Innovation is defined as process conducted by management to improve effectiveness of business operations so that creative and unique items are delivered in marketplace. Administration implement modern tools and techniques in system which help firm to utilise funds, material and manpower efficiently. Along this, modification in existing items is made by manger which help them to attract large number of customers. Innovation helps superiors to introduce new concepts and ideas and launch new items in marketplace (Johnston and Marshall, 2016). This help them administration to position themselves higher than rival firms. Present report is based on Ensoft Ltd. which is software company established in United Kingdom. Company have skilled and competent engineers so standardised software are present in system. Cutting-edge software are provided by administration which help in keeping whole world connected. Innovation funnel and frugal innovation concept are used by management to launch new technologies and reduce difficulties from system.
P1 Innovation and its Importance for organisation in comparison with invention
Innovation is a process of implementing new and innovative ideas with in a work place through this firm are able to achieve goals and objectives in an effective ways in limited time period. It is a modification of existing product which increase their features and usability. It is a small business venture that are deal with networking software and provide internet solution. Innovation is a best application in applied science because techniques create obsolete in short period of time and management has to analysis all changes which are implementing with in an work place. Its create variation so that prominent update has launched by using tools and techniques (Díaz-García, González-Moreno and Sáez-Martínez, 2015).
Firm develop software which helps to connect with potential customers. Management of an organisation has develop strategies and plan in order to execute innovation with in firm. Through this, enterprises are able to produce quality of product and services which enhance clients satisfaction as well as higher markets as compare to before. If creativity can not introduced in proper manner with in work place that create negative impact on firm performance and productivity. There are some needs which are create responsibilities for bringing innovation are explain as follows:
- Innovation is a very important function which provide guideline to all employees so that they get all information about their role and responsibilities with in work place to achieve their targets in an effective manner.
- Firm used creativity option in order to attract large number of clients toward business activities as well as their product and services offers at market place (Wallace, 2017).
- The main objectives of introducing innovation are to develop high quality in commodities and services which helps to provide high profitability and market position.
- Through innovative goods firm are able to gain high competitive advantage as compare to their competitors at market place.
Differences between innovation and invention are explain as follows:
It is a process of modification in existing product and services which increase feature as well as quality of commodities in an effective ways.
It is a process to develop totally new product and services that are able to full fill clients needs and wants in limited time period of time.
Management develop new strategies and plan in order to reduce negative result on operations process.
It is a kind of research which are manufacture new commodities. It is a process of converting new idea intro reality. For example, business environment is a promoting globalisation where many people are sell their product in other country and they touch their family members, it helps to reduce problem of less population.
Ensoft Ltd has develop new ideas which helps to produce unique kind of software so that their potential buyers can not switch firm to other company. Current market situations may rapidly change because various kind of competitors are using latest technologies to increase profitability with in specific time period. Ensoft Ltd are analysis competitors strength and weaknesses in order to compete them in an effective ways (Dodgson, 2018).
So that, through this all information it is concluded that innovation is a better option as compare to their competitors with in an organisation. Because it is save money and time of management. Creativity is a easy process as compare to invention, for example Ensoft Ltd has provide several types of software which helps to resolve new issues and they are launch its product upgrades on time to time basis. Management of the company develop strategies and polices which helps to implementing innovation with in work place in a most appropriate and successful manner. It helps to gain high market share.
P2 Vision, leadership, culture and teamwork can shape innovation and commercialism
In every organisation, executive frame mission and vision statement which define purpose and aim to management to make system function properly and according to market conditions. Along this, administration even specify goals and objectives to staff members which help them to give them adequate instruction and guidance; thereby make them perform tasks effectively. Thus, employees will work in proficient manner and timely attain targets (Bain and Kleinknecht, 2016).
Vision: Ensoft Ltd firm main motive is to accomplish success and prosperity in specified time duration. Administration provide direction to workforce so that business activities are conducted appropriately. By providing target and standards which define workers to manufacture quality items and services in marketplace. This help management to enhance market image and reputation.
