Innovation and New Product Development Report for Ensoft Ltd.

This report provides a comprehensive analysis of innovation strategies within the context of Ensoft Ltd., a UK-based software company. It begins by defining innovation and contrasting it with invention, emphasizing its crucial role in business growth and market competitiveness. The report then explores how organizational vision, leadership, teamwork, and cultural factors shape innovation processes. It delves into the 4Ps of innovation (Product, Process, Position, and Paradigm), the use of innovation funnels, and the concept of frugal innovation. The commercial funnel and the new product development (NPD) process are examined, including idea generation, screening, and concept development. Furthermore, the report addresses the importance of building a strong innovation business case and concludes with a discussion on intellectual property. The report provides insights into the practical application of these concepts within a business setting and offers valuable strategies for fostering innovation and driving sustainable growth.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Role of innovation and its comparison with invention..........................................................1
P2 How organisational vision, leadership, teamwork and cultural can shape innovation..........2
TASK 2............................................................................................................................................3
P3 4Ps of innovation and use of innovation funnel ....................................................................3
P4 Frugal innovation ..................................................................................................................4
TASK 3............................................................................................................................................5
P5 Commercial funnel and process of NPD...............................................................................5
P6 Build an innovation business case ........................................................................................6
TASK 4............................................................................................................................................8
P7 Intellectual property...............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Everyone wants to be innovative to gain success and viability. The term innovation
means to come up with new ideas of doing things. In context of business organisations,
innovation helps to save money and time and provide defensible edge to grow and diversify at
marketplace. It creates several opportunities for a company in respect of raising customers'
interest, usually innovative or unique products enable to attract many people it results
enhancement of sales and profitability in short span of time (Aarikka-Stenroos and Sandberg,
2012). Ensoft Ltd., is the chosen organisation for completion of this assignment; its a UK based
software company that provides software solutions to routers which runs internet and large
corporate networks. The assignment is going to be described importance of innovation and its
comparison with invention. Readers will also come to know about 4Ps of innovation and use of
innovation funnel to shape innovative ideas. Furthermore, process of new product development
and ways to access funding will also defined later.
TASK 1
P1 Role of innovation and its comparison with invention
Generally innovation consists with modifying processes or initiating more compelling
process, ideas and products. For a business association, it means applying new ideas and creating
generate products or existing improvise existing once. In other words, innovation can be
stimulant for firm's growth and development and aids to attain high market share. Being
innovative doesn't meant inventing only, whereas innovation means changing the entire structure
of a business model and able to adapt environmental changes in order to deliver effective
products and services. So that successful innovation must be a part business strategies which lead
to resolve all work based problems and issues (Clayton, Feldman and Lowe, 2017).
In context of Ensoft Ltd., managers of the firm conduct an assessment of market trends or
environment so as to satisfy needs and wants of customers in the best possible manner in contrast
with competitors.
Importance of innovation for business organisations: -
 Innovation enhance the likelihood of business succeeding, as firms which innovates can
create more efficient more processes and have better performance and productivity.
 It creates a supportive and friendly atmosphere for employees in which they feel free to
share their opinions and can work without risk of ridicule (Bogers and West, 2012).
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 Innovation helps companies to ensure that existing process will capture best or suitable
ideas. It also promotes openness among individuals and teams at workplace; sharing good
knowledge of business with others help in raising efficiency and productivity.
INNOVATION INVENTION
Innovation is a procedure of making changes in
some aspects which are being implemented to
improved it.
Invention acts to create something unique
which had not endured before.
It means to determine better ways of doing
things. Innovation can occurs in all behaviours
such as – profit maximisation, personal
lifestyle and re-election politics (Dutta and
Hora, 2017).
It means to identify new device. To accomplish
a patent an invention should be passed the test
of originality.
Value of an innovation can be understood or
perceived by a relatively wide range of
customer segment.
Value of an invention is recognised by the
inventor only.
P2 How organisational vision, leadership, teamwork and cultural can shape innovation
Every firms want to be successful for long run needs proper management of innovation
thus to gain high market growth and success. Strong innovation shapes organisational structure
and framework potentials can be appropriately determined, ideas generate and then applied
successfully. Ensoft Ltd., set its own mission and vision statement to achieve desired growth and
success. Therefore, while making innovation managers are required to consider several factors
that are stated as under: -
Vision and mission – Innovation can be more effective when it involves goals and
objectives of the organisation. While doing innovation it is fundamental for managers to clearly
define vision and mission statement of the company thus to ensure future growth and
development. Although, reliable goals and timelines will build trust in collaboration; it results
resolving problems as soon as possible (Ettlie and Rosenthal, 2012). Here, the prime goal of
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Ensoft Ltd., is to become one of the largest networking solution provider company in UK by
managing strong relations with public.
