Innovation Market and Investment Assignment

TASK 1

P1: Difference between innovation and invention and importance of innovation to organisation

Innovation refers to making new and innovative changes in existing products in order to maximise value or product whereas invention refer to create something which are not yet introduced in market. Therefore, innovation and invention both are different concept and contribute maximum to an organisation to achieve competitive advantage in market. Rowlinson Knitwear deals in providing school as well as corporate wear garments thus should required making suitable changes in their clothing product in terms of pattern, design, colour etc. on the basis of needs and requirements of customers.

Comparison between innovation and invention

Importance of Innovation to organisation

Innovation brings company into stronger position in competitive market and allows them to compete with their rivals in an effective and efficient manner. The management of Rowlinson Knitwear are liable to implement an effective strategies regarding adoption in innovation in their department so as to reduce wastage and increases profitability (Baily and Chakrabarti, 2011). The company can bring innovation in their features of products such as changing pattern, design, colour etc. of clothing product which attracts more professionals. For example, according to the needs and demands of customers, the production department put certain changes in their existing clothing product in production process through implementing an effective and advanced technology. Along with this, there are many other benefit so innovation as well which are as follows:

Application of best method: As there are various departments in Rowlinson Knitwear who works different business activities to achieve common organisational goals. Such department includes production, marketing, finance and operation... Therefore in order to provide quality products to the customers the company must require to communicate with their customers about the extra value they attached with their product which makes them different from their rivals. Innovation guaranteed success thus essentially required to be adopted in different processes of business activities. For example, Developing new ideas to market their product which attracts lots of customers, the management need to adopt innovative methods such as giving advertisement on Social media, radio etc. where lots of customers are active. Adopting such channel of marketing forcing customers to pay their attention on company’s products at once.

Competitive advantage: Making improvement in existing product through building new design, pattern, colour etc. as per the taste and preferences of customers will help company in competing with their rivals in more effective and efficient manner. Adoption of cost effective techniques in production process and build demanded changes in existing clothing products help company in gaining competitive advantage in market and thus can survive for longer period of time.

P2: Contribution of organisational vision, leadership, culture, teamwork in innovation and commercialisation

Company’s vision, leadership, culture, team efforts gives maximum contribution in implementation of innovation in business activities. The management of Rowlinson Knitwear is liable to formulate a decision and plan regarding achieving company’s vision and objectives and accordingly implement suitable techniques and tools which help them in achieving within short period of time. The employees working in an organisation must be aware about what company wants to achieve in future which brings motivation among them to perform allotted task within given time frame (Camisón and Villar-López, 2014). In this, Leaders play an important role in motivating workforce to focus on goals and objectives and perform accordingly. Implementation of new technology in production and marketing process will increase interest of customers to give their more efforts in making business more successful. The manager and leader need to determine all such aspects first which forces them to make critical thinking about adoption of innovation in business operations. Such aspects include:

Vision: It refers to the target identified by management through forecasting in order to achieve in future to achieve strong position in market and sustain for longer period of time. As Rowlinson Knitwear is small-sized clothing company who wants to expand its business operations to achieve huge profitability therefore their main vision is to increases in the size and capacity of business. This can be possible only when they make changes in their products according to the needs and preferences of customers (Cimoli, 2013).

Culture: The growth and success of very organisation is based on the workforce who contributes their valuable efforts in achieving desired goals and objectives of an organisation. Thus, having differences among between them due to having different cultures will make huge impact on the performance of company. Differences in cultures rises communication gaps du to which the enhances of misunderstanding among between them is more. Therefore, the managers and leaders are more responsible to eliminate such cultural differences through creating communication channels though which the employees and managers can easily communicate with each other’s without facing any interruptions.

Leadership:  An individual becomes good leaders when they have proper knowledge of using innovation to motivate worker to perform well. For example, implementing advanced technologies in working process enhances the interest and working behaviour of employees to focus on target and perform in an optimum manner. The leaders should required to give more freedom to their employees to perform in their way which increases the changes of generating new ideas and methods by employees while completion of allotted business activities (Crossan  and Apaydin, 2010).

