Innovation is defined as a modified or creative thought and imagination in a procedure form. It also includes doing modification in an existing product to rise profits and productivity of a firm and it helps in analysing current market trends and customer requirements. Commercialisation refers to introducing a new product or services in a market. It covers the stage from manufacturing to distribution of a product or services in a market (Aarikka-Stenroos and Sandberg, 2012). This report is on Whirlpool company which is a home appliances industry founded in 1911 by Louis Upton and has headquartered in Michigan, United States. Its products are major and small appliances. This assignment includes innovation, importance of innovation, difference between innovation and invention and types of innovation. Process required to commercialise innovation and range of methods for protecting ideas along with their advantages and disadvantages is being mentioned.
P1 Innovation and its importance to organisations in comparison with invention
Innovation is a process of finding new ways for doing an activity or process. It also refers to various activities of an enterprise in context to process, product and daily routine of an organisation. It also focuses on increasing profits of firm by attracting customers in a targeted market. During this process of modification an organisation can analyse trends, get appropriate information and availability of product. Whirlpool is considered as most innovative company of the world which offers a wide range of electronic products. This organisation is famous for its innovation in manufacturing sector which produce highly creative items on regular basis. For this assistance, it has given employment to best talented engineers who are expert in adding more valuable features in existing products (Bagchi-Sen, 2010). In terms of revenue, this company has occupied a large area of marketplace because of innovation.
Importance of innovation
- Maintain customer relationship:Innovation results in modification by giving new creative products or services in current operation. This help in creating good quality of products and services with some specific system. Individual's always determine new functions in shopping malls and services. Moreover, it helps in increasing standards of company by implementing by new functions in current process. Whirlpool can develop healthy relationship with their clients.
- Develops new technologies: To give customer satisfaction innovation is done frequently during research and development process. Innovation helps in providing new methods for promotion, distribution and product operational function into a company (Bogers and West, 2010). Whirlpool can adopt new technologies to influence their potential customers.
Invention has different concept from innovation, it refers to modification done an existing product which cannot be launched by other firm at market. It is a creative potential of a firm. Comparison between innovation and invention are being discussed below.
P2 Impact of organisational vision, leadership, culture and team work can shape innovation and commercialisation
Whirlpool company uses different factors which can give shape to innovation and commercialisation which have been discussed under beneath.
Vision: Company has a vision statement “ Every home..Everywhere..with pride, passion and performance” which means that every house is company's field and every customer along with their activity is treated as an opportunity by company. This vision encourage potential and determination that an organisation has for their clients and enforcing them to give creative solutions which will help in satisfaction of customers (Bogers and West, 2012). Through the help of vision a company can set their objectives and targets for future and do modification considering future. It helps in expansion of business in future. Managers of company implement plans to accomplish vision which will help in growth of a company in future.
Leadership: It is ability of an individual or group of people to influence and lead their colleagues or followers in an organisation. It involves making sound and often difficult decisions, creating and distributing a clear vision, setting targets which can achieved effectively and efficiently and providing their followers proper and appropriate knowledge and elements needed by them during the process of achieving setted targets (Teece, 2010). In whirlpool, leadership helps in leading and encouraging their followers and leaders along with creative ideas can influence rest of workforce to convert those thoughts into realities and create faith between staff members which will result in higher productivity and profits of a company.
Culture: Productivity and profits of a company is affected by internal environment factor. It is a responsibility of a manager to develop a friendly and harmonious environment that will help in reduction of conflicts among staff members within a workplace (Ettlie, and Rosenthal, 2012). Here whirlpool, adopts a diverse culture under which engineers from diverse regions, qualification with various scientific and technical skills will produce results which will help in new ideas for commercialisation. Diverse d skills of engineers leads to more innovation and launching of differentiation in products within an organisation.&n