Business Level 3 Unit 2 P2
Mr Daniel Green started Healthy Drinks two years ago. He started his business with a healthy milkshake in the UK market. Because of his innovativeness and eccentric capabilities, the company experienced increased sales in its first year. However, the company started facing difficulties in meeting its sales targets because too many competitors also entered into the market. Mr Green wants to add new range of drinks, juice or smoothie but he also wants to keep the current products. As an innovation consultant, I am going to examine the conditions in the company and recommend how the company can do better. The answers are prepared in a business report format to be presented to Mr Green. Task 1
P1. Explanation of innovation and describing its …show more content…
significance to Organizations compared to Invention.
Innovation: Innovation refers to the concept of introducing new concepts, ideas, models etc. Innovation is also known as the act of changing or modifying the current products by adding new features or values. Contrary, Invention refers to the concept of creating or making brand-new products.
The importance of innovation within organizations compared to invention: Invention refers to the idea of creating new products. While approaching this method, companies invent brand new product or services and try to sell them as new product line. On the other hand, innovation refers to ideas of adding or changing certain features in the existing product line. Its importance compared to innovation has been discussed below:
Business growth: In case of expanding the business, innovation could be more useful than invention. Rather than creating brand new products, organizations can change or add certain features according to the customer’s needs of different areas and sell them which would assist the companies to expand more easily (Hakkarainen and Talonen, 2014).
Customer satisfaction: When a new product is invented, the organizations would have to go through the same process of advertising & promoting which can cause price increase leading to customers’ dissatisfaction. In such case, innovation might just work by adding certain features to the existing products according customer’s needs.
Increase in sales: If this is analyzed in the context of Mr. Green’s juice business, then it can be seen that applying the approach of innovation would be more appropriate for this organization. Mr. Green can improve the declining sales growth problem by innovating new features and adding them to the existing products to create more value. If Mr. Green attempts to invent new features or new idea or new product or services and create new product lines, the organization might not be able to increase its sales (Hakkarainen and Talonen, 2014).
Competitiveness: Again, if an organization wants to change or add any feature to an existing product or service, it would not require that much time & efforts as it would in case of invention. The organizations are operating in world that is facing rapid changes and they have to be competitive to cope up with these challenges. Innovative strategies in that case work best because according to these strategies companies do not abandon the whole process rather they modify the policies by adding or changing certain features. P2: Explaining the relation of organizational vision, leadership, culture and teamwork with shaping innovation & commercialization.
Vision: Vision is the long-term goal of an organization that is achieved by the effective leadership, culture and teamwork of the organization. An organization has a vision and a mission that is differentiated by long and short term. The product or service or idea an organization generates, it can be able to achieve its mission in the short run but in the long run in this competitive market an organization needs to be innovative in its product or service features and ideas.
Leadership: Leadership is referred to the idea of guiding and directing a group of people to the right directions which would assist in achieving the ultimate goal of an organization. An effective leadership is needed for organizations to achieve its long-run goal. Leaders of an organization always looking for new ideas, services and practices. Leaders take a decision that how a new idea or a new practice can be generated to the existing one and can make the existing product better than the new one of the competitors. Moreover, the consumers have faith in the product that they are using for years but the taste and demand of consumers always …show more content…
change.
Culture: The culture of an organization is also a factor that can shape the innovation and commercialization. Organizational culture refers to the values and perceptions nurtured within the organizational environment and it is deeply connected to the leadership style practised within the organizations. In case of Mr Green’s juice business company, they should apply participative or democratic leadership style which favour innovative & cooperative culture. This type of culture allows employees & staff members to share their innovative ideas and shaping the innovation & commercialization within the organizations.
Teamwork: Team is formed by including several individuals to achieve one common goal. Generally innovation refers to the addition of modifying ideas to existing goods promote those ideas. In such case, teamwork plays significant roles in generating best alternative ideas for both innovation & commercialization. Task 2
P3: Explanation of the 4p’s of innovation and the application of the innovation funnel for examining and shaping innovative ideas.
