Strategic Innovation Analysis and Recommendations for 4Com plc

This report provides a comprehensive analysis of innovation within 4Com plc, a telecommunications company. It begins by defining innovation and its significance for businesses, emphasizing its role in customer retention and market survival. The report then explores the impact of leadership, v...Read More

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its significance in enterprise....................................................................1
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation.........3
TASK 2............................................................................................................................................4
P3 4Ps of innovation and use of innovation funnel to shape innovative ideas.......................4
P4 Development in frugal innovation and its use in organisation..........................................5
TASK 3............................................................................................................................................6
P5 Significance of commercial funnel and application of new product development for
innovation...............................................................................................................................6
P6 Innovation business case for an enterprise........................................................................8
TASK 4 ...........................................................................................................................................9
P7 Various tools that can be used by enterprise to develop and protect intellectual property9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is known as the process of manufacturing or delivering something new to
customers for fulfilling their requirements or satisfying their needs. Mainly innovation, add value
in the products offered by firm or in the process used by organisation for carrying out its
activities. All this is done by the enterprise for enhancing convenience of its customers. One of
the main benefits of innovation is that it helps firm in retaining customers for a long period of
time. In today' business environment, implement innovation is became necessary for business
firms as without this a firm cannot survive in market (Díaz-García, González-Moreno and Sáez-
Martínez, 2015). 4Com plc, a firm based in the United Kingdom which deals in
telecommunication sector is selected in present study. Firm manufactures phones, develop
software and offer internet facilities to its customers. Concept of innovation and its importance in
organisation is all detailed here. Further, 4ps of innovation and use of frugal innovation for a
company is also stated.
TASK 1
P1. Innovation and its significance in enterprise
Mainly, innovation is the process of applying new methods or processes for satisfying the
needs of individuals. Process of developing a new product, feature or method is known as
innovation. In today's business environment, implement the concept of innovation is very
essential for every business enterprise as this helps firm in offer new and better products for fulfil
their requirements (De la Mothe and Paquet, 2012). Further, this provides various other benefits
to an organisation. Innovation is totally different from invention. With the help of innovation,
4Com plc can offer more featured and better products to its customers. Significance of
innovation for an enterprise can be understood by the following points: Increase enterprise's productivity: This is known as one of the most important benefits
of innovation. New and innovative ideas support organisation in manufacturing better
products with minimum cost and time. New process of manufacturing products enhances
productivity of firm and performance of organisation. Increase effectiveness of communication process: Concept of innovation is broad and
complex one as well as effective implementation of this requires effective
communication at workplace. Lack of communication creates unnecessary obstacles in
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innovation process and at the same time, it increases cost of innovation process.
Implementation of innovation brings cooperation among various business functions and
increases effectiveness of organisational activities. Help in optimum utilisation of resources: When a firm implements the concept of
innovation at workplace then this facilitates firm by utilising all available resources to an
optimum level (Schaltegger and Wagner, 2011). All this enhances the efficiency of
production process and helps firm in offering quality products to its customers at
affordable prices.
 Provide competitive benefit to firm: New things, products or services always attract
customers. Whenever a firm offers something new and better to its customers then all this
helps organisation in attracting a large number of customers and at the same time, offers
competitive benefits to firm. So, with the help of innovation, 4Com plc can better satisfy
the needs of its customers and retain them for a long period of time.
Difference between innovation and invention
Basis Innovation Invention
Meaning Innovation is an
implementation of new ideas
for a process or product for the
first time. With help of
innovation 4Com plc can
increase the usefulness of its
products and can attract large
number of customers.
When occurrence of an idea
takes place for the first time
for a specific product that
never been made before than it
is known as invention. 4Com
plc require to improve research
and development skills.
Concept This is adding value to a
product and process which
already exists.
Development of a new product
comes under this.
Required skills Concept of innovation requires
various skills such as
technical, marketing and many
Concept on invention requires
scientific skills.
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more.
Activities Activities of innovation are
spread across various functions
of the firm.
Activities of invention are
limited up to research and
development department of
firm.
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation
Concept of innovation is broad one and gets affected by various factors existing inside or
outside the firm. Major factors that affect the process of innovation are leadership, vision,
teamwork and culture existing in firm. This can be better understood by the following points: Leadership and innovation: Leaders are known as the individuals who guide and
encourage a group of members so that they can perform their roles and responsibilities in
an effective way and contribute more in the success of firm (Metcalfe and Miles, 2012).
