This assessment will provide certain questions that are like:
- What is innovation and also provide the differences in invention and innovation.
- Elaborate different types of innovation
- Give the effective methods and the process which is needed to manage and commercialise innovation in relation to Sheffield Skincare Company.
- Give the methods and the ideas through which the critical analysation of the methods can be evaluated.
Innovation refers to new idea, device or methods. It is often also as application of better solution that meet new requirements and existing marketing needs. On the other hand, commercialisation is procedures of introducing new product into commerce making it available on the market(Prajogo, 2016). This report is based on Sheffield Skincare. Company introducing organic health care product in new market. Firm make natural skincare products in small batches. This assignment will explain overview of organization's current situations and its key activities. It will evaluate importance of innovation of employee as well as firm. It will also analysis different sources of innovation and measuring of invention in organization. Furthermore, report will explain vision, leadership, culture and team work shape of innovation and commercialisation in organization.
Overview of organization's current situation and activities
Sheffield Skincare make 100% natural handmade skin care products. Company have wide range of body and facial products are available. All formulation are uniquely created in house and are completely handmade. Organization's operators dose not use of parabens, artificial colour and preservation to give beautiful skin without harmful additives. All the products are suitable for vegetarian and 80% of products are vegan. Organization's products packaging is in cobolt blue glass, blue PET plastic with aluminium lids, tins and bottles for men's range. Boxes are made from recycled card, all are 100% recyclable and eco friendly(Khajeheian, 2016).
Company is sold different natural and organic products such hair care, skin car etc. in wide range. Last two year have been incredibly engaged, releasing new products and making custom orders for various individual and other companies. Firm plan for introducing natural shower gels and facial oils. Sheffield Skincare Co. have started partnership with Tattoo Studio which namely Good Vibration Tattoo Studio in Crookes. They have to produce range of tattoo and laser products that are all natural and vegan friendly. They are looking forwards to showcasing products and working together to change thoughts of people and put on their skin(Laužikas and Dailydaitė, 2015).
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Innovation, its importance and different sources of inventions
Innovation is often viewed as the applications of better solutions that meet new requirements, unjointed needs, or existing market needs. Innovation takes places through provision of more effective products and procedures, services, technologies or business models that are made available to markets, government and society(Visnjic, Wiengarten and Neely, 2016).
Importance of innovation:
Innovation is very important to employees as well as organization for introducing new products and services, its development in new markets. In this context, it is beneficial for employees such as:
- Getting new ideas: With the help of innovation, employees are getting new ideas for engaging in new product and development in new or existing markets. Through this, workers are improving their performance in organization(Souto, 2015).
- Encouraging employees: With the help of innovation, employees are getting new ideas and more encouraging of workers in involving different activities of organization.
- Sharing goals: Through innovation, employees are achieving goals and objectives of organization. Sharing goals is the single most important thing that get employees working for company's benefits(LauÅ¾ikas and DailydaitÄ—, 2015).
- Helps in grow: Innovation helps in growing of people as well as organization. With the help of getting new ideas and thoughts, employees are more involving in various activities of organization. This also assists in development of new products and services as well as growth of business(Gundry, Ofstein and Kickul, 2014).
Sources of innovation:
Innovation is being talked of business to other areas. With the help of innovation, increasing growth and development of businesses. The difference between improvement and innovation is same as that between evolution and revolution. Innovation is much bigger term that encompasses several more things. It includes differentiation. There are many sources of innovation such as follows:
- Unexpected: It takes places unexpectedly. There are long lists of unexpected innovation in human history. An interesting thing to note is that many important inventions in history have happened unexpectedly(Rangus and Slavec, 2017).
- Incongruities: With the help of innovation, need is incongruent with supply. It is important sources of innovation. It is basically human nature to try to fill incongruent sees around them.
- Market structure: An existing market structure also give rise to chances for innovation. This point is related to unexpected innovation. Business's from within or even from without market could change market(Zhang, Zhao and Xu, 2016).
- Demographics: People's lifestyle is also sources of innovation. Every person have lifestyle needs. It is essentially the change in population. For example, people need to care of improving skin, so that Sheffield Skincare introduce new skin care products and services in new markets.
- Changing perception: Changing perception regarding things also give birth to innovation(LauÅ¾ikas and DailydaitÄ—, 2015). Social perception of healthy has undergone big change in health. People feel need to remain leaner and healthier.
- New knowledge: With the help of innovation, developing new knowledge in organization. There are various new areas such as nano technology, artificial intelligence in any areas are sources of innovation. It can be born out passion or adventure of hobby(LauÅ¾ikas and DailydaitÄ—, 2015).
Vision, leadership, culture shape innovation and commercialisation
Organizational vision, leadership and culture shape innovation and commercialisation in the workplace by employees. Wit the help of innovation, employees are getting new ideas and for achieving vision, improving culture and effective leadership in Sheffield Skincare. Co.
Leadership shape innovation:
- Leaders are shaping innovation for building trust in their employees. Workers who trust leadership are more likely to think of alternative ways to conduct their Sheffield Skincare Co.
