Innovation refers to a process that is utilized by company in order to make themselves differentiate from others. In this, firms modify their products by adding new feature in it that assist in attracting large group of customers (Anthony, 2017). For innovation, new ideas are required and these are applied by business enterprise to further satisfy expectations and needs of customers. In current scenario, implementation of innovation becomes necessary in order to maintain sustainability in market. This report is based on Essence Drinks which deals in beverage sector and offer variety of drinks to customers. This assignment includes innovation and its importance as well as role of vision, culture, leadership and teamwork in shaping innovation and commercialization. 4P's of innovation and use of commercial funnel is also defined. Apart from this, process required to commercialize innovation and range of methods for protecting ideas are included in this report.
P1 Innovation and its significance to company in comparison with invention
Innovation refers to a process that is implemented by company in order to satisfy needs and requirements of customers in an effective and efficient manner. It often viewed as applications of solution that meet unarticulated, new or existing needs of market. Every firm brings innovation in their existing product on regular basis in order to maintain their strong position and long term sustainability in market. For bringing innovation in product, service or process, an idea is required. Essence Drinks is a company that deals in beverage industry and offer various flavours of drinks to customers. Innovation assists firm in offering better products to customers. It provides competitive advantage to company in market and support in its growth and success (Bain and Kleinknecht, 2016).
Significance of Innovation:
Increase productivity of firm: Innovation is a process that supports business firm in attaining high productivity and profits. New idea helps business in bringing innovation in their existing goods which attracts customers more. Innovative idea helps company in making optimum utilization of resources and producing goods at minimum cost and in minimum time.
Administer competitive advantage: Introduction of new goods and services in market that completely satisfy needs and requirements of consumers provides competitive advantage to company in market. By bringing innovation in their products, Essence Drinks enables to get attention of large group of customers and gain competitive advantage over their rivals in market.
Optimum utilization of funds: Innovation concept is utilized by firm to differentiate themselves form others in market. It helps firm in making appropriate use of available resources. All this assists Essence drink in enhancing efficiency of their production process that assists in producing high quality drinks and offering them to consumers. It also assists in reducing cost of production (Bar-Cohen, 2016).
Difference between innovation and invention:
It is defined as a process of implementing new ideas or concept for manufacturing of new goods and services. In this, a new feature is added in existing goods.
When a company introduced a completely new product with a new idea for the very first time in market, then it is termed as invention. Those goods are introduced which has been never made before.
Main concept of innovation is to add value in existing product.
In this, a completely new product is developed that is been never introduced before.
Marketing, technical as well as some other skills are required for bringing innovation.
Scientific skills are required in process of invention.
Activities related to innovation are interrelated with various functional departments of company.
Activities that are associated with invention are limits up to research & development department of company.
P2 How vision, leadership, teamwork and culture of firm can shape innovation & commercialization
There are various factors which affect business either in positive or negative way, so it is essential to consider these factors (Biemans, 2018). As per change in external factors of business environment there is requirement of various policies which can be used to achieve goals and objectives. Essence drinks is the company which has various types of drink to serve. But as per requirement it is essential to make changes in business. There are various policies which can be in effective and efficient manner.
Not only external but also internal force has impact on business. These factors can be effectively used as per requirement. There are many policies which can positively used to get task done in better and effective way (Champagne and et. al., 2015). To perform policies in better way, top level management has to take care of internal policies in better way. Internal environment of organisation, vision, mission, leadership, culture, team work, etc. have vital role in performing activities in better and effective way.
Vision- There is some motto for which business is running. These are ultimate goals which can be effective with the help of change in business policies. Due to change in idea generation, there is change in vision also. Hence vision plays important role to innovate pan flavour in essence drink.
Culture- Culture means surroundings within business. There is important role of culture to perform business activities in better and effective way. While innovating new flavour it is essential to make communication with all the workers and hence they are well aware about their roles and responsibilities and there is no confusion regarding to activities.
Leadership- Leadership means to guide or direct. There are many workers working in company, so it is essential to assist them while they are facing problem. This can be done in effective way by manager and hence they achieve targets in better and effective way.
Teamwork- Teamwork is effective when there is good communication channel, so employees prefer to work in team. Every person has some good skills while innovation this can be beneficial to approach them to work under team, so efficiency and quality can be achieved (Chrisman and et. al., 2015).
