This unit is related with innovation and commercialize in their products in upcoming 12 months for innovating new products in order to remain competitive edge at market area.
An organisation have to develop new ideas and work on different thoughts so they can innovate services and products and run their business in right direction (Difference Between Invention and Innovation, 2016). Innovation is basically making modification in a product, system or service and develop something which is new for public (Aarikka-Stenroos and Sandberg, 2012). This project is based on a London based company, ROLI. This organisation is running their business in music technology industry and they have develop some very innovate products like Seaboard, also known as future Keyboard. ROLI is a SME and around 200 people are working in this firm. This file will contain content about different between innovation and invention. It will also talk about various factors like culture of firm, leadership etc. which promote innovation in the enterprise. 4P's of innovation and frugal innovation will be explained in this assignment. Few concepts like new product development and tools of gaining intellectual property right will get discussed at the end of this report.
P1 Significance of innovation and its difference with invention
Whenever new idea or product enter in society then it is simply known as innovation. Their are various sources of innovation which are as follows:
Unexpected – All the business and other type of organisation conduct activities relating to research and development. At the time of doing different experiments, they get unexpected outcomes which sometime result in unexpected innovation. Their is no guarantee that the innovation help company in attaining their goals.
Process need – Right process is key to desirable result. If an organisation is not performing to their expectation then they try to make changes in their their working procedure. They have to add or subtract something from their present working system which ultimately become a source of innovation (Bagchi-Sen, 2011).
Change in perception – Perception is the way of a person or organisation about what is their opinion on something. Their are few enterprise who were against automation but when they saw other companies at using this new technology then their perception got changed and they also started concentrating on innovative systems which can be used in their organisation.
New knowledge – Whole world is trying something new and doing research in whatever field they are operating. When they release news about what new they have found or developed then it allow other firms to add and innovative something new because of the new knowledge (Bogers and West, 2011). Apple and Virgin group has used different sources of innovation for earning competitive advantage on their rivals. Innovation may give an organisation extra edge but invention is something which make them unique. Invention is creation of new device, process or method which come first time in this world and it is beyond the imagination of people. It comparison with innovation is as follows:
Innovation can be done by modifying a product or service.
Invention happens when inventor create completely new product or system. It is something which has not come in the mind of people.
One of the main purpose of innovation is commercialisation.
Their is no surety that it get commercialise.
Innovation can only happen if company or employees have sound technical knowledge.
Invention cannot be done if a person do not have high curiosity.
Eg. Smartwatch is an innovation.
Eg. Creating a device which shows time i.e. clock is an invention.
Importance of innovation
- Innovation play crucial role in developing a better product of service for an organisation. ROLI used it for creating Seaboard which is not they key product and has significant contribution in companies revenue.
- Innovation forces employees of the company to think out of the box. This expands skills, knowledge and limits of the employees and help them in attaining fast promotions.
P2 Role of organisational culture, vision and leadership in shaping innovation and commercialisation
Doing innovation require some motivation which sometime employees of the firm get from their leaders or culture of the enterprise. Below are few factors which shapes innovation:
Organisation vision – Innovation is part of Apple's vision. This company want to make great products and they can do it by doing continuous innovation. ROLI want to produce musical instruments for future and develop new technology in the industry where they are operating. This vision is motivating employees of company for innovation (Bogers and West, 2012).
Leadership – Virgin group is best example of leadership which allow employees of this company to use their creative mind and do innovation for company. ROLI also have a strong and fresh leadership and this company has improved version of democratic leadership style i.e. employees have a freedom to make most of the decisions at the time of working on a new product or idea.
Culture – Their are few companies who concentrate on innovation when they feel that they are losing market share. But there are companies like Apple who have a culture of innovation in the organisation. This company is highly dependent on their innovation and their culture is prime source of the innovation which they are doing without taking any pause. ROLI also have same kind of culture but they lack aggressiveness which is present in Apple.
Teamwork – Virgin group is present in many industries because this company firmly believe in teamwork. They understand that a single person have limited knowledge and creativity but if more people will use their mind and work on an idea or product then company can gain better results. Their is no doubt that teamwork promote innovation. ROLI also have various team and at the time of working on a problem, this company make teams so they can come with better and more innovative ideas (Ettlie and Rosenthal, 2012).
P3 4P's of innovation and use of innovation funnel for generating and examining innovative ideas
4Ps of innovation are product, process, position and paradigm. Every organisation make innovate various services, gadgets and system and in order to understand them in a better way, one can divide innovation in these P's. Below are 4P's:
Process innovation – Companies have different systems and procedures in the organisation which assist them in doing their work properly (Walsh, 2012). ROLI can improve the process of which they use for targeting their customer i.e. instead doing social media marketing, they can focus on making a process where they give equal importance to sponsorship activities and other types of promotions.
