The process of innovating new product/service for the purpose of earning money by selling it is considered as innovation and commercialization. In product innovation, the company modify or develop a new product which has the latest features that provide maximum competitive advantages to the firm.
- Critically discuss innovation and provide a clear comparison with the invention.
- Evaluate different methods of innovation that can be implemented by Unicorn Grocery.
- Identify innovation commercialize process that Unicorn Grocery can use in its business practices.
- Discuss advantages and disadvantages of implementing different intellectual property rights in the firm.
The concept of innovation can be viewed as converting a creative thought into final goods and services and then offering to target customer that further create value for them (Amit and Zott, 2012). In terms of business, it refers to the process of developing more effective and efficient workflows, product and processes that gives high competitive edge to respective firm. By doing innovation, business entity can meet customer' requirement in an appropriate manner. The selected organization for this report is Unicorn Grocery which is small co-operative store located in UK. The report covers innovation mix framework, application of new product development, sources of funding, various tools of intellectual property rights.
P1 Explain the term innovation and how it is different from invention
The idea of innovation means transformation of a thought into item or service for which purchasers will pay. A creative idea or though is exceptionally fundamental for any innovation or business person are require to unify innovative ways and new thoughts for getting things done in various way. Bringing innovation inside company to enjoy high competitive advantage in the marketplace. It helps with making business activities distinctive from others. Its commitment is high in progress and additionally development of firm.
There is a contrast amongst innovation and invention. Bringing advancement inside organization doesn't mean it is simply an invention (Difference Between Invention and Innovation. 2016). It alludes to the procedure of change and adjusting according to the changes that happens in environment. Innovation helps with conveying such products or services that totally meets customer needs and requirement (Ariga and et. al., 2013). If company embed innovative culture, then its workers become creative and their ability for solving various problems improves efficiently. It is trusted that sustainability of a business association very depend on innovation. Thus, firms are require to always improve in their products and services for long term survival in market. The achievement key of each business association is one of its creative and unique thought (Bagchi-Sen, 2010). For example: Both Apple and Virgin are constantly doing innovation in their products just to rule the market. Recently Apple has launched X series in which they used most smartest and powerful chip ever used in market. It;s screen has been radically redesigned so as to make it more attractive and eye-catching. In case of Unicorn Grocery, innovation is going to take place in the form of launching its own mobile application. The company has figured out that, now a days almost 80% of the population prefer to purchase product through online website. Thus the need for developing own mobile application emerges. So, its management has takes decisions for launching a mobile application so that time, efforts and energy of firm as well as its customers can be reduced (Davila, Epstein and Shelton, 2012). Following are some of the importance of innovation:
- Higher benefit and deals are yield by organization.
- Expanded inspiration, maintenance of workforce and adaptable enlistment.
- Help in growing great brand picture or brand.
- Enhanced efficiency and additionally execution of organization and decrease its cost.
- Needs and wants of customer satisfied in an effective manner.
It usually occurs when company develop something that is exceptionally new in the market.
It can be perceived as a practical aspect and easily assessed by people.
Invention deals with alteration of novel notion in substantial idea.
P2 How company's vision, culture, team work shape innovation and commercialization
Unicorn Grocery is a small corporative store, headquarter in England, UK. It is equitably controlled and overseen by its individuals (Drucker, 2014). The organization for the most part bargains in offering new, dried and processed food and drink that is comprised of natural fixings or organically made. It also sells in offering general basic grocery products, body-care and household products. Keeping in mind the end goal to adapt up to other contention firm, the organization has chosen to do innovation through introducing its own mobile application through which they can pitch their item to target client. The explanation behind doing this innovation is on the grounds that in present day time, the vast majority of the client want to purchase merchandise by means of online stage.
Commercialization: It is essential for each business element to distinguish issue first that are prevailing in the organization and are required to be solved immediately as it is adversely affecting overall business operation. In the wake of deciding the issue, firm needs to assess different source that assistance in detailing most ideal answer for the given issue. After collecting useful data, product designing and development takes place (Gordon, 2012). Next stage include testing and inspecting of innovation that will render particular data worried about item cost. In the wake of getting positive reaction from model, organization at long last present new item in the market.
