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STUDENT ID:
OUTCOME 1
INNOVATION AND ITS KEY ELEMENTS:
Innovation in a simple way is a process or a method that helps to meet the modern
era requirements, and the need of the market. This can be fulfilled through efficient
services, effective products, upgraded technology. Innovation on the other hand can
be said a method that brings ideas which have a direct impact on the market
conditions. innovation is very important as in this fast growing world the needs are
getting more and more so the ideas have to be transferred into the goods and
services so that they meet the particular present market conditions.(business dic.)
Innovation are grouped into categories:
Evolutionary inventions these are long run innovations that are brought
Innovation is the backbone of this age without new ideas there would be no
advancement in the marketing field, and specific needs would not get fulfilled.
Innovation includes four main elements that are strategy, structure, skills and
process. strategy is very important for the company or organisation as the main goal
has to be setup and various policies to be made for achiving the goal. Innovation
strategy helps to follow the right ideas so that organisation move in a smooth way
and aimed goal can be captured.
On the other hand, structure is an another element of innovation because the ideas
in the company can come from anywhere, whether thats the person talking to
another person or the manufacturing room. Motivational contact between the
employees and making less the formal controls if we want to make innovation efforts
in the company.
Skills are another important element of innovation that helps the ideas to come out .
taking a small idea and able to see its various side that include opportunities and
threats of it is a skill that has to be polished and taken into consideration.
Whereas, process is the last element of innovation because after getting an idea the
plan or idea has to be implemented, so process helps to take take idea a step ahead
and give it push. The basic components of process are ideation, development, and
implementation. So we need to focus these areas so that the idea can run without
any risk.
INNOVATION:
INVENTION-COMMERCIALISATION-
DIFFUSION
INVENTION
COMMERCIALISATION
take care that the invention is safe and will work accordingly.
Commercialisation innovation helps to find a better way to to know the actual
value or real value of the technology
DIFFUSION
It is related with innovation and explain the rate at which customers gain the
innovation.
Diffusion can be slow or fast accordingly.
Business model is a well working plan imposed by the organisation for successful
business or organisation operations. It helps to know about the business financial
base and produce the revenue and make earnings from the business operations.
The above chart describes the function of business model which are divided into
three parts that are internal functions, external functions, support functions. These
function plays a vital role in business operation without it the business cannot step
ahead.
Business model mainly include two elements value proposition and the operating
model. It include three main ways that are as follows:
deliver profitably.?
Organisation:- how do we make an effective action and develop our people
sustain and competitive advantage?
TARGET SEGMENT(S)
PRODUCT&
SERVICE
OFFERING
BUSINESS MODEL
REVENUE MODEL
VALUE CHAIN
COST MODEL
ORGANISATION
BASIS OF DIFFERENCE
1.) MEANING
INNOVATION
It
is
INVENTION
method
upgrading
existing helps
to
meet
need
of
the
the
by
effective
product
effective
technology, etc.
2.) TYPES
incremental
innovation,
modular
innovation,
product
invention,
fabrication
invention,
radical
innovation
and
architectural innovation
appearance, authorship,
discoveries, etc.
3.) RELATION
4.) CONCERN
Innovation is similar to
Invention is related to
modernization
services
and mainly
singular
method
invention
concern
product
is
with
or
5.) PRACTICAL
not
practical
as
compared to invention.
6.) EXAMPLES
Printing
powered
television,
press,
telephone,
INVENTION OF AN
ELECTRIC BULB.
INNOVATION OF AN
TUBELIGHT.
INVENTION AND
INNOVATION
Innovation and invention are related to each other both play a vital role in modern
era. It is hard to find out which one is important but some aspects can be made . as
without invention there can be no innovation so first invention is must only than
changes or development can be made to the product. Invention means building
something new and innovation whereas is an improvement or development in an
existing product. In my point of view both are same because innovation is to
important which brings ease and make the product more effective and useful.
Inventions are for one time or product can be invented once but on the same
innovation are for long time as much as changes can be made by improve in
technology, new ideas, etc. In some ways innovation is more important than invention
because it improves the quality life and ease things .
EXAMPLE : (WHEELS)
Innovation had helped to a great extent with a click of button certain works can be
completed in a few minutes. New generation mobiles include a great useful
technology which helps to make living easy.
INNOVATION
INCOMPLETE
WITHOUT
COMMERCIALIZATION
&
DIFFUSION
specific
period
of
time.
Knowledge
Persuasion
Decision
Implementation, and
Confirmation
The most essential thing here is the capacity to get the ideas to the places it can
affect lives which is possible through technical education.
example: if ipad and i phone had not sold well, no one will see apple as an
innovative engines despite producing those products. But with the success in
the market, apple had become a respected innovative brand.
efficient way. Business model plays a significant role in business and help to know
what type of product and services will it make and helps to achieve the organisational
goal.
Business model mainly has two essential role that are price creation and price
capturing. In context of innovation business model had played a vital role and some
of its role are as follows:
Value proposition is the price made for the users by the offering.
Checking a market segment is to whom the offer is made and for what aim it
has been provided to the user.
Explain the model of the value chain required by the organisation to make and
spread the offerings and should include overall value chain from the supplier
In order to understand the concept of value capture we need to know the meaning of
value creation. Value creation means to make something that the people want. Every
businessman aims at creating value so that they could satisfy their customers,
employees, shareholders etc. in a better way and grab more and more opportunities
for growth. Value creation occurs when there is an additional value being added to
the bottom line of a business. The first point of focus should be for creating value for
the customers the needs and expectations of the customers should be met, this can
only be done when right employees are employed, motivated and rewarded as well
as the investors keep on receiving constant returns on their investment. This all will
lead to value creation in a business.
