This sample will let you know about:
- Discuss about the difference between invention & innovation.
- Explain about the 4Ps of innovation is a model.
Innovation relates to new ideas or thoughts or imaginations which help in improving the devices, processes or methods of doing work which help in meeting the new requirements, unarticulated needs and existing market needs. Innovation is important for organisations to survive in the ever-changing market which help it in meeting the needs and wants of customers and gain a competitive advantage. Commercialisation of innovation is also important so that the innovative ideas, research or prototypes can be converted into viable products and launched in the market to be sold profitably. This report is based on Bigbelly which is a solar powered, rubbish compacting bin manufacturer located in US.
The company designs smart waste and recycling solutions for large public spaces so that solid waster can be efficiently managed in a more energy-efficient and sustainable manner both economically and environmentally. In this report difference between innovation and invention, types of innovations, 4Ps of innovation, innovation funnel, frugal funnel etc. related to innovation in BigBelly will be extensively discussed. Further the stages of new product development and its commercialisation along with the ways in which innovation can be protected are also discussed. Need Assignment Samples?Talk to our Experts!
Invention: It relates to the conception of something new which has never existed in the market in the form of a device, process or product which help in increasing the convenience of people. For example: The creation of smart, solar powered, sensor equipped waste and recycling bins by Bigbelly which helps in reducing waste in an energy-efficient manner. Significance of invention: It assists businesses in introducing completely new offerings in the market through which both the customers and company can be benefited (Aloini and et. al., 2015).
Innovation: Through this process the already existing products and services are improved by adding some special features which increase value for customers in a more profitable manner. For example: BigBelly is aiming at introducing a feature in its bins through which the organic waste which includes food leftovers, vegetables etc. can be converted into fertilizers which can help in increasing soil productivity. Importance of innovation: It helps the companies in improving their own products by adding more valuable feature in them (Bagno and et. al., 2017). Also through innovation companies can gain a competitive advantage within the marketplace over their rivalries which increases its sales.
Difference between invention & innovation
Through innovation existing company goods and services can be improved so that customer satisfaction can be enhanced.
It aids in introducing a completely new product or service so that new demands of customers can be met.
Research and development, technological skills, analytical skills etc. are required for innovation.
Research and development, market analysis, potential thoughts which can help in designing new products.
Innovation and commercialisation are both important for companies so that they can grow and develop in market by introducing new and innovative products that can help in satisfying the changing needs of customers. Through invention BigBelly has been able to produce smart dustbins so as to deal with the problem of waste management while through innovation the company is able to improve and innovate its dustbins to convert organic waste into fertilizers.
For shaping innovative ideas and promoting them it is important that the organisational vision, leadership, culture and teamwork encourages innovation:
- Leadership: It is the ability of leaders which help in guiding, influencing and encouraging the employees so that they can business in a particular way which assist in benefiting the organisation (Cui and Wu, 2016). Democratic leadership style used in Bigbelly helps in promoting integrated working environment where the new and innovative ideas of employees are valued which help in bringing innovation.
- Culture: It is the aggregation of shared values, beliefs as well as assumptions that directs the way in which work is done in company and delegation of tasks among employees take place. Bigbelly has an organisational culture which help in promotion of new and innovative thoughts so that improved products can be brought in the market.
- Vision: Vision of the company helps it in aligning all its tasks in such a way that the objectives and goals of company are achieved (Datta, Mukherjee and Jessup, 2015). The vision of Bigbelly is to reduce waste to minimum while increasing the recycling of waste products so that reuse can be promoted. This helps it in promoting innovative thoughts of its employees and trying new experiments.
- Teamwork: It is important that effective teams are formed in a company so that the tasks allocated to them can be achieved within a set deadline. Bigbelly delegates task to employees based on their capabilities, skills and talents which help it in forming effective teams so that similar thoughts people can work together which help in promoting innovation.
Sources of innovation are the factors which help the company in innovating its products and services so that the company can increase its market share and increase its customer base:
- Demographics: It relates to changing demographics of population like age ranges, changing income levels, sex ratio, changing tastes and preferences of customers etc. which need to be satisfied by company by bringing innovation in their offerings so that it can survive competitively in the market (Jahn, 2016).
