Innovation is a procedure of translating an invention as well as idea in to services or goods which develops some value for customers which they pay. It is essential that idea should be economical cost and also helpful in fulfil particular requirements of consumers. In addition to this, organisations should innovate its product products as well as offerings in context to assure that they are retain at competitive market place (Chesbrough, 2010). This report is based on Healthy juice that is founded through Mr Daniel Green. This firm operate its business in the market of United Kingdom with one single drink and also accomplish increment in sales in its first year by using innovation as well as distribution capability.
P1 Innovation and its importance to firms in comparison with invention
Healthy juice company uses innovation in its business for the purpose of achieving development as well as growth of an organisation that will aids in attract large number of consumers. It is necessary that this firm should develop creative process for manufacturing its unique or tasty juices or drinks to target more consumers. In addition to this, it is important for an organisation to analyse wants as well as demands before developing goods (Dahlander and Gann, 2010). Company should know about what drinking flavours consumers like and their tastes. Significance of innovation given below as above:
- Manager of healthy juice develops its current strategy in order to gain attention of customers.
- It is helpful in generate more revenue as well as revenue in effective manner.
- Top management of healthy juices organisation continuously trying to develop new policies and applied them at workplace for make changing in current products.
- It is helpful in developing innovative goods for achieving aims of firm with in set period of time.
Difference Among Invention and Innovation
It is helpful in change and alter current services of products which are prepare for introducing at large market. Its main focus on finishing the requirements as well as demands of consumers in an effective manner (Drucker, 2014).
This term is used when an individual can create and also develop some unique goods and services which are never manufactured before.
Under this, it is necessary for changing in healthy juices through enhancing in ingredients value in order to gaining more attention of many consumers.
The main focus of Healthy juices to design fresh as well as new products which are not seen through anyone before.
In addition to this, it is necessary for Healthy juices organisation to develop as well as adopt new goods and make improvement in existing products. It will be helpful in fulfil demands of consumers in significant or effective manner. Under this, innovation and invention both are necessary for firm to increasing productivity and growth of business. The sales of Healthy juices are increasing year by year.
P2 Organisational vision, culture, leadership and teamwork can shape innovation and commercialisation
Healthy juices are set its vision, objectives and mission in order to accomplish set objectives and aims in an effective manner (Edquist, 2010). For retain business in competitive marker, it is necessary for Healthy Juices to bring some creative or innovative alterations in an organisational structure to achieve objectives.
Vision- In order to clear regarding objectives and aims of company for increasing motivate of manufacturing team for producing better quality of services and goods by increase as well as execute better policies and plans. It is necessary for Healthy Juices to share vision of company with its staff members for achieving set objectives in significant way.
Leadership- IT is necessary component of company and helpful in increasing motivational level of team members for developing goods on the basis of needs of consumers at market place. The employees of Healthy juices are more talented and have an ability to deal with customers in significant manner. They needed for creating positive working environment so that every staff member can give their better performance.
Culture- The organisational culture of this firm is flexible and every one can adopt or mix with its culture. The working culture of this firm is normal and motivate each person to give its better performance. It will be helpful in address behaviour of person related to the cultural activity by take care sentiments of all staff members.
Team Work- In an organisation, team work is necessary and helpful for firm to achieve its particular goals or aims which are necessary (Gassmann, Enkel and Chesbrough, 2010). It will be helpful in analyse behaviour of employees which are working at workplace. Behind motivating of employees, leaders play a necessary role and also provide right direction to them. For employees, team work is essential because from this all employees can focus on achieving aims of firm with in given time period.
P3 4Ps of innovation and use of innovation funnel
4P's of innovation invented through Joe Tidd and John Bessant. It is a necessary part of an innovation and helpful in implementing change at workplace. Different kinds of 4's innovation are mention below as above:
Product Innovation- It refers to introduction of services and products which are new or make improvement in intended uses or characteristic. It is introduction and create new services and goods or make some effective improvement in existing services and products to make attractive. It is helpful in bring some change in product ion the basis of demands of consumers. The Healthy juices produce goods by knowing about the needs of different consumers. At market place, there are many people which come up with the new innovative products. It will be helpful in increasing development and also growth rate of firm by motivate staff members in an effective manner.
Process Innovation-It refers to an execution of improving the manufacture or delivery method. Small improvements and modifications and enhance manufacture capabilities by adding the logistics or production system which are same as already in the usage. Process of product development plays a necessary role in an organisation. It n addition to this, it is necessary that continuous system update for increasing profit and manage time in proper manner (Goldberg, 2013). Management of Healthy juices are use different techniques and tools in order to analyse business strategy in more suitable manner. For make improvement in production process, this firm invest more money to purchase new machineries as well as technologies.