Team work: Motivating employees to perform with their co-workers always brings maximum result to company. As working with different skilled and knowledgeable employees provides an opportunity to employee to learn something new from their co-workers and get enough support from them while performing particular business activities. This will increases the knowledge and skills of employees and motivate them to work in different areas so as to get promotional chances in an organisation. Working with others also increases the chances of generating new ideas and methods of completion of task which help them in achieving team goals within short period of time.

TASK 2

P3: Analysis of 4P’s of innovation and application of innovation funnel in development of innovative ideas

4P’s of Innovation:

Process Innovation: It refers to an innovation which is required to be implemented in different process of performing business activities. For this, the management of Rowlinson Knitwear are liable to frost prepare an effective budget for particular business activity and accordingly execute and perform with the help of utilising available resources in an optimum manner. It will help in reducing wastage and achieve huge profitability by company. For example, implementing new ideas of promotion clothing products the marketing manager of Rowlinson Knitwear should focused on using social medial tool through which they can successfully market their product and inform their loyal customers about the quality, price and unique attribute of products (Edquist, 2010).

Product innovation: It means the modification done in the features of existing product with a motive of increasing value of product so as to maximise the level of satisfaction of customers. It can be done with the help of taking support from R&D team who providing them sufficient information about the changes required in product through conducting research on customer’s taste and preferences. It helps company in retaining loyal customers as well as attracting new customers towards purchasing company’s product.

Position innovation: It means the changes in relation to the interest and perception of customers during purchasing company’s product. It is the responsibility of management of Rowlinson Knitwear to analyse the thoughts and views of their customers in relation to their quality of their product and whether they are satisfied with the product after using product. The company also made changes in order to attain strong image in market so as to recognise by customers easily through seeing their logo, symbol and quality (Filippetti, 2011).

Paradigm innovation: It involves the changes in the business structure in order to create good atmosphere at workplace which help in increasing motivation and confidence level of employees towards performing their allotted task. It can be done with the help of management who need to create platform where the manager and employees both can communicate with each other and discuss about future plans and policies.

Innovation funnel:

It refers to the changes or modification done in the characteristics of products so as to maximise their value and satisfaction level of customers after knowing what changes the customer required in company’s product. It can be done by the management through following three steps:

Wide of mouth: In this process, the management should focus on creating new ideas and techniques through which they can implement innovative changes in their product and working structure with the purpose of increasing the satisfaction level of customers as well as employees which brings beneficial result to them in near future. It can be done with the help of management who need to first analyse their rivals strategy, requirements of employees at workplace, demands of customers etc.

Selection of idea: In this process, the management focused on choosing one best and profitable idea among different options after evaluating the possibilities of getting possible outcomes in near future. It will require to have good skills and knowledge of manager to select one option among various (Gray, 2011).

Implementation of ideas: In this last process, the managers of Rowlinson Knitwear decide to adopt changes practically on the existing products after executing plans for successfully implementation. While adopting changes, the management should take customer’s needs and requirements on first priority so that they can keep their customers with them for longer period of time.

P4: Development of frugal innovation

Frugal innovation: It involves the actions taken regarding removing features from products which are not attracted and influence interest and buying behaviour of customers. The management of Rowlinson Knitwear need to first the identify that which features of their product are not useful in bringing attention of their customers and accordingly make changes. Sometimes, the colour or design etc. of professional wear products are not accepted by corporations due to which customers may show less interest in purchasing tier product. Therefore, the management need to take crucial action of removing unwanted features and adding value added product so as to maximise the level of satisfaction of customers. Removing unwanted features will help company in minimising the cost of production due to which they can invest saving amount in building new features in product. For example, Rowlinson Knitwear manufactures corporate wear garments implementing some designs in it which are not allowed to wear such designed clothing product in corporations due to which the customers refuse to buy such clothing product. This will make huge impact on the sales figure of product as well (Gronum, Verreynne and Kastelle, 2012). Therefore, the management need to remove such unwanted features in order to retain commitment of loyal customers towards with the company. Implementation of frugal innovation brings beneficial result to company which are defined as below:

Minimising production cost: As eliminating unwanted features such as design, pattern, and buttons etc. from the clothing product will help company in minimising their cost of production. For this, the management need to direct their production department not to add unwanted resources in their product which restrict buyer’s behaviour and interest toward purchasing their clothing product.

Development of new feature: It is not enough for company to remove unwanted features from their clothing product as it is also required to add extra value to produce in replacement of unwanted material in order to make product more valuable. Replacing wanted features and adding value added feature will help company in increasing their sales figure of product and generate huge revenues.

Application of new technologies: Adding value to product or removing unnecessary required features from product required company to have advanced and updated technologies through which the employees of different department can perform their actions regarding improvement of products. It will help in maximising the efficiency level of employees and motivate them to add feature in product which are more in demand.

TASK 3

P5: Use of NPD for innovation and commercialisation and importance of commercial funnel

Commercial funnel: It refers to the changes in perception and interest of customers while buying company’s products and services. It sin important for every organisation to first identify what customers feels after using their product and find out whether they are satisfied with the quality or features of products. Therefore, the management of Rowlinson Knitwear need to conduct research on customer’s perception and on the basis of collecting information the management need to find out effective methods to enhance interest and buying behaviour of customers. Implementing extra value added product will easily attract large number of new customers and retain loyal customers.

Importance of commercial funnel:

Rowlinson Knitwear can achieve profitable outcomes after application of commercial funnel which are briefly described as below:

Improvement of quality: In order to change perception and buying behaviour of customers, the company need to make regular changes in their products so as to exist in market for longer period of time. Good quality products can easily attracts customers towards purchasing company’s product therefore the management of Rowlinson Knitwear need to focus on producing clothing product with optimum quality after adding some required features which easily can grab an attention of maximum number of customers and changes their purchasing decision as well.

Increases in profit: Providing good quality products not only help company in changing perception of customers but also help in increasing profitability. If the purchasing decision of customer are in favour of company’s product then it will directly make positive impact on the sales figure and revenue of company (Dries and et.al., 2014).

Improvement in goodwill: Implementing value added features in the products in order to maximise the interests and buying behaviour of customers,  the company can easily attains good image and reputation in market u to which they can able to attracts lots of customers.

New product development

It is the process in which an organisation introduce new product into market with new design and features with the purpose of maximising the satisfaction level of customers and increase market share of company. As Rowlinson Knitwear manufactures only school and corporate wear garments due to which they attain limited market share. Therefore, in order to attain huge customer strength the company must required to produce wide range of clothing products for every group of people which help them in achieving huge profits as well. Thus, to bring new product the company should required to follow below steps:

Generation of idea: At this first stage, the management of company need to develop new and innovative idea reading launching new product into market in which customers’ satisfaction level should be taken on priority.

Screening of idea: In this, the manager needs to opt one best idea among various options in order to sustain in market for longer period of time.

Defining concept: In this, transmitting of selected idea from management to employees with the hope of getting adequate support from employees from different departments.

Business analysis: In this step, the manager examines the effectiveness of decisions regarding launching new product into market.

Product development: In this step, the management concentrates on developing product through using advanced and updated technology in manufacturing process. Providing quality products always ensures in getting success of such product in market.

Test marketing: At this step, the management need to take decision regarding adoption of marketing tools through which they can grab an attention of large number of customers towards new product.

Commercialisation: In the last step, The management reviewing all above steps and accordingly take corrective actions and plans in order to make new product more successful in market.

