Unit 8 Innovation: Softwire's Organizational Strategies Report

This report provides a comprehensive analysis of Softwire, a software-based company, focusing on its innovation strategies within the context of the UK business environment post-Brexit. The report delves into how Softwire implements organizational vision, leadership, culture, and teamwork to s...Read More

UNIT 8 INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its compare with invention............................................................................1
P2 Organisational vision, leadership, teamwork and culture for shaping innovation ...............3
M1 Sources of innovation for development of environment and culture of innovation.............3
D1 Development of innovation, embedded and measure in organisation .................................4
TASK 2............................................................................................................................................4
P3 4Ps of innovation and innovation funnel .............................................................................4
P4 Development of frugal innovation ........................................................................................6
M2 Innovative funnel in an organisation ...................................................................................7
M3 Role of frugal innovation ....................................................................................................7
D1 Innovation and development in organisation .......................................................................7
TASK 3............................................................................................................................................8
P5 importance of commercial funnel and New Product Development ......................................8
P6 Innovative business case and access to funding .................................................................9
M4 business case for Softwire ................................................................................................10
TASK 4..........................................................................................................................................10
P7 Tools organisation use for developing, retaining, protecting knowledge and property .....10
M5 Evaluation of tools and their uses.......................................................................................10
D3 Nature of innovation of organisation .................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
ONLINE.........................................................................................................................................12

INTRODUCTION
Innovation is termed as translating ideas, views and imagination into finished goods and
products. An innovative ideas should be replicable and must be at economical cost and have
specific need. In current scenario Brexit is playing a bigger role in business environment of UK.
Government is trying to support to support small scale organisation to grow as bigger unit. It has
gives changes company in service sector to grow their business effectively (Aarikka-Stenroos
and Sandberg, 2012). Softwire is an software based company founded in year 2000 give
software assistance to different business in all over UK. This assessment will discuss about
organisational visions, objectives with implementation of innovative marketing tools as well as
how can they develop their new products to grow and sustain in business market.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Every enterprise want to develop in market place they wish to gain competitive
advantage with their product (Bagchi-Sen, 2010). In small scale market different organisation
introduce different features and concept in their business activity to make it creative and unique
so that they give more values to their products and increase more profit in market.
Innovation – It is about translational of of innovative ideas, views, thoughts in
production of goods and services. The product must satisfy need of people and be economical.
In business organisation generated ideas and thoughts must be implemented in a away so that it
satisfy expectations and need of customers and make make profit respectively.
Importance of innovation to organisation:
Innovation is important to organisation because it helps organisation to explore more and
increase their range to existing and new business market. Some of the importance are given
below
 It inspire people to create, develop, new products, services and processes to increase
attainability of their business
 Contribute in enhancement of product and services according to need and want op
customers.
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 Innovative ideas helps organisation to have core competence in business market. It will
increase their production and manufacturing
 Providing advanced features to customers will help organisation to generate faith ans
goodwill among customers.
 It reduces cost of production of business, by implementing ideas in business company
can reduce wastages, increase their revenue and manufacturing.
Softwire used to give software assistance to other company (Bogers and West, 2010 ). In
short prior of time with their innovative ideas they are able to increase their business in larger
areas. They have add on features to hair software which allow smooth functioning of businesses.
Difference between inversion and innovation:
A company must understand basic difference between innovation and inversion before
investing in their business.
Factors Innovation Inversion
Meaning It is implementation of new
idea on a certain product that
has never being experimented
before.
It means generation and
occurrence of ides which is
new to market
What exactly is it? Add values and features to a
product which has existed
before.
It is about creating new
products.
Concept It is practical implementation
of new and innovative ideas
It is about putting pure and
original idea into a new
products
Skills and knowledge required It include technological,
market, development and
strategy skill.
It includes scientific skills only
Occurrence This is generated when there is
an improvement in business
products.
It is about striking and
processing new ideas in mind
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Activities It is being spread and accepted
across different organisation.
It is limited to explorers and
research and development
department of an organisation.
