M/508/0494 - Explaining Use Of Innovation Funnel

TASK 1

P1 Innovation and its significance as compared to invention

Innovation concept is dealing with conversion of an idea into product or service for which buyers are willing to pay. A new idea is very essential for any innovation and individuals or entrepreneur are require to come up with creative ways and new ideas for doing things in different way. Bringing innovation within firm provides competitive advantage to company within market. It assists in making business distinctive from others. Its contribution is very high in success as well as growth of firm. It is like catalyst for firm as it assists in growth by providing competitiveness to company.

There is a difference between innovation and invention. Bringing innovation within company doesn't mean it is invention (Difference Between Invention and Innovation. 2016). It refers to the process of change and adapting themselves as per the changes takes place in environment. Innovation assists in delivering such goods and services that completely satisfy needs and requirements of customers. If a innovative culture is developed within firm, employees are being more creative and an ability is developed among them for solving problems in effective way. It is believed that sustainability of a business organisation highly rely on innovation. So, firms are require to constantly innovate in their goods and services for maintaining their position in market for long term. The success key of every business organisation is unique and creative idea (Bagchi-Sen, 2010). Currently, significant profits are earn by Unicorn Grocery in market but, there are some other firms which offer similar products. So, for maintaining its position in market and gaining high competitiveness, it is required by firm to do something different. So, management has takes decisions for launching an mobile application so that time, efforts and energy of firm as well as its customers can be reduced. They also emphasize on making their layout properly structured in order to make it easy to find product. Some advantages of innovation gain by firm are defined below:

• One of the greatest means to create unique selling proposition for specific process or goods is effective innovation.
• Higher profit & sales are yield by company.
• Increased motivation, retention of workforce and flexible recruitment.
• Helps in developing good brand image or brand.
• Innovation is the best way of gaining high competitive edge and acquiring large portion of market share (Bogers and West, 2010).
• Improved productivity as well as performance of company and reduces its cost.
• Speedy increment in satisfaction level of buyers or consumers.

Comparison between Invention and Innovation:

Innovation

• Innovation occurs when significant improvements are made in existing goods and services.
• It is a comparatively discrete creative act in which the product or service is completely new or which never exist before.
• It refers to a modern idea that can be applied to existing situation.

Invention

• Invention is a practical aspect and can be assessed by people.
• It is about making product reach to final users or make it marketable.
• It is a alteration of novel notion in substantial idea.
• Innovation consist of amalgamation of different products or processes.
• The concern of invention is single product or process.

P2 State how organizational vision, culture, team work, leadership can shape innovation and commercialization

Unicorn Grocery is a UK-based small co-operative store that is democratically controlled and managed by its members. The company mainly deals in offering fresh, dried and processed food and drink that is made up of organic ingredients. It also deals in selling general grocery items, body-care and household items. In order to cope up with other rivalry firm, the company has decided to do innovation in the form of launching its own mobile application through which they are able to sell their product to target customer (Ettlie and Rosenthal, 2012). The reason for doing this innovation is because in modern era, most of the customer prefer to buy goods via online platform.

Commercialization: It is important for every business entity to identify problem first that are prevailing in the company and are required to be solved. After determining the issue, firm needs to evaluate various source that help in formulating best possible solution for the given problem. After gathering data from analysis, designing and development of product is done. Next step deals with testing and sampling of innovation that is going to render specific information concerned with product cost. After getting positive response from prototype, company finally introduce new product in the market. But for carrying out all these in systematic manner, business enterprise needs to look into its vision, leadership, team work and culture.

Vision: The vision statement of Unicorn Grocery is “to have strong market and customer base by providing such goods and services to target customer that creates values for them”. From its vision statement, it can clearly stated that referred firm is they are carrying its business operation accordingly. Their members have identified that consumer prefer to buy products through online channel and as a result, the have decided to introduce its own mobile application (Gambardella and McGahan, 2010).

Culture and Team Work: Unicorn Grocery is promoting healthy and positive working environment as the firm is wholly controlled and managed by its members. This indicates that all its members contribute equally towards achieving business gaols and objectives in an effective and efficient manner. Employees perform according to the respective roles assigned to them. As it is a small scale organization, it believe in accomplishing task with team efforts rather than doing it solely.

Leadership: The leadership style followed by Unicorn Grocery is participative style of leadership. Under this, their members are equally involved in decision making process. This create higher sense of recognition and satisfaction among them. Additionally, the company provide freedom to workers which inspire them to generate more unique ideas (Godin, 2012).

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