In modern era of technology, introducing innovations and inventions in a company has became necessary for entrepreneurs in order to bring sustainability at marketplace. Due to changes in demand and needs of people, products of an enterprise cannot expect high profit margin. Therefore, it is mandatory for firm to keep on bringing alterations in existing products or services by adding value in them so that customers can satisfied their desired. This will aid enterprises to gain high advancement of competition (Aarikka-Stenroos and Sandberg, 2012). Under this project a small business enterprise has been taken named by Talent Plus. It is a consultancy firm of UK which provides employees in various firms as per their need. This SME seeks to create innovation in services in order to enhance its business. Therefore, this assignment shows how innovation can be done in business and what processes are needed to implement it successfully in organisation.
P1. Innovation and its importance in comparison to invention
Innovation is a procedure of turning an unique ideas into products. This process adds value in existing goods or services and makes it more useful for customers. Therefore, to create such commodities management of companies are required to replicable an idea at an economical cost. Along with this, managers are needed to concern more on demand of consumers in order to see what they actually want. Through this process, they can modify or add values in products so that desires of consumers can meet in desired way. With this assistance, entrepreneurs of a business use this process as an important tool in order to bring changes in the production. Innovation gives various opportunities for small and big enterprises to introduce creativity in services so that business can achieve growth in a proper way (Bogers and West, 2012).
Entrepreneurs are taken as innovators in a firm who perform various functions to make creativity in business and take entire risks in order to generate more profit. They have possessed capabilities and willingness for developing and managing a business in an appropriate way. But before add values in commodities, entrepreneurs in a company used to gather information about demand of people, situation of marketplace and more. In context with commercialisation, this term can be defined as a process which drives an idea into era of marketplace by converting it into money. Innovation is necessary when a firm wants to attract large number of customers towards its products or services through business can be expanded. This process helps them to gain high competitive advantage from rivalries also. This process is useful for all type of business organisation especially for small firms like Talent Plus. Through innovation, this firm has achieved high success and better advantages in a profitable way.
In terms of invention, it produces a new product that never used as before. Therefore, as compared to innovation, invention has different concept and procedure. Some difference in both the terms can be described as below:-
In this process, inventor evolves an idea into new product which can be patented.
In Innovation, entrepreneurs turn an idea into existing products or services to make more useful and creative. But this type of idea can be used by two or more firms also so it doesn't need to be patented.
For invention, a person required to possess scientific skills.
While for innovation, a person needs to gain new marketing techniques, technical skills and management abilities.
This process is generally happened when a new idea strikes the mind of innovator.
While innovation usually created when products of a company fails to acquire customers' mind in a large way.
This process can be done in R&D department of an enterprise.
This procedure can be conducted in entire production of a company.
P2. Organisational factors shaping commercialisation and innovation
In order to bring innovations in products or services, it is essential for a company to use appropriate tools and technologies for making modification. But whenever this process has done in organisation then it brings various type of risks also. So, it is not necessary that this step gain success only. The main reasons behind failure of bring changes in production can be-
- Lack of leadership
- Lack of proper vision
- Improper Communication
- Poor management
- Organisation structure and culture
Therefore, enterprises are required to pay an attention on every aspect of process which may lead them to failure. This process will help in designing the innovative ideas properly. Entrepreneurs plays an important role in this process who take entire responsibilities of implementation of idea into production innovators as per requirement. Along with this, proper and clear vision of a company helps in directing staff members what they have to do for achievement of business success. This would helps organisations to hit the target within a short interval of time. In this concept, management of Talent are required to provide clear vision to employees and inform them about what changes are going to be done in business to make products more creative (Chun and et. al., 2015).
Another concept on which employers are needed to be focused on is leadership quality. As Talent Plus is going to implement new procedure in system therefore, managers and leaders should influence staff members to accept changes and start work on the same. Through effective leadership skills, they can motivate and encourage employees to work on new process in a proper way. This would take lot of time but if employers have good manageable and leadership qualities then they can get success in implementation of new ideas into business activities.
Culture of organisation also play an effective role in developing an idea into new products or services. It has observed that if an enterprise has diverse culture then it will bring creativity in production as employees have different perceptions as well as on ways of working. Employees having different background can have various innovative ideas through which enterprise can enhance its services in a profitable way. But there is great possibility of conflicts also (Cui and Wu, 2016). Therefore, it is essential for managers of Talent Plus to engage them in group task so that they can share ideas and comes closer. This will bring a strong relationship in them through which chance of conflicts can be reduced.