Examples Machine , technology Exploration of strategy
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
Diversification is important aspect of organisation where different sector of company
have separate viewpoint. Through different discussion and brainstorming session company is
able to record different viewpoints of their employees. Softwire believes in teamwork and
maintaining ethics in hair company so that they can implement their and views in their business
activities. The company will grow in business thorough effective leadership practices and a
positive organisational structure (Bogers and West, 2012).. By effectively managing different
factors in their company they can shape their innovation and commercial planning. Some of the
important aspects are as follows:
 Team-work- Company can grow in their business by maintaining better teamwork. This
will allow company to have better coordination between their employees. It will create
positive environment where employees can learn from each other. This increase
opportunity for growth and sustain in business activity.
 Vision- To increase productivity of company they must achieve specific target and goals.
Visions must include aims, objectives, purposes and task which must be completed in a
specific time.
 Culture: It determine internal culture of company. Having a better organisational culture
will increase hair efficiency in making effective strategies and planning. The employees
must be goal oriented and have better coordination's for achieving hair target. Softwire is
known for better collaboration between their employees that is why there is no conflicts
or clashes in business activities and able to develop new software and services with better
coordination between them.
 Effective Leadership: A leaders have a major role in business activity. They are pullers
for success for development in a company (Ettlie and Rosenthal, 2012). Leaders of
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Software are very active in both internal and external organisational structure. For
example in internal organisational structure leaders are very specific in increasing skills
and potential of their employees which make them efficient in generating innovative
ideas for their business.
M1 Sources of innovation for development of environment and culture of innovation
Innovation is an opportunity where ideas can be generated through different sources.
Some of the source are mentioned below
 Unexpected source
 Need and processes
 Geographical and demographic boundaries
 Knowledge and skills
 Market structure and industry
 Change in meanings, businesses, mood and meaning
There are some of the areas where innovative ideas are generated
Development of organisational structure depends on innovative ideas and strategies
(Gambardella and McGahan, 2010). The organisation shapes up according to their innovative
ideas and given strategies
D1 Development of innovation, embedded and measure in organisation
Softwire purely deals in in software assistances to company. They keep on modifying
their software and make innovative ones according to need and demands of hair clients.
Company have divides organisational activity into several departments with defined job role.
That is why they are able to increase their grass roots in different markets.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
4Ps is a marketing model that includes different components in marketing model.
Softwire use this marketing model in very effectual way in business activities. They carefully
analysis and observe different aspect of business which help them to increase their range and
dominance in business market.4Ps of marketing are as follows:
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Product – Company must know about the product with which they are doing business in
market. Apart from this they must make sure that they have detailed analysis of market,
customers need and want and what innovative ideas can be implemented to increase hair sales
and maintain competition in business market. It is the main source where change can be made
and total demand can be developed. By introducing a modified product at the market place total
demand for same can be influenced.
Process – Under this innovation change in the present way of delivering good and
services is done keeping in mind the raising the total sales. It is required that the effective
channel is so that maximum market share is covered and total profit margins are raised.
Position – For any company major task is to determine position of market. Choosing a
better market position will allow company to fetch more customer for their business which will
ultimately increase their revenue in business market (Kim And et.al., 2011).
Paradigm – It includes the basic of three elements which are what, why and how. It us
used to innovation so that business way of doing can be improved. The change could be radical,
but it is kept in mind that not all changes are always positive. All the possible changes that can
leverage the company’s profit can be tested. That includes changes in business model, like, for
example, changing published products from print to online platforms.
Figure 14 p's of innovation
Innovative funnel diagram is the creation and development of new commodity by
following different stages of innovation ideas
 Investigation – It the first stage of accumulation and collection of data and facts for
developing an innovative product.
 Development – After accumulation data and resources company at try to generate some
innovative ideas. For example, in Software, they tend to do market research at regular
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basis to analyse demands and need of customers then they generate ideas which may help
them in their business.
 Simulation and testing – After generation of business ides they must go through a test
stage to remove out flaws from their products. There is a software testing department in
company have a defined role to check their product before launching in market place.
 Launching- After analysing all the prospect of product it is being launched in market.
