LO1: Explain the context for innovation and determine the difference between invention

and innovation

P1: Explain innovation and determine its importance to organizations in comparison with
invention

Innovation
The process by which an idea or creative thought is converted into a value carrying service or
good, it is called innovation. It is also called the definition of something new. It also includes the
application of information, imagination and initiative in gathering greater and different values
from resources through processes.

Invention
Where, invention is something unique which means of a new concept’s embodiment or
accomplishment. Invention can be defined as a making of a product but innovation is occurred
when someone puts contribution to an existing product.

Importance of Innovation
Innovation is important when it is necessary to improve or work with a product, where new idea
strikes a scientist in invention.

Value Adding: Innovation helps here to add value to the existing products.
Skill Development: To bring out skills, use them properly, utilize them well, and efficiently
work with these skills, innovation is a must thing to do. So as in Chilly’s.
Creating Market: Innovation is always vital at workplaces as it gives businesses’ an edge in
penetrating a market faster than ever and provides better connections for the development of
markets. This perception leads to higher opportunities, better outcomes.
Modern Business Model: Innovation changes the business model or brings changes to that
which can be easily accepted and adapted by today’s workers and this modern world. Keeping
balance over the time, innovation brings new significant modifications.
Solving Issues: In a company, it always solves problems easily. There are creative answers
against those problematic questions of a business because of innovation.
Increasing Productivity: The productivity can also be increased by innovation. Measuring the
ups and downs, and coming with new productive concepts, the good can be made well, can fix
the needs of consumers well, can meet the demand and requirements that consumers seek often.
As the demand rises, the productivity rises by its own. One last importance is that it wills to beat
competitors of today’s competitive world.

Comparison with Invention

Innovation Invention
1 Innovation always implies an 1 Invention refers to occurrences of ideas
. implementation for the product idea and . for an unknown product which is not
 process in the beginning. developed before.

2 Adding value is always important and 2 On contrary, invention is the creation

. necessary in all aspects which is done by . only that doesn’t add value.
innovation.
3 It works with continuous practices and 3 But invention is the result of scientific
. creates a store of marketing, technical and . skills only.
strategic skills.
4 Thinking innovatively, it becomes much 4 Invention does not ensure any kind of
. easier to compete with other business that . competition.
are holding places beside the one. This head
to head challenge can be more efficient and
effective when the business is growing
innovatively.

The advantages are brought by applying innovation and understanding the importance of it. To
grow the business up well, innovation can never be replaced.

P2: Explain how organizational vision, leadership, culture and teamwork can shape
innovation and commercialization

Chilly’s mission is to accelerate the adoption and daily use of reusable products. We keep an aim
to do that for an active urban lifestyle. With the perfect balance of distinctive style and unrivalled
performance. The result was Chilly’s Bottles. In pursuit of our mission, now we have expanded
the boundary to include a wider productivity.
There are organizational vision, leadership, culture and teamwork that affect the innovation and
commercialization often in a positive manner. These effects are really necessary for shaping the
innovation and commercialization and are unavoidable.

Organizational Vision: Vision is the future photograph of the organizations. Vision describes
what an organization is trying to achieve. This thinking has impact on the innovation and
commercialization. The future plan says what one needs to do today, and guides to grow the
company.
While commercialization means the process of bringing newer goods or products to market,
vision tells what are going to be in the market, how are they going to exist and hold customers,
what will be told to the consumers, how will products be satisfactory to the consumers, is the
target being met or not.
Leadership: There can be nothing that can remove the necessity of a perfect leadership. A leader
is always needed to lead, give directions, motivate employees, inspire them and bring out the
main goal. In both innovation and commercialization process, there must be a leader who can
invent newer systems to carry the new invention and to give them to the target hands. Leader
measures everything and take decisions upon that. Chilly’s was leaded by James Butterfield and
Tim Bouscarle who aimed and proved that.
Culture: In this very big world, there are thousands of cultures that have impact on their people.
Sometimes, a culture gets effect from a totally different culture. These are the influences that
cultures put. The culture of all Asian countries are different. Chilly’s is in the United Kingdom,
UK’s people’s need and Asian people’s need will not be the same. The commercialization
culture is rapidly growing in UK.
Teamwork: There is always a team that make things work out. Even in the innovation and
commercialization, a teamwork is always necessary. To make things happen, to bring them to the
profit, team works like the right hand of a business.
An innovation is driven by individuals. So, it takes teamwork to gather different skills from 5 or
10 different team- members. Also, there is a value added of teaming up for the
commercialization.