Product innovation – Seaboard is main product of ROLI and it is an example of product innovation. This company focused on smoothness, design and touch responsive surface at the time of making this product.
Position innovation – Introducing same product in different segment or market is known as position innovation. Reposition need lot of creative and ROLI can reposition their Seaboard if it start losing its charm in present market.
Paradigm innovation It is change in thinking process which motivate a person to start thinking in a completely different way. Henry Ford used this innovation at the time of giving something new to this world. He never thought about making a horse with 8 legs, he thought of a machine which is more powerful than horse and can carry more people from one place another.
The significance of innovation funnel is continuously enhancing because it is helping companies in surviving and proceeding in highly competitive business environment (Gambardella and McGahan, 2011). Their are various steps which are involved in innovation funnel but they can be divided into three steps. First is collection of ideas from all the available sources i.e. from employees, experts etc. If company will get more ideas then they will not face the problem of less option and they can chose suitable idea from available ones. Next step is to start screening them and check their feasibility, sustainable and how much contribution can chosen idea give to company so organisation can move forward toward their aim. Last step is to execute the chosen idea so company can develop fresh product and services. ROLI has to make sure that they do not ignore last step and give special attention to it because it is deciding factor and it play an important role in delivering results.
P4 Development of frugal innovation
Frugal innovation is known as application of creative ideas for removing various kind of elements which enhancing cost of business. Frugal innovation has various development stages and they are as follows:
Engage and repeat – A company can avail benefit of single innovation for a long period of time i.e. they do not need to innovate new products every months, they can repeat same process for producing own products. ROLI can continuously making Seaboard (their innovation) after making necessary modification in it. They do not need to make a new musical instrument every months in order to gain market share.
Bend your assets – ROLI do not have deep pockets, this is the core reason that they have to manage their resources in best possible way. Right now company is investing huge amount of money on advertising their products but they have to think about investing a decent sum on research and development so company can get financially strong and execute new plans relating to innovation (Godin, 2012).
Sustainable solution – ROLI are coping up with different types of problems. Frugal innovation strongly believe in finding sustainable solution of a problem and this is why ROLI take more time in resolving an issue because they know that they if they are working on a solution that it should resolve the problem on permanent basis.
Shape customer behaviour – ROLI has make regular interaction with customers so they can analyse their needs and make their products and services accordingly. ROLI is deciding behaviour of their customers but fulfilling their needs.
Provide value for money to customers – If an innovation does not reduce cost and meet expectation of customers then significance get down. ROLI is making sure that they do not only sell innovative product, they are also focusing on best customer experience (Thore, 2012).
Innovative stakeholders – ROLI stakeholders give creative suggestions to the company so they can modify their products and services. They are playing significant role in rapid and aggressive innovation. Workers, suppliers and customers are key stakeholders of this company (Huizingh, 2011).
P5 Significance of commercial funnel and new product development
Surviving in this business world is not possible if company do not introduce new products on continuous basis. Below are the steps which are involved in new product development (NPD):
Generation of thought – Innovation is nowadays directly connected to commercialisation. ROLI developed Seaboard when the idea of making a new instrument came in the mind of founders. An organisation can have million of thought and they should not say no to more ideas (Schoonmaker and Carayannis, 2011).
Idea screening – ROLI cannot invest money in every idea which they get so they have to start screening all of them in order to check which one is best for company. They have to focus on every aspects like profitability, feasibility etc.
Testing and development – One best idea is selected then next step is to test it by developing its sample or getting a demo. This help company is finding various flaws which are present in new product, service or system.
Product development – After removing all the possible flaws in a product, company have to start it production so they can deliver the product to the customers (Kim And et.al., 2011).
Commercialisation – The process of making a product marketable is equally important compared to commercialisation. ROLI also have to think about aggressive marketing of their Seaboard.
Launching – This final step is related to showing introducing real product in the market. It can be done by adopting various modes like organise event.
Commercial Funnel and its importance
Commercial funnel provide knowledge to an organisation about how much money they can earn from Implementation of an idea. The first step of commercial funnel is to collected all the plans and ideas which company can consider for increasing their profits. Once they evaluate all the thoughts then next part of this process is check profitability and return rate of every idea so managers can choose best. The last part of commercial funnel is to select suitable plan which does not contain high risk and investment (Wonglimpiyarat, 2011). ROLI can avail various kind of benefits by assuring optimum utilisation of this funnel. Importance of commercial funnel is mentioned below:
- Increment in profit and salary - Employees understand that when company will gain benefit from innovation and commercialisation then it will make a positive impact on their salaries.