Leadership – The term leadership plays a vital role to motivate or inspire employees as
they can work efficiently and effectively. Strong leadership supports also provides proper
guidance and direction to subordinates as they can generate unique or new products and meet
market needs.
Organisational cultural – It involves values and behaviours which contribute to create
unique social and psychological environment within workplace. When employees will get a
positive and efficient organisational cultural then they would enable to produce in innovative
manner. It helps them to participate in cultural activities and programmes.
Teamwork - Teams are built within business organisations to attain certain goals and
objectives; it shows cooperative behaviour of team members. In a team, several individual with
different mind set are work together; it results new ideas are come up which expands firm's
growth and success. Most of business ideas got failed at innovation cause leaders does not
recognise that innovation is four step process which required talent personal as well as proper
directions (Gaddy and et. al., 2017). So that cooperative teamwork helps to achieve any
innovation.
TASK 2
P3 4Ps of innovation and use of innovation funnel
4Ps of innovation
 Product: Product innovation is the development of the existing product. It introduces &
improves the product or service. The main products offered by Ensoft Ltd are carrier
Ethernet, broadband, mobile,video and cutting edge routing. Ensoft Ltd adopts the an
quality methodology to ensure that their Products & services are unique. There are
various market research plans for developed innovation Purpose (Godin, 2012). Along
with this, products which are offered by business organisations able to satisfy customers
needs and meet market trends as well.
 Process: Process innovation is the change in delivering of services. Innovation focuses on
the process through which Products & services are delivered. Process innovation is done
to improve process of the organisation. In the other words it is the new ideas which are
applied in the existing business plans to increase profitability. Ensoft Ltd has adopted
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new process to add or replace the existing ones, as flexible and innovative production
process helps in reducing manufacturing time and cost.
 Position: Position innovation refers to re- positioning the perception of an established
product & services. Position is considered as own perception of an innovator. Position
innovation is required to satisfy the customers as in today's scenario organizations
profitability does not depends on products & services it totally emphasis on what their
customers perceive about them (Huizingh, 2011).
 Paradigm – The last P of innovation tends to combine all 4Ps. It refers that firms are
required to progress in respect of gaining growth and success at marketplace.
Advancement of distribution channel which an intermixture of several process that must
be adhere to attain specific aims and objectives. It also supports management to generate
new and innovative ideas or products that are able to satisfy needs and wants of
customers in a persuasive manner.
Innovation funnel – The main aim of new product development process is to get an
effective idea from concept and transforming them into reality by converging them into specific
product or service that enable to meet market trends and needs. Thus, innovation funnel is
process of selecting best one idea between available all variants. Managing an innovation funnel
encompasses three different tasks, such as -
 Firstly organisation should expand its knowledge level and access to relevant information
thus to increase the number of business ideas and processes.
 Secondly, to narrow the funnel's neck means ideas get screened and allocate relevant
resources so as to grab better future opportunities (Kim and et. al., 2011).
 Third, is to assure that selected projects or ideas are able to achieve objectives anticipate
with organisational growth and success.
P4 Frugal innovation
Frugal innovation is most appropriate tool for making innovation as it is emphasised on
developing several products for target audiences. Ensoft Ltd., is going to launched a software
which provides instant networking solutions to clients or internet users. Apart from this, frugal
innovations is also known as frugal engineering having a purpose of applying new marketing
plans in order to get capture customers' eye and attracting them towards firm's offerings. It
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facilitate the process of producing goods and minimise costs so that lower section of the
company can also purchase them and live healthy life (Lindič and et. al., 2011).
In this modern era, people are demanding value added and qualitative goods which gives
them more satisfaction level, thus Ensoft Ltd., requires to do the same by identifying new ideas
and processes. Basically, frugal innovation is acquired by firms to represent their ideas to staff
members as they are updated with them. When a small firm wants to explore among wide rnage
of customers then it must implement frugal innovation in its process by acquiring several tools
and methods. Along with this, frugal innovation also supports to create and execute diverse
strategies which will deliver high market growth to company. Following are the points which
relates with developing frugal innovation, such as -
 By utilising frugal innovation, companies can reduce their operating costs which occurs
while generating commodities. Ensoft Ltd., purchase raw materials from its own
suppliers and serve them at lower costs.
