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Introduction

The importance of innovation within the sector of commercialization has gained immense importance. Thus, the assignment aims to understand the importance of invention with respect to innovation in regards to 99p Stores as a chosen organization. 99p Stores is a medium sized retail organization that operates over the UK. The organization mainly deals with delivery of consumer goods with low-cost delivery to all parts of UK. The organization aims to emerge out as one of the major online pound shops. However, it should also be taken into consideration that lower price does not mean degraded service quality. The company promises to deliver the purchased goods at a stated address within the mentioned time. Hence, the assignment works on explaining the difference between innovation and invention with the factors that work on supporting innovation and commercialization of business processes. Finally, the innovation funnel with New Development of Products has been outlined in order to ensure innovation in business processes.

LO1 Define innovation and determine the difference between innovation and invention

P1 Explain the importance of innovation to 99p Stores and its comparison with the invention

The report shed lights on the commercialisation and innovation of 99p stores and in addition to this, organisation culture has been evaluated for next 12 months. Innovation decides about company’s culture, vision and also helps in commercialisation. This has been discussed in this report in details. 4Ps of the innovation has been explained in details for shaping the innovative ideas. All the frugal innovation has been explained with the help of various examples. This helps in making the organisational culture more innovative. Innovation needs to commercialise and hence, for this, commercial funnel and NPD have been explained significantly. This is highly important for the employees of 99p stores. This helps in overcoming the challenges faced in the organisation. Different tools have been used by the company to retain develop and protect knowledge. The major tools that have been used are copyrights, trademarks, patents and design rights.

Innovation may be termed as a new idea with creative thoughts. However, as opined by Bashmakov et al. (2014), innovation is often viewed as an application of better solutions that work on meeting the needs of competitive markets, customer demands or even unarticulated needs. Thus, the importance of innovation is imperative in the operational management of the business. Hence, as per perspective of marketing, in regards to increasing competition in online retail stores, it is important to stay competitive. As influenced by Fang et al. (2017), an important part of innovation is creativity, a business that fosters and implements creativity has high chances of implementing creativity and thus more likely to be innovative. Moreover, as mentioned by Donate and de Pablo (2015), the benefit associated with innovation is generally tangible. Thus, the following are the sources of innovation in the chosen retail organization:

The Unexpected Market Trend: The retail sector is basically customer-centric that is subjected to change in consumer purchase behaviour. In order to meet the demand of the customer, 99p Stores needs to make changes in business operations that can help in gaining a competitive advantage in the market. As per Curtis and Sweeney (2017), in order to gain competitive advantage innovation is an integral part.

Changes in Perception: Population and people change over time. The lifestyle of individual changes, thus companies should work on implementing innovation and must pay attention in order to be remembered in the market. For example, people these days rely on online shopping in order to ensure timely delivery and avoid time constraints. Taking advantage of this situation 99p Stores can work on making use of innovative techniques to strengthen their online presence.

Process need: The need for processing works on identifying weak spots of the chosen organization. As influenced by Eesley et al. (2014), the process need is not limited to the identification of weak spots; it works on correcting them too. Thus, the task-oriented solution acts as a source of innovation that comes from existing capabilities of 99p Stores with ways of doing business and not the market.

The concept of innovation is made clear; however, the difference between innovation and invention can be stated as follows:

BASIS FOR COMPARISON

INVENTION

INNOVATION

Definition

An occurrence of an idea for a product that has never been done previously in 99P store.

While innovation refers to the implementation of an idea for the first time in 99P store/

What is it?

Creates a new product or service in 99P store

Works on improving old services and product in order to meet customer demands in 99P store.

Concept

A genuine idea with a working theory is the main concept of the invention in 99P store.

The main concept in regards to innovation relies on the practical implementation of formed ideas in 99P store.

Skills needed

Usually technical and scientific skills are required in 99P store.

Apart from a technical knowledge that acts as an added advantage; innovation makes implementation of marketing and strategic skills in 99P store

When does it occur?

It usually occurs due to the advent of a new ideas in 99P store

Occurs usually to meet the existing competitive advantage of the organization in 99P store

It is concerned with what?