Position Innovation- It refers to modifications in particular process and goods which are perceived as well as used. Its main focus on reposition of establish process and goods. It includes activities which are conduct for reposition that the goods at market place for introduce new. This kind of innovation is helpful for firm to supply goods which are liked through consumers and make some of the necessary changes.
Paradigm Innovation- It refers to dominant paradigms of firm or whole industry. It is concerned with the metal model which give shape to business or firm. This innovation deals with implementation of innovative thoughts in an organisation. It is helpful in attaining objectives which are impacted through these kinds of innovation.
Innovation Funnel- It is necessary funnel which firm use for choosing better idea. With the help of this, all ideas those are represent in firm are more redefined and select one that suits on firm. The ideas are developed through highly skilful staff members of an organisation.
P4 Developments in frugal innovation
Frugal innovation is an innovation which is helpful in use the less resources and reduce operational cost in producing any new products. Frugal innovation is helpful in remove all complexities in production process. At starting stage, Healthy Juice produces only single drink but after some time it produces many other drinks. Frugal innovation is known as frugal engineering with an aims of execute new marketing schemes as well as plans for achieving attention of large number of consumers. In this modern era, there are different people which convenience through in quality products (Huizingh, 2011). There is a need to Healthy juice drink to manufacture goods which should be related with better quality of raw material. Frugal innovation is helpful in creating as well as executing many strategies for develop many unique products to consumers at market place. Some points related with development of frugal innovation given below:
Reduce in Production Process Amount- Through using the frugal innovation, Healthy juices try to minimise its expenses cost in order to producing services or products. In addition to this, this company buy better quality of raw materials at minimum cost and also work for the poor individuals.
Additional Features of Current Products- IT is necessary for Healthy juice company to enhance quality of products by using the better techniques and tools by implementing better policies for plans to satisfy demands of consumers.
Develop Reasonable and Durable Goods- Frugal innovation is helpful in generating more profit as comparison to its strong competitors (Kline and Rosenberg, 2010). Healthy juice firm manufacture durable products are reasonable cost for its consumers.
Maximise in Innovative Methods- The main focus of Healthy Juice company is on produce goods of better standard as well as quality of using better tools and equipments for purchasers.
There are some stages in development of frugal innovation given below as above:
Iterate And Engage- In this, Healthy juice organisation regarding demands or needs of buyers. It can only happen through observe customers and related to development of products in effective way.
Flex Your Assets- Under this, manufacture tools are concerned with new raw materials and supply chain which can reduce supply as well as demand in distribution channel and procurement.
Develop Sustainable Solutions- In this, an employer should have better capabilities to develop the effective solutions to production and R&D.
Shape Behaviour of Customers- In this, it is essential for company to know about provide better shape to behaviour of consumers and they will also feel very satisfied.
Co- Develop Value With Consumers- IN this modern era, consumers are regenerate to the prosumers and their main focus is on making brand more attractive.
Make Some Innovative Friends- With all external partners such as universities, capitalistic, healthy drink company can make better collaboration in order to develop better frugal products.
P5 Significance of commercial funnel and application of new product development (NPD)
The main focus of Healthy juices are on various ranges of services as well as goods which are provided to consumers. It is a responsibility of manager to focus on produce better quality of goods by using effective raw material. Through this, reputation of an organisation can be improved in significant manner.
Commercial Funnel- It is procedure by which an entity determines better sources in order to provide better quality of services and products. Innovators as well as managers thinks regarding use of effective distribution channel to use better development and productivity (Leonard and Rayport, 2011). With the help of using commercial funnel, management is able to enhance its sales many times. Management of Healthy juices organisation use this concept at the time of developing nay new product at market place.
Importance of frugal innovation given below:
Minimise Loss- Through using the commercial funnel in better manner, any kind of defect as well as loss can be minimized and with the help of this additional cost will also be reduced.
Improve Quality- With the help of this, quality of goods will be improved by using advanced technologies.
Stages of commercial funnel mention below:
Awareness- It consists more amount of prospects of consumers. At this stage, consumers have identified issues and started searching effective solution to aware firm via marketing content, social media etc.
Interest- Under this stage, number of prospects consumers start to reduce but possibility of increasing sales enhances.
Desire/Decision- In this, consumers are aware about firm, reached out and also the sought answers to necessary questions. It consists sales related offers.
Actions- It is a final step and in this consumers take their final decision regarding buy of specific goods.
New Product Development- Innovating as well as introducing new things at the market place in order to attract more consumers and also get competitive market. In addition to this, it able an organisation to increase its profit level for retain at market place for long period of time. Some steps in this process given below as above:
Idea Generation- It is first stage and under this firm develop its mind and use innovation ideas for making staff members in its process of decision making. Ideas from various directions are included by doing SWOT analysis.