 Frugal innovation determine unique or novel ideas thus to generating durable and
effective products which can satisfy customers' needs. It supports to achieve high profits
margins.
 As Ensoft Ltd., is trying to become innovative by using different tools for products; it
enhances quality of products and improvise living standard of society.
TASK 3
P5 Commercial funnel and process of NPD
Commercial funnel - The core concept of commercialisation implies to sell goods and
services at vast level. Thus, commercial funnel means to select an appropriate and most suitable
approach to sell products of the firm in a wide geographical region. It also involves brining ideas
and applying the same at marketplace so as to reach target audiences in a certain time period.
Process of new product development -
 Idea generation – The very first stage of new product development is idea generations;
thoughts can come from anywhere or in any form. Thus, it encompasses to identify
numerous ideas from various sources, i.e. internal sources, market research, SWOT
analysis, competition and customers (Snow and et. al., 2011). For example – firms' can
constantly review changing needs or trends at market place by conducting research
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activities. Whereas some companies provide incentives or extra bonus to employees who
come up with attractive ideas.
 Idea screening – There are many ideas in which good are few. In second stage of NPD
managers focuses on determining effective and feasible ideas which enable to ensure
future market growth whereas discarding those which are irrelevant. Different elements
are considered while screening ideas, i.e. strength and weakness of the company,
customers' needs, expected ROI, ongoing trends and so on.
 Concept development and testing – A concept can be detailed strategy of ideas. In other
words, when an idea is evolved, it should be presentable in all aspects; it is known as
concept. Ideas those have passed through screening stage are send by converting into
concept for testing. In addition to this, certain customers from target group get selected to
test the entire concept and information is rendered as they can visualise the product. So
that managers can know whether or not product will satisfy consumers' desires or wants
as well as will they buy it when it will launched.
 Business strategy analysis and development – After testing products, business have
finalise concept now the time to assess and then elect marketing strategies which will be
used. For Ensoft Ltd., marketing mix, competitors analysis, pricing strategies, break even
point, branding strategies etc. are most effective business strategies.
 Product development – Once strategies are approved, the product concept is turned into
making tangible goods. The product develop stage entails to design a limited prototype
production model so as to produce an unique product (Thore, 2012).
 Test marketing – In this, activities which will involved in NPD process, product and
proposed marketing programmes get tested on the basis of realistic market settings. Test
marketing provides marketer an experience of target market before its launching. In facts,
it helps firm to test products in its marketing programmes, involving positioning strategy,
distribution, advertising and packaging etc.
 Commercialisation – If test marketing has achieved high success then firms are tend
towards launching their products to a large group of customers. As commercialisation
means to provide product into target market; it requires high costs. Firms need to spend
amount on advertising and promotional activities so as to attain customers.
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P6 Build an innovation business case
Building an innovation business case provide a novel approach to business to knob
problem areas within innovation, thus to make case adequate. It represents areas of clear
discussions and drawn up better conclusions thus to decrease more emotive parts. Along with
this, need of business cases are vary depending on how big an idea is and what the initial steps
can be taken. They also depend on the nature of the innovation and how big a shift from the
status quo or business as usual scenario is involved. Most of business firms have their own
applications to resolve problems it aids them to become eye catching factor over marketplace. It
requires appropriate funds of capital in order to implement any innovation in the best possible
manner. Thus to convert ideas into real Ensoft Ltd., can tend towards determining new ways of
funding such are defined as under: -
Crowdfunding – It is a practice of providing funds to a project or venture by collecting
small amount of capital from several people, specially via internet. Crowdfunding is acquired to
get funds for making entrepreneurial ventures, i.e. creative or artistic projects. Digital
connectivity facilitate and make faster as well as cheaper to define their aims to public and ask
them to help. There are two donation crowdfunding and reward crowdfunding.
Joint venture – Its a kind of business project in which more than two companies have
invested some amount of their profits and work together with an intention to gain high
competitive edge. Joint venture creates by a separate business unit in which entrepreneurs
contribute their assess and have equity to take all decisions (Walsh, 2012). Basically, joint
ventures are done between small and large business associations.
Bank loans – It is one of the common form of providing capital to a business
organisation. A bank loan provide long or short term finance as banks has set fixed time for
which loans are provided. Bank also charges some rate of interest on the amount of loan as per
the time. While taking loans companies are required to give their assets to banks in respect of
security. Furthermore, interest rates are fixed and variable in nature.