P3 4P's of Innovation and use of innovation funnel to analyse & shape innovative ideas
Application of innovation concept in business enterprise assists in constantly meeting needs and requirements of customers. It also helps in attracting large group of customers by offering them high quality of goods and services which are innovative in nature. Profitability of company is also increased by bringing innovation in products and it assists in maintaining strong position of firm in market for long term (INNOVATION AND 4Ps OF INNOVATION. 2016). 4P's of innovation used by Essential Drinks are as follows:
- Product: It includes addition of tangible as well as intangible features in existing goods that are offered to customers. The company Essence Drinks bring innovation in their product and develop a new product by adding a new flavour in it.
- Process: This factor depicts the steps that are require for execute development. For accomplish successful execution, it is exceptionally important for firm to have required assets, for example, monetary, technical, HR and some more. With this firm can get most extreme advantages of advancement. Further, it is likewise exceptionally basic to offer legitimate preparing to representatives so they can contribute more in achievement of firm.
- Position: Company measure performance of their product in market. Various communication tools are used by company for promoting their product in market and attract large group of customers towards it. By using these tools, firm communicate value and benefits of their product to customers.
- Paradigm: This innovation is based to shaped the product and innovation properly according to need and want of all end users. Management found that Lassi can be an idea for enhancing sales but with a time spam customers needs and wants get changed and thus third year sales get reduce. Hence, management have to build new innovation and for this again analysis have to get done for all end users to provide such products which easily get combine with lassi.
P4 Developments in frugal innovation & how it is utilized in organisational context
Frugal innovation is defined as the process of lowering down the cost and complexity of goods as well as its production. It refers to eliminating features from durable product which are not essential to sell them in developing goods. It is the concept that is based on how to do maximum with minimum (De Massis and et. al.., 2015). It refers to the way in which firm develop high quality products and services by utilizing minimum resources.
As indicated by idea of economy in which assets are constrained in number and organizations need to utilize them by appropriate examination. This procedure totally connotes the capacity of an organization under which they prompt improve less scope of assets. This guide in dissecting the effectiveness of a firm where they have an opportunity to met with all client commitments in a satisfactory way. For winning an ever increasing number of clients, organization will prompt utilize item advancement design through which they can achieve more number of clients. Each business element need to create parsimonious advancement in an association for making their item more created and finest with restricted assets. This concept is used by Essential Drinks and can be better understand by below defined principles:
- Find various opportunities: According to this principle there can be solution to all the problems in an easy manner. All issuers can be converted into various opportunities and thus firm can solve issues properly and efficiently (Jamieson, 2018).
- Do more with less time: Researcher can find solution to all issues through collected information and not by performing further research.
- Think and act flexible: It is crucial that problem solver can think in a flexible manner so that they can find solution to all problems.
- Keep it simple: Problem solver can choose method which solves all issues in simple manner and it saves tome and costs.
- Include margin: Due to this principle it can customers in process of problem solving . As firm can get find solutions.
- Follow your heart: All persons follow their passion and dream so that they can achieve them.
P5 Significance of commercial funnel & application of new product development processing
Commercial Funnel is an idea whose emphasis stay on distinguish the ways which help firm in create more measure of benefits. A firm frame and execute number of plans however there remain vulnerability about what will be the arrival that firm will get in future. In such cases this funnel facilitate firm in determining the idea which will give best outcomes to firm in least measure of time. One of the primary point of this funnel remain to expand the offer of organization's items for produce huge measure of benefits (Juma, 2015).
This process is starts with identification of various ideas by which company can generate profits. Ideas are refined by this funnel and best idea is selected. A few ideas take additional time in its execution as contrast with other. Finally an idea is chosen by firm to create benefits. Significance of commercial funnel for business association can be comprehended by following points:
- Increase quality of goods as well as services.
- Contribute in progress and development of firm.
- Advance inventiveness (Innovation Funnel. 2016).
Stages of new product development
Under this stage whatever the idea individual designed by individual which is innovative and unique and person is think to execute idea in form of products and services. For example management team of essence drink in order to strengthen their product portfolio come with innovation in the form of flavoured lassie in pan taste (Mowery and et. al., 2015).
Their are different types of idea but the few are selected which are feasible and provide good outcomes in future. Under this different factors are consider like company strength, weaknesses, customer needs and affordability. For example this innovation of lassie in pan flavour must be implemented on the basis of company budget and demand of customers.
Concept development and testing:-
The third stage is related to the development of concept on the basis of which product has been tested in market place in other word concept is consider as blue print of idea. For example essence drinks must prepared their proper concept of testing on the basis of which they are able to launch product in market.