This is how the innovation and commercialization are shaped by the vision of the organization,
perfect leadership, cultures and teamwork.
LO2: Explain the different types of innovation

P3: Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.

There are 4P’s that are well described by Tidd and Bessant. 4Ps are important to explore the
innovation space.

4Ps of Innovation
4Ps stands for the innovation mix that can lead to the exploration of its space.

Product:
A product is the good or service that has been
Product Process manufactured or modified with an intention to earn
profit.
4Ps of Product innovation refers to, when the manufacturer is
Innovation
redesigning or redeveloping an existing product. So,
this is what product innovation means.
Position Paradigm
To say in accordance with Chilly’s, the existing
products are bottles. But, what Chilly’s did was, they
redesigned the bottle, made it capable enough to keep
Figure 1 (source- self)
water cold for 24 hours, and redeveloped it. This is what
product innovation is.

Process:
The process innovation focuses on the processing. To say differently, its main concern is to give
attention to the process that how the products are being manufactured and delivered.
Chilly’s concept was clear that what are they going to made. But, here a new question arises that,
HOW? Answering to this HOW, Chilly’s decided that they are going to follow the regular flask
making method, or to follow the thermos. Or, they are going to adapt something new which can
bring significant beneficiaries.

Position:
Modifying or repositioning the perception of an established product in a specific context means
position innovation. Chilly’s follows this innovation whenever the change of the perception
becomes necessary.

Paradigm-Innovation:
When the product is completely changed, which means it vanishes the previous characteristics, it
is called paradigm innovation. It works with people’s needs and necessaries. Basis on this, this
innovation is also adapted.ok
Innovation-Funnel
Innovation funnel is actually a mechanism that enables a constant stream of ideas that can be
screened for viability. It is also referred to a Funnel Management Process, and again a very
popular approach for innovation which can be used by different firms. Its target is to create
innovative and realistic action plans.

Innovative-Funnel to Examine and Shape Innovative Ideas

Innovation funnel is a common model used by many companies to evaluate idea and
conceptualize products.
Chilly’s follows innovation funnel for the opportunity assessment, insights-based ideation,
conceptualization, evaluation and benchmarking and so on. We have been able to encourage free
thinking and generation of the ideas when ensuring the execution of these new ideas is
completed with all necessary governance at the same time. By analysing the information that has
been received, Chilly’s do examine, observe and shape an idea model.

P4: Explain developments in frugal innovation and provide examples of how it is used in an
organisational context

1. Define frugal innovation and the case for frugal innovation, you must provide recent
examples of how organisations use it to support your answer.
Frugal-Innovation
Frugal innovation is also called frugal engineering. It is a process of reducing the complexity and
cost of goods and also the production. It means removing the nonessential features from a
durable products with a will to sell them in under-development countries.
China’s Haier washing machine, BYD lithium-ion batteries, Egypt’s ADAPT housing are the
examples of frugal innovation. The 6 approaches organizations would take in today’s time while
adopting frugal innovation-

1. Setting audacious objectives

2. Focusing on customer needs
3. Teaming up with innovative partners
4. Making the most of what businesses already have
5. Identifying and overcoming potential obstacles

Frugal innovation leads to all those innovations are can be produced better, cheaper, faster all
together.