- Change in industrial structure: It relates to changes in the industry due to changing rules and regulations due to which some industries expand and some shrink. To deal with this situation in a positive manner it is important that innovation is brought by company so that it can survive and continue to grow in market.
- New knowledge: With the changing technological advancements it is crucial for companies to innovate its products as well as services so as to stay competitive within the marketplace. Technology must be efficiently utilised so as to reach a huge number of customers and increase company sales.
The 4Ps of innovation is a model which was given by John Bessant and Joe Tidd which help the businesses in examining the areas where innovation can be brought:
- Paradigm: It relates to changing the underlying mental model on which organisations function which will lead to change in what it do and how it functions. Bigbelly can identify all the business processes so that improvements can be made in its products so that it can increase the efficiency with which it manufactures its products (Kerschke and et. al., 2015).
- Process: It associates to changing the processes in which company operates in the market. In this improvements are made in the production as well as delivery methods that reduce company costs. Bigbelly can improve the way in which it manufacture bins so that costs can be reduced and better products can be launched in market.
- Positioning: This defines to innovating the ways in which firm positions its goods and services within the market so that a huge range of customers can be approached and company sales can increase. Bigbelly can reach to its customers through the way of online marketing so as to increase its approach in the market.
- Product: This relates to bringing innovation in the business product so that the changing customer demands can be successfully satisfied. Bigbelly is trying to improve its smart bins by introducing a technology which will convert organic waste into organic fertilizer which can be used in fields. Order assignment help from our experts!
Innovation funnel describes the steps through which the company can develop its processes or products in order to meet the market needs in profitable way (Koirala and et. al., 2016). This funnel helps in collecting all the ideas and selecting the best idea which will be used by company to bring innovation. Following are the steps that can be followed by Bigbelly:
- Idea generation: At this stage various potential ideas regarding innovation are generated by the R&D department of company after analysing the opportunities and threats in the market so that the innovation can help in increasing company profits.
- Feasibility study: At this stage a prototype of innovative product is done so that its viability and feasibility in market can be determined.
- Capability: At this stage the ability of product to produce desired outcomes are tested so that its mass production can be done which will help in increasing company profits through improvised products.
- Launch : This is the stage at which products are finally commercially launched in the markets so as to be available to customers which can help in increasing their convenience and satisfying them in a positive manner.
Frugal innovation is brought in the company's offerings so that their production cots can be reduced by minimising the waste or non-value adding attributes from goods so that costs can be reduced (Laihonen and et. al., 2015).
- Seek opportunity in adversity: It means that when an adverse situation is faced by company it innovates its products and services so that the company sales can continue to increase. Bigbelly is bringing innovation in its products so that technolgy can be ued in an efficient manner.
- Do more with less: It relates to utilising the limited resources of company are used in the most efficient manner to bring innovation. Bigbelly manufactures bins which are smart and can increase up-to 5 times of its capacity.
- Think act flexibly: It means company must promote innovative thought so that changes can be brought in company goods and services with the changing needs of customers.
- Keep it simple: It defines that the plan and process of innovation must be easy to interpret so that the teams involved can successfully implement innovation in the company products and services.
- Include the margin: It mean that creation must be brought in such a manner that the innovated offerings can aid in creating value for customers that can help the company in including margin on sales of its products.
- Follow your heart: It relates to following the passion by management of company if they are of the view that innovated products can help in increasing company profits and satisfying customer needs.
Bigbelly can use innovation funnel so as to develop new processes or products so that the needs as well as desires of customers can be satisfied in an efficient way. Through this funnel the company can encourage generation of innovative ideas and selecting the best idea which can help it in improving its products and increasing company profits by increasing the efficiency of its products (Innovation Funnel, 2019). Innovation funnel has helped the company in improving its products by using technology in such a way that organic waste of houses of cities can be converted into organic fertilizer. Through the funnel company can encourage employees to generate innovative ideas by participative leadership so their ideas can also be considered and out of the pool of ideas best suitable idea is selected. The feasibility of idea is also determined by testing the prototype of dustbin in a selected market. The capability of dustbin in achieving desired result for company is also studied then the dustbins can be launched in market by BigBelly.
