Introduction and background
The innovation has been one of the most research subjects in business as the various ways the innovation affects businesses and the market is diverse and unpredictable. The impact of innovation depends on many internal and external factors that make the innovation one of the most unpredictable market forces for businesses to leverage. However, the innovation provides small and medium enterprises (SME) and opportunity for growth and compete with larger corporations with their limited resources which makes the innovation an important opportunity for the SMEs (Çakar and Ertürk, 2010). The specific organisation that is being discussed is the cheap coal, which is a startup in a developing country in the Asia Pacific which makes use of the limited technology and energy demand to market a low-cost cooler that would work more efficiently than traditional fans at a much lower cost than air conditioning. The vast market in the region and the low income of the population can work to the advantage of the company if the product can be marketed correctly. Thus the innovation and the opportunity it provides for the company for development is discussed in light of the various elements of innovation in the paper. This essay discusses the various features and characteristics of invocation top develop a business case for the company in light of the opportunity presented in the scenario (Vanhaverbeke and Cloodt, 2014).
P1 Innovation and invention
The invention and innovation while similar in the general context have some distinct differences that make them more evident in the business scenarios. In addition, while the various inventions are often confused with innovation there is a definite distinction between the two. The invention can be defined as something new that is developed from scratch by a unique idea generated and given physical form to the development. On the other hand, the innovations in the various new uses for already invented items that allow for the use of the same technology in new and different ways. Both of the processes are important in the technology angle as the innovation creates value while the invention is the idea that together forms the backbone of the evolution of the market and product development. Fort eh resource-based view the invention is where the resources are put into idea generation which births new ideas and the physical manifestation that are the new inventions (Gokhberg and Meissner, 2013). The innovation, on the other hand, takes the ideas that are generated by the innovations and modifies them to makes a If seen from the perspective of value the invention does not have any value in the business context until a suitable use of the invention can be determined that meets one need of the consumer that the current technology is unable to meet (Bagautdinova et al., 2014). The invention is mostly a scholarly concept that is based on research and findings that help develop new ideas.
The innovation, on the other hand, is purely based on the value that is created through the practical use of the inventions that makes the process much more commercial in nature that is based on the profitability and customer satisfaction rather than the development itself. Thus, the innovation is a value-based process that is concerned with the business value of an invention rather than the unique nature of the invention, which is the main motive for invention in from a scholarly perspective (Drucker, 2014). Therefore, while the invention is based on the development of something new the innovation is based on the use of the same development of practical use to meet the needs of the customers that make this different from invention. The innovation, therefore, can be termed as the contextual use of the invention for business gain, which is vastly different and more materialistic than the inventions.
There is also the limitation of the process and their nature that provides a further distinction between the processes as the invention is based on the newness of development and their difference from the existing ideas and technologies. The innovation is not too different for the fear of being disruptive to the market. Thus, the innovation is often limited, as the organizations do not want to change the market landscape too much that can cause radical changes in the business environment that is harmful to the economy. Therefore, the invention is not bound by the customer expectation while the innovation is limited to the customer acceptance of the change ensures the business success, not the novelty of new. Therefore the invention while being the source of the new technology is not concerned with the market implementation of the invention but the innovations are solely based on the development of the technology into a product that can affect the customer needs and provide greater value that can be retranslated in the business advantage (Basu, Banerjee and Sweeny, 2013).
P2 Vision, mission and commercialization of innovation
The organisational application of innovation is limited by the organizational structure and operating philosophy which can be evident in the various business cases where some organization are able to successfully transform innovation into value through popular products and processes when others fail (Wang, and Rafiq, 2014). Therefore, it can be easily understood that some organizations are much better at developing innovative products than others. This can be attributed to the various internal factors that mark the organisational aptitude to develop new ideas that help in the development of the new products through practical implementation of innovation. The organizational vision and mission are the best indicators of the organisation's philosophy regarding innovation that helps both understandings the ability of the organisation to adapt to new innovation changes. Thus, the vision and mission statement of any organisation can be used to understand the potential scope of use of innovation in the specific organizational context (Souto, 2015). This is a common occurrence as despite the possible benefits the innovation is uncertain which is not to the liking of many conservative businesses while the others are more flexible and are ready to apply innovation in their processes. The organizational vision, therefore, is indicative of an organization's opinion about innovation as they often are reflected in the organizational values and vision.