With a single process or product in 99P store

It pays attention to more than one product or process in 99P store

Activities

Limited to Research and Development department in 99P store

Works on involving the organization as a whole in 99P store

Table 1: Comparison between innovation and invention in 99P store

(Source: Created by author)

P2 Mention the ways using which culture, teamwork and leadership can shape commercialization and innovation in the organization

Leadership can work on fostering innovation as leaders tend to have a vision for the future for long-term success. Additionally, as stated by Eesley et al. (2014), innovative leaders establish trust in employees that would be reflected back on themselves; employees that exhibit trust in leadership are seen to implement alternative ways of thinking to conduct business. A strong leader in 99p Stores can set appraisal goals that can further challenge employees to achieve success in business. Additionally, leader’s value diversity and thus, cultural diversity can be implemented. Hence, Saghezchi et al. (2017) stated cultural diversity can be beneficial as it brings together viewpoints and pool of ideas.

On the contrary, diversity is of limited benefit if it does not allow viewpoints to be expressed. Alternatively, as stated by Winterhalter et al. (2017), teamwork that is effective can transform ideas into services and products. Thus, it is critical to state an adapted structure is must need in order to sustain 99p Stores operations and make it efficient. However, as stated by Moeller (2014), organizational culture may be compared to the operating system. Hence, if the organizational culture of the 99p Store values curiosity more than certainty then the event of innovation would not happen. However, if the cultural values blame over accountability then the chosen organization may fail to commercialize as well.

Explanation on vision, leadership, skills benefits of a team work

Vision of team work: It is always associated with the goals and objectives of the organisation. They create vision which is very helpful for the organisation to achieve its goals. Vision is the guideline to be following by the team of the organization. A vision of 99p Stores has always been to provide effective products and services to its customers in the UK. Fulfilment of this vision requires the company to adopt innovative practices and produce advanced and useful products for their customers.

Team work: It is always followed by leadership. Leadership helps the team to work right on a proper path. Leadership helps in moving the team work in a correct process. They help in delegating the work to all the other members of the company. With development of various innovative products, each human resource is required to work as a team and contribute effectively to in implementation of innovation. Leaders and managers too must guide the employees in adopting new and appropriate methods for product development and maintenance. Innovation and commercialisation could be shaped up if all the members of the company integrate their efforts appropriately towards its success. This would result in creative processes and products.

Skill benefits: These are such benefits which are provided by the team when they are working. It helps in managing the activities as the members of the team are skilled in doing the work. Skills are required to be developed while working in a team for appropriate establishment of innovative processes and new product development. These skills are analytical, calculative, creative thinking, problem-solving, etc. which are necessary for implementation of innovation. Each employee must be trained to develop these capabilities which would serve the company effectively in long term.

LO2 Explain the types of innovation

P3: With the use of innovation funnel explain the 4ps of innovation

The aspect of innovation with innovation funnel is fairly new for the medium-sized retail sector such as 99p Stores. Currently, 99p Stores plans to expand its business outside the UK. However, the area outside the UK is already ruled by retail giants such as Tesco, Wal-Mart and so on that further discounts may act like a tough competition for 99p Stores to establish its business on the international market. Thus, 99p Stores can implement this model and derive ideas from existing concept to the reality that converge them into a specific product to meet market needs (innovation funnel). Hence, the process of 4Ps in innovation can be stated as follows:

Attributes

Impact

Product

The main impact of product innovation can work in advantage for the chosen organization. Thus, 99p Stores can work on making sure to introduce a new range of products that further catch the attention of customers. For example, during the event of Halloween, 99p Stores introduced new candies and treats. Furthermore, during the events of Christmas, 99p Stores introduced a new range of Christmas decorations in order to keep up with the festive mood (just99.co.uk, 2018).

Process

With the change in customer demands, 99p Stores changed business process too. The change in process was observed in the system of service delivery that was done on time and within an affordable range.

Position

The aspect of re-positioning is gaining prominence. Through the use of services and innovative product, 99p Store can reclaim its position in the market of online shopping and delivery

Paradigm

The product and service innovation is for an operational purpose; however, it is important to ensure an all-round development for the organization. Cash-based programming acts as the most radical step that involves new product (cash), a new system of delivery or process (ways of distributing cash)

Table 2: 4Ps of innovation

(Source: Created by author)

Different sources of innovation which is helpful for explanation of foster and develop the environment and culture of innovation at entity level.

