Innovation can be described as a new idea which is used by various organisations to find solutions to meet their requirements such as profit maximisations and customers attractions. It is an activity that includes the creations of new things that may help to run a business smoothly. Commercialisation is the process of launching a new product or an innovative manufacturing method in the market in order to gather funds to run the business (Budzianowski, 2016). It is also known as new product development and includes various activities like sales promotions, advertising and other marketing efforts to acquire higher market share. Company chosen for this report is Sainsbury’s which is a chain of supermarket and
This assignment covers various topics such as difference between innovation and invention, importance of innovation for an organisation, 4Ps of innovations application of different approaches like innovation funnel and frugal. Problems of an organisation, new product development, solutions for the problems with the help of commercial funnel, tools and techniques for testing effectiveness of the new product and the way in which the organisation can protect intellectual property of new product.
P1 Explanation of innovation and its importance and comparison with invention
Innovation: It can be defined as new ideas that are introduced and implemented by the managers or directors of the companies in order to achieve business goals. It includes all the elements that are required while applying new and innovative things in the management of the company or new product so that the organisation may attain higher level of profits. It is very important for an organisation to introduce new and innovative products or services so that profit can be maximised (Jacobsson, 2013).
Invention: It can be defined as an idea of a new thing which haven’t yet introduced in the market. It is totally a new concept in which a new idea is implemented by the organisation to grab attentions of their prospect customers. It requires technical knowledge to form an extraordinary invention that may help to reach all the predetermined goals of a company.
Difference between innovation and invention:
It can be defined as the idea which is used to modify a present product or service.
It is the creation and introduction of an idea for the first time.
It requires professional skills to formulate an innovative idea.
Technical and scientific skills are required to introduce an invention in the market.
Innovation help to find solutions for the current problems that are faced by an organisation.
It helps to offer a new product to the customers to grab their attention.
Main objective of innovation is to launch a modified product in the market to satisfy the customers.
Objective of invention is to introduce a new product in the market that may facilitate the individuals.
It is something new which is uniquely useful for the consumers.
It is something that have potential value through the utilities and features.
It is very important for an organisation it is willing to acquire higher market share with the help of existing products by modifying them.
It is essential for the organisation while managers want to attract potential and retain existing customers with the help of a complete new product (Hsieh, 2013).
As Sainsbury’s is a supermarket chain and it can attract more and more customers with the help of innovative products and a new invention that may help to acquire more market share. Both the elements also help to attain long term sustainability for the future period (Dereli and Altun, 2013).
P2 Organisational vision, leadership, team work and culture can shape innovation and commercialisation
Innovation and commercialisation is very important for the organisation to launch modified products in the market so that higher market share can be acquired. Organisational vision, leadership, team work and culture can shape the process of innovation and commercialisation. It can be understood with the help of following points:
Organisational vision: It is the view of future place where the organisation is willing to be. Vision of Sainsbury’s is to be the most trusted retailer and first choice of employees and customers where they love to work or shop (Walsh, 2012). The company is willing to set a positive image in the minds and hearts of customers in order to expand the business. The vision may help the organisation for the innovation in business by modifying existing product or services. Sainsbury’s can modify the way of providing services or make any innovations in the product line that are supplied by the organisation. If the company is having clear vision than it may help make innovations to reach to the same. As Sainsbury’s is willing to be the most preferable supermarket by customers, for this purpose the owner of the organisation have to modify the current products and services so that it may grab attention (Cho and Lee, 2013).
Leadership: If the leaders of the organisation are very cooperative with the subordinates that it may help them to motivate and work harder to attain predetermined goals. In Sainsbury’s the leaders are following transformational leadership style in which they take valuable opinions from staff members and involve them in decision making. As workers directly communicate with the customers hence they have more information about them. Leaders take advice of them to make any innovation and to attain a success with the help of the same. It helps to shape the innovation in an effective manner.
Team work: Success of a business project depends upon the team work of employees who are responsible to produce the goods and supply services. If Sainsbury’s is willing to introduce an innovative product in the market than it is very important to enhance team work at workplace this may help to get the success in all the fields. If there is no team work than it is not possible to get success.
Organizational culture: It refers to the behaviors of managers in which they treat all of their employees. If the managers are showing good and cooperative behaviors than it will help the staff members to be motivated and work hard. In Sainsbury’s managers are showing less power to the employees that helps them to perform their duties more effectively and efficiently (Datta, Mukherjee and Jessup, 2015).
M1 Different sources of innovation
There are various sources of innovations that may be used by the managers of Sainsbury’s to introduce a modified product in the market. These sources are new knowledge, changes in perception of customers and demographics. If needs and demands of the customers changes with the time than organisation have to make modifications according to the perception of them so that they can be retained by the company. The organisation can develop an innovative environment at workplace and culture with the help of effective plans and strategies. It will also help the organisation to lead toward success.
D1 Examination of scope, development and growth of entrepreneurial venture
Entrepreneurial ventures can get higher level of growth by launching new and innovative products in the market. Development of a business depends upon the work quality of employees who contributes in the productivity and profitability of the organisation. In Sainsbury’s development and growth can be achieved with the help of the new and innovative products and services that may grab attention of prospect customers. If the organisation is operating business at national or international level than it is very important to retain customers so that business can be expanded world-wide. Managers and employees of the organisation are liable to formulate innovative strategies so that higher level of success can be ascertained.