Software used to provide assistance in installation and regulation of product for different
organisation
Illustration 1:
Innovative funnel diagram
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Software company is effectively using frugal innovation in their organisation. It is a
process that include utilisation of new business models, collection and re collection of value
chain band redesigning merchandise. In other word it is used to decrease cost of production by
easing complexity in business activity (Lindič and et.al., 2011). This procedure is used in
minimising wastages and proper utilisation of resources. Some of the key elements and factors
which are being used by Software are being discussed below:
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 Iterate and engage –It is a very slow way of designing a merchandise. It is top down
approach used in research and development model. The specific process is very
complicated, time consuming , intransigent and costly (Aarikka-Stenroos and Sandberg,
2012). Apart from this it produces a lots of waste. It is an analytical process where every
factor related to customer need, expectations, market change customers’ demands are
considered
 Flex ans assets – It is the fresh and innovative technique used for production of goods
and services .This process helps in minimising gap between supply and demands hence
minimise wastages and time in between processes (Snow And et. al., 2011). This is used
for adoption better way for organising and maintaining distribution channel for
company. Company must flex their services, manufacturing processes and process for
reduction of cost for their business activity.
 Creating a sustainable solution- Company must plan a suitable way to perform their
business so that they can fetch better output form minimal resources.
 Shaping attitude and behaviour of clients – Firm must influence their clients and
fetch them towards their products (Teece , 2010). For doing so they can provide best
services and assistance to their employees.
 Creation of values – Apart from creating product organisation must make sure that they
they create values with their product. They can do it by giving best services and increase
goodwill and faith among customers.
M2 Innovative funnel in an organisation
Software is using funnel in their business activity. As they are dealing in software,
cannot afford any flaws and issues in their product. For that company follows a systematic
approach in their business.
They first analyse market and demand of customers and need of business, Secondly they
collect data and make software according to demand of market. After that research and
development wing make software testing to care out different issues that exist and finally it
delivered to customers.
M3 Role of frugal innovation
It is used for reduction of cost of goods and increase revenue and minimise complexity of
production. This can be achieved by removal of redundant and non essential features. Softwire
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always plan to give effective add- ons. For example they concentrate on increasing storages and
efficiency by using Artificial Intelligence.
D1 Innovation and development in organisation
Softwire used to modify their software according to need and want of clients (Aarikka-
Stenroos and Sandberg, 2012). They are also working on Artificial intelligence and cloud
computing to increase their reach in market.
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel is commonly called as sales funnel. It is a process purchase of
product and commodity. It is a presentation of consciousness and sales activity. Softwire may
use this business process for fetching better outcome. The process has been given below :
 Awareness – Company must be aware about business and market (Walsh , 2012). They
should analysis their competitor in market so that they can prepare them to sustain
against challenges
 Interest – Concentration on merchandising , research and development of product. This
will make them motivates and concentrated on their work and ability.
 Evaluation – After product is made it should be evaluated before launching in market to
check weather, it will be able to satisfy customers
 Decision – Decision should be made according to need and demand of customers and by
analysing marketing change
 Purchase – Purchasing of raw material in their product. In software company ideas,
skills and knowledge are considered as raw material.
 Re- evaluation- Before launching product organisation must test and analyse their them.
This factor is is very critical because in this phase one can analyse and check weather
software is been developed and fragmented according to customers need and want
 Repurchase – It is a last phase where services and commodity are repurchased.
If commercial funnels are used in company they can increase productivity of Softwire
and allow them opportunity to increase in business market.
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New product development is an systematic activity for developing and launching of a
new product in business market. In the word of literature it is termed as opportunity and
transmutation of product. Softwire from the start are working in software assistance to different
small scale software company. They are now planning to implement Artificial Intelligence and
Cloud computing in their software technology which help in making their software more
efficient with scope of adding features and add- ons according to need of clients.
Figure 2 Commercial Funnel,2011
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
It provide a method and process to cope up with issues and problem with innovative
process. Softwire must use this methods to quickly solve problem which arise in innovative
process. The process is described below:
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 Generation of idea- For generating best service for clients company must concentrate on
ideas by analysing demands and problems of customers. They can have SWOT analysis
of their idea so that they can determine their strength, weakness, opportunity and threats
to their business idea
 Screening of ideas – They and analyse different ideas for business and neglect less
suitable one.
