UNIT 8 INNOVATION AND COMMERCIALISATION, BTEC-HND, UK
Introduction
The change the organisation is one of the best suppliers of hardware and software in the UK
market. The organisation’s top level of management thinks to find out some new
products to enter a new market (Pollmann, 2013). The company wants to follow some innovation in
business strategy and try to develop some innovative products to capture the
present market by providing the best services. The company can solve the customer’s
hardware and software problem smartly with some smart device and smart apps or
software. To achieve the organisational goal company can follow the democratic
leadership methods and use task innovation approaches. There will be described
different leadership style, innovation process and case study of Apple and
virgin in the next part of the reports.
P1. Evaluate the importance of innovation and compare
with the invention for the change organisation with using of the case study.
Invention
According to Lager
(2010), Invention is an idea to develop new products in the existing market, but the products are not existing
in the market. The invention is not a regular process, but it is the most important issue
for the business to survive in the market and make a good image in history. The invention is not a process to develop any final products for the consumer
rather than it is a process to develop the idea for the upcoming markets. It is
a part of the Research and development department.
Innovation
According to Hippel
(2016)Innovation is a
term which is entitled by the addition of new features in the existing
products. Innovation is a process to develop the old products in a new version.
It is increased the value of the products in the current markets, and it creates
the new market for the business.
Innovation is a
regular process and they need huge financial support.
Commercialisation
Commercialisation
is a part of the trade. This is a process to commercialise the products in
different markets. The company finds out the new market and provides its
products or services to the new market or old market (Pollmann,
2013). The company
divides the products according to the customer’s requirement and labelling it
in different sizes.
There is a significant difference between the
process of invention and innovation. These are given below:
Characteristics
|
Invention
|
Innovation
|
Definition
|
Idea of new
products or services
|
Development of
new idea to the existing products
|
Financial
support
|
Doesn’t need any
financial support
|
Need strong
financial support
|
Technical
approach
|
It’s a method
of scientific
|
It’s a process
of business
|
Profit
maximisation
|
There is nothing
to earn economically
|
It’s a process
of maximising profit
|
R&D
|
This is a part
of R&D
|
This
is a part of production dep.
|
According to the
case study, Apple is focusing on product innovation rather than technological
innovation. Apple doesn’t introduce any new invent any new products recently, but the company update its products always. Apple always tries to find some
new and innovative apps in its present smartphone and the present Mac
computer rather than adding new products in the products lists. On the other
hand, Virgin group use their senior employee from a different department to
launch some new venture for the company. But it is also important for the case
study that Virgin group gets some new entrepreneurs at the time of innovation
which is also a good sign of their good fortune. Every company does not get these
types of support from the supplier all the time.
P2 Describe the organisational mission, vision, goal
and leadership style also the culture of the company to the change organisation’s
employee.
The success of an organisation depends on the performance of the employee (Lundahl,2
012). An employee
plays a vital role in achieving the organisational goal of the company. But
the employee needs to understand the whole process and what is the target of the company at first. If the employee does not have any idea about the target,
goal, mission and vision of the company, then the employee won’t perform
effectively for the organisation. Some key points are described below for
understanding the importance of those things which are mentioned above.
Leadership
Leadership defines
the performance of one individual employee who guides the other employee who
shows the path of the future and directs the employee to work effectively and
efficiently (Schein, 2016). Leader is a person followed and trusted by the employee. Leader is a
person who manages the employee to different situation and handles the
different environment of the company. But all the leaders are not the same. Some
are very much cruel or autocratic, some are friendly or democratic, and some are
very much supportive or laissez fair.
Autocratic
leadership: This type of leader is very much cruel to the employee. The
leader takes all kinds of the decision by their own hand. The leader did not take any
support from the employee. The leader does not like their employee engagement
in the decision process. The autocratic leader is a good idea for bureaucratic
organisation. The autocratic leader has some benefits also (Lundahl,
2012). The autocratic leader gives a quick decision. An autocratic leader does not take any suggestion from
the employee so that there are no more conflicts between decision-making processes. The autocratic leader is one hand decision-maker which has some benefit and
disadvantages also for the company.
Democratic
leadership: Democratic leader is very much supportive of the employee. This
leader takes all kinds of decision by discussing with the employee and senior
management. Because of the employee are very much experienced about the
customer need and demands. An employee engaged with the customer always during
the sales time. So the employee knows the taste of the customer and their choices
of products variation. The employee can provide a good idea or innovative thoughts
about the products and services according to customer demands. So the manager
or decision-maker should take the suggestion from the employee of their
organisation to produces some innovative products and services in the field
competitive markets.