Leadership: This aspect define that superiors require to provide directions and guidance to members in respect to duties assigned to them. Staff members will work in appropriate manner as they have adequate skills and abilities in according to tasks assigned to them. Seminars, sessions, meeting and conference to improve capabilities of employees; thereby motivate them and dedicated towards job. This benefit leader to retain skilled and competent manpower for longer period.
Culture: Management require to provide healthy and safe working environment to members. They even require to provide challenging working conditions such as rules, regulations and terms which require to be followed by subordinates. Along this, superior provide targets to employees and time limit; so that they will work efficiently and complete work within deadline (Kleinknecht, 2016).
Teamwork: In firm, manpower is divided into departments such as production, sales, marketing and R&D in respect to their skills and knowledge. Superior responsibility is to provide adequate guidance to members and coordinate their efforts. They even require to construct relations with team members to acknowledge conflicts and issues faced by them, thereby provide them adequate solutions. In Ensoft Ltd., manager has good relations with members so workers feel dedicated and connected with company. Hence, employees will perform tasks effectively and deliver quality items and services in marketplace.
Therefore, commercialisation is process executed by management to provide duties to staff members and targets which require to be accomplished by them. Vision, mission, goal and objective help administration to implement adequate technologies in system and make it function effectively. Market survey advantage superior to acknowledge needs and wants of public, thereby design items and services in according to taste and preference of people (DiMasi, Grabowski and Hansen, 2016). In Ensoft Ltd., modern tools and techniques are used by manager so quality services are provided by firm to their clients. Along this, administration conduct training and development programs to enhance skills of employees and make them perform tasks in innovative manner. Thus, company is able to increase customer base and market goodwill; thereby position Ensoft Ltd. higher than rival firms.
P3 Explain 4P's of innovation and use of funnel innovation
Innovation is concept which is used by administration to implement latest tools and techniques ins system; so creative and unique items and services are delivered by firms in marketplace. This benefit management to launch novel changes in items and grab attention of large number of people. Hence, innovation process is main goal is to introduce new concepts and aspects in business which benefit firm to manage employees interest and enthusiasm; thereby make them perform tasks effectively and timely accomplish targets. Ensoft Ltd is popular firm as customer friendly services are given by manager in according to demands of people. With help of innovation process, latest technologies are implemented in system (Guttentag, 2015). This benefits company to deliver quality services and fulfil requirements of clients. These are 4P's of innovation which are used by superiors is explained beneath:
Product Innovation: This concept of innovation reflects changes that an organisation is going to offer at marketplace in order to satisfy demand of customers. In respect to Ensoft Ltd company, as it provides IT based solutions and upgrade system of other companies so, it needs to make more innovation in services. It will help business clients to operate their business more effectively.
Process Innovation: Under this step, it is major duty of managers of a company to identify in which field modification is necessary for improvement of business. For this process, they have to conduct market research by which innovation in products can be done in business. Management design schedule and plan which defines time for each activity which require to be followed by members. It is necessary that employees complete work and attain targets within specified deadline. This help firm to deliver items and services in according to needs and wants of customers. Ensoft Ltd company has a strong market reputation and image so, any change in products will directly affect business. Therefore, for this purpose, by conducting proper research, managers of this firm can make changes in business accordingly.
Position Innovation: This concept refers as process of using marketing mix technique to promote business of a company. It defines that superiors require to use appropriate promotional tools to spread information to public about items and services that are offered by company. In context with Ensoft Ltd., by using best techniques of marketing, it can aware customers about new products or services and assist them to buy as well.
Paradigm Innovation: This tactic is the last step of process of innovation under which management of Ensoft Limited is required to analyse if changes in products or services are beneficial for growth of business. In addition to this, it also entails further need of modification in system by which business can be grown more effectively.
Innovation Funnel: It is defined as activity which is conducted by organisation to remove difficulties from system and make it function effectively. Innovation process is executed in staff members which help them to provide quick services to customers. Along this, management uses this concept which helps them to manufacture creative and unique items. Thus, this activities have influence on rates of items and services; as innovative products will be prices more, so sales of firm is effected (Moulaert, 2016).
