As CEO of small & medium-firm, you have to embed innovative culture at the workplace for the next 12 months and examine how the team members benefit from innovative skills.
- Describe innovation and examine the difference between innovation & invention
- Provide an explanation of the various type of innovation executed by Mr Johnson Watches
- Analyze the process needed for commercializing innovation.
- Explain the different method used by Mr Johnson Watches for protecting ideas and explain their strong and weak factors
An innovation is known as the process of add new or unique features in current or new product. In present business scenario where needs and wants of customers are changing on a fast speed, implement the concept of innovation and offer something new to customers is become an essential one. One of the main benefit of innovation is that it help in attract large number of customers and create goodwill of firm (Anderson, Potonik. and Zhou, 2014). For execute the concept of innovation in an effective manner it is very essential that firm should have required resources and funds. Mr. Johnson Watches, a small firm based in UK. Importance of innovation for a business entity and various factors that shape innovation is all included in this report. Innovation funnel with 4 Ps of innovation is all mentioned in this. Further, frugal innovation and its use in an enterprise is given in this. In addition to this, various tools to protect intellectual property is also included in this.
P1 Innovation and its significance to enterprise with comparison of invention
Innovations is known as the procedure of add new features in a product for better satisfy the needs of customers. Continuous innovation help firm in increase its market share and at the same time support in retain customers for a long time period. Innovation help firm in get a effective position in market (Brynjolfsson and McAfee, 2012). For get all benefits of innovation, it is very essential for firm to develop and implement an effective strategy. Importance of innovation for a business organisation can be understood by the following points:
- Enhance efficiency of firm: One of the major benefit of innovation is that it help firm in manufacture quality products and offer the same at lower prices to customers. All this make the product more reliable and help in attract more customers (Boons, Lüdeke-Freund, 2013). All this strengthen positive image of brand and provide various other long term benefits.
- Help in utilise all resources at an optimum level: When firm add new features in its existing product or manufacture a new product for its target customers then it help in utilise all business resources at an optimum level which enhance efficiency of production process. For attract more customers towards its products it is very essential for Mr. Johnson watches to make a plan as in this way entity can ensure effective utilisation of all resources.
- Increase effectiveness of communication process: Communication is known as one of the most significant element of every business process. It is very important that right tool of communication should be use by firm as this bring cooperation among various activities and help firm in get all benefits of innovation. When firm use right tool of communication then it decrease the chances of rise conflicts and provide maximum benefits to firm.
- Increase profits of business entity: Something unique and new always help firm in get the attention of large number of customers (Cross, 2011). All this increase profits of firm and ensure its long time survival. By implement the concept on innovation on timely basis Mr. Johnson watches can attain its set business objective.
Also Read: Different Types of Innovation
All these are the major benefits of innovation. Large number of individuals think that both invention and innovation are the same thing buts there are various differences between both these terms as given in the following table:
Process of make a specific product more reliable by add new features in that is known as innovation. Specific modifications are introduce by firm for increase the sales of product and to better satisfy the needs of customers.
When a new product or service come into existence for the first time is known as invention. every activity is carry out for the first time.
Under concept of innovation, new features are added in a product for increase its usefulness which enhance its sales and profits.
Invention is carry out for fulfil the specific requirements of customers which existing products are fail to satisfy the same. that’s why a new product is manufactured under this.
Concept on innovation does not require huge amount of skills. Some specific knowledge is needed to implement innovation.
A totally new and featured product is developed under concept of invention and for this, it is very essential for an individual to have adequate amount of skills and knowledge. Mainly technical and scientific skills arte require to implement this concept.
Activities cover under the concept of innovation are spilt among all departments of entity. All this help in execute innovation in effective manner and provide its various benefits to entity.
Activities and operations carry out under the concept of invention are only limited to research and development department.
P2 Leadership, teamwork, culture and vision shape commercialisation and innovation
Concept of innovation is a wider one as various activities are perform under this that affect the actions and decision making process of entity. For ensure effective execution of innovation it is very important for manager to identify and examine the factors that largely affect the process of innovation. Teamwork, vision, culture and leadership all are the factors that largely shape innovation and also affect its outcomes. It is very important for firm to formulate and implement effective strategy before introduce a new product or service in market.
- Innovation and leadership: Employees of entity play a big role in shape the innovation. So it is very essential that proper guidance should be offer to them so they can perform their roles and responsibilities in effective manner (De la Mothe and Paquet, 2012). It is very important for leaders to adopt right approach of leadership and he should always encourage employees to think creatively so entity can attain its set objective.
- Culture and innovation: Organisational culture defines the various roles and responsibilities of employees and highlights the way in which communication flow in entity (Gennaioli, Shleifer and Vishny, 2012). It is very important that culture of entity should be that which encourage concept of innovation. When entity provide a healthy and positive working environment to its employees then it encourage employees to work well.