Sources of innovation: There are two types of sources first one is the internal source and the other one is an external source, which are given below:

Internal Source:

  • The unexpected source- It includes in unexpected things kuke success or external events which is helps in develop good environmental culture.
  • The incompatible- It focuses on the different assumption of organization's reality and focuses on customer needs and wants.
  • Process needs- This source examine the process of requirement and needs of the organization in the changing environment.
  • Changes in industry or market structure- These are very important or helpful approach, that develop good environment and culture of innovation in order to make various changes in market as per the requirement. 

External Source:

  • Demographic stage- This theory is a generalized explanation of the changing environment patter on growth, mortality and associate move from one to another. Therefore, it is important for making new and different culture in the present time.
  • Change in perception- According to this, the development of new business environment can affects the individual in order to make changes that can affect the mood of an individual in a effective manner.
  • New knowledge- According to this source, it is very necessary to gain lot of knowledge about culture or environment which will increase the development of environment in a appropriate manner. Therefore, social media, internet are the best example for gaining new ideas and concepts.
  • These sources of innovation are very useful for the description of foster and develop the new idea for environment and innovative culture in a perfect manner.

P4 Line out the developments in frugal innovation and draw examples with chosen organization

Frugal innovation is a concept that makes business response to change and implement the same with limited resources and transform these constraints into innovative ideas coupled with practical solutions. However, the aim of the chosen organization is to develop an analytical framework with thinking models that can help in order to understand the developmental implications associated with frugal innovation. As influenced by Chuang et al. (2016), frugal innovation can, therefore, result in a balanced perspective on the phenomenon of frugal innovation. Thus the following are the areas that can make use of frugal innovation in 99p Store:

  • The retail operations implement cutting-edge technology that hints towards expensive solutions. However, currently, the European retail sector is driven by selfless motivation. As stated by Kesting et al. (2017) ingenuity is linked to combining and mobilizing for frugal innovation in business. For example, 99p Store uses open innovation models that look for technologies for constituting relevant sources for design related to frugal solutions in the future.
  • Simultaneously, frugal innovation in the 99p Store sold their services as per the desire of customers. In order to increase their services, 99p Store maintained a low price margin.
  • Moreover, the chosen organization made it imperative to sell products as per the demands of seasons such as Christmas and Halloween that can work on increasing their profit margin. [Refer to Appendix 1]

LO3 Processes required Commercializing Innovation

Technological innovation is done in 99p store. Technological innovation is very important in any organisation. Return on investment suggests that the company is earning profits when the company does innovation. This business profits are calculated from return on investments. The return on investments explains that all the cost done on the investment is recovered and the profit is earned thereafter.

P5 Importance of commercial funnel in the application of New Product Development (NPD) with respect to commercialization of innovation in 99p store

For proper commercialisation of innovation, use of a commercial funnel is essential to improve the sales and achieve the target as per the expectation. As stated by Westland (2016), application of commercial funnel can help employees in the organisation in converting strangers into a customer for a particular product through 5 different steps in 99p store.

  • Awareness Phase: In this step target customers become aware of new products by a company and thus company gets with an opportunity to attract target customer in a mannered way.
  • Interest Phase: In this phase strangers are converted into normal visitors by a company by generating interest among them about a particular product launched by an organisation.
  • Evaluation Phase: In this phase, the company provides an opportunity to its customers to evaluate their new products and thus it can lead to a close relationship between customers and organisation.
  • Decision Phase: This phase provides an opportunity for the customers to take a decision about purchase of new products. Thus according to Biemans (2018), this phase can help a customer to get appropriate products according to their needs.
  • Purchase Phase: This is the last and final phase that converts the possible customers into a permanent customer according to the expectation.

As observed by Moeller (2014), in every step of this funnel number of customers can be decreased in a mannered way that purifies the accurate number of customers with appropriate purchase intention. Therefore this process is known as a commercial funnel that can help to improve sales of products along with improving brand images and market position according to the needs in 99p store. Hence it can help commercialisation of employees within ‘99p store’ that can improve purchase intention of their target customers effectively. On 18 September 2015, the company has launched an awareness campaign program that has helped the company to aware their target customers about their cheaper product price. Therefore, as stated by Chuang et al,(2016), they are able to improve purchase intention among their target customers that has helped them in improving their sales of different products from their stores. [Refer to Appendix 2]

New product development (NPD) is an important process for proper launching of new products in target market and improves sales of those products according to the needs. As suggested by Hogan and Coote (2014), it can help to reduce risk of failure in implementing new product in market. Thus it can convert the market need to a reality-based solution that can lead to the process of commercialisation of different innovation by the company, through 7 different steps in 99p store.