P3 4P's of innovation and use of funnel innovation
Bringing innovations in production is required by every organisation for generating more revenues and enhance profit share in the marketplace. Along with this, employers are required to keeps an eye on every process of innovation in order to reduce chance of failure. This will make them in achieving desired targets within a shorter interval of time. In context with Talent Plus, 4P's of innovations can be described as:
Product: Alteration in commodities of a company can enhance its sales performance as well as provides high customer satisfaction. Therefore, for this process Talent Plus is used to keep changes in its services on regular basis as per requirement of other companies. This would help in getting high advancement of competition from other consultancies.
Process: Under this factor, it is required for entrepreneurs of Talent Plus to implement changes by gathering required information from marketplace. It involves demand of other companies, technological changes, strategies of competitors and more. This would help in making alterations in techniques and policies as per need through appropriate methods.
Paradigm: This section assist Talent Plus to look out change in trends and needs of clients in order to see in what sections it need to make modifications (Cunningham and Porter, 2011). Through this process, it can produce more innovative services which help in enhancing high profit margins.
Position: By creating modification in services, a company can gain high position in marketplace. As when a firm produce more effective and unique products then it will aid in increasing goodwill as well as enhancing brand image.
Innovation Funnel: This funnel is used to develop the process of a innovation in an enterprise. It acts as a refinery tool which gives three steps to create modification in goods and services in an appropriate way. Therefore, Talent Plus need to concern on every stage and use appropriate techniques through which process of innovation can be done successfully. Stages of innovative funnel can be described as:-
- In the 1st phase, entrepreneurs are needed to investigate situation of marketplace through various sources. After then put gathered information into a refinery system.
- Second step has revealed that if employers have generated ideas through gathered information, then it will increase chance of getting success in modification. As from many ideas they can select the best one for further implementation.
- It is the last phase, where managers of Talent Plus can ensure about idea which they select will aid in achieving desired objectives in a successful manner as well as on given time. Read more on spring innovation assignment.
P4 Development in frugal innovation
Innovation funnel is used as a tool by management of Talent Plus through which they can investigate demand of marketplace, narrow segment various ideas as well as take proper decisions as well through its three steps of filtration. This will aid them in generating more profit and expanding growth of business as well. Frugal innovations can help in decreasing the cost of products or services by implementing creative ideas in an appropriate manner. In addition to this, it is essential for them to utilise resources in a proper way so that cost of innovation can be reduced. For developing frugal innovation in production, some techniques can be used as given below:
- By frugal innovation Talent Plus can reduce its cost of modification in products or services.
- Appropriate techniques and methodologies can be used by staff members and associated people of this firm which help in hitting targets of company for a longer period of time. It brings efficiencies in their work.
- By increasing productivity of workers, association can gain competitive advantages at marketplace which will enhance number of customers as well as reduce cost of products as well (Drucker, 2014).
Thus, through developing frugal innovation, Talent Plus can enhance its performance of sales. Along with this, such a process helps in utilising resources, reducing wastages of materials and more.
P5 Importance of commercial funnel and application of new product development
Commercial funnel combines a concept of sales and marketing funnel. In this process, sales funnel describes the ways by which commodities of a company can deliver to customers. While commercialisation means marketing products or services at international marketplace. When goods of a company is ready to sold then there are various process through which the same can be reached in marketplace. But in order to sell the products in a proper way, Talent Plus need such persons who can generate leads for it. This entire process of delivering services is termed as as sales funnel. This method seems to be essential for enterprises as it helps in determining their products are being used. Therefore, it is necessary for this company to get expert clients in business who can sold its products or services in an effective way as well as make good connection with customers. Commercial funnel process includes various important factors which are needed to be considered by managers for enhancement of sales and profitability. Through this process, enterprises can gain high market share as well as move one step forward. In addition to this, quality of products after innovation should be maintained. Managers of Talent Plus also required to formulate new strategies and policies as per requirement for innovation so that process can done in a proper manner. This would help in hitting the targets in a proper way. Entrepreneurs of Talent Plus need to consider on following points also:-
- Generating idea: In order to improve sales performance and gain large number of customers, Talent Plus needs to bring changes in organisational structure and adopt latest technologies. This firm should present its ideas in unique way through various applications which will help in attracting more customers.