Developments in Frugal Innovation

Frugal innovation is aimed for bringing products and systems within the reach of billions of
suffering and emerging middle-class consumers. By cutting out costs significantly at the time of
safeguarding user value, this innovation opens opportunities newer business models. It may well
disrupt the innovation processes in the entire economies.
The usage of frugal innovation in an organizational context
Frugal innovation is relevant to organizations. The re esources are increasingly scarce and
organizations are looking for ways to do more with less. The frugal approach can be applied to
intellectual and skilled resources as much as to physical ones – something of relevance in a
world where R&D productivity is increasingly an issue. For example, the Indian Mangalaayan
Mars orbiter spacecraft was successfully launched in 2013 at the very first attempt. Despite the
complexities of such a project this was developed 3 times faster than international rivals and for
a tenth of their costs. Its success is undoubtedly attributed to frugal principles – simplifying the
payload, using innovative materials, re-using proven components and technology, etc.

There are six core principles which help organizations begin to think about starting with frugal
innovation. They are-

1. Simplifying: It means not dumbing down but distilling the key necessary functions.
2. Focusing on value: It creates relevant value to the product of an organization which
includes overshooting or avoiding waste.
3. Not reinventing the wheel: Adapting, adopting, re-using and recombining ideas from
elsewhere is mentioned under this step.
4. Thinking horizontally: It opens up the innovation system or process and engage more
minds to the job.
5. Platform thinking: Building a simple and easy-going frugal core and then adding modules.
6. Continuous improvement: evolving and learning regarding, best is the enemy of better.
LO3: Discuss the process required to commercialise innovation

P5: Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.

Funnel
A sales funnel is designed like an inverted pyramid, similar to real-world funnels, to which the
metaphor alludes. The width of each part of the funnel reflects the size of the audience, with the
top of the funnel being the widest and the bottom being the smallest. Understanding the concept
of sales funnels is significant because it’s a valuable model for visualizing the customer journey
from initial consciousness all the way through transformation. The sales funnel provides a useful
outline through which you can examine your business and identify areas for development.

For example, an e-commerce site Chilly’s Bottles might model their visitors in a funnel, and
recognize that there is a large drop-off in users between visiting the shopping cart and actually
finishing the transaction. By using this data, Chilly’s bottles can then form a suggestion as to
why this is the case and test ideas for improving adaptations rate, such as reducing form fields,
establishing faith with sales, making CTAs more projecting or posing limited time offers.

NPD
New Product Development (NPD) is a wide-ranging set of multi-disciplinary procedures that
transform a market opportunity into a merchantable new product to satisfy buyer’s requirements.
According to Wheelwright and Clark (1992), NPD is defined as effective activity organization
and management to bring products to market with low development costs and short development
times.

NPD is the main driving force of companies and dynamic for their organic growth. Insatiable
consumer appetite, strong worldwide competition, changing buyer’s behavior and technology,
force companies to invest in new products to succeed or for their survival. To keep up with the
new world market it’s one of the main thing for a company or a brand to come up with new
valuable products for which people are ready to spend all their money.

Intense global rivalry, rapid technology change and shifting patterns of world market
opportunities require companies to continually invest in NPD; if not for profit, then for survival,
and this is considered to be the key to success. The advance of new products and their
development is widely acknowledged as a significant source of competitive advantage.

A high percentage of new products fail when released into the market though NPD is very
important for both the present and future prosperity of companies. Research (Liberatore &
Stylianou, 1995; Twigg, 1998) demonstrates that most new idea concepts fail to become
commercial successes, without the aid of a structured process.
As the risks of failure inborn in every new product situation vary, so too do the returns. The
balance of funds, threat and incomes is a major criterion in deciding whether or not to proceed
with a new product.

With tinier life cycles and the demand for greater product variety, frequent pressure is put on
NPD teams to produce a wider and varying collection of new product opportunities and to
manage the risks allied with progressing these through from initial growth to ultimate launch.
Consequently in simple terms to minimize the danger of failure. In order to deal with this both
effectively and efficiently attention has been focused on systematic screening, monitoring and
progression frameworks.

P6: Build an Innovation Business Case for an organisation, including ways to access
funding

The business case that I want to bring up is the idea of my own. I will be describing a dream
company or brand which will need funding and the way it will work as well as its running
method.