 Funding – After ideas is generated they must focus on gathering funds from different
sources for their company (Walsh , 2012). Different sources of funding are banks,
stakeholders, angel investors, family, friends, saving etc.
 Testing and development of ideas - Ides in business is essential for them to
understand strength and weakness of product and plan to increase their sustainability in
competitive market structure.
 Analysis of business activity – After launching their product in business market, it is
essential for them to understand and monitor performance of their business activity in
market place which aid them to rectify problem in initial stage.
 Development – Developing a product is a continuous process so enterprise must try to
keep on modifying them according to their need and wants.
 Commercialisation- After the product is made it is essential for product to make profit in
market. So promotion and merchandising policies must be done in effectual way to
increase productivity.
 Launching – This is a final step of product here company expect their product to do well
in market.
Company can follow these business ideas for overcoming problem and conflicts in
business ideas. These procedures can help company to plan better and execute them. This
process is effective for software companies because it gives the detail analysis op processes and
performances.
M4 business case for Software
Company has planned to implement procedural business case for enhancing productivity
of products and minimise redundancy of software. Process will help them to complete demand of
employees in effectual manner.
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TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
For protecting the innovative idea and safeguard them form misuses. Company must have
some innovative approach that has been mentioned below:
 Copyright – It is used for protection of business from copying. It restricts other
organisation from using ideas, process and methods. They are different laws that has been
enacted for protection of original work (Teece , 2010). Software is dealing in software so
they are vulnerable from being copied and misused. So copyright helps them to protect
their software.
 Patents – Many cited organisation do patent which help them to freely to do their
business without fearing of cancellation of their authentication. Any misusing of patented
ideas, company, work can be liable to legal process.
 Trademark – It is in the form of symbols and pictures and logos which gives
information about original work of that company. Software have their logo in their every
software which informs about original work of company.
M5 Evaluation of tools and their uses
These tools aid Software to protect their business. There are many small scale business
and entrepreneur coming up in all over UK so it may be possible they use Software's idea like
programming tools, add on features, logos and misuse them. This activity will spoil image
company in marker. So patent, copyright and trademark protects them legally from these
mischievous activities. it is evaluated that different intellectual properties are effective enough in
helping the referred enterprise in securing their important asstes. The most common benefit of
patents and trademark are through same business can create a different image in the market
which is important for achieving the competitive advantage.
CONCLUSION
From the above report we have concluded that innovation plays a very vital role in
development of business. Software is providing solutions to many small scale company in UK.
Brexit is providing opportunities to small scale organisation to develop in market. For growing in
business market Software can use different tools like commercial funnel, NPD, 4Ps for analysing
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market and make better planning. Apart from increasing business they must to protect their
business with several legal tools that includes trademark, patent and copyright. Innovation is a
very large area to be explored and there are more to explore in future.
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REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
commercialization through networks. Journal of Business Research. 65(2). pp.198-206.
Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1). pp.61-75.
Ettlie, J.E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp.440-454.
Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2).
pp.262-271.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kim, S. K. And et.al., 2011. The effect of R&D, technology commercialization capabilities and
innovation performance. Technological and Economic Development of Economy. (4).
pp.563-578.
Lindič, J., and et.al., 2011. Deploying information technologies for organizational innovation:
Lessons from case studies. International Journal of Information Management. 31(2).
pp.183-188.
Snow, C.C. And et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management. 28(1). pp.3-16.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Thore, S.A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
Walsh, P.R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Wonglimpiyarat, J., 2010. Commercialization strategies of technology: lessons from Silicon
Valley. The Journal of Technology Transfer. 35(2). pp.225-236.
ONLINE
4ps of innovation 2017. [Online] Available through
<https://www.slideshare.net/lbaraliu1/chapter4-35297521>
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Innovation funnel diagram 2018 . [Online] Available through <https://slidemodel.com/free-
powerpoint-templates/free-innovation-funnel-diagram-powerpoint/>
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