  • Product Idea: NPD can help employees in an organisation to develop some brainstorming ideas that can simultaneously attract and engage customers in purchase of different products from 99p Stores. As stated by Kesting et al.(2016), it can help employees to get different innovative ideas about product launching procedure and choose the appropriate one according to the needs.
  • Evaluation of idea: In this phase, different ideas gathered from market are evaluated on the basis of needs. Thus, from viewpoint of Winterhalter et al.(2017), it can help to find out different innovative ideas for launching of products and gain an optimum response from the customers.
  • Market evaluation: This phase is important for employees to identify different challenging factors within market and eliminate them to achieve sustainable success from the launch of new products.
  • Analysis of competitive market: This phase can help employees in 99p Stores to identify similar products in market and their popularity. Thus, according to Biemans (2018), it can help in managing innovation of new products and deliver them towards customers.
  • Marketing prototype: A marketing prototype can be launched by the company for a trial period that can provide an idea about a possible acceptance rate of the products in target market.
  • Market testing: This phase is important to identify demands in target market and innovate new products according to the needs.
  • Launching preparation: This phase is important for providing a launching pre4paration time and thus improves their capacity to successfully launch the product and get optimum return from their investments.

Return on Investment which justifies the innovation will increase business profits. 

It measures the loss or gain which is developed on an investment related to the amount of money invested. It is commonly declared as a percentage and it is typically used for private or personal financial decision to compare the profitability or efficiency with various investment. On the other hand, return on investment is one of the useful approach which used profitability ratios because of its flexibility. When using this concept in order to compare investments so that, it is very necessary to use the same inputs in the process of achieving an correct comparison.

In the context of return on investment, it justifies that innovation which will enhance the business profits. For example: It is a profitable ratio that examine the profits of an investment in the form of percentage of the real cost. On the other side if someone invest their money in any firm and get good return on investment that justifies the innovation which will increase business profit in a effective manner.

P6 Build a business case include ways to access funds

Innovation business case can offer a unique approach that can help to tackle one of the real problems like different ways to access fund. In addition to that as opined by Saghezchi et al.(2017), commercialisation of management can get proper support by increasing access to the fund. Additionally, it can help innovation management procedure, by providing with an opportunity to spend in different parts according to the needs and thus achieve optimum growth in market. According to Eesley et al.(2014), innovation business case can help to ensure success in market and convert an idea in a mainstream activity to achieve success in an effective manner. Here we have selected 99P stores as our business organisational study. It is a store selling products or services at 99. There should be innovation process to be followed in 99P store. It is a very profitable business model when return on investment is applied. There is also mobile app for such stores.

Return on investment means the ratio which we achieve with the help of net profit earned and the cost incurred for doing investment. The formula for return on investment is :

ROI= Net Profit/Investment*100. Here, 99p Store has invested around 50000£ and net profit of firm after getting its business digitalis is estimated as 3000£ in upcoming year. So, ROI will be calculated as

ROI= Net profit/ Total Investment*100

5000/50000*100= 10%

Mobile application funding is also very important in this. It plays a vital role in making the organisation successful. 99P store also applies mobile application tool in order to achieve the success.

There are different ways of funding which are helpful to these 99P stores such as given below:

1. Governmental Resources

Government also gives resources and funds to such organisation so that they get encouragement. Such funds are very helpful to the organisation.

2. Bank Borrowing

Bank also provides funds in return of interest so that the organisation gets aid to achieve growth.

3. Public Borrowing

The organisation also gets funds from public by issuing shares and debentures.

LO4 What is the range of ways for protecting ideas and understand their benefits and disadvantages

P7 Evaluate the tools that can develop, retain and protect knowledge and intellectual property

Evaluation of IP tools with reference to 99P stores.

For a development of different knowledge, it is essential to do a knowledge audit on a regular basis as per the needs and importance in 99P store. Thus it can help to increase capacity of brain to store more knowledge according to the needs. From viewpoints of Saghezchi et al.(2017), it can increase time for knowledge development and thus reduce time for other parts of development within an organisational workplace. At the same time as stated by Donate and de Pablo (2015), development of intellectual property it is essential to create uniqueness intrademark, and design rightthat can help in commercialisation and innovation management by 99P store. Retention of knowledge is important for continuous market growth according to the expectations and thus it can reduce problems associated with market competition. Microlearning can be a useful tool that can help to retain knowledge effectively and hence improve in the commercialisation management process in 99p store. On the other hand, as stated by Bertoni and Tykvová (2015), it can increase time for the management to properly control the innovative steps.