The frugal funnel assists in manufacturing low cost highly efficient products and services that are designed and developed in accordance with the emerging market needs and requirements. This helps the company in delivering more value to their customers through low cost products and services while maintaining high quality. This funnel helps Bigbelly in improving its products such that costs of production decrease while value to customers increase. Bigbelly is innovating its bins such that the domestic organic waste can be recycled into organic fertilizers which help in increasing soil productivity (Frugal Innovation, 2019). This will increase customer value and also increase the efficiency with which it deals with waste products.
Commercial funnel: This can be defined as a sales funnel that is based on the conversion of target prospects into potential customers which will help in increasing the company's sales and create leads for that prospects who may be converted into potential clients. This will help Big-Belly's to formulate pricing strategies through which company can be capable to get attention and interest of huge customers in order to make purchases of offerings (Rosca, Arnold and Bendul, 2017). Within the context of BB commercial funnel can be used to brings innovative features in their bins that can be used to convert organic wastes into fertilizers that can aid in raising the soil productivity.
New product development: In this, company can easily launch their innovative features in their offerings within the marketplace and it is essential for the firm because changes or betterment can be developed in accordance of consumers preferences. Whole process of NPD are as follows:
- Generation of ideas: It is termed as an initial stage of new product development as per the R&D department of BB, they brings innovative feature in their smart bins which the organic waste like vegetables, food leftovers etc. can be automatically converted into fertilizers that leads to raise in the soil productivity.
- Screening ideas: After that, the company Big Belly can screened their idea appropriately in which they search about their implementation and processes in order to choose better alternative for attaining future goals.
- Development concept: In this, the selected idea will be developed in a conceptual form so as they can be able to do successful development (Wang, 2017).
- Marketing strategy: At that level, company should be focused on analysing marketing mix, target market, pricing as well as promotional strategies which will aid in effectively marketing of their bins with innovative features. Through this, Big-Belly can able to get huge number of customers.
- Business analysis: It is closely associated with the analysis of feasibility and effectiveness of innovative features within the open market place which will give huge profitability to the BB.
- Product development: At that level, new bins will be developed by including innovative features and ensures that the innovative features can be appropriately converted into the workable bins.
- Test marketing: The new feature will be tested in the real market conditions so as they can design appropriate marketing plan and strategies which will related to the target, distribution, positioning and many more.
- Commercialisation: After completing all steps till testing lastly Big Belly needs to commercialise their innovative features where new product or bin brought within the marketplace so that huge attention of clients can be achieved.
Significance of commercial funnel:
- Commercial funnel is necessary to use by the Big-Belly's manager as it helps in providing awareness about the activities in order to perform them as well as reduces the entire cost along with high profits.
- It is necessary for implementing changes in organisational working or choosing right option for innovation so that Big-Belly can able to gain positive results.
Business case refers to the well organised and systematic document which provides a clear idea towards the innovative initiative (Wieczorek and et. al., 2015). It is considered as a most effective document that should be done in written form which facilitates effective justification with the commercial benefits of tasks. The company Big Belly can formulate this document in order to estimate their costs of implementation along with the risk identification. This can be discussed in detail that as follows:
- Executive summary of business case: It includes a brief introduction of entire plan of business which describes several details such as overview, strategies, vision, mission, financial plan and so forth things. This will assist company Big-Belly to attract large number of investors for getting best investment.
- Company overview: The company BB was established in 2003 with the aim of minimising the fossil fuel consumption. It is a solar powered as well as rubbish compacting bins which are produced for using in public spaces such as beaches, parks etc. The bins of company are manufactured in Needham, Massachusetts by Seahourse power.
- Vision: The vision of BB is to norms sustainable smart waste management strategies and introduce innovation through the communities as well as technologies in order to live in that world where no waste are found.
- Mission: The mission of BB is to create techniques, solutions of waste management as well as product channels to create significant changes in order to made smart and clean cities.