Laissez
fair: Laissez fair is an economic system where the transactions are free
from government tariffs, interruption, and so many rules. Laissez fair is an approach
of leadership model to give a supportive role in an organisation. This leader does
not force the employee to do any jobs. This leader gives chances the
employee to choose a suitable position in the organisation (Lundahl,
2012). Any company the
laissez fair means providing the opportunity to their employee to take a vital
decision without any interruption.
Based on the case
study, Democratic is the best ways of leadership. This process gives the equal
opportunity to the lower level of employee to share their experience and
knowledge about customer demands of the product or services. It does not indicate
that the employee gets any right to take any kinds of decision of the
organisation weather the lower level employee will get chances to share their
experience, and valuable information about the customer demands and need
regarding the products and services. The lower level employee knows it much
better than top-level management about the consumer satisfaction level. Apple Company
follows the democratic leadership methods for its product innovation. Apple
takes a suggestion from the employee and lower-level management to make some
innovative products which will capture the most part of the market. This method
gives them some advantage rather than autocratic or laissez fair. Virgin group
use their experienced customer indicates that Virgin are using democratic
systems. So it results in a positive effect on their business. By concerning the
above discussion, the change organisation should use democratic leadership
methods to increase the number of sales and increase the profit by innovating
the products. For that purposes, the company need to talk with the lower level
of employee and get some good idea about innovation. The lower level employee
of the change organisation knows the present condition of the market, and the
employee can innovate the hardware and software services to their valuable
customer.
Figure 01: Types of leadership
Source: (Lundahl,
2012)
Goal
Goal is a
numerical concept and an organisational target (Vaughn, 2013). The management set their selling goal for the five
years or ten years. Sometimes the company set their profit margin of ten years in a different dimension. For example, a company sets a target profit per year 1
million GBP for the company then it’s a goal of that period. The management
team sets their goal for a short time rather than a long time to achieve their
mission. So the management set a target for their employee to achieve the
organisational goal.
Mission
Mission is the
targeted goal of a company to achieve the vision of an organisation. A company
sets some mission to achieve the organisational vision. The change organisation
should define the mission statements of the company to their employee and
worker and management so that the employee and all others perform effectively to
achieve the organisational mission. For example, it is found that the company
is a good position based on different criteria, then the company will set its goal
to achieve this next position in the nearest time.
Vision
Vision is the image of the future of a company. It reflects the future
position of the company, such a mirror. It is an idea and best supportive
statements for the employee to do their works as much as possible effectively.
Culture
Culture is the mixture of norms, values and rules of society. But in a
business organisation culture means a combination of different peoples from
various places and environment, ideas, values and overall business rules and
regulations (Bas and Latham, 2013). Good culture helps the employee to provide best
efforts to their customer and give the best solution their customer’s problem. A
good culture always helps the employee to take some innovative decision and
makes some innovative ideas. It will help the manager to control the employee
turnover ratio and keep the employee to be loyal towards the organisation
rather than salary or facilities from other competitive industry. The culture
of an organisation divided into four categories. These are given below:
Figure 02: Types of culture
Source: (Lundahl, 2012)
Role culture: Employee is very much organised about their role. Employee
mostly follows the role of their described in the role. It emphasises the role
model of the employee. The management has described each and every employee
about their role and duties to the company (Lundahl, 2012). The employee also follows this role model only.
Task culture: Task culture helps the employee to work together. This
is a group-based culture. All the employees are engaged here to solve one
problem. Employees mostly follow the prime issues of the company to solve
and get some good feedback from the top level of management (Lundahl,
2012).
Power culture: Usually, it’s a strong culture than all other culture
of the organisation. It is defined that the management of the organisation
gives the power to the employee to take some short term decision which is good
for the business and good for achieving the organisational goal. The power should
be decentralised to the employee, then it will be a positive sign to the
organisation.
Person culture: The person culture gives priority to the individual
employee rather than an organisation. The company focuses on a person’s activity to
gain organisational objectives. Basically, it is found in a partnership firm.
Based on the above discussion, all culture is effective for the
organisation, but task culture and role culture are very much effective for any
company. According to the case study, Apple and Virgin, both the companies are
using task and role culture to develop innovative products and service for
existing customer and get some new customer. Virgin flow the role culture, which
is determined the employees own role and perform well the employee. The change
organisation should use the task culture and role culture both.