Vision: The vision explanation of Unicorn Grocery is "to have solid market and client base by giving such products and enterprises to target client that generates higher value for them". From its vision explanation, it can clearly expressed that alluded firm practising its business operation and activities according to its vision statement. Their individuals have distinguished that customer like to purchase items through online channel and subsequently, the have chosen to introduce its own mobile application.
Culture: Culture of organization directly influence the behaviour of its employees. According to Charles Handy Model, there are four types of culture prevailing in the company namely task, person, power and role. Structure associated with each culture varies from one another. In Apple and Virgin Group, culture followed is power culture. In Unicorn Grocery culture followed is Role culture as their employees perform according to the roles specially assigned to them.
Team Work: According to Tuckman model, there are four stages of group development and all are equally important for a team and its members to grow, tackle problems, find solution and deliver results (Huberman and Miles, 2013). It includes:
- Forming: At this stage, team members opens up and learn about challenges and opportunities that can arise in the company.
- Storming: At this stage, team and its members gain each other trust and start admiring opinion and suggestion of employees.
- Norming: At this stage, team members is aware of competition prevailing in the workplace and environment. All members equally takes the responsibility and contributes significantly.
- Performing: By this stage, team and its members becomes highly motivated. They don't require supervision at this level.
Leadership: The authority style took after by Unicorn Grocery is participative style of leadership. Under this, their individuals are similarly engaged with basic leadership process. This make higher feeling of acknowledgement and fulfilment among them. Furthermore, the organization give flexibility to specialists which move them to produce more extraordinary thoughts (Huizingh, 2011).
P3 Innovation mix and use of innovation funnel
The idea of innovation mix is given by Joe Tidd and Joe Beasant. As indicated by this framework, procedure of carrying out research is bit complex. Person who execute research may sometimes gets confused and there might be possibility that they may select wrong path. So as to make the procedure of innovation mix less complex, there are 4P's of development including process, position, product and paradigm that are clarified below:
(Source, 4P's of innovation mix)
Product: Unicorn Grocery is requisite to deliver such products or services that gain attention of client without doing much publicizing or advertisement (Jain and et. al., 2013). Each organization needs to implant innovation on steady premise to hold solid position in the market. For instance: Unicorn Grocery can begin offering organic vegetables and fruits. Apple has done product innovation by launching first water resistant smartphone in the world. Additionally for its I-Pod, it claimed top position in MP3 market both in context of revenue share and unit share.
Process: It manages the change in process engaged with creation and delivery of particular item to end-client. With this, both customer and company gets equivalent advantages. As the referred company, has chosen to improve the procedure in which they convey last product and services to potential purchasers (Johnston and Marshall, 2016). For instance: The organization has chosen to present its online mobile application. Recently Apple has launched its X series in which they have inbuilt most powerful chip that haven't been used earlier.
Position: This "P" rotate around repositioning of existing goods or services. Re-branding of respective item is generally done as such as to accomplish business objectives and destinations in an organized way. Unicorn Grocery requires to launch its products in other distinctive segment or part to achieve high market share and catch huge piece of the overall industry.
Paradigm: Sometimes it is required by organization to overlook society views with the goal that particular items or administrations can be created. This advancement is more related with mental model. Unicorn Grocery has inserted development as far as presenting own versatile application keeping in see the considerations and creative energy of individuals.
Innovation Funnel and its funnel:
An innovation funnel mainly disclose all steps that is taken into account for developing a process or product. The main aim of this funnel is to create process or product that fulfil market needs in an economic form.
P4 Development stages of frugal innovation
Frugal Innovation is one of the idea that deals with procedure by which organization is attempting to limit complexities related with cost of goods sold and production. Innovator is required to consider their accessible assets as an opportunity rather then considering them as risk (Kim and et.al., 2011). This idea manages growing better answers for customers that fulfil their needs and wants in an effective manner. For example: Earlier Steve Job reject the design of I-Phone as it was to hard or thick. He believes that this would have cause problem while shipping them. As a result, they redesign the product and come with a final design that is half in size and weight as compared to previous one. Following are the stages covered in frugal innovation:
Discovering opportunity in adversity: Existing issue is reframed by employees at this stage. In Unicorn Grocery, risk is adequately converted into an open door by management of firm with the point of increasing high focused edge in the marketplace.
