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Innovation Innovation is defined as the successful exploitation of new ideas Innovation involves the launch of a new product or process, or invention, onto the market for commercial gain Most innovative company in 2015?2015

Examples Dyson, pharmaceutical companies (eg GlaxoSmithKline), Apple, Alphabet

Research and Development Core to innovation Defined as the scientific research and technological development of new products and processes Benefits and purposes of R&D and innovation

Research and Development process R&D can be very expensive, with time and money (and requiring specialist staff) – Businesses adopt specific processes for R&D Idea generation Idea screening Concept testing Development of ideas

To market Business analysis Product development Test marketing

Risks and rewards Risks/problems Time and resource commitment Energy diverted from core business eg Tesco Image if failure (Apple maps) Competitor action or reaction Potential rewards Development of USP leading to competitive advantage Thus charging higher price Improved production process Reputation as innovator – can attract talent

How to improve chances of success Have supportive culture Protect Plan Secrecy

Functional impact The pursuit of innovation impacts the rest of the business: – Marketing – Human Resources – Finance – Operations