Approach adopted by leader and various personal traits of him largely affect the
performance of employees working in enterprise and all this impact on process of
innovation. It is very important that right and effective approach of leadership should be
used by leader as with this, concept of innovation can be effectively implemented at
workplace. Organisation culture and innovation: Term culture indicates the features existing in
working environment of firm and the structure or process followed by organisation to
implement all its activities. Effective organisational culture encourages employees to take
risk and face challenges arise during their job performance. A firm cannot implement the
concept of innovation without effective organisation culture. Innovation and teamwork: In an enterprise teamwork indicate the relationship among
employees of firm. It is very important that there must be commitment among all workers
towards their job goals. This also affects the process of innovation. For implementing
innovation in an effective way and to get all benefits of it, it is essential that there must be
communication among all members of the team.
 Vision and innovation: Vision statement of firm is something that indicates where the
enterprise sees itself after some years (Battistella and Nonino, 2012). This is one of the
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major factors that largely affect process of innovation. Effective vision supports the
process of innovation. 4Com Plc can achieve its vision with the help of innovation.
All these are the major factors that affect the concept of innovation. These should be
considered by the manager before implementing innovation. In addition to this, various other
elements are there which put their impact on the concept of innovation. Necessary modification
should be done by organisation to effectively implement the concept of innovation and to gain
maximum benefits of it. In this way, 4Com plc can manufacture better products for its customers
and at the same time, it can achieve competitive benefits in market.
TASK 2
P3 4Ps of innovation and use of innovation funnel to shape innovative ideas
Implement the concept of innovation and offer something new to its customers on
continuous basis help firm in fulfil the changing requirements of its customers. Further this help
firm in attract large number of individuals towards its offering and increase the profits of
company (Gawer, 2011). For effectively implement the concept of innovation it is very
important for 4Com plc to consider all 4Ps include with the concept of innovation. 4Ps of
innovation are given under the following points: Product: Product refers to the mix of both tangible and intangible features which a
company offer to its target customers for satisfy their needs and wants. Various
telecommunication products and services are offered by 4Com plc to satisfy the needs of
its clients. It is very important for enterprise to first carry out research to collect
information about requirements of its customers so it can manufacture and offer better
products to them. Process: This factor highlight the steps require for implement innovation. For achieve
effective execution, it is very necessary for firm to have required resources such as
technical, financial, human resources and many more. With this firm can get maximum
benefits of innovation. Further, it is also very essential to offer proper training to
employees so the can contribute more in success of firm. Position: Number of communication tools are there which a firm use to promote its
offering and to attract large number of customers towards it (Ambec and et. al., 2013) .
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Various type of tools such as digital and print media ca be use by 4Com plc to inform its
customers.
 Paradigm: This aspect indicate add more features in a product for make it more fruitful
and useful during its usage. This help firm in attract more number of customers towards it
product.
Use of innovation funnel to shape innovative ideas
Innovation funnel consists a process in which enterprise take a idea from real life
situation and then convert same into a product or service and offer customers for satisfy their
needs. One of the main aim behind this is to analyse the trends exist in market and then offer
featured services to clients (Owen, Macnaghten and Stilgoe, 2012). 4Com plc can carry out
research to identify more about needs and requirements of its customers. Number of methods are
there which can be use by firm to fulfil the requirements of its customers.
P4 Development in frugal innovation and its use in organisation
Major aim of frugal innovation is to make the new products and services in reach of
every individual. Basically this indicate to bring down the cost of manufacture innovative
products by maintain the value and offer it to final customers (Yoo and et. al., 2012). One of the
main benefit of this concept is that it provide number of development opportunities to business
organisation. This support firm in increase its market share by offer its innovative products to
middle class individuals. This concept support firms in maintain the quality and at the same time
cut down the cost. This concept can bee used by 4Com plc for implement innovation. Concept
of frugal; innovation can be better understood by the principles given below: Find opportunity in adversity: As per this principle of frugal innovation, an issue or
problem required to be study by investigator form every point and researcher should
reframed it. Every threat related with the main issues required to be converted into
opportunities. This help in solve the problem easily. Do more with less: This principle stated that it comes under the responsibility of
researcher to do efforts to find the solution of problem with all collected data rather then
carry out further research. Think and act flexible: This indicate that, it is very necessary for problem solver to think
flexible during whole research. This is more beneficial rather than being rigid.
