Unit 1: Exploring Business Mahnam

Learning Aim E: Investigate the Role and Contribution of Innovation and Enterprise to Abid
Business Success

1. Innovation
a) What does innovation mean?
Innovation is about putting a new idea or approach into action.
b) Example of a product/service you think is innovative:

IPhone by Apple is a famous product innovative example.

c) What makes this innovative?

The iPhone is revolutionary because it blends cutting-edge tech with easy-to-use design
and keeps improving. It's changed how we talk, work, and live.

The creative process is an approach to creativity where individuals/businesses go through a

deliberate process in various stages:

d) Sort the following stages into the correct order to show the creative process:
 Incubation – a period of reflection and working through ideas both consciously and
subconsciously.
 Implementation – when the ideas of process are put into action
 Preparation – researching or reviewing current products and processes to identify
areas of potential innovation
 Illumination – a “lightbulb moment “ when it can be seen how to turn an idea into a
reality.
1. Preparation 2. Incubation 3. Illumination 4. Implementation

Types of Innovation
a) For each of the types of innovation below, give an example of a business that has innovated
in this way.
Type of Innovation Explanation Business Example
Improving efficiency Introducing new manufacturing processes or Toyota Production System (TPS). TPS, which
techniques that are quicker/reduce faults etc includes just-in-time inventory management
revolutionized the automotive industry by
significantly reducing waste, improving
productivity, and enhancing product quality.
Improving profitability Introducing new manufacturing A retail company using advanced data analytics
processes/techniques that reduce costs or to optimize pricing strategies by analysing
something that allows a business to charge customer behaviour, market trends and
higher prices to increase revenue changing prices

Adding value to products Adding additional features/functions to Adding high-quality camera features to
products smartphones, such as Apple, enhances their
functionality and appeal, attracting customers
seeking advanced photography capabilities.

Adding value to services Offering something new/different/better to a A streaming platform, such as Netflix, providing
service personalized content recommendations based
on user preferences and viewing history.
Successfully exploiting a Developing a new product/ service that is Apple's iPod revolutionized portable music
new idea different or better than existing products players with its sleek design, user-friendly
sold by other businesses interface, and seamless integration with iTunes,
setting a new standard and establishing Apple as
a leader in consumer electronics.
2. Enterprise
Enterprise = identifying opportunities to develop business activities.

Different Approaches to Enterprise:

- Lateral Thinking (developed by Edward de Bono):
https://www.lateralthinking.com/what-is-lateralthinking What is lateral thinking?
(explain in your own words)
Lateral thinking means thinking outside the box, finding creative solutions by considering
unusual perspectives and making surprising connections.
- Why might businesses try to encourage lateral thinking from their employees?
Encouraging lateral thinking from employees fosters innovation and problem-solving, leading
to creative solutions, adaptability, and ultimately, business success.
a) Blue Sky Thinking = the business encourages ideas with no constraints (budget, equipment
etc) – anything is possible
- How might blue sky thinking lead to development of new products/services?
Blue sky thinking allows for unrestricted brainstorming, fostering creative ideas that may
lead to innovative products or services without being limited by budget or technical
constraints.
b) Chance & Serendipity = Unexpected events/discoveries that lead to new developments.
Choose an example from https://science.howstuffworks.com/innovation/scientific-
experiments/9-things-invented-or-discovered-by-accident.htm#:~:text=The%20idea%20for
%20the%20Post,was%20apparent%20until%20Fry's%20idea. and explain how this product
came to exist
One day, a batch of wheat-based cereal dough fermented accidentally. Instead of discarding it,
the brothers rolled it out into sheets. These sheets yielded perfect flakes when toasted, which
became a hit with customers. The brothers patented them as "Granose." W.K. explored various
grains, ultimately choosing corn for its crispiness. Securing the recipe rights, he established the
Battle Creek Toasted Corn Flake Company, launching Kellogg's Corn Flakes. John, feeling envious,
developed a rival cereal. Legal battles ensued, ending in W.K.'s favour, yet their relationship
remained strained until their deaths.
c) Intuition = following an instinct. Read https://www.cnbc.com/2018/05/23/how-to-trust-
your-intuition-like-apple-co-founder-steve-jobs.html and explain why Steve Jobs thought
intuition was important to being a successful entrepreneur.
Steve Jobs valued intuition for entrepreneurs as it allowed them to navigate uncertainty, make
decisions beyond data, and foresee market needs, fostering creativity and innovation.