The 4p is described as the Product, Process, Position and Paradigm. These 4p’s describe how effective the product is, how much efficient the applied process is, the position of the product in that particular industry and how the innovation is looking to be successful.
Product: Product is something which is offered by the companies to the customers to satisfy their needs. The product can be a physical substance or services. Product innovation refers to the practice of adding more new prominent features to the existing product offerings of the company (Invention and innovation, 2012). When a company is going to innovate something or any new product, the contribution made by the product in the society must be evaluated.
Process: Process is defined as the application of methods, techniques, and ways in order to create & add values to the products, promote them in the market, and sell them to the target customers.
In this stage, the managers of Healthy Juice Company selects and applies their favoured strategies to change and sell the products. It is an important factor because if the process seems to be too costly and too long, the opportunity of commercialization will end up. So, process needs to be not much longer and costly.
Position: Position refers to the ways through which the organization would position its innovation or its product in the particular industry sector. The Healthy Juice Company is facing rapid decline in their sales growth. In order to secure their position in the market, the company must look for other markets in different regions where they can expand their business.
Paradigm: Paradigm of refers to the all possible chances and opportunities which can be used by the companies to innovate and boost their sales. Based on the available resources and capacities, the managers of Healthy Juice would decide which alternative would be best for the company to
adopt.
Figure: 4p of innovation Source: Invention and innovation, 2012
Innovation Funnel: Building an innovation funnel begins with strategic thinking that outputs of innovation are fully aligned with a strategic objective. The goal is to increase the overall value of the organization no matter how many sources are available. The ultimate goal is to create a strategic advantage in the marketplace, which adds value to the objective. (Keeley, 2013)
Figure: Innovation Funnel Source: Invention & Innovation, 2012
Application of the innovation funnel for shaping innovative ideas: Here the organization analyzes the existing opportuniites for the company’s products to attratct the customers in the market by evaluating the market data. The company then develops the ideas of different kinds of products depending on the information from market data analyses. The company then construct actual models from the developed ideas of the first step. The actual models may involve models for packaging or new values or features for the products etc. After constructing actual models the compnay test their capacities or attractiveness to the target customers by applying different methods such as choice modelling. After the information are extracted from the previous stage, the company can decide to re-test or apply the models directly. After completing the tests and collecting feedbacks, executives must make a go/no-go decision on whether or not the new product should be launched. Assuming at least one concept is given the go-ahead, it is launched into the market.
P1. Explanation of innovation and describing its …show more content…
significance to Organizations compared to Invention.
Innovation: Innovation refers to the concept of introducing new concepts, ideas, models etc. Innovation is also known as the act of changing or modifying the current products by adding new features or values. Contrary, Invention refers to the concept of creating or making brand-new products.
The importance of innovation within organizations compared to invention: Invention refers to the idea of creating new products. While approaching this method, companies invent brand new product or services and try to sell them as new product line. On the other hand, innovation refers to ideas of adding or changing certain features in the existing product line. Its importance compared to innovation has been discussed below:
Business growth: In case of expanding the business, innovation could be more useful than invention. Rather than creating brand new products, organizations can change or add certain features according to the customer’s needs of different areas and sell them which would assist the companies to expand more easily (Hakkarainen and Talonen, 2014).
Customer satisfaction: When a new product is invented, the organizations would have to go through the same process of advertising & promoting which can cause price increase leading to customers’ dissatisfaction. In such case, innovation might just work by adding certain features to the existing products according customer’s needs.
Increase in sales: If this is analyzed in the context of Mr. Green’s juice business, then it can be seen that applying the approach of innovation would be more appropriate for this organization. Mr. Green can improve the declining sales growth problem by innovating new features and adding them to the existing products to create more value. If Mr. Green attempts to invent new features or new idea or new product or services and create new product lines, the organization might not be able to increase its sales (Hakkarainen and Talonen, 2014).
Competitiveness: Again, if an organization wants to change or add any feature to an existing product or service, it would not require that much time & efforts as it would in case of invention. The organizations are operating in world that is facing rapid changes and they have to be competitive to cope up with these challenges. Innovative strategies in that case work best because according to these strategies companies do not abandon the whole process rather they modify the policies by adding or changing certain features. P2: Explaining the relation of organizational vision, leadership, culture and teamwork with shaping innovation & commercialization.
