Innovation is required in every business to modify process and method and produce new products and services. With innovation it becomes easy for them to compete in industry and sustain for long term (Capponi and et.al., 2019). However, it provides a direction in which organisation has to proceed. Moreover, in such a competitive business world it is necessary for companies to gain competitive advantage. Along with it, quality of services and products is enhanced and costs is reduced as well. Companies need to implement innovation in an effective way.
The assignment will reflect on importance of innovation and how it shapes culture, leadership, team work, etc. also, it will describe about 4Pâs of innovation and funnel. Moreover, development in frugal innovation will be explained. In addition to it, commercial funnel and NPD of innovation is determined. At last innovation case is described along with tools through which intellectual property can be retained and protected.
P1 Innovation and its importance with the differences with invention
Innovation can be defined as a process of improving effectiveness of a product by creating and improving them and adding some innovating features. In other words, it can also be said that it is a successful exploitation of new ideas for attracting customers and increasing sales by satisfying their needs and demands. There is some importance of innovation in the context of business and developing a new product as Sainsbury's want to develop organic food products and healthy drink. It thought about this idea because people of UK are becoming more health conscious and there is a high intensity of competition in this food and beverage industry. Some advantages which it can get by innovating its products and developing new product in existing market such as:
Increase productivity: The main benefit of innovation and developing a new product or organic food is, company can increase its productivity. People want to try something new, and they change their needs continuous manner so, by providing them new product or innovative product, an organization can attract wider range of customers (Yu, 2018). It will lead in increasing overall productivity and sales of the company.
Beat competition: Food and beverages industry of the UK is increasing and developing in a rapid manner and due to this development, it is increasing competition among players. Sainsbury's have several rivals or competitors such as Tesco, ASDA etc. For being in the competition it is important to provide attractive and innovative food products So, by providing organic food products and innovative product, Sainsbury's can beat the competition and become the market leader.
There is a difference between innovation and inventions. The definition of invention is the process of creation of a product and introducing it and it processes in the market for the first time (Giuliani, Martinelli and Rabellotti, 2016). On the other hand, innovation means to make existing products attractive as well as developing new product by adding some innovative features in them or make some significant contribution to an existing product, processes and services. In this context, it can be said that Sainsbury's introducing a new product in its existing market and to its existing potential customers. So, it shows that it is innovation and for that it will require to use some innovative strategies. So, it can be said that invention create something new and innovation creates something that sells.
P2 How vision, team work and culture shape innovation
In a business, innovation is shaped and implemented through its vision. This is because the company vision reflects its core values, ethics, etc. that makes things easy to get it done in proper way. However, vision statement of firm enables employees, managers, etc. to take effective decision and develop strategies that where innovation can be done and how it is implemented.
It is evaluated that another major factor is organisational culture. it is because culture depends on vision. Also, maintaining and having a positive culture creates a passion of doing something new. It boosts employee confidence and allow them to contribute in developing new product or innovation (Chen Â and Vanhaverbeke, Â 2019). Moreover, if culture is positive it automatically helps in shaping innovation. The roles and responsibilities are assigned to staff and along with it new goals and objectives are set. It highly impact on their behaviour in positive way. they are able to contribute in attaining goals. Besides that, managers also support in developing plans and implementing it.
Likewise, team work also play crucial role in shaping innovation. It allows staff to work in team and contribute in attaining goals. So, when innovation is implemented, various teams are formed and assigned roles and responsibilities. Thus, each employee works in team and they all share ideas and views with each other. the higher team work leads to increase in efficiency. Alongside, with proper communication activities are performed in effe