should be encourage so employees
together can implement innovation.
 Innovation and vision: Vision indicate what an entity wants to achieve by implement the
concept of innovation (Gunday, G. and et. al., 2011). One of the m ain vision of Mr.
Johnson Watches is to manufacture and offer featured products to its customers for retain
them for a long time period and to generate a large amount of profits.
All these are the main elements that largely affect the process of innovation. It is very
important for manager to consider all these factors before implement the concept of innovation
for get all its benefits and get a competitive place in market.
TASK 2
P3 4Ps of innovation and use of innovation funnels to shape innovative ideas
Innovation model of 4Ps was given by John Bessant and Joe Tidd in the year 1960. It
includes product, process, position and paradigm. This concept of marketing mix is used to
improve sales performance of a company by arranging all activities in a proper manner
(Lundvall, and et. al., 2011). Though this technique, marketing manager of Mr. Johnson Watches
can attract minds of customers in a large manner and gain competitive advancement also. The
procedure of these P’s of innovation can be explained as:-
Product innovation: Under this process, modifications are done in products by adding
more valuable features so that effective services can be delivered to consumers in a proper way.
Hence, for this process it is necessary for management of a firm to utilize available resources in a
better manner. Along with this, they should identify the demands and needs of customers also
through which necessary changes can be done in commodities.
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Process innovation: For manufacturing innovative goods or adding value in existing
commodities, management of a company needs to do a lot of procedure as it is not an easy task.
Along with they have to measure impact of changes also before creation of modifications in
order to reduce risks of alterations. In context with this, for making innovation, managers are
required to formulate a necessary plan which includes various steps like designing, arrange
resources, assembling the parts and more. This would help in creating alterations in a proper
way.
Positioning innovation: In this phase, finally product is launched at marketplace after
creating necessary changes in them and make more useful. But for this process, managers are
required to do some alterations in marketing techniques also. Repositioning the marketplace
helps in evaluating the conceptual view of customers as well. Therefore, Mr. Johnson Watches is
needed to change looks and design of products.
Paradigm innovation: It is the last phase in which a company needs to create some
changes in other part also except products modification. As it is not an easy task but will help in
attracting large number of people towards services of company.
Use of innovation funnel in shaping Innovation
Innovation funnel helps in developing all stages of marketing mix in a proper way. It
gives some techniques through which modification in products can be done appropriately.
Therefore, management of Mr. Johnson has used this model in order to execute 4P’s model in an
effective manner. This technique constitutes some major steps with main purpose of to reduce
negative impact of changes. In its initial step, marketing managers are needed to gather
information of demand of public living at a particular place like what they are actually want to
acquire (West and Bogers, 2014). This would help in creating modifications accordingly. In
second step, employers are required to analyze necessities of changes and as per need formulate
a proper plan. In next phase, production team of organization is needed to utilize resources in a
proper way by reducing wastages. In final process which is also called narrow segment,
managers should analyse quality of new products in a proper way to see whether they are
manufactured as per need of customers or not.
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P4 Developments of frugal innovation and its use in organisation
Concept of frugal innovation is known as an important for during manufacture of new
products and services for offer it to target customers. Mainly this concept is use by firms to bring
down the cost of products to offer its to large number of customers but at the same time maintain
the quality of product. main focus of this is to make the innovative products in reach of every
individual (West and Bogers, 2014). One of the main feature of this is that it enhance company’s
performance as this offer numerous opportunities to firm ton increase its market share. Mr.
Johnson Watches offer various type of quality watches to individual with middle income. By
bring down the cost of its product entity can attract more number of customers to buy its product.
For this, some specific principles are there which help in gain a huge understanding about the
concept of frugal innovation:
Identify opportunity in adversity: This principle of frugal innovation highlight the way in
which researcher remain liable to study all major issues. With all this, firm try to transform all its
threats into opportunities to solve the issues in an effective manner.
Do more with less: This principle is very significant for researcher to put all positive efforts
during whole study. This help in find effective and better solution of problem.
Think and act flexible: It is very important for researcher to think flexible during the time of
finding solution.
Keep it simple and attractive: This method is use by researcher to identify the solution of
issue. It directly contribute in success of entity.
Include the margin: Under this principles main focus remain on customers and their problem
which help in find better solution.
Follow your heart: Both employees and manager should focus on their job roles for achieve
set goal.
TASK 3
P5 Application of new product development for commercialisation and significance of
commercial funnel
Concept of commercial funnel indicate the major ways that can be use by a business
organisation for increase the number of its profits. This ensure long time survival of firm and
provide competitive benefit. For implement this concept, various strategies are formulate and use
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by firms. One of the main benefit of commercial funnel is that it help firm in identify and select
the best idea through which entity can generate more profits. One of the main reason behind
implementation of this concept is to increase profits of entity. Main steps involve in this concepts
are as follows:
In initial step all ideas and thoughts are identify by entity from which entity can generate
more profits. Major factors that are important for develop a product are determine the cost,
conversion rate, implementation of strategies an d many more. Mr. Johnson is developing new
idea for increase its income.