Angel investors – They invest in small enterprises or new start ups. Although, angel
investors are known as business angel, private investors, angel funder etc. These people is an
individual who provides funds for a small business in exchange of ownership equity as well as
convertible debt. Angel investors deviate widely and also willing to accept risk; in return they
demand little or no control upon a business which might be valuable someday in future.
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Innovation business case -
Executive Summary Ensoft Ltd., works with product vendors in order to provide
software solutions to those companies which runs upon interent
and large networks. There are over 70 workers are presently
working with it having great knowledge of all networks and
solutions. In order to deliver effective services, Ensoft uses its
own method, i.e. EnQuality development methodology; this
approach embraces innovation to workers and implement
cooperation among teams.
Need Innovation plays a vital role in technical field cause it supports to
meet dynamic demands of customers at market. In addition,
innovation generates new concepts and ideas which gives a new
aura to digital technology.
Solution Evolution of new software helps to conduct a measurement
towards diver needs and requirements of target audiences and will
be fulfilled in an effective manner.
Consumer Analysis Customers are the market king and firms should tries to satisfying
their needs through innovation. The recent development in
software industry protect new ideas for organisations and applying
the same thus to attain better results.
Creation and Improvement The idea of developing a software which provide effective and
fast solution of networking problems and can be easily used by
workers themselves. It might not meet stringent service or
reliability guarantees, but is dramatically cheaper and enables
explosive speed and breadth of innovation.
Acquisition of funds In small businesses, funds can be raised through several areas,
crowdfunding, bank loans, angel investors and so on. In which
bank loan is a primary source of funds raising by exchanging a
security.
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Benefits availed It aids to implement a cultural of innovation at workplace and at
the same time it also improve customer satisfaction level.
TASK 4
P7 Intellectual property
It alludes to imagination of an individual's mind like – invention, innovation, artistic
work, customised symbol or name which are utilized as a part of business and not found usually
is called as Intellectual property. This is secured by law, which encourages people to get
acknowledgement and monetary rewards through what they have made or developed. It gives
right adjust in the middle of enthusiasm of innovator and normal people. This framework
accompanies sound atmosphere in which control and resourcefulness can prosper.
Trademarks: It is an indication that is fit in separating ventures from one to other. proprietor can
put his signature as 'stamp' for that specific item. Trademarks could be word, outline, image or
come as image and phrase so as to give legal authority on products and services. It gives
legitimate right to manufacturers as they can differentiate their work specifically field, this
makes things enlisted. In UK, the process took approximately half year and restoration charges
are taken in at regular intervals.
Copyrights: This way to secure unique work of initiation. Copyright is a legitimate term
that delineates privileges of innovator over his aesthetic work which should be in unmistakable
frame or effectively communicated as their work ought to be appeared as words on paper, notes
of music on sheet. Enlistment of work is intentional and starts at purpose of time when creation
are finished. UK offering enrolments to their kin on online bases with normal $ 35 non-
refundable amount. It takes almost 2 ½ to more them 5 ½ month to get a copyright of specific
work.
Patents: This allude to get an exclusive right for an invention. Patents offers legitimate
ownership to proprietor which aids them to choose how and who will utilize his function or
property. Any one who needs to take utilization of his licenses needs to get permission from
proprietor. This can be an agreement with individuals and inventor.
Trade secrets : Here, a private information or data which organization measurements not
have any desire to disclose to get benefits over their rivals. These can be a procedure, recipe,
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different business subtle elements. Trade secrets incorporates summation of clients, calculation,
or market research.
Confidential: A programmed age to insurance for private data and prized formulas. It
incorporates organization's incomes, bookkeeping information their employees salary or
compensation as well as entire financial information or tools which are being utilised in
association, won't be displaying among several firms.
Design - It can be three dimensional component, implies an augmentation to take legal
right of one's new work. It has been stated that while making innovation, business owners should
depositor present an outlay in UK design registry so as to all rights on it.
CONCLUSION
From the above mentioned assessment, it get analysed that innovation plays a crucial role
in growth and success of business organisation; it supports firms to improve efficiency of their
working activities and processes. The report has stated while creating any innovative product or
service managers are required to consider several factors, such as – leadership, teamwork,
cultural etc. Furthermore, following all steps of NPD process helps to create an unique or
adequate products and attain organisational goals.
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