P4 Development of Frugal innovation
Administration main duties is to utilise resources efficiently and deliver adequate items and services in marketplace. By implementing latest tools and techniques in system so that business operations are conducted in adequately. For this, frugal innovation is appropriate process which is executed by manager to overcome unwanted and irrelevant components from activities. This help company to deliver standardised items and services in market to grab attention of large number of customers; thereby fulfil their needs and wants.
Every kind of organisation either large or small require that funds, material and manpower are utilised appropriately. Administration should implement adequate appliances in system and make it function in most feasible way; so that business operations are conducted in proficient manner. This help them to make employees perform tasks effectively and complete work within specified deadline. Thus, customers will get items and services in respect to their requirements and demands (Love and Roper, 2015).
Ensoft Ltd. company uses frugal innovation concept which helps manager to increase their market share and position; thereby generate adequate revenue from business. This procedure also helps administration to attain targets and objectives in defined time period. With help of modalities, creative and unique things are delivered in marketplace. Along this, superior require to take support from employees and make them perform activities effectively. Modern technologies are implemented in system of Ensoft Ltd. which help manager to provide quality services to clients. Thus, innovation funnel helps heads to remove complexities and make system function in proficient manner. These are steps that are followed by management to generate positive outcomes are stated beneath:
- Acknowledgement of methods and ideas where innovation funnel concept is used.
- Computing expenses that will be executed to apply ideas in enterprise.
- Examine reports and make adequate decisions which are advantage for firm. This help management to overcome problems and complex conditions from system.
Therefore, frugal innovation process is executed by superiors of Ensoft Ltd. which help them to utilise resources efficiently and execute business activities appropriately. Along this, manager deliver quality services to clients which help them to establish advantage over competitors and make business successful (Laeven, Levine and Michalopoulos, 2015).
P5 Importance of commercial funnel and application of New product development
Commercial funnel is concept which define that administration require to use market opportunities and expand business from domestic market to internationally. This help organisations to increase customer base and sales. Along this, manager conducts innovation process and implement latest tools and technologies in system. This help firm to deliver creative and unique products in marketplace in according to needs and wants of public. Ensoft Ltd. which is service company uses new product development and provide quality offerings to clients. These are various phases of NPD that are followed by management are stated beneath:
- Idea generation:It is starting step of new product development which defines that management require to introduce new aspects and concepts, in according to market conditions.
- Idea screening: After formulation of new concept, superior responsibility is to evaluate feasibility of ideas; that whether they are appropriate to be implemented for new product development or not.
- Testing the concept:This stage specifies that manger require to conduct market survey to acknowledge market conditions. Along this, they even require to have information about system abilities and resource availability (Brunswicker and Vanhaverbeke, 2015).
- Analyse products and services: This step defines that superior duty is to implement latest technologies so that innovative and creative items and services are delivered in market.
- Commercialisation:This process is conducted by management which help them to timely ascertain irrelevant and inadequate components; thereby removing it from system. Hence, superior will be able to execute business operations in efficient manner.
- Product launch:This is last phase of NPD which carries activities that are conducted by management to introduce new items and services in marketplace.
P6 Building of innovation business case including ways to access funding
Administration launch novel changes in features and characteristics of items so that organisation deliver products in respect to needs and wants of people. With help of innovation tool, creative and unique things are manufactured. Manager will be able to establish competitive advantage and position higher than rival brands. Commercialisation is appropriate tool that heads uses to introduce new ideas and concepts. This help companies to enhance customer base and increase sales and profitability (De Vries, Bekkersand Tummers, 2016).
Financial resource is essential component which management require to launch new products and services in market. Ensoft Ltd. which is service firm require to implement changes in system and implement latest tools and techniques so that quality services are delivered in marketplace. To execute modern technologies, administration require to have adequate funds and material. These are various steps that are conducted by manager are stated below:
- Identification of money that is available with Ensoft Ltd. for conducting adequate business operations in according to new ideas and concepts that are introduced by management.
