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Explain the different types of innovation?

There are mainly four broad categories where changes can take place. They are product
innovation, process innovation, position innovation and paradigm innovation.
Product Innovation: is the type of innovation where changes take place in products or services.
Apple launching the iPod in 2001 is an example of product innovation.
Process Innovation: is the type where changes take place in how the products or services are
created or delivered. Ford Motor Company invented worlds first moving assembly line which
shortened the time taken to assemble a car from 12 hours to 90 minutes.
Position Innovation: is the type of innovation where changes take place in context in which
products or services are framed and communicated. For example, Levis-Strauss jeans are well
established global product line which was initially developed as clothing for manual workers
but later re-branded as a fashion item.
Paradigm Innovation: is the type of innovation where changes take place in the mental model
which shape what the organisation does. For example, the Southwest, an American low-cost
airline company, which launched in 1971 allowed people to travel at a reasonable price by
cutting out all the fancy things and giving people only what they need.
Frugal innovation is the process of reducing complexity and cost of good and production. This
involves reducing nonessential features from durable products so that the product can be made
available to emerging markets. In 2001, a huge earthquake took place in the state of Gujarat in
India which resulted in the loss of 2000 lives and 400,000 lost their homes and countless
number of people lost their business. Among them, a young entrepreneur, Mansukhbhai
Prajapati, lost everything but found a way back by designing a low cost clay fridge which
required no electricity and functioned in the event of major catastrophes or blackouts.
Discuss the process required to commercialise innovation
The aim of any product or process development project is to turn an idea into reality and present
it in an economical, manufacturable form. The overall development process is to take a wide
range of inputs and gradually refining and selecting a handful of formal development that can
be pushed to rapid development and introduction. This process can be illustrated as a funnel
which is called the commercial funnel. Without any process of development like this, an
organisation flies blind without any visibility of the development and status of its products or
services.
New Product Develepment (NPD) is the process by which a new product is brought into the
market. There are eight major steps in the new product development process. The first step is
Idea Generation, which is conceptualising the product or service. The next step is Idea
Screening, which ensures that the unsuitable ideas are rejected as soon as possible. After which
Concept Development and Testing, where the feedback of the customers are taken to see if
they understand the concept and if they really need it. The next step is Business Analysis, where
a business case needs to be put together to assess whether the new product/service will be
profitable. Then in Product Development, a prototype or limited edition model is created so
that exact design and specification can be investigated. The next step is Test Marketing. In this
step, a prototype is introduced following the proposed marketing plan. After that,
Commercialisation takes place where final decisions are made to launch the product into the
market. And the final step is Launch. A detailed launch plan is required for this stage to run
smoothly and to have maximum impact.

Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.

From a legal point of view, there are four types of intellectual property. They are patents,
trademarks, copyrights and trade secrets.
Patenting is the process by which the organisations invention is registered with the government
so that legal right is gained to exclude anyone from manufacturing or marketing the invention.
A trademark is a name, phrase, sound or symbol used in association with services or products. It
often connects a brand with a level of quality on which companies build a reputation.
Copyright laws protect written or artistic expressions fixed in a tangible medium - novels, poems,
songs or movies. A copyright protects the expression of an idea, but not the idea itself. The owner
of a copyrighted work has the right to reproduce it, to make derivative works from it (such as a
movie based on a book), or to sell, perform or display the work to the public
A formula, pattern, device or compilation of data that grants the user an advantage over competitors
is a trade secret. It is covered by state, rather than federal, law. To protect the secret, a business must
prove that it adds value to the company - that it is, in fact, a secret - and that appropriate measures
have been taken within the company to safeguard the secret, such as restricting knowledge to a select
handful of executives. Coca-Cola, for example, has managed to keep its formula under wraps for
more than 117 years.s