Tools like patent can help to retain the intellectual property (IP) of a newly innovated product by 99P store. On the contrary, as criticized by Curtis and Sweeney (2017), it can increase risk related protection of the patent and thus force 99p stores to spend extra money for special protection of the patent. Written format of gathered knowledge their storage in secure places can help to protect knowledge in innovation management procedure. In addition to that, it can help to protect the knowledge for a long period of time. On the other hand, as stated by Fang et al.(2017), it can increase cost for protection of data and thus reduce financial capacity of 99p store during application of commercialisation and innovation management within an organisation. Copyright can be used as an important tool to protect different types of IP according to the needs of 99P store. At the same time, it can help in the protect companies data from hackers and maintain secrecy about needs of their target customers. On the contrary, as stated by Curtis and Sweeney (2017), it can increase cost for maintaining confidentiality and legal risks associated with newly invented products.

Goodwill

Goodwill is very important to every organisation so it is important for 99P store. It is one of the long term assets which are achieved with the progress of the business. It can be referred as the reputation of the company. It also helps in attracting more and more customers and businesses. It is an intangible asset of the company.

Franchise

It is described as a permission given by a company to another company to sell its products or services. 99P store also gets franchise in all the branches in different cities to sell the products in their name in various parts of the world.

Recommendations

  • Leaders must take appropriate actions to improve trust among their subordinates towards the organisation and hence, provide benefits to 99p store to achieve optimum success according to the expectation.
  • Leaders must use innovation management to develop different alternative ways of thinking and provide the organisation with an opportunity to achieve success. Therefore, it can help the employees to reduce challenges within the organisation and ensure optimum growth to 99P store.
  • However, cultural diversity is of limited benefits strong leader in 99p Stores should promote cultural diversity and its beneficial sites to promote commercialisation of different products according to the needs. At the same time, it can help to reduce coalition among the employees within same workplace and improve cooperation among employees.
  • Leaders can help to transform different ideas by the employees and shape the innovation procedure according to the demands of customers. It can help 99p stores to improve their market value and commercialise their products that can help 99p store to achieve sustainable growth according to the needs.

Conclusion

From the above discussion, it can be concluded that innovation and commercialisation management can help an organisation to achieve sustainable success as per the expectations. In addition to that for a greater level of success, proper control and monitoring are essential. Therefore, different types of tools can be applied for development, protection and retain intellectual properties and knowledge associated with an organisation. In addition to that, it can help to reduce risk during the launch of new products in the target market. On the other hand, use of these tools can help in innovation and commercialization of management procedure that can help to attract target customer effectively and achieve sustainable success in market.

Reference

  • Bertoni, F. and Tykvová, T., 2015. Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies. Research Policy44(4), pp.925-935.
  • Biemans, W., 2018. Managing innovation within networks. Routledge, UK
  • Chisholm, D., Sweeny, K., Sheehan, P., Rasmussen, B., Smit, F., Cuijpers, P. and Saxena, S., 2016. Scaling-up treatment of depression and anxiety: a global return on investment analysis. The Lancet Psychiatry3(5), pp.415-424. Available on 20thNovember 2018 from https://www.sciencedirect.com/science/article/pii/S2215036616300244%20target=
  • Chuang, C.H., Jackson, S.E. and Jiang, Y., 2016. Can knowledge-intensive teamwork be managed? Examining the roles of HRM systems, leadership, and tacit knowledge. Journal of management42(2), pp.524-554.
  • Curtis, E. and Sweeney, B., 2017. Managing different types of innovation: mutually reinforcing management control systems and the generation of dynamic tension. Accounting and Business Research47(3), pp.313-343.
  • Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research68(2), pp.360-370.
  • Eesley, C.E., Hsu, D.H. and Roberts, E.B., 2014. The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment. Strategic Management Journal35(12), pp.1798-1817.
  • Fang, L.H., Lerner, J. and Wu, C., 2017. Intellectual property rights protection, ownership, and innovation: Evidence from China. The Review of Financial Studies30(7), pp.2446-2477.
  • hbs.edu (2018), Available on 20thNovember 2018 from  https://hbswk.hbs.edu/archive/tools-for-protecting-your-intellectual-property

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