- With the help of innovation, leaders are challenging Status Quo. It is relying not on safe and comfortable path but on their future vision to make decisions(Trad, 2015).
- Through shaping invention, leaders possess expertise in the area both knowing details of organization situation and displaying professional curiosity.
- Innovative leaders are moved quickly by shaping of inventions in the organization. It is research a clear correlation between speed of execution and degree of innovation.
Team work shape innovation:
Team work is also shaping innovation in the organization. With the help of innovation, members are creating, advancing, refining, executing invention in their projects of organization. This helps in attaining and improving result in task (Khajeheian, 2016).
- Effective collaboration and coordination between team members by innovation for impressive team work.
- With the help innovation, members are working effectively and efficiently and achieving objective of organization.
- Members are getting ideas and thoughts by adopting different innovation in their work.
Organizational culture shape innovation:
With the help of innovation, improving culture of organization. It creates new knowledge, methods, implementations, paradigms. Innovation helps to develop new products serving new markets, competing more effectively and gaining new revenues.
- Innovative culture helps in increasing adaptability in terms of risk taking, personal initiative, fast decision making and execution, ability to spot unique opportunities(LauÅ¾ikas and DailydaitÄ—, 2015).
- With the help of innovation, improving organizational culture, increasing productivity of business.
- Innovative organizational culture helps in increasing competitive advantages in industry.
4P's of innovation and use of innovation funnel
There are four P's of innovation that are build on hypothesis successful innovation is essentially about positive changes. Such as follows:
- Products: Most commonly understood form of innovation is that which introduces or improves product and services changes in offered to end users. Sheffield Skincare Co. introduce organic gel and oil product in new market. It is example of product innovation. This typs of innovation helps in achieving humanitarian goals.
- Process: Inventions are focusing on processes through which products are created or delivered. Because, so many of products used in relief setting are initially developed for non-relief contexts(Innovation Space 4 P's' 2015). Example of process innovation that have positive effects on humanitarian sectors are increasing stockpiling of goods.
- Positions: It involves re-positioning the perception of an established product or process in specific context. Position-based innovation refers to modification in specific products or process is perceived and their utilization.
- Paradigm: It defines dominant paradigm of an organization or whole sector. This relates to mental models which shape is about business or company. It is the most radical innovation is the idea of disaster risk reduction approaches that if successful can negate need for any kind of response.
It is decision supporting tools which is aim of any product or process development projects is to take an idea from concept to reality by converging to specific product that meet market need in economical, manufacturable form. Overall development process starts with broad range of inputs and gradually refines and selects from among them. It is creating handful of formal development projects that can be pushed to rapid completion and introduction(Rangus, and Slavec, 2017).
Innovation funnel is useful of getting ideas for product development in the organization. Company is managing development funnel in which involves three different challenges like mouth of funnel, narrow funnel neck and selected projects deliver on the objectives. The goal of this is to create portfolio that meet business objectives of the Sheffield Skincare Co. while enhancing strategic ability to carry out future projects.
Frugal innovation and its use in organization
Frugal innovation is procedure of reducing complexity and cost of good and its production. This refers to remove non essential features for durable good such as car, phone. In order to sell it in developing countries. Through rising incomes, in developing countries also drive frugal innovation. Today, frugal innovation is not solely domain of large, multinational corporations, as small, local firms have themselves chalked up number of home grown solution(.Gundry, Ofstein and Kickul, 2014).
Use of frugal innovation:
Frugal innovation presents an opportunity in developed economies for many reasons. Sheffield Skincare Co. adopt this in order to sell products and services at low price. Frugal innovation is very useful for organization. Such as:
- It is refers other types of technologies products providing solutions for low medium markets have been identified as costs innovation and good enough inventions.
- In relation to this goal, developing new types of standards is enhancing the diffusion of FI in developed nations.
- This indicates that organizations from developed countries learn about innovation from less developed economies(Zhang, Zhao and Xu, 2016).
- FI are often implicated while any type of innovation can be at the origin of such reverse transfers.
- It is building up circular value network in the organization who are operating linear value chain in which products are designed, produced, sold, consumed and end up in landfill.
- FI helps in simplify structures and empower employees to save time, gain agility, companies must learn to flex their assets.
- Frugal organizations do not seek to customers with technically sophisticated products but rather than strive to create good quality solutions that deliver the greatest value to customers at lowest cost.
- This types of innovation help in sustaining behaviour of frugal across the organization. It is possibly done by creates specific key performance indicators(Khajeheian, 2016).
Importance of commercial funnel and application of new product development processing
Importance of commercial funnels:
It is also knowns as sales funnels, purchased funnel. It is visual representation of customers journey, depicting sales process from awareness to action. Commercial funnel is referred to as marketing or revenue funnel illustrates idea that every sales begins with large number of potential customers and ends with much smaller number of people who actually make purchase.
- Commercial funnel is very important for organization in terms of building unhealthy business relationship, engaging with people generates inquires, qualified leads, opportunities and revenues(Trad, 2015).
- It is an essential to creates consistent, organizes process for evaluating, ranking, sorting and prioritizing sales leads of organization.