- Need satisfied: The company Big-Belly developed innovative feature in order to generate soil productivity will satisfy customers especially women's need appropriately as they get benefits of minimising wastages and get fertilizers along with the high soil productivity from their organic wastages.
- Stakeholder expectation: The stakeholders of BigBelly are customers, government, suppliers, shareholders etc. and their expectations from the company is that the company innovates its products in such a manner that highest interest can be ensured for all its stakeholders.
- Innovation opportunities: The entire population of UK is well educated and more conscious towards health so the demand of waste management system along with the benefits is more needed in the market.
- How will service meet that requirements: Through the new innovative bins organic wastages can be converted into fertilizers that will further used in the fields which results in soil productivity.
- Competitive edge: Innovative bins will provides high competitive advantages over other sellers because customers can give more preference to that idea because they provided with effective and recycle waste management bins.
- Competitors: There are various competitors in market due to which it is important that BigBelly increases innovation in its products and services like MOBICYCLE, Recy Systems etc.
- Size and growth possibilities: Innovative bins can lead BB in raising its sales with 30% and market shares by 32%.
- Marketing: For marketing new bins company will be used television as well as digital media platform for promoting their innovative concepts.
- Pricing strategy: For selling innovative dustbins company Big Belly can use premium pricing strategy because of their premium products.
- Targeting: Big-Belly target market will be remain same as they target parks, beaches and other public places.
- Positioning: The product of BigBelly is positioned in market by setting the price of Dustbins at reasonable rates so that all the people can afford them.
- Financing: In order to generate funds company can use bank loan only because company have good financial position so they manage their new operations with that profits and use bank loan as a option of financing their business. The various sources of finance are bank loans, angel brokers, shareholders etc. which can help the company in arranging for funds for company so that innovation in its products can be successfully brought.
Intellectual property: It is defined as a unique identity of innovative ideas that assists in initiating to invent new which has never existed within the market earlier. It is necessary to protect their intellectual property rights so their concepts, techniques as well as methods can be protected properly from their competitors (Yin And et. al., 2015). It is required for the Big-Belly's in order to protect or secure their innovative features or idea that are used in making bins along with the generating fertilizers by doing effective waste management. Some of these tools are considered as follows:
Patent: It is considered as a legal consideration that is provided to the business who planned to launch innovative products in the open marketplace. It defines exclusive rights towards using innovative concepts along with the original firm and which can not be copied by others. The patent right is valid for certain period of time then expires over that time after that this needs to be renewed.
It can aid to protect the original concepts of businesses from getting intimated by other market players.
It charges huge cost of renewal that directly result in raising entire cost of business.
Trademark: Several designs, signs or symbols are used by businesses to make identity of their offerings which distinct their offerings with other competitors. As trademark provides clear identity to the company that is unique in itself and related to the company's brand value or image.
Through the use of trademark company can able to differentiates their offerings with their rivals.
It also charges heavy amount for getting trademark of company and it charge fees in every 10 years for continuing it uses.
There are several tools with which Big Belly can able to reduce the possibilities of copying their concept by others. Among all patent is considered as an effective tool in order to protect their idea from intimated by others and through which BB can creates monopoly markets for selling their innovative bins which will help in capturing their market shares and increase profitability and sustainability.
Innovation assist BB to grow and creates positive picture in the marketplace so company can formulate specific and attractive policies which is helpful in the growth. At the same time, changes or innovation termed as a challenging because it needs more funds as well as resources to implement modifications effectively. Don't worry get assignment help london from UK's leading assignment helpers.
It can be summarised form the above discussion that for the successfully survivability in the ever-changing market it is essential that company innovates its offerings that will help it in dealing with the needs and desires of customers. Also a competitive edge can be gained in the market by accomplishing huge customer satisfaction. Also innovation can help in protecting the environment by reducing waste and recycling it by introducing innovative ideas in market. 4Ps of innovation can be used to determine the area where innovation can be brought. With the use of innovation funnel various innovative ideas can be analysed so that innovation can be brought in company offerings. Also various tools can be used by company so that intellectual property of business can be protected.
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