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 Keep it simple: This indicate that methods used by problem solver should be simple and
effective as this help in provide better solution of problem and at the same time save both
time and cost of firm (Lee, Olson and Trimi, 2012). On the opposite of this difficult and
complex methods create delays. Include the margin: This principle state that it is necessary for firm to identify the
customers and involve the same in process of problem solving. One of the main benefit of
this is that it help in find better and effective solution of problem.
 Follow your heart: As per this principle an individuals should be passionate about the
work.
TASK 3
P5 Significance of commercial funnel and application of new product development for
innovation
Commercial funnel is a concept whose focus remain on identify the ways which help firm
in generate more amount of profits. A firm formulate and execute number of plans but there
remain uncertainty about what will be the return that firm will get in future (Gennaioli, Shleifer
and Vishny, 2012). In such cases this funnel support firm in identify the idea which will provide
best results to firm in minimum amount of time. One of the main aim of this funnel remain to
increase the sale of company's products for generate large amount of profits.
First step involve in the process of commercial funnel is to identify all ideas through
which firm can generate profits. After that evaluation of elements such as conversion rate or cost
require to implement that idea take place. Company find a idea through which it can earn huge
amount amount profits but the ideas that require huge investment in initial stage that ideas should
not consider by firm. Some ideas take more time in its implementation as compare to other. At
last a idea is selected by firm to generate profits. Importance of commercial funnel for business
organisation can be understood by following points:
 Increase quality of products and services
 Contribute in success and growth of firm
 Promote creativity
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New product development
Process of new product development is a lengthy one and the main steps include in this
can be understood by the following points: Idea generation: Research is carry out by firm to gather information about various
factors such as suppliers, strategy, process and products offer by firm's rivals to its
customers (Boudreau, Lacetera and Lakhani, 2011). Research help manager in gather
data about what is going in market. All this support in generate a idea about what should
be done by organisation to fulfil the requirements of its customers. Idea screening: Idea developed in first stage is analysed in this. Company take advice
from experts in this and if firm find the generated idea suitable and an appropriate one
then do further work on it. Concept development: In this, idea, written on paper is transform into real life decision
and actions. Development of strategy: Firm formulate a strategy in this to implement the idea.
Further manager collect the resources required to implement the process. Examine business condition: As the name implies, in this manager analyse the situation
exist in business environment as this help firm in identify right time to implement
innovation. Product development: In this firm decide the features of final product to satisfy the needs
of customers.
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 Test marketing: In this, firm sale its final product in specific places to test its
acceptability.
 Commercialisation: Under this, company sale its products on a big level. Different
communication tools are used by firm in this.
P6 Innovation business case for an enterprise
4Com plc is a organisation that deals in communication sector and offer different type of
telecommunication services to its clients. Firm manufacture a business phone which is most
selling product of firm and generate huge amount of profits for firm. Steps for innovation
business case are as follows: Executive summary: 4Com plc deal and offer different type of telecommunication
services. Main aim of firm is to manufacture and offer something new to its customers
with help of innovation (Breznitz and Murphree, 2011). One of the main benefit of
innovation is that it help in attract large number of customers towards company's product. Target: Major target of 4Com plc is their business clients as households in United
Kingdom does not use business phone. This phone help in make the communication
effective among various businesses. Solution: This aspect indicate that features and process of using the product should be
easy as this increase convenience of its users. Further, it is very essential that product
should deliver the features which help in satisfy the needs of customers. Why product is innovative: it is very important that product which a firm offer to its
customers should be unique as this encourage customers to pay something extra for extra
benefits. For example 4Com plc launch a phone called HiHi with extra feature of video
calling. For this extra feature clients are ready to pay extra. Customer research: This step require that 4Com plc require to carry out research for
understand better about their requirements. One of the main benefit of this is that it help
firm in upgrade the features of its product as per demand and needs of customers. Further
continuous research support firm in better satisfy the needs of customers. Funding: Funds are known as one of the important resource for implement innovation.