Vision: Vision is the long-term goal of an organization that is achieved by the effective leadership, culture and teamwork of the organization. An organization has a vision and a mission that is differentiated by long and short term. The product or service or idea an organization generates, it can be able to achieve its mission in the short run but in the long run in this competitive market an organization needs to be innovative in its product or service features and ideas.
Leadership: Leadership is referred to the idea of guiding and directing a group of people to the right directions which would assist in achieving the ultimate goal of an organization. An effective leadership is needed for organizations to achieve its long-run goal. Leaders of an organization always looking for new ideas, services and practices. Leaders take a decision that how a new idea or a new practice can be generated to the existing one and can make the existing product better than the new one of the competitors. Moreover, the consumers have faith in the product that they are using for years but the taste and demand of consumers always …show more content…
change.
Culture: The culture of an organization is also a factor that can shape the innovation and commercialization. Organizational culture refers to the values and perceptions nurtured within the organizational environment and it is deeply connected to the leadership style practised within the organizations. In case of Mr Green’s juice business company, they should apply participative or democratic leadership style which favour innovative & cooperative culture. This type of culture allows employees & staff members to share their innovative ideas and shaping the innovation & commercialization within the organizations.
Teamwork: Team is formed by including several individuals to achieve one common goal. Generally innovation refers to the addition of modifying ideas to existing goods promote those ideas. In such case, teamwork plays significant roles in generating best alternative ideas for both innovation & commercialization. Task 2
P3: Explanation of the 4p’s of innovation and the application of the innovation funnel for examining and shaping innovative ideas.
The 4p is described as the Product, Process, Position and Paradigm. These 4p’s describe how effective the product is, how much efficient the applied process is, the position of the product in that particular industry and how the innovation is looking to be successful.
Product: Product is something which is offered by the companies to the customers to satisfy their needs. The product can be a physical substance or services. Product innovation refers to the practice of adding more new prominent features to the existing product offerings of the company (Invention and innovation, 2012). When a company is going to innovate something or any new product, the contribution made by the product in the society must be evaluated.
Process: Process is defined as the application of methods, techniques, and ways in order to create & add values to the products, promote them in the market, and sell them to the target customers.
In this stage, the managers of Healthy Juice Company selects and applies their favoured strategies to change and sell the products. It is an important factor because if the process seems to be too costly and too long, the opportunity of commercialization will end up. So, process needs to be not much longer and costly.
Position: Position refers to the ways through which the organization would position its innovation or its product in the particular industry sector. The Healthy Juice Company is facing rapid decline in their sales growth. In order to secure their position in the market, the company must look for other markets in different regions where they can expand their business.
Paradigm: Paradigm of refers to the all possible chances and opportunities which can be used by the companies to innovate and boost their sales. Based on the available resources and capacities, the managers of Healthy Juice would decide which alternative would be best for the company to
adopt.
Figure: 4p of innovation Source: Invention and innovation, 2012
Innovation Funnel: Building an innovation funnel begins with strategic thinking that outputs of innovation are fully aligned with a strategic objective. The goal is to increase the overall value of the organization no matter how many sources are available. The ultimate goal is to create a strategic advantage in the marketplace, which adds value to the objective. (Keeley, 2013)
Figure: Innovation Funnel Source: Invention & Innovation, 2012
Application of the innovation funnel for shaping innovative ideas: Here the organization analyzes the existing opportuniites for the company’s products to attratct the customers in the market by evaluating the market data. The company then develops the ideas of different kinds of products depending on the information from market data analyses. The company then construct actual models from the developed ideas of the first step. The actual models may involve models for packaging or new values or features for the products etc. After constructing actual models the compnay test their capacities or attractiveness to the target customers by applying different methods such as choice modelling. After the information are extracted from the previous stage, the company can decide to re-test or apply the models directly. After completing the tests and collecting feedbacks, executives must make a go/no-go decision on whether or not the new product should be launched. Assuming at least one concept is given the go-ahead, it is launched into the market.