- Commercial funnel is focusing on creates right sales leads and allows devoting time and resources to work with right sales leads rather than spreading company too thin chasing bad leads.
- It is focusing on qualified leads, opportunities, revenues etc. of organization.
Application of New Product Development Processing:
There are many steps involving in new product development process utilizing through Sheffield Skincare Co. in the business. Such as follows:
- Idea generation: First stage of new product development that is idea generation. This includes creating large pool of ideas from various sources in which includes internal, SWOT analysis, market research, customers, competitions. With the help of this stage, operator of company identify their strengths, weakness, opportunities and threats for developing new product in market(Rangus and Slavec, 2017).
- Idea screening: In the second step involves finding goods and feasible ideas, discarding other ideas. It includes many factors such as customers needs, strengths and weakness of company, ongoing trends, expected return on investment, affordability etc. This helps of company to identify customers wants and expectation.
- Concept development and testing: it includes concept which is detailed strategy or blueprint version of the idea. All the ideas that pass screening stage are turned into concepts being tested. With the help of this stage, business tries to know about customers needs and concept towards their product and services(Khajeheian, 2016).
- Business strategy analysis and development: In this stage includes analysis and decide marketing, branding and other business strategies that use by company. It also involves estimated product profitability, marketing mix and other product strategies are decided for product.
- Product development : If all strategies are approved, so that product concept is transformed into an actual tangible goods. This stage results in building up prototype of limited production model(Zhang, Zhao and Xu, 2016).
- Commercialization: If product is ready, so that company utilises marketing strategies for product development in market. Markets are decided for product to launch in. This stage involves briefing different departments about duties and targets.
Build innovation Business Case
Innovation business case:
With the help of innovation, Sheffield Skincare Co. introduces oil and gel products in new market. Therefore, they are finding ways to access funds for developing in products in new market. There are many ways to access fund for product development. Such as follows:
- Bootstrapping: As business grows, it throws off cash that enables further growth. Owner of Sheffield Skincare Co. had approached for an angel investment. After looked up sales funnel, business model, company is turned down. Rather than, owner bootstrap their business(LauÅ¾ikas and DailydaitÄ—, 2015).
- Friends and family: Friends and family provide either equity or debt funding to owner of company for developing product in market. While, this may initially seem like good sources, be careful about selling part of their business to this group.
- Angel investors: These persons are typically affluent individuals willing to invest in businesses. With the help of this, Sheffield Skincare Co. owner acquires funds for product development. Search online for local angels or talk to their chamber of commerce. This assists in funding new ventures and ideas in owner's area(Khajeheian, 2016).
- Venture capital: These organizations are provided early stage funding, but are typically looking to make relatively large investment and take a significant share of company that are often controlling interest.
- Crowd funding: These are primarily web based projects and allow individuals with business, idea or projects to reach out to thousands of possible investors through various platforms. Investment can be debt, equity or rewards based. There are hundreds of crowd funding platforms, so business needs to do homework before launching into this area.
- Bank loan: It is also way of acquiring of funds for new product development in new markets. Traditional banks make small business loans. However, they typically require track records and often want loans secured with assets(Visnjic, Wiengarten and Neely, 2016).
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Different tools to develop, retain protect knowledge and intellectual property
Innovation is generally understood process of bringing valuable new products and services to market and has been represented one of key factor that determines future success of Sheffield Skincare Co. Intellectual property and its management throughout new product development procedures is important element in successfully commercialising goods and services. The purpose of this is to briefly outline forms of IP protection requires at each stage of product development procedure. With the help of this, leads to overall improving revenues and profitability. There are many examples of intellectual property such as patents, copy rights, design rights and trade marks(Prajogo, 2016).
Copy Right: It is form of intellectual property protection and legal right, existing in many countries that grants creator of an original work exclusive rights to determine whether and under conditions. This is usually only for a limited time. The exclusive rights are not absolute but limited by limitations and exceptions to copy right law. A major advantages on copy rights on ideas is that copy right protects only original expression of thoughts and not underlying ideas. It is applied by company owner to certain forms of creative work.
These rights often involves reproduction, control over, derivatives work distribution, public performance and moral rights such as attribution. The primary goal of copy right law is to protect time, efforts and creativity of work's creator(Souto, 2015). It includes different rights such as reproduce work, prepare derivative works, distribution copies of work by sale, lease, perform work and display work publicly. There are many limitations of copy rights such as follows:
- This law does not cover actual ideas, concepts, facts and techniques contained in copy rights work.
- Copy rights prohibits anyone else from creating similar work involving comic books.
This report has summarised that overview of Sheffield Skincare Co. current situation and its activities. It can be concluded that unexpected, incongruities, market structure, demographics etc. are sources of innovation that helps to employees as well as organization. It can be discussed that product, process, positions and paradigm are types of innovation that shaping of innovative ideas. Furthermore, report has analysed that importance of commercial funnel and new product development process for commercialisation of organization. It can be completed that utilizing copy right as tool to protect knowledge in organization. It can be concluded that different ways if funding such as crowdfunding, venture capital, Angel investors, Friends and family etc. for development of product in new markets.
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