Idea Screening- After generating many ideas, in this step there is a requirement to screen all those ideas and select only that ideas which is worthful for company. In addition to this, it is helpful in examining that new product should be beneficial for firm or not.
Concept Development and Testing- Under this, management selects an idea which has been already screened and also made a discussion regarding convert idea in to product (Lundvall, 2010). For this purpose, goods sent to small market for testing and know about perception of consumers.
Market Strategy and Development- Strategy is developed through project managers in order to establish goods at target market. Under this, there is a need to company to develop its market.
Business Analysis-In this, management identify volume and sales which are determined to specific goods or services. Under this, whole analysis is completed concerned with estimation of sales, cost and profit in order to fulfil needs of consumers.
Product Development- Under this stage, Healthy juice company finalize the specifications of the final goods in order top fulfil demands of consumers in a better or effective manner.
Test Marketing- Under this, marketer has an effective opportunity to test new goods at market place and know about behaviour as well as perception of consumers towards that new products. According to feedbacks of consumers, this organisation makes changes in its goods.
Commercialisation- IT is a last stage and in this, new product is introduced at market finally. Healthy juices organisation execute its whole marketing plan and also faces more production, promotion and advertisement cost.
P6 Innovation business case for Healthy juice
Business case is suitable technique as well as method which Healthy Juice company used for generating more profit and also attract large number of consumers. Under this main aim to choose this business case is to control as well as manage many barriers of this firm during process of production ( Sawyer, 2011). Under business case, there are some various steps are given below as above:
Executive Summary- Healthy juices company offers its drinking products for consumers and also develop for them various kinds of flavoured drinks so that they can enjoy and like them., founder of this firm is Mr Daniel Green in United Kingdom.
Objectives- Main objective of this company is to offer modern and better quality of flavoured drinks to people for attracting to domestic as well as international consumers so that they can purchase more.
Solution- This seeks to remove all problems or issues in order to produce creative services to goods which provide them on the basis of their tastes or needs. Its main solution is to using goods products and services in easy manner and enhance convenience of consumers. Goods should be according to demands of customers.
Market Analysis- Under this, it is a necessary process which aid in offering same products to customers (Stokes, 2011).
Business Analysis- It is essential for company to develop better planning as well as support staff members in context to preparing innovative along with creative goods to attract more consumers at market place.
Financial Analysis- It is necessary tool which firm use to manage and doing all the business activities in systematic manner. Under this, there are some different sources of funding and these are investors, friends, family, shares, bank loan etc.
Expectable Benefit- In this, it is necessary for Healthy Juices firm is to develop innovative goods to many people will buy and provide benefits to company in an effective manner.
P7 Various tools that Mr Green can use to develop, retain and protect knowledge and intellectual property
The term intellectual property linkages which creations of minds, such as – new inventions, artistic work, designs and symbols which are being for commercial purpose. IP is protected in by law, it involves patents, trade markets, copyrights that enables individuals to yield more profits in terms of money from what they have been create. By striking, proper balance between interest of innovators and customers' interest; IP system helps in fostering the environment which tend to flourish innovation (Tebbe, 2011). Following are the main tools which are involved in intellectual property rights, such as -
Trademarks- It consists with recognizable sign, design or logo which differentiate a product or service of a specific seller from similar substitutes of other traders. In traditional times, trademarks consists to put a mark on products which are delivered to customers; it shows identity of the company. Although, trademarks are easy for customers to find a dealer or seller as it acts as an efficient communication tool.
Copyrights- It gives exclusive rights to innovator or creator of the work but for a certain time period. Copyrights may be applied for several creations and intellectual work; it ain't covers ideas and information itself. Right related with this cannot be used for another person; it protect innovation from any kind of misuse.
Patents- It is kind of guarantee which is given by the government to an inventor to make, use, sell and import new products or services for a specific. It means, after patent no one can generate similar products for commercial and non-commercial purpose (Teece, 2010). Along with this, it is the responsibility of patent owners to disclose necessary information about their inventions to general public so as to enrich knowledge level and stimulate innovation.
Professional Help- IT is an effective methods which can use through healthy juice drink in order to secure the intellectual property. In this, experts give protected password to owner of an organisation.
In order to retain or secure an intellectual property, Healthy juices use copyright tool.
It has been concluded from the above given report that innovation is helpful in increasing sales and also productivity of business in an effective or proper manner. Organisational, mission, vision, core competencies, teamwork and culture which can shape an innovation and also commercialisation also discussed under this mention report. Commercial funnel is very importance for making innovation is better and at the time of developing or launching new goods at market place, Healthy juice uses commercialisation for innovation.
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- Dahlander, L. and Gann, D. M., 2010. How open is innovation?. Research policy. 39(6). pp.699-709.
- Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
- Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of Science, Technology, Innovation and Development. 2(3). pp.14-45.