Do more with less: All the approachable assets are assessed by workforce at this level and after that undertaking to make their ideal usage.
Keep it simple: Any sort of issues that happens inside business firm may upset the entire business working. Thus, it has been suggested that a firm ought to have various options instead of having less (Manso, 2011).
Include the margin: Firm should know about likes and dislikes of clients with the goal that successful item can be created. For this, recommendations and criticisms of clients can be taken by organization.
P5 Importance of commercial funnel and application of new product development
Commercial Funnel can be depicted as a procedure by means of which venture tries to decide best sources through conveying best item and administrations to end client in the market. Manager of Unicorn Grocery is subject to choose best circulation channel for their item and administrations. This will help with expanding the business figure and amplify their benefit and income in a powerful and effective way. It is basic for all organization's to fundamentally reach to its intended interest group since they are the person who contributes colossally in lead generation and this can just happens through commercial funnel. Unicorn Grocery is require to utilize this system at whatever point they will upgrade its structure or process. Different advances engaged with new item improvement are characterized underneath:
Idea Generation: At this progression, thought is created in representative personality. This is the initial step that portrays that thought that has been created for new item improvement (Leeuwis, 2013). The thought must be imaginative and inventive which gives them higher focused edge. The thought ought to be novel which none of has utilized.
Idea Screening: At this progression, screening of thought happens in which organization checks whether the thought is practical or not. Sufficient of thoughts created in the psyche of faculty, it is the obligation of administration to screen every last thought and after that locate the best one. They are require to choose the one which is satisfies organization's objective in a compelling way.
Idea Development and Testing: At this level, thought that has been chosen is at long last changing over into item. Additionally when item is prepared, organization introduce it before the client so they can check and distinguishes whether the item is enjoyed by the client or not.
Market Strategy and Development: At this methodology for advertising the item is made that characterizes target market, marketing and promotional techniques etc.
Business and Financial Analysis: This is done once the association is finished with deciding the volume and offers of the item as indicated by its size (Schaffers and et. al., 2011). Here organization's altogether look earn back the original investment point, benefit and cost investigation.
Commercialization: This the last stage in which organization at long last presented their item in the market.
P6 Building a business case
Use of Business Case is normally done as such as to process the measure of risk related with putting resources into innovation. Stages of building a business case is mentioned below:
1. The Need: At this stage, Unicorn Grocery distinguish current issue winning inside the workplace. Essentially it figure out what is the correct requirement for inserting developing inside the organization. With quick change in innovation, client purchasing behaviour likewise gets influenced. As a result,s offers of alluded firm diminishing as target client willing buy thing by means of method of online sites.
2. Your Solution: Solution defined by organization must be innovative and exceptional that gives them high focused edge in the commercial center. Here, the most ideal answer for pulling in substantial number of client and influencing both shopper and market to base more grounded, Unicorn Grocery will dispatch its own mobile application (Stokes, 2011).
3. Why it is imaginative: The arrangement surrounded by affiliation is inventive as it turn into the primary SME among other UK-based SME's to have its own particular portable application through which they can offer their things in the market and similarly in better way.
5. Investment Required: At this level, Unicorn Grocery will figure add up to venture required for effectively actualizing development. For the most part, there are wellsprings of financing through which firm can produce adequate measure of subsidizing one is Internal and other is External. Internal means when reserves are orchestrated inside the organization just, for example, utilizing benefits, held gaining, long haul resources that are never again being used. Then again, External means when reserves are gathered outside the association, for example, heavenly attendant speculators, banks, loan bosses, singular benefactor and so on.
6. Expected Benefit: Innovation influence association task and exercises as well as impact condition and society that is estimated at this stage.
7. The Ask: This is the last stage in which organization take significant input and recommendation from client subsequent to actualizing advancement (Strayer, 2012).