This unit is based on case of Me Daniel Green who started company which produces healthy drink in the initial year sale was good but eventually it decrease thus concept of innovation is applied
- Explain the concept of innovation and determine the difference among innovation and invention.
- Examine different type of innovation used by Healthy Juice
- Describe the process needed for commercialize innovation at Healthy Juice
- Explain different method for protecting ideas by analyzing both advantage and disadvantage.
Innovation is a concept under which company add some unique and new features in order to increase its usefulness and satisfy the needs of its customers. One of the main benefit of this is that it help in increase the profits of enterprise and also provide competitive benefit to company. Implement the concept of innovation on continuous basis is very important for a business organisation in order to sustain in market for long run. Healthy Juice, a firm that offer various type of drinks to its customers is consider in this report for study. Importance of innovation for a business enterprise is mentioned in this report. Different tools that a company can utilise in order to protect its intellectual property is all given in this.
P1 Innovation and its importance to organisation
Innovation is known as the process in which company offer some new features to its customers in order to fulfil their needs. One of the main feature of innovation is that it help in utilise all business resources at an optimum level. This improves efficiency and help entity in offer featured products to its customers at affordable prices. It is very important for important for manager to encourage employees to think creatively so company can attain its set goals and objectives in adequate manner. Innovation provide various long term benefits to company and significance of innovation for business enterprise can be understood by following points:
- Provide competitive benefit: Concept of innovation is the one that help in manufacture and offer better products to its customers. Unique features attract more customers and this provide competitive benefit to entity (Anderson, PotoÄnik. and Zhou, 2014). With this company can generate more number of profits and can sustain in market for long time period.
- Ensure optimum utilisation of resources: When entity offer something new to its consumers then it help in utilise all resources at an optimum level. This improve efficiency and increase profits of company.
- Increase profits of company: Innovation is the one that make the entity different from its customers. With this company can step forward from all its customers. This increase large number of customers and increase profits of enterprise.
- Make the communication stronger: Various activities are perform by entity under concept of innovation. It is very essential for entity to use effective channels of communication as this bring cooperation among various activities and increase profits of enterprise.
Difference between innovation and invention
Under this entity add a new feature in current product for increase its usefulness and to better satisfy the needs of customers.
A totally new and unique product is offer by company to increase its profits.
In this only a single feature is added in the product.
Totally new product is manufacture in this.
Marketing, technical, financial and various type of skills are required to implement innovation.
Technical skills are required for implement invention at workplace.
Activities that are implement by manager in this are spread across all departments of company (Boons, Lüdeke-Freund, 2013).
Activities are only limited to research and development department.
P2 Leadership, vision, teamwork and culture shape innovation
It is very important for manager to identify and examine all element that affect innovation in order to get all benefits related with it. These factors can be understood by the following points:
- Vision and innovation: Vision statement of entity represent where entity wants to go and want company wants to achieve in coming future years. Effective vision encourage managers and employees to implement innovation. It is very important for manager of firm to set effective vision so that innovation can be implemented at workplace in effective manner.
- Innovation and leadership: Leaders play a big role in implementation of innovation at workplace (Cross, 2011). These are the one who direct and encourage employees to work well and right approach of leadership encourage employees to work well.
- Innovation and Teamwork: This define how employees of company work in teamwork. It is very important for manager to encourage employees to work in teams as this help in implement the concept of innovation in effective manner.
- Organisational culture and innovation: Culture adopt by enterprise create the environment in which workers perform their roles and duties. Positive work environment encourage employees to perform well and this support entity in achieve its set goals and objectives.
P3 4Ps of innovation and use of innovation funnel to analyse innovative ideas
Effective implementation of innovation is very essential in order to get all benefits related with it. 4Ps of innovation help manger in implement innovation at workplace. All Ps can be understood by the points given below:
- Product: This highlight product manufacture and offer by entity to satisfy the needs of its customers. Effective and featured products help in attract more customers.
- Process: This elements highlight the process use by firm in order to manufacture innovative product. It is very important that right process should be utilise by firm as this help in save time and cost of company.
- Positioning: Under this various marketing tools are use by firm in order to position its products and to increase the sale of its products.
- Paradigm: Unique and effective features of products help in attract more customers and increase profits of enterprise.
Use of innovation funnel in shape innovation
Innovation funnel help in implement innovation at workplace. this provide basis to manager to examine the innovative idea through which entity can manufacture and offer better products to its customers (De la Mothe and Paquet, 2012). This increase the success chances of innovation. With help of this concept, Mr Daniel Green can identify which type of innovation should be done by entity and in which manner so company can generate more profits.
P4 Development is frugal innovation and its use in organisation
Concept of frugal innovation is one of the effective concept which is utilise by firms during implement innovation idea. One of the main aim of this is to bring down the costs of innovative products and offer the same to each and every individual. Under this all efforts are done to decrease the cost of product but at the same time quality and features are maintain so product can satisfy the needs of its customers (Gennaioli, Shleifer and Vishny, 2012). Frugal innovation is based on following six principles:
- Identify opportunity in adversity: every single problem should be examined form each point of view as this increase understanding about the problem and at the same time support in find better solution.
- Do more with less: Efforts should be done by researcher to identify the solution of problems with available data he should not go for further research.
- Think and act flexible: It is very significant for researcher to think and act flexible during the research as this help in find better solution.
- Keep it simple and attractive: It is very important for researcher to use only simple and effective methods as this support in reveal better solutions.
- Include the margin: As per this principle, customers should be encouraged to take part in decision making process as this help in find better solution.
- Follow your heart: It is very important for an individual to be passionate about his work.
P5 Significance of commercial funnel and application of new product development
Commercial funnels is the concept which is use by business enterprise in order to increase the number of its profits (Gunday, G. and et. al., 2011). In this firm first identify all the ideas through which it can generate large amount of profits. After that all ideas are analysed in order to select the best one. commercial funnel support manager in identify and select the idea through which entity can generate more number of profits.
Process of new product development
- Idea generation: In this various ideas are developed through which company can satisfy the needs of its customers.
- Idea Screening: All the idea developed in first stage are examine in this in order to select the best one.
- Concept development: In this idea is converted into final report. Appropriate tools and methods are require to be use by manager in this.
- Strategy development: This is the stage in which manager formulate strategy for implement innovative idea at workplace.
- Situational analysis: It is very important for manager to undertake situational analysis as this help in identify the right time to implement innovation.
- Product development: In this manager decided the final features which should be there in a product for satisfy needs of customers.
- Test marketing: Under this entity launch its product in some limited areas in order to examine its features and to determine its acceptability.
- Commercialisation: In this entity offer its products to its target customers and use various communication channels in order to encourage them to buy the same.
P6 Innovation case for an organisation
One of the main benefit of implement innovation at workplace is that it help manager in identify new and effective ways to carry out business operations. With help of this company can manufacture and offer quality products to its customers and at the same time can retain them for long time period (Lundvall, and et. al., 2011). As Mr Daniel Green the founder of healthy drinks wants to expand in drinks so to bring innovation in its products following