P6: Development of innovation business case

Rowlinson Knitwear is small-sized organisation which deals in providing school and corporate wear garments to the people of UK. Thus, an organisation always tried to focus on expanding business to large scale due to which it is required to present business case which are given as below:

Executive summary: Rowlinson Knitwear, a UK small-sized company which deals in manufacturing school as well as corporate wear garments thus has attained limited market share. To expand business across worldwide, the company need to make proper plan and strategies in order to sustain in new places for longer period. The main objective of company to provide quality clothing products through adding some features which are not yet available by their rivals (Brettel and Cleven, 2011).

Target: The management targeting their particular segment which are school and corporate wear people. Thus, their needs and preferences are targeted with an objective of fulfilling them as quickly as possible so that their level of satisfaction are maximised.

Solution: This can be done through R&D team which is liable to conduct research in which the feedbacks and views of targeted customers are collected so that the management are able to bring out maximum solution in order to maximise their level of satisfaction.

Why product is innovative: It is essential for management of Rowlinson Knitwear to make changes in their existing clothing products according to the needs and requirements of targeted customers after collecting feedbacks from them. For example, implementing changes in design, pattern of clothing products will easy grab an attention of loyal as well as new customers.

Research on customers: The management of Rowlinson Knitwear need to conduct research on customer’s perception and vies after using their product and accordingly take further actions. The changes in needs and preferences of customers changes frequently due to which it is required to carry research and identify current trends in order to retain loyal customers for longer period of time.

Designing and development of plan: The management with the help of their employees can implement plans into actions in order to achieve best possible outcomes.

Investment requirements: Finance department is liable to fulfil funds requirements in executing business operations without facing any discrepancies. For this, it is important for company to strong their financial position through approaching different financial institution to grant them loan of required amount. Such sources includes banks, venture capital, crowd funding etc. which supports an organisation to adopt innovation in their business operations. To take loan amount from such all sources, the company required to present their financial statements which ensure investors to get maximum return on their investment in near future.

Expected benefits: The management need to analyse whether adoption of innovation brings profitable outcome to company or not through collecting information from all departments. If the decision of adopting innovation bring profitable result then the management should think to adopt innovation in future as well but if there is no changes in profitability of company after adopting innovation then the management should restrict themselves to make changes in their existing products.

TASK 4

P7: Evaluation of the tools which are used by the organisation to develop, retain or protect knowledge and intellectual property rights

There are various tools with the help of which Rowlinson Knitwear can protect their intellectual properly rights. Such tools are:

Patent: It is an effective tool which company stop others to use their design, features etc. For this, they need to fill an application form regarding registering such design with name of company and submit it to the government.

Trade mark: It is also of an effective tool through which company can save their symbol, work line or tag from others and allow them only after permission.

Copyright: It is such a tool which stops others to copy their product and using their name in order to increase their sales and revenues. The company have full right to take legal action amongst them if any actions have been found (New Product Development Stages, 2017).

Conclusion

It has been summarise from the above project report that the organisation having an effective management who are capable to bring new and innovative ideas in order to implement them into action can easily achieve growth and success of company in market for longer period of time. In order to gain competitive advantage, the management need to focus on 4P’s of innovation through which they can attain huge customer strength as well.

References

• Antonelli, C., 2014. The economics of innovation, new technologies and structural change. Routledge.
• Baily, M. N. and Chakrabarti, A. K., 2011. Innovation and the productivity crisis. Brookings Institution Press.
• Brettel, M. and Cleven, N. J., 2011. Innovation culture, collaboration with external partners and NPD performance. Creativity and Innovation Management. 20(4). pp.253-272.
• Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of business research, 67(1), pp.2891-2902.
• Cimoli, M., 2013. Developing Innovation Systems: Mexico in a global context. Routledge.
• Crossan, M. M. and Apaydin, M., 2010. A multidimensional framework of organizational innovation: A systematic review of the literature. Journal of management studies. 47(6). pp.1154-1191

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