Next step is related to formulation of strategy related to business after analysing the tactics of rivals on the basis of which they make changes in existing strategy that allow them to get better outcome in respect of products (Melissen, 2016).
Once the strategy has been made next step is related to transform product concept into actual tangible products.
Unlike concept testing, here the actual prototype is introduced for research and feedback. Actual customers feedback are taken and further changes, if required, are made to the product. This process is of utmost importance as it validates the whole concept and makes the company ready for the launch.
The last step in NDP process is to launch the product officially in market by using different marketing strategies and tactics in order to promote and create the awareness among customers regarding the innovation they made in products services.
P6 Develop innovation business case for firm including methods to access funding
Essence Drinks is a company that deals in beverages and offers variety of drinks to customers. Firm serves various juices and drinks to their potential consumers and satisfy their needs by adding new flavours in their products. An innovative product developed by firm is Lassi with paan flavour. This will help company in attracting large customers towards the new product. Steps that are involved in innovation business case are defined below:
Executive Summary: Essential Drinks provides various kinds of drinks and juices to customers (Smink, Hekkert and Negro, 2015). Their main aim is to manufacture and provide such product to customers that satisfy their needs. This is done only with the assistance of innovation. Its main advantage is that it assists in attracting large group of customers towards company.
Target: Main target of company is all age group people of United Kingdom as it is such kind of drink that is healthy for people. They can enjoy new taste and flavour of drink. It is the drink that provide some value to customers in turn of money paid by them. They feel satisfied after drinking Paan flavoured Lassi.
Solution: It involves the aspect related with process that is used by firm in manufacturing of product and the features that the add in their good. It is essential for firm to produce such kind of product that satisfy needs and requirements of customers in better and effective manner.
Why product is innovative: It is essential for firm to offer unique products to customers that administers them some value and encourage them to pay some extra amount for getting some extra features in product. For instance, Essential Drinks provide a new flavour Lassi that is different from normal one. For getting this new flavour, customers are ready to pay extra amount.
Customer reach: In this step, firm requires to conduct research in order to understand requirements of customers in better way. Its main benefit is that it assists company in upgrading features of their products as per the needs of customers (Van Oort, 2017).
Funding: It is an important resource that is required in executing innovation. Essence Drinks can take loans from financial institutions or banks. Some other sources are also available by which firm can get funds for implementing innovation within firm.
Expected benefits: It includes those benefits that firm gets after implementing innovation. Data and information related to past are used by firm in order to get an idea about future gains. This will help firm in forecasting their future sales (Wallace, 2017).
P7 Evaluation of various tools use by firm to develop, protect and retain intellectual property and knowledge
In various parts of world people create and develop new and innovative ideas so that they can create innovative products which are very different from each other. This helps them in developing and retain data. Hence firm use different tools to develop,retain and protect intellectual property and knowledge. Tools used by Essence drinks are:
Trademark: It is sign of organization. Through this tool it can protect the logo of company. Hence no other competitor can use this unique logo. This is very beneficial and helpful for every firm so that it can protect the distinct logo and it can also give strong competition to other rivals in the market. Main advantage is no other rival can steal the logo. Main disadvantage is that it has to spend huge money to obtain this right. If firm damages society through their items people do not purchase products from firm.
Patent: If company can create new ideas and thoughts then it can protect new idea through patent. Essence drink has created product which is very healthier can be consuming it for single day person can remain healthy for 10 to 15 days. Hence this idea can be protected through patent. Advantage is that no other competitor can steal their idea and disadvantage is that they have spend huge money to obtain this right. Thus as a result they can give tough competition to other rival in market .
Copyright: This is the process which can protect the music,poems and literary work. Company can protect the images and pictures in online sites which is used for promotional purpose. Hence as a result they can use different methods to obtain this right. Advantage is that they can protect images and symbols which is used to promote the company. Disadvantage they has to spend huge money to obtain this right (Wolin, 2016).
Help from professionals: There are different professional people such as lawyers and account ant who can give suggestions to various issues as they had knowledge of various laws. Advantage is that any problem can be solved in less time (Wilson, 2014). Hence they can give competition to other firms. Disadvantage is that firm have to spend huge amount of money to obtain this right.
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As per the above mentioned report, it has been concluded that innovation is the concept that is very essential for company in order to maintain its sustainability in market for longer period of time. It assists firm in its high growth and success. Innovation starts with having a new idea. In this, some additional features are added by firm in existing goods which helps them in attracting large group of customers by satisfying their needs and requirement.
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