- Recognise areas which require additional funds; thereby ascertaining institutions and devices from which money can be taken by firm.
P7 Different tools that an organisation can use to develop, retain and protect intellectual property
Tangible and intangible are two forms of assets which are required by business persons to execute business operations effectively and make system function in according to market situations. There are various laws and acts which are formulated by regulatory bodies to take care that intellectual properties are protected. Administration prime responsibility is to get their registration from government and certification so that business operations are conducted in legal manner (Donate and de Pablo, 2015). These are various legislations that protect assets from being copied and imitated by rival brands are defined below:
Copyright: This act was designed by government which is associated with books, novels and journals. Writers, authors and novelist get registered their work, so that other individuals are not able to copy their content. Along this, it helps people to enhance their market reputation and image.
Trademark: This law was constituted by government to secure small and big firms essential components such as logo, name pattern, symbol, tag line and so on. Executive register this elements so that other firms will not be able to use it until license and permission is taken by owner. Thus, it depends upon proprietor that they want their firm name to be used by other organisations or not. This also helps companies to improve market goodwill and position by building brand.
Patents: This act was formed by regulatory bodies to protect machine, process, production articles and composition of material. Companies will implement tools and techniques in system to manufacture items and deliver adequate services to customers. This legislation helps manager to protect methods and ways used by them to manufacture items.
Thus, government framed copyright, trademark and patent to safeguard intellectual properties. Business persons and individuals can protect their ideas and invention from being altered and stolen by other persons. Ensoft Ltd which is service provide firm, administration uses trademark to register company's name, symbol and logo, design and tag line. Along this, patent is used by them to secure technologies and machines that are implemented in system. This benefit executive to position superior than competitors and establish strong market image.
The business case of Ensoft Ltd. is explained as beneath:
Ensoft Ltd. offers software or IT solutions to routers who run large corporate networks and internet. The main focus of this company is to
Innovation is an important factor for Ensoft Ltd. for developing its software. It will lead to provide high technology which runs in the core of internet for keeping the world connected.
Innovation in products like CMMS software will aid Ensoft Ltd. in upgrading system of other companies in order to meet their future needs.
The outcome of analysis were that clients were more satisfied with the innovation in software technologies. The development in technology helps them in operating business in a proactive and efficient manner. With enhanced functionality such as CMMS system and its reporting dashboard aids employees to perform daily routine work more appropriately.
Creation and Improvement
The ideas for innovation in software was developed through proper communication with concerned clients and stakeholders.
Acquisition of funds
As Ensoft Ltd. runs its business at small scale so, owners of this firm have to raise funds from various sources like banks and financial institutions, in exchange of security. It helps in implementing innovation at production.
The benefits which can be availed by developing innovation in products or services helps in getting more satisfaction of customers.
Different ways to accessing funds: -
Crowdfunding – It can be defined as a practice of funding a venture by raising capital from a large number of people who contribute a small amount in a specific project. A crowdfunding site like Kickstarter.com consider as an effective way to raise fund. So, using this source, employers of Ensoft Limited can get fund for implementing innovation in business.
Factoring: It is a finance method under which an enterprise can sells its receivables to get cash at a discount. In general companies having poor credit are using this type of method for raising funds. But it is costlier and expensive way also as if 2% fee to get funds for 30 days will sum-up to 24% approx (an annual interest rate). Therefore, Ensoft Limited didn't use this method for introducing capital at business.
As per above report, it can be comprehended that innovation is activity which is conducted by management to enhance customers base. By adding new and unique features and modifying existing items to grab attention of large number of people. Along this, administration even require to introduce new ideas and concepts so that creative and unique products are delivered in marketplace. Innovation funnel concept is used by members to implement modern technologies and deliver quality services to clients. Apart from this, superior uses frugal innovation to overcome difficulties and complex situations; thereby make system function effectively. This help company to provide adequate items and services and enhance sales and profitability.
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