Process of new product development
Manufacture and offer a new product to customers is not a easy task as various steps are
involve in this concept. Main steps involve in this process are as follows:
Idea generation: For develop a new product various ideas take place or come up in mind of
individuals. In first step, thought of manufacture a new products is generated. Needs of
consumers are consider in this step for generate a more effective idea.
Idea screening: Analysis is done in this step formulate a effective plan for product. firm
take help of experts in this step for decide future actions.
Concept development: Generated thought is transformed into the final report. It is very
important for firm to use effective tools and technology to undertake production process.
Strategy development: Various action plans and strategies are develop by firm to
implement the idea into reality.
Analyse business situations: Before undertake implementation, it is very essential for
identify and examine the market. This help in get maximum benefits of innovation and increase
sale of innovative product or service.
Product development: in this step product is manufactured as per the needs and wants to
customers to attract them and to retain them for a long time.
Test marketing: In this, products is sold in some specific areas in order to determine its
acceptability in market.
Commercialisation: This is the last step, under this promotion of product is undertake to make
the individuals inform about new product and its features. Different channels of communication
are use by entity to persuade individuals.
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P6 Innovation case for enterprise and ways to access funding
One the major importance which is associated with adoption of innovation in
organisational process is improvement in the performance level which provides the opportunity
to provide quality products to their customers. In the present report, Mr. Johan watches is small
organisation which requires huge amount of innovation to compete in market and capturing large
market share. In this regard, business case is developed of the cited organisation which is
mentioned below:
Executive summary: Mr. John watches operated their business activities at small level. It
provides their function in local area for satisfaction of their requirements. The management of
company decided to innovate organisation structure to attain large number of advantages.
Objectives: Through application of new technology produce such kind of watches which is
under the budget of every segment of society
Solution: The major changes which are need to bring in their existing products for
attraction of the large number of customers is on their design and looks as per current trends.
This will provides the opportunity regarding satisfaction of the preferences of customers.
Why products are innovative: The products should be innovative to add some new feature
as pet the demand creates in market.
Customer’s research: It includes the research of market for determination of the target
which contributes in higher success in their future activities.
Funding: To bring changes in the products in effective manner need to arrange the
adequate amount of funds.
Expected benefits: The benefits which are derived by the organisation through such
activities includes high number of sales and profitability.
TASK 4
P7 Different tools that a firm can use to develop, retain and protect intellectual property and
knowledge
Mr. Johnson Watches is a reputed firm based in UK which deal in different type of
products and services related with the watches. For capture a large market share, entity
manufacture creative products. It is very essential for entity to collect information about the
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major laws and legislations to protect intellectual property and knowledge. Major tools which
can be use by firm are as follows:
Trademark: this tools sis use by firms in order to make its offering unique from the various
products exist in market (Anderson, Potočnik. and Zhou, 2014).. Different type of symbols and
signs are use by firm to give a special identity to product.
Patent: This is known as specific right that are develop by regulatory bodies. This is
sustain for specific time period and provide an opportunity to firm to safeguard its product so it
cannot be copied.
Copyright: Mainly this is developed by government bodies to safeguard the interest of
manufacturer.
CONCLUSION
From the above project report, it can be summarised that various factors are there that affect
or shape innovative ideas. It is very important for manager to identify and study all elements for
implement innovation. Effective implementation of innovation provide large number of benefits
to firm. Concept of innovation funnels provide an opportunity to analyse and shape innovative
idea. Different development has take place in frugal innovation which is used by firms. Various
steps are involve in the process of new product development for commercialise the innovation.
Large number of sources are there that can be use by a business organisation to collect funds for
execute business activities. In addition to this, various tools and methods are there that can be use
by enterprises to retain and protect intellectual property.
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REFERENCES
Books and Journals
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
Management. 40(5). pp.1297-1333.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Brynjolfsson, E. and McAfee, A., 2012. Race against the machine: How the digital revolution is
accelerating innovation, driving productivity, and irreversibly transforming employment
and the economy. Brynjolfsson and McAfee.
Cross, J., 2011. Informal learning: Rediscovering the natural pathways that inspire innovation
and performance. John Wiley & Sons.
De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol. 14).
Springer Science & Business Media.
Gawer, A. ed., 2011. Platforms, markets and innovation. Edward Elgar Publishing.
Gennaioli, N., Shleifer, A. and Vishny, R., 2012. Neglected risks, financial innovation, and
financial fragility. Journal of Financial Economics. 104(3). pp.452-468.
Gunday, G. and et. al., 2011. Effects of innovation types on firm performance. International
Journal of production economics. 133(2). pp.662-676.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Kleinknecht, A., 2016. Innovation patterns in crisis and prosperity: Schumpeter’s long cycle
reconsidered. Springer.
Lundvall, B. Å. And et. al., 2011. Handbook of innovation systems and developing countries:
building domestic capabilities in a global setting. Edward Elgar Publishing.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Metcalfe, J. S. and Miles, I. eds., 2012. Innovation systems in the service economy: measurement
and case study analysis (Vol. 18). Springer Science & Business Media.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management. 31(4). pp.814-831.
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