Group works
According to (Pollmann, 2013) Group work is a good phenomenon for the company. Every
company should divide the employee into different groups and divide their
activities. It will give pleasure to the different groups to solve the
different problems. The company should focus on the activity of the group rather than the individual. If some worker works in a group, then they can achieve
the targeted goal of the organisation (Matsuura, 2003). The change organisation
should divide the worker into different groups and give them a different task to
each group to solve the customer problem regarding hardware and software.
Apple and virgin groups divide
their employee into different groups to perform in a team found in the case
study. Both companies think about achieving organisational goal and objectives. Group work is a good
activity for all kinds of the organisation; it could be a little or big company.
Different
types of resources of innovation for the change organisation
There are seven important
sources of innovation which are identified by Schein. These sources are divided
into unexpected sources, the incongruity, process need, structure change,
demographic, changes in perception and new knowledge. Data comes from different sources; it could be
volatile or faithful. Some data comes from vulnerable sources. Sometimes most
innovative data comes from unexpected sources. These data may be crucial for
the company. Incongruity is a major source of good data. The change
organisation collects data from the incongruity sources to provide customer
services in the IT industry by making innovative products and services. Apple
is also collecting data from incongruity sources to make its product
innovative and different from all competitors. It helps them to survive in a competitive market.
P3
evaluate the importance of 4ps of innovation and innovation funnel
4p
of innovation is a invented by john and joe. 4 elements of the innovation model
is; product innovation, process innovation, position innovation and paradigm
innovation.
Product
innovation: Product innovation deals with the come up with new products and
services in the market. Product innovation is a method or process to find out the
new innovative products. It creates a new taste for the consumer and makes a demand
for innovative products.
Figure 03: 4P of innovation
Source: (Yun, 2017)
Process
innovation: It deals with the process of production. It defines the production
process, and the number of product produces. The innovative process can increase the
number of the product to support the sales team. Process innovation
helps to achieve the organisational goals and objectives by producing more
products in an innovative method than conventional approaches.
Position innovation: It is a
combination of process and product innovation to support the effective and
efficient model of innovation (Yun, 2017). It helps to achieve the
organisational goal by introducing new methods of process and produces more
products by making good communication in various departments.
Paradigm innovation: Paradigm is a process which is related to
the psychological nature of business. Paradigm innovation helps the organisation to cope up
with the environmental changes (Lundahl, 2012). The existing customer will help to
get some new customer.
The change organisation should follow the product and process
innovation model to add some new features in the existing product and make some
innovate idea for the production department. It will also help to find out
innovative hardware for the IT industry, such as the change organisation. According
to the case study, Apple follows the process innovation and product innovation model. Still, the Virgin uses the process and position innovation to come up with new products and
position innovation helps the Virgin Group to develop its services through
effective communication.
Innovation Funnel
Innovation funnel boosts the organisational innovation
level. Innovation funnel helps to collect data, and the change organisation can use this data to make some innovative products. Innovation funnel helps the
organisation to set some effective innovation model and get organisational
development.
Figure 04: Funnel innovation
Source: (Lundahl, 2012)
Innovation funnels for the change organisation
In this process
data are collected to make some innovative idea. These data are being analysed,
categorised, and finalised for the innovation in the organisation. These data
are used to make some innovative information to run the business effectively (Pollmann,
2013). The
change organisation should collect data from different sources to make usable
information and put this information to their strategy to make some innovation.
According to the case study, Apple collects data from different sources and put
their collected data in innovation funnel to develop something new and
finalised the products. Virgin Group also follows innovation funnel to utilise market information and customers needs.
P4 Evaluate the development process
of frugal innovation for ‘the change organisation’ with reference to the case
Frugal innovation
Payton and Moody (2009) claimed that this is a
process to reduce the cost of goods and the complexity of product innovation. This
process helps the employee to control the cost of the production of a new and
innovative idea. It enhances the product and service quality to achieve a competitive
advantage as well as an organisational goal in a big market. The reverse innovation
process is the opposite of frugal, but it also controls the cost. Day by day, reverse
innovation by the reverse process is becoming popular across the world.
There
are six principles of frugal innovation. These are Flex
your asset, create a sustainable situation, and Shape customer behaviour, Co-create
value with procurer, make innovative friends Develop team effectiveness. But sustainability
is a major issue for the company. The sustainable development plan can help to
achieve the organisational goal of the company (Pollmann, 2013). Frugal innovation helps Apple to
reach the top market value in Europe and Asia. Apple created an advance
product according to the customer's demands.
Frugal Innovation of The change
organisation:
According to Ramdorai and Herstatt (2015), The change organisation should
collect data from different sources to make some innovative products. But
Frugal innovation may help them to their processing. It will help them in
various ways to survive in the market and do business effectively and
efficiently. The six principles of frugal innovation process will help to cope with the organisational goal and employee activities (Lager,
2010).