Benefits and Risks of Innovation and Enterprise

3.
a) Sort the following into the correct column of the table below.

Improvements to products, processes, services and customer experience,

Business growth Failing to achieve a return on investment
 Smarter working (faster production, cutting costs, reducing customer waiting time etc)
Cultural problems (e.g. staff resist change in the way products are made)

Offering unique selling points Improved recognition and reputation.

Development of new and niche markets Insufficient support from leadership and management
Failing to meet operational and commercial requirements (e.g. Health & Safety regulations

Benefits of Innovation and Enterprise Risks of Innovation and Enterprise

1. Improvements to products, processes,
services, and customer experiences
2. Business growth
3. Smarter working (faster production,
cutting costs, reducing customer
waiting time etc)
4. Offering unique selling points
5. Development of new and niche
markets
6. Improved recognition and reputation
1. Failing to achieve a return on
investment.
2. Cultural problems (e.g. staff resist
change in the way products are made)
3. Insufficient support from leadership
and management
4. Failing to meet operational and
commercial requirements (e.g. Health
& Safety regulations)

E1, E2: Innovation & Enterprise

Choose one of the following companies

Netflix Tesla Dyson Amazon

a) What is the difference between innovation and enterprise? In essence, innovation focuses
on generating novel ideas and solutions, while enterprise involves turning those ideas into
actionable plans and initiatives within a business context.
Why are both important to your chosen business?
Both innovation and enterprise are integral to Amazon's success. Innovation drives new
ideas and opportunities, while enterprise ensures effective implementation and execution
to deliver value and achieve business objectives.

b) What has this business done that is innovative (give specific examples of products/services
and what makes this different or better than their competitors).

Amazon has transformed industries with innovations like Prime's fast shipping, AWS's
scalable cloud solutions, Echo's smart home tech, and Amazon Go's cashier-less stores, all
showcasing their commitment to convenience and cutting-edge technology.

c) How does the business encourage staff to be innovative?

Amazon encourages innovation by fostering a culture that values experimentation and
risk-taking. Employees are empowered to challenge norms, take ownership of projects,
and prioritize customer-centric solutions. With platforms like hackathons and recognition
programs, Amazon cultivates a dynamic environment where creativity thrives, driving
continuous innovation across the organization.

d) Has the business had any new ideas/products/services that failed? Yes, Amazon has faced
failures with products like the Fire Phone, Amazon Local, and the Amazon Dash Buttons,
highlighting the risks inherent in innovation.
Why weren’t these successful? What impact did this have on the business? The Fire
Phone faced challenges against established smartphone brands due to its high price,
limited apps, and lack of standout features. Amazon Local couldn't compete with rivals like
Groupon. The Amazon Dash Buttons had limited adoption and usability issues. These
 setbacks resulted in financial losses and highlighted Amazon's vulnerability to challenges
despite its success. However, Amazon used these experiences to learn and reinforce its
commitment to innovation.

e) How did the business develop this idea? Understanding how a business develops an idea
requires specific context or examples. Generally, businesses use methods like market
research, customer feedback, brainstorming, and experimentation to generate ideas.
Which approach to enterprise did/do you think the business used to be innovative?
Amazon employs both entrepreneurial and intrapreneurial approaches to drive innovation,
combining Jeff Bezos' bold vision with a culture that encourages employees to generate
and pursue innovative ideas within the company.

f) How has the business benefitted from its innovation/enterprise? (Use the table on your
worksheet to help you) Include evidence to support your answer. (this could include profit,
market share, product reviews etc). You need to explain HOW/WHY innovation/enterprise
has led to this benefit.
Amazon's innovation and enterprise have led to significant success. Groundbreaking
products like Amazon Prime and AWS have boosted profits and cemented Amazon's
dominance. These innovations have also delighted customers, with millions enjoying Prime
benefits and positive reviews for products like the Amazon Echo. Amazon's commitment to
innovation has strengthened its brand reputation, positioning it as a leader in forward-
thinking. Overall, Amazon's drive for innovation continues to fuel its growth and influence.

g) What was the greatest benefit that the business saw as a result of its innovation?
The greatest benefit that Amazon saw because of its innovation was likely its substantial
profit growth.

h) What were the risks involved in innovation/enterprise for this business?