Background and objectives- The dream innovation is going to be a product which will help
people breathe in a fresh environment. A product which will help and encourage people to make
this world a better place by using sun heat. This product will change many lives from dying. Our
idea is to make a product which will burn the wastage and keep the area fresh at the same time it
will not make environment pollution. For example we see in developing countries that they burn
their wastes and to dispose those wastes they are burning those and at the same time polluting the
environment. The reason why I am bringing this up is because I want a world free from pollution
for all of us. This product is actually a machine (the size is yet not defined) and we will be using
this machine as a disposing machine but it will fade away all the wastes without burning by fire
and without polluting the air. Though it will be burning those, without using fire and it will be
using the sun heat.

The gap between the current situation and the expected situation is a bit hard. For making this
really productive machine a company will need a huge amount of investments, support and at the
same time a huge number of well experienced workers including scientists. But if this becomes a
real thing our world will be a far better place for us for living and also for other living animals.

Some might say that it’s not a really good idea to invest a huge amount of money in this, and
also some might say that this dream innovation is only a dream which can never be true. But the
fact is in today’s world our technology has advanced a lot and it’s really possible for us to use
the technology and brain to make this place better. However, we need lots of researchers to
research how this thing can really happen and the key points of the invention.

If this invention comes true in near future this will be one of the biggest success in human history
and many other brand will be willing to invest for the betterment of this world. A brand can
supply this machine worldwide and this whole world can be a fresh pollution free land.

To establish this we will be needing support from all over the world. This is not for any specific
area or country so it will need patience, support, investments and best of the researchers.

Once we finish making this huge success it will be a big success for the human kind all over the
world, and surely it will change the whole scenario of this world and it will be one of the biggest
achievements this world has ever gotten.
LO4: Evaluate the range of methods for protecting ideas and understand their advantages
and disadvantages

P7: Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property

As your new experiment comes to light, your initial thought may be to let the world know. While
shouting your success from the rooftops is tempting, before you do, you need to consider how
best to shield what you have worked so hard to grow.

Patents and copyrights can offer you some safety. But it doesn’t always mean that your design is
completely protected, as copies can certainly emerge. Nevertheless, a number of other options
are available to you, each with their own powers.

Patents: The most unusual way to guard your intellectual property is not to file patents. Filing
patents offers the recipe of how a product or service can be created. Once a recipe is published,
one can create a similar product with workarounds to not disrupt the intellectual property rights.
The second method is to standardize the idea with a standards association, so that others are
jammed from creating such an idea.

Run: Revolution in the tech sector will always be prone to plagiarism. To some extent, that's
what pushes innovation's evolutionary jumps in such quick succession. Having ruthless
innovation series keeps your challengers persistently catching up. That does require your
company to run like an Olympic runner — lean and fast.

Developers: It may seem counterintuitive, but it is one of the best ways to build a competitive
improvement is to open-source your technology and tap into a broad unrestricted numbers of
developers.

Ownership: Make sure to avoid joint ownership of intellectual property at all costs, because it
creates huge problems in the long run.

Separate teams: You must need to have separate teams to look after different sectors of the
company. If you do not have many people for different sections it might be a mess. This is why
different numbers of people for different sectors is a must.

Keeping it out of sight: Classic ways of shielding IP often involve patenting or copyrighting
works and techniques, and dynamically shielding them in court. Modern techniques involve
using Digital Rights Management systems. A now somewhat rare way that is still effective is to
simply keep things secret and limit revelation to the trade secrets that make up the IP, and design
the system to keep them secreted.
Domain: If you can, one of the best intellectual property securement approaches for trademarks
(that you actually own) is an exact-match domain name. It might be costly but it secures the
brand name and represents one of the best ideas of business.

Assistance & Agreements: Get support with creating well-written non-disclosure contracts.
Also, look at any other arrangements you use in your business to make sure they cover your
intellectual property.

Strong Access Control: Store scripts, creations and all ideas in a safe place that’s protected by a
self and access-management resolution.

Wide publicity: To reach maximum number of people you need to widespread it.