This will help them to find out new and innovative products which are most
attractive to the other company.
P5
Evaluate the importance of commercial funnel to the change organisation
Commercial funnel:
Commercial
funnel deals with the sales of the products. It helps the employee to increase
the sale of the company (Ramdorai and Herstatt, 2015). If sales increased then the gross profit
will be increased. It is a very good process for the company to achieve the
organisational goal. Commercial funnel introduces the purchase of raw material
(Hippel,
2016).
It also defines the capability of the company to produce any products. When a
company thinks about to introduce new products, a market, the company first need
to know about the capability. If the company is not capable, then their innovation
process will break down. The change organisation should use the innovative
idea of the company and try to know the capability of the company. It will help
the company to know more about the products innovation process and introduce
some new innovative hardware for the consumer. Finally, it will conclude
that commercial funnel is a good process and idea for any kinds of
business to increase the number of sales and decrease the production cost.
P6
How to finance the money for the business and change organisation
Financing money is an essential concept for the company. The
company should find out the sources funds at low cost rather than expected
return (Lundahl,
2012).
The higher expected return than the cost of funds is a sign of profit and good
financing methods. So the finance manager need to find the best sources of
funds such short term ( bank loan, issuing commercial paper, a loan from friends
and family, credit purchase and advance payment from the customer) and long term (Issuing
Share and boa nd, bank loan for 10 years or above, them Bethlehem capital market).
Mission
statement of the change organisation
The mission of the change organisation is getting a sustainable
position in the UK market and give the best hardware and software solution to
their customer.
Proposal
statements for the change organisation
The change organisation is to promise to their customer to
provide the best solution to their problem as well as achieving organisational goal and objectives.
Imperative
matrix
Schein (2016) defines that innovation does not indicate a
positive growth every time in the business. Innovation may be good or bad
based on employee performance and management’s selection of innovative
process.
Reverse
matrix
According to Govindarajan and Trimble (2012) it
gives an opposite direction of imperative matrix. This matrix evaluates the
process and find out the success.
Innovation
strategy for the change organisation
The change organisation should
introduce some innovative products in the market to get a competitive advantage.
The company may come up with some smart hardware and software solution to the
existing market, which is not available right now. The change organisation can bring
some hardware with the latest technology and more features.
P7
How the change organisation can protect their intellectual assets
Every company has some intellectual assets. But these assets
are very much unprotected in the market. Most of the developing country can
copy the product and make a duplicate copy of those products. So the company
should use different methods to protect their innovative product such as Patent,
copyright, trademarks, franchise and so on (Matsuura, 2003).
The change organisation should use the patent. Because of The patent is protecting the physical assets from copying some other cheaters where
copyrights protect the no physical existence of the products. The change
organisation also use the trademarks to protect their own logo and brand name.
Conclusion
The change organisation a developed company in the market. The
company has the probability of capturing the huge IT market in the UK. So the company
should use some innovation strategy to come up with some innovative products
in the market (Lundahl, 2012). The company can use different
methods to control the cost and reduces the natural sources. So that the change
organisation should follow the innovation process strictly to sustain the market
and achieve the organisational goal.
References:
1. Lager,
T.,2010., Managing Process Innovation: From Idea Generation to
Implementation: World Scientific
2. Hippel,
E.,2016., Free Innovation: MIT Press
3. Ramdorai,
A., Herstatt, C., 2015., Frugal Innovation in Healthcare: How Targeting
Low-Income Markets Leads to Disruptive Innovation: Springer
4. Govindarajan,
V., Trimble, C., 2012., Reverse Innovation: Create Far from Home,
Win Everywhere: Harvard Business Press
5. Payton,
R., Moody, M.,2009., Understanding Philanthropy: It's Meaning and Mission:
Indiana
University Press
6.
Schein, E. H., 2016., Organizational
Culture and Leadership, 5th Edition: John Wiley & Sons
7. Lundahl,
D.,2012., Breakthrough Food Production Innovation Through
Emotions Research: Academic Press
8. Vaughn,
J., 2013., Technological Innovation: Perceptions and Definitions: American
Library Association
9. Bas,
C., Latham, W., 2013., The Economics of Persistent Innovation: An Evolutionary
View: Springer
Science & Business Media
10. Yun,
J., 2017., Business Model Design Compass: Open Innovation Funnel
to Schumpeterian New Combination Business Model Developing Circle: Springer
12. Pollmann,
M., 2013., Process Definition for Innovation in Trade Fairs: Edinburgh
Napier University
No comments