Without proper amount of funds firm cannot implement innovation. 4Com plc can get
loan from banks or can borrow funds from a financial institute (Breznitz and Murphree,
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2011). Further various other sources of funds are there which can be use by for collect
funds for the purpose of innovation.
 Expected benefits: This explore the expected benefit that firm will get in future after
innovation. In this enterprise take help of past data and information to determine its
future gain.
Major sources through which 4com plc can generate funds are as follows:
 Bank loan: In this company take loans from ban on a small percentage of interest. Is is
one of the most popular source of generate funds.
 Profits: This is known as the funds generate by entity by execute various commercial
activities and by provide services to customers.
 Retained earnings: This is known as that amount of profit which is use by owner of the
business.
TASK 4
P7 Various tools that can be used by enterprise to develop and protect intellectual property
Intangible property consists creations of human being that are intangible. Mainly it is a
result of one's creativity and this can be in the form of patent, trademark and many more. It can
be a design, symbol or can be a process (Schaltegger and Wagner, 2011) . Protection of one's
intellectual property is very essential so one cannot misuse the same. Major ways to protect
intellectual property are as follows: Professional help: This is one of the most popular method which can be use by 4Com
plc to protect its intellectual property. Under this technical experts provide a password to
the owner so only he/she can access it. Trademark: A special logo or sign is used by firm to help its customer to easily find its
product in market. Patent: This is one of effective tool to protect intellectual property. Under this owner
register his/her specific and unique ideas so no one can copy it. Copyright: Under this owner of intellectual property get a protection for his/her
intellectual property for a specific time period. This tool can be use by 4Com plc to
protect its intellectual property.
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 Right about intellectual property: This factor stated that it is very essential for owner of
intellectual property to have information about his basic rights and duties. He should have
information about his power related with protection of intellectual property.
All these are the major tool that can be use by 4Com plc to protect intellectual property.
CONCLUSION
From the above given project report, it can be concluded that implement the concept of
innovation is very necessary for every business enterprise. One of the main benefit of this is that
it help firm in attract large number of customers and satisfy their needs in an effective manner.
Number of factors are there which affect the process of innovation so all must be identify and
consider by firm before implement innovation. Further proper training should be offered to
employees so they can perform their roles and responsibilities in an effective manner and at the
same time contribute more in effective implementation of innovation.
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REFERENCES
Books and journals
Ambec, S. and et. al., 2013. The Porter hypothesis at 20: can environmental regulation enhance
innovation and competitiveness?. Review of environmental economics and policy. 7(1).
pp.2-22.
Battistella, C. and Nonino, F., 2012. Open innovation web-based platforms: The impact of
different forms of motivation on collaboration. Innovation. 14(4). pp.557-575.
Boudreau, K.J., Lacetera, N. and Lakhani, K.R., 2011. Incentives and problem uncertainty in
innovation contests: An empirical analysis. Management science. 57(5). pp.843-863.
Breznitz, D. and Murphree, M., 2011. Run of the red queen: Government, innovation,
globalization, and economic growth in China. Yale University Press.
De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol. 14).
Springer Science & Business Media.
Díaz-García, C., González-Moreno, Á. and Sáez-Martínez, F.J., 2015. Eco-innovation: insights
from a literature review. Innovation. 17(1). pp.6-23.
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.
Lee, S.M., Olson, D.L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration, and
co-creation for organizational values. Management Decision. 50(5). pp.817-831.
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.
Owen, R., Macnaghten, P. and Stilgoe, J., 2012. Responsible research and innovation: From
science in society to science for society, with society. Science and public policy. 39(6).
pp.751-760.
Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
innovation: categories and interactions. Business strategy and the environment. 20(4).
pp.222-237.
Yoo, Y. and et. al., 2012. Organizing for innovation in the digitized world. Organization science.
23(5). pp.1398-1408.
Online
INNOVATION AND 4Ps OF INNOVATION. 2016. [Online]. Available through
<http://www.bizexcell.com/innovation-and-4ps-of-innovation/>
Innovation Funnel. 2016. [Online]. Available through
<https://www.cleverism.com/lexicon/innovation-funnel-definition/>
Commercial Funnel. 2016. [Online]. Available through
<http://www.cloverleafinnovation.com/blog/winning-the-new-popularity-contest/>
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