The risks for Amazon in innovation and enterprise encompassed financial investment,
technological challenges, and market uncertainty. Developing new products or services
requires significant financial investment without guaranteed success. Innovations like cloud
computing or hardware devices pose technical challenges. Additionally, entering new
markets involves market risks such as competition and consumer adoption.

(Use the table to help you) How did the business overcome these risks? You need to
explain HOW/WHY innovation/enterprise has led to this risk.
To manage risks, Amazon prioritized customer-centric innovation, fostering a culture of
experimentation and quick adaptation. Utilizing resources for research, technology, and
marketing, it mitigated financial and technological risks. Additionally, its diversified
business portfolio spread risk across various markets and industries.

i) What was the greatest risk that the business took in order to be innovative?
One of Amazon's greatest risks for innovation was entering the cloud computing market
with AWS. Despite uncertainty, they heavily invested in infrastructure, leading to its
success as the leading cloud platform.

j) Did the benefits of innovation outweigh the risks for the business? Justify your answer.
Yes, the benefits of Amazon's innovation have far outweighed the risks. Innovations like
Amazon Prime and AWS have not only driven profits but also solidified their leadership
across industries. Their agile approach to experimentation has enabled effective adaptation
to market changes, demonstrating a clear advantage over risks.

k) What is the business planning to do next to remain innovative? Do you think this will be
successful? Why/why not?

Amazon plans to remain innovative by investing in emerging tech, entering new markets,
and enhancing customer experiences. These strategies are likely to be successful because
 they align with Amazon's track record of innovation and customer-centricity, positioning
the company to adapt to market changes and maintain its competitive edge.

l) Who are the business’s main competitors? Are these competitors as innovative as your
chosen business? Justify your answer, using examples of the competitors’
products/services/processes to support your answer.
While Google and eBay innovate in their respective domains, they lag Amazon in e-
commerce and retail innovation. While Google excels in search and AI and eBay
revolutionized online auctions, neither has matched Amazon's disruptive services like
Prime, AWS, and FBA. Amazon's relentless customer-centric focus and diverse innovative
offerings have solidified its leadership in retail innovation.

m) Do you think the business will continue to be innovative in the future? Justify your answer.
Yes, Amazon's culture of experimentation and customer focus, coupled with its diverse
business portfolio and investment in emerging technologies, ensures ongoing innovation.
With a proven track record of success, exemplified by products like Amazon Prime and
AWS, the company is well-equipped to drive future progress.

n) Why is innovation and enterprise important to this business? Why does the business place
innovation as one of their core values (see links below)?
https://jobs.netflix.com/culture
https://www.aboutamazon.com/about-us
https://www.aboutamazon.com/about-us/leadership-principles
https://careers.dyson.com/en-gb/who-we-are/
https://www.teslaforecast.com/about-tesla/

Innovation and enterprise are crucial to Amazon's success as they drive continuous
improvement, market leadership, and expansion into new sectors. By placing innovation as
a core value, Amazon fosters a culture of creativity and empowers employees to think
innovatively, ensuring the company remains customer-centric and adaptable to change.

In addition, prioritizing innovation enables Amazon to anticipate and capitalize on trends,

staying ahead of competitors and maintaining its position as a market leader.

o) Do you think that the business has/will achieve these goals for innovation? Why/why not?
Yes, Amazon is poised to achieve its innovation goals in the future. Under Jeff Bezos'
leadership, the company's culture fosters experimentation and risk-taking, driving forward
innovative ideas. With ample financial resources and a customer-centric focus, Amazon is
well-equipped to invest in emerging technologies and develop solutions that meet evolving
customer needs. Its track record of successful innovation further strengthens its position
to drive future progress.