The leadership is also another aspect of the innovation as the innovation is based on the satisfaction of customer needs by the using new developments this is inexorably related to the lower level of the organisation. Thus the top down organisation structure is often indicative of a conservative nature. The leadership, on the other hand, if open to the inputs from the staff of all levels for the generation of ideas they are more likely to use innovation their product and process developments. This characteristic while being a common indicator does not affect the success of the various larger companies as some of them have developed a bureaucratic structure to develop ideas in a way that generates and selects innovative ideas among the upper spheres of management which is just as effective. Therefore while being a general indicator of the innovation acceptance the development is not always correct. However, it is seen from the examples that the organizational flexibility often matters the most in case of the development of the innovative ideas and the flexible team setting with various inputs are most innovative among the various organizations. The innovation while indicative of change is not always positive therefore the control over the new product development is one aspect of the operations that can make sure of the company business success as this filters the innovative ideas down to the ones that are most likely to have a highest positive impact on the market (Gmelin and Seuring, 2014). Therefore, the organisational leadership and control structure is an indicator of a company that is more likely to use innovation as its value generation tool in new products and services that make use of the commercialization of innovative idea the cornerstone of their business.
P3 4Ps of innovation and explain the use of the innovation funnel
The innovation funnel is the process through which a business organization commercialises an innovative idea in the market through developing new product or service that would help in the company's business development while bringing greater value to the customers. Thus the innovation funnel guides the process from the idea generation to the presentation of the product to the customer.
The wide mouth of the invocation funnel is the stage where eh various ideas are generated for the future innovation and the organization conducts research both internally and externally to understand the various innovative ideas that can be used by the customer. This stage is based on the volume of the ideas as the higher the number of the ideas that higher the option of the future development and business implementation (Karande and Kalbande, 2015). Not to mention the impact of the same stage on the organizational knowledge base is very positive.
In the next stage of the innovation funnel the ideas are screened for feasibility which is the significant stage as the various ideas are judged based on the implementation potential, feasibility and impact and the various facets of innovation are often used for the development of the few ideas that help in the innovative development by the company successfully to increase business value. The 4p's are often used for the screening process as this outlines the various factors of the innovative ideas that need to be judged to ensure the practical implementation of the idea and generative value.
The 4P's of innovation and innovation funnel are the concepts that explain the different aspects of the invocation process based on their different characteristics and the different stages of the innovation respectively. The 4P of innovation are the four characteristics that help explain the different facets of the innovation process that needs to be considered in the commercialization of the innovation.
Paradigm- the paradigm is the characteristics of the invocation process as this outlines the impact of the innovation being commercialised which is considered when commercialising an innovative idea. The level of disruption or the market landscape is considered in the aspect which determines the feasibility of the innovative idea in the business context (Karande and Kalbande, 2015).
Product- the product is the main consideration in the commercialisation of the project and is the innovation is an adaptive process that depends on the customer opinion of the product and the aspect of the product that would bring most value to the product in the market environment is considered in the stage for the analysis of the ideas in the business context. Thsius the chosen innovation is dependent on the business value it brings based on the aspect of the product it enhances and its significance to the customer (Cui and Wu, 2016).
Process- the process change this needed for the implementation of the innovative ideas into eh business needs to be considered as the process changes it brings to the business could affect the organisation more adversely than the value it brings. Therefore, this is the stage that determines the feasibility of the innovative idea by the amount of change is needed into the organization to commercialise the idea and compare it with the benefit it brings.
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Position- the position facet of the innovations based on the usability forth idea into a practical context and thus decide on the potential of the innovative ideas in the specific customer population and their needs. This helps decide on the customer's segment to whom the innovative product or process would bring the most value which is an essential element that helps in visualising the market and the position of the product in the market environment (Vanhaverbeke and Cloo