- Idea screening: This process is used to review ideas and its process which are linked with goals and objectives of company's desires (Eesley, Hsu, and Roberts, 2014).
- Commercialisation: To enhance sales performance, enterprises are needed to sell its products in wide range of an area. Along with this, it is necessary for Talent Plus to focus on cultures and demand of customers.
In addition to these, another stages of new product development are:-
- Concept development and testing
- Marketing strategy developments
- Business Analysis
- Product developments
- Market testing
P6. Innovation business case of Talent Plus
For creating modifications in existing services and products, a company needs a large amount of funds. Through this, management of Talent Plus can meet its targets in a given period of time. If enterprise cannot acquire sufficient amount of money then it will lead to failure in innovation. This may bring a heavy loss in profit as well as reduce productivity level also. Thus, account managers of this firm are required to collect proper funds from different sources in an appropriate way. It helps in carrying out various activities in a systematic order and serves to customers as per their demand. Furthermore, employers of this firm are required to consider on some points while making innovation properly. These points are given below:
- Strong strategies and policies should be formulated by managers after gathering proper information of marketplace. For this process they can use primary and secondary method.
- They should take proper method to reduce risk which are related with financing and funding. Along with this, use proper methodologies to utilise the resources as well.
- Demand of customers as well as marketplace are needed to be analysed through which Talent Plus can provide services as per their need.
Business case involves some phases also which can be described as below:
- Executive summary: Introduction, requirement, aims and objectives of a project are included in this step. Therefore, employers of Talent Plus are required to create modification in services which help this organisation in providing effective services.
- Need: People and organisations of UK always seek to get new features of commodities on affordable prices (Herath, Cranfield and Henson, 2010). Therefore, it is necessary for consultancies to provide information about its services them in details so that it will develop willingness in customers to acquire the same.
- Why product is innovative, customer reach and design: Since Talent Plus is a consultancy firm, so it requires to launch some more application in an innovative way which entails all services.
Banks and equity funding: These sources are used to generate funds in companies as per their needs on easy terms and condition. By getting finance, Talent Plus becomes able to complete its operations and attain its desired goals and objectives in a given period of time.
P7 Different tools which used to develop, retain and protect intellectual property rights
When a new idea is generated in a company for adding value in production then it includes various types of risks in it like same concept can be used by other firms also by stealing or copying the same. Therefore, to protect concept and procedure of new idea, an organisation can use various tools like patents, trademark and more which helps in keeping ideas more safe and secure. In this context, intellectual property has played an important role in preventing and protecting the innovation through which a company can gain competitive advantage. Thus, for bring innovation managers are needed to analyse process and importance of each tools and techniques which may help them firm in acquiring their targets in a more efficient manner. Some tools use for preventing innovative ideas of a firm can be described as:-
- Copyright: This tool is taken as legal right which is created by law firm of a country in order to give rights to innovator to use. It is a part of intellectual property which gives helps creators to gain profit by their innovation. But main disadvantage of this method is that it protects only idea which is created as first time as well as for limited period of time (Hoque, Chishty and Halloway, 2011).
- Trademark: It is like a symbol or logo which represent name of a brand. Therefore, trademarks are valuable assets for all organisations as it links with their products and distinguish them from others. Through this process, customers can decide what products they are actually want. But it protects only marketing concept therefore, this tool has taken as weakest form of intellectual property tools.
- Patents: -This is the most important right which is offered to firms in order to invent new products which results in new invention of products that is different from the existing products which are already available in the economy. This is the most vital factor as it results in protecting the rights of the new products for year so that no one can copy the similar ideas.
Creativity is the most vital factor if the firms wants to expand their business operations all around the globe. Thus there should be changes in the products according to needs and wants of customers and this helps in enhancing overall sales and profitability ratios of firms.
From this project, it has been comprehended that innovation is necessary in every field of a company. This will help in producing more creative products which aid in attracting more number of customers. It adds value in present goods or services as per requirement of marketplace. Apart from this, inventions is different in such a way that it creates new commodity. Therefore, both the terms are quite different from each other in terms of nature of nature and process.
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