P3 Explanation of 4Ps of innovation
4Ps or innovation mix is introduced and developed by John Bessant and Joe Tidd. It can help the managers to find the ways in which innovation process can be improved and organisation can get a higher level of success and long-term sustainability (4Ps of innovation, 2015). It includes paradigm, product, position and process that are used while introducing new and innovative product. Sainsbury’s can also use these tools while launching modified products or services that may help to increase profitability. All of them are explained below:
Paradigm: It is the first stage of product innovation process in which it is analysed that organisation is formulation proper strategies so that all the objectives can be attained. If Sainsbury’s is willing to modify the product or service than it should change the business model so that the organisation can launch the new product successfully (Abebe and et. al., 2013).
Product: It refers to the element in which an innovation in made in the product according to the demand of customers so that it can satisfy the needs of them. If Sainsbury’s is willing to acquire more market share than it very important to analyse that what customers are thinking to buy and then the managers have to make effective strategies to grab their attention.
Process: It includes the steps of manufacturing as well as other activities that are performed while introducing modified product in the market. Supply, hiring employees, their training and work flow are also part of this step. It is very important for Sainsbury’s to use effective processes while thinking to introduce innovative product in the maret.
Position: It can also be defined as the promotion element in marketing mix which is done to aware customers about the product which has been introduced by the organisation. In Sainsbury’s firstly the managers have to find out that where the product is going to be launched first and in which segment it will be introduced (Qian and Haynes, 2014). It is very important to select right market segment so that large number of customers get attracted toward the new product or service.
All the above mentioned points can help the organisation to attain higher level growth and development that may help to establish a successful business. They also guide the managers to make right and effective decisions in favour of the company (Thore, 2012). It is suggested to the company that it should adopt the product development as it can help to grab attention of the customers and to acquire higher market share by offering different varieties in one product.
Innovation Funnel: It includes three different elements such as investigation, development and shipping products. These are the three steps that are followed by an organisation before launching a product in the market. First step is research in which information of customer’s preference is gathered and then effective steps are taken to launch a new product. Next step is development in which modifications are made according to customer’s needs and demand. Last step is shipping in which products are sent to different branches of the company for sale. It helps to shape innovative ideas as it facilitates the managers to make right decisions regarding the innovation process (Datta, Reed and Jessup, 2013).
P4 Developments in frugal innovation and their use
Frugal innovation is the process of reducing costs and complexity of products and services in development and production. By frugal innovation, production and transportation charges can be leveraged in new ways which will reduce the costs and the product will perform well. Development of frugal innovation is very essential in this rapidly changing world due to the customers ever changing need of change. It is necessary for each business to use frugal innovations due to its effectiveness in meeting the demands and needs of organisation in the market.
Example- SainsBury can adopt strategies for new products and services using frugal innovations based on the demands of customers, which will result in a better product and services attracting more customers. Company can reduce their expenditure with better development of product which will bring better opportunities for the company in gaining more market share. Better products and services helps in attracting and retaining the customers which will improve the productivity of organisation (Kilelu, Klerkx and Leeuwis, 2014).
Innovation funnel- It is described as the steps which should be taken for the development of a product or a process from idea to reality in order to meet the demand of the market. Innovation funnel will help the Sainsbury in deciding the steps and measures which need to taken for the successful implemetation of strategies required for the development of new products and services. It involves 3 stages described below:
- First stage includes the strengthening of knowledge and skills of organisation in collecting the ideas. More ideas results in development of more products. For meeting the objectives, Organisation should have clear understanding of the aim. Deep insight on consumers, Markets and consumers demand is required for successful implementation of ideas (Grimm and Jaenicke, 2012).
- Second stage includes the screening of ideas. This process requires to match the ideas with the goals to see the interrelation between them. After that assessment of these idea is done in order to findout the returns and risks involved.
- In this last stage, Organisation ensures that the selected ideas are matching the company's objectives which were built during the establishment of company. After this, the new product and services were introduced to the market.
M2 Application of innovation funnel in an organisation
Innovation funnel helps the organisation in choosing the appropriate idea from a pool of ideas in order to bring a improved product in the market for the increasing demands of market. Organisation ensures that the developed product is up-to the expected level of consumers and developers and it is meeting the organisational goals. In case the product is not meeting the requirements, company uses the feedbacks and recommendations of specialists obtained from beta version of the product.
M3 evaluation of frugal innovation
Frugal innovations help a organisation in building a new and improved quality product for meeting the requirements of consumers. Organisation saves expenses and resources by building such type of innovative products which will enhance the productivity and customer base of the company. Such innovations are likely to attract more customers as well as help in retaining old customers. Organisations should adopt such practices in order to improve their market share and in getting an upper edge over the other competitors.
D2 Impact of small business on different level of the economy
Small business directly affects the economy at regional and local levels by providing employment to local individuals who won't get employed by larger organisations. By providing job opportunities and promoting economical growth, small firms help in eradicating poverty. Small business tend to move higher from regional to state level by providing adequate services and products in meeting the market requirement. By increasing their customer base and market share, firms moves higher from state to national level. Performance of these firms is crtically associated with economy growth.
From the above project report it has been concluded that an organisation have to make effective plans while launching a new or innovative product in the market. If the company is following the appropriate procedure of new product development than it may help to acquire higher market share as it help to attract prospect customers and retain existing customers.
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