Merely creating a good product does not ensure success in the market, though it is a
necessary first step in every business. The next steps, whose goal is to capture
maximum value from the new product, are crucial. In order to capture value, you want
to be in a good bargaining position with regard to the owner of the complementary
assets needed to leverage the innovation. You need to have market power over
critical resources required to make your innovation cash-generative. The customer
captures part of the value if the innovation improves the value proposition of the
goods or services provided. The innovator can benefit because the better value
proposition allows him to sell his product or service at a high price or the innovation
decreases his internal costs which in return increases the profit margin. The supplier
captures part of the value because the better value proposition or reduced costs due
to the innovation leads to the higher demand of product or service which in turn again
increases the demand for the suppliers goods and services. The owner of
complementary assets benefits because the higher demand in the innovators good
also increases the demand in complementary asset.
Product Innovation:-
product innovation. James Dyson developed what he terms dual cyclone technology
(Dyson, 1997) and used it to create a new more efficient vacuum cleaner. The
innovative thing in this vacuum cleaner is that instead of employing a fan to suck dust
in a bag, it dispenses with the bag and uses Dysons patented dual cyclone
technology to extract dust and place the dust in a clear plastic container.
The humble photocopier, developed by Chester Carlson, may not sound like
a spectacular innovation, and yet it had a big impact on the way in which
administrative systems in offices are organised. One has only to look at what
happens in an office when the photocopier breaks down to see how reliant we
are upon it. Each and every office has a photocopier with it .
Much less well known, but just as significant in terms of its impact on society,
is the Float Glass process developed by Alistair Pilkington, in which plate
glass is manufactured by drawing glass out across a bed of molten tin (Quinn,
1991). Prior to the introduction of this process innovation, plate glass used for
shop windows and office windows was expensive and of poor quality largely
because the only way of getting a flat surface was to grind it and polish it. The
Float Glass process at a stroke eliminated the need for time consuming
grinding and polishing it, leading to a dramatic fall in costs. Architects and
property developers could now afford to specify large sheets of plate glass
when constructing new buildings, where in the past they would have been
prevented because of the cost. The result can be seen in the public buildings
constructed in the last thirty years, where everything from office blocks and
hotels to airports and shopping malls now employ large expanses of glass.
Process innovations often have a big impact on the economics of production as well.
Henry Fords introduction of the moving assembly line at his new Highland Park plant
in Detroit in 1913 resulted in a dramatic reduction in manufacturing effort. Improved
productivity on this scale, enabled him to dramatically reduce the price of his Model T
car. Business-to-business (B2B) Ecommerce is dramatically reducing the need for
paperwork and those who process paper, namely administrators. It is no surprise that
all sorts of business organisations from airlines to insurance companies offer a
discount for buying online. One has only to look at the size of the discounts offered to
get an idea of the efficiency gains that firms can make.
OUTCOME 3
RADICAL INNOVATION AND ITS IMPACT ON SOCIETY
The familiar but bulky cathode-ray tube (CRT) televisions and PC monitors are being
replaced by flat-screen technology. The manufacture of flat screens is a completely
different process from the manufacture of cathode-ray tubes. So when this transition
happens it is likely to destroy manufacturing plant and machinery and make CRT
design and manufacturing skills redundant.
RADICAL INNOVATION
Old
Telephone
VCR
New
Mobiles
DVD
player
CRT
Television
Personal
Computer
LED
Laptops
TECHNOLOGY
IMPACT ON SOCIETY
Telecommunication
Players
communication
Entertainment
Television
Microprocessor
New administrative
system, Internet
services e.g. banking
TO
(LOW POWER MOTOR)
MODULAR INNOVATION
Modular innovation refers to the configuration of one or more parts or elements of the
existing product. It may result in the redesign of core components, while architecture
remains unchanged. The use of new or different components is the key element of
modular innovation, especially if the new components possess a new technology.
Is the application of better solutions that meet new requirements had existing market
needs. This is accomplished through providing more effective products, processes,
services, and technologies to the users.
basis of electrical energy, normally provided via either an external power supply or
batteries. The clockwork radio is an innovation that employs a different form of power
supply, one that utilises a spring-based clockwork mechanism. The other
components of the radio, such as the speakers, tuner, amplifier, receiver etc remain
unchanged.
As a radio, the clockwork radio operates in the same way as other radios. It employs
the same kind of architecture in which the various components that make up the
system are configured and linked together in the normal way. However being
clockwork it does not require an external power sources and this is a very valuable
feature in those parts of the world which dont benefit from regular uninterrupted
power supplies.
As with incremental innovation, modular innovation doesnt involve a whole new
design. However modular innovation does involve new or at least significantly
different components. In the case of the clockwork radio it is the power source that is
new. The radio operates in much the same way as any other radio.
The use of new or different components is the key feature of modular innovation,
especially if the new components embrace a new technology. New technology can
transform the way in which one or more components within the overall system
operate, but the system and its configuration/architecture remains unchanged.
Clearly the impact of modular innovation is usually less dramatic than is the case with
radical innovation. The clockwork radio illustrates this well. People still listen to the
radio in the way they always have. But the fact that it doesnt need an external power
source means that new groups often living in relatively poor countries without access
to a stable and reliable supply of electricity living can get the benefit of radio.
Clockwork radio has also opened up new markets in affluent countries, for example
hikers who want a radio to keep in touch with the outside world. Clockwork radio has
also provided an important demonstration effect as it has led to other products, such
as torches, being fitted with this ingenious and environmentally friendly source of
power.
fact very common and it has big implications for would be innovators and
entrepreneurs who need to recognise that if they enter the industry during the early
years there is likely to be a period of shakeout eventually. Even more important they
need to recognise that the dominant design that does eventually emerge is not
always technically superior to its rivals