Learning Strand 4- Life and Career Skills

Learning Competency
Apply creative and innovative techniques to develop a sample marketable product
(p10; LS4LC-AE-PSB-LE/AE/LS/AS-7.4 )
https://
www.huffingtonpost.com/daniel-burrus/creativity-and-innovation_b_4149993.h
tml
http://www.infoentrepreneurs.org/en/guides/use-innovation-to-grow-your-
business/
Prerequisite Contents and Skills
 The companies that have done the best over the long tow are those who are the
most creative and innovative. These organizations don’t copy what others do;
instead, they may use innovative ideas from others as a spring board to come up
with a unique application, product, or service for themselves. They tend to distance
themselves from the competition rather than compete with them. If they see another
company copying what they do, they create something new and better. In other
words, they are able to leverage their creativity and their innovative capabilities to
attain long-term success.
Innovation is the introduction of something new in your product or service.
This may be a new idea, a new method, or a new device. If you want to increase
your sales and profit, you must innovate. Some of the possible innovations for your
products are change of packaging, improvement of taste, color, size, shape,.
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and perhaps price. Some of the possible innovations in providing services are
application of new and improved methods, additional featured services, and possibly
freebies.
THE BUSINESS CASE FOR INNOVATION
It is important to be clear about the difference between invention and
innovation. Invention is a new idea. Innovation is the commercial application and
successful exploitation of the idea.
Fundamentally, innovation means introducing something new into your
business. This could be:
-improving or replacing business processes to increase efficiency and
productivity, or to enable the business to extend the range or quality of existing
products and/or services
-developing entirely new and improved products and services - often to meet
rapidly changing customer or consumer demands or needs
-adding value to existing products, services or markets to differentiate the
business from its competitors and increase the perceived value to the customers and
markets
Innovation can mean a single major breakthrough – e.g. a totally new product
or service. However, it can also be a series of small, incremental changes.
Whatever form it takes, innovation is a creative process. The ideas may come from:
-inside the business, e.g. from employees, managers or in-house research and
development work

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 -outside the business, e.g. suppliers, customers, media reports, market
research published by another organization, or universities and other
sources of new technologies
-Success comes from filtering those ideas, identifying those that the
business will focus on and applying resources to exploit them.

BENEFITS OF INNOVATION
Improved productivity & reduced costs
A lot of process innovation is about reducing unit costs. This might be achieved by
improving the production capacity and/or flexibility of the business – to enable it to
exploit economies of scale
Better quality
By definition, better quality products and services are more likely to meet customer
needs. Assuming that they are effectively marketed, that should result in higher sales
and profits
Building a product range
A business with a single product or limited product range would almost certainly
benefit from innovation. A broader product range provides an opportunity for higher
sales and profits and also reduces the risk for shareholders

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To handle legal and environmental issues
Innovation might enable the business to reduce it carbon emissions, produce less
waste or perhaps comply with changing product legislation. Changes in laws often
force business to innovate when they might not otherwise do so
More added value
Effective innovation is a great way to establish a unique selling proposition ("USP")
for a product – something which the customer is prepared to pay more for and which
helps a business differentiate itself from competitors
Improved staff retention, motivation and easier recruitment
Not an obvious benefit, but often significant. Potential good quality recruits are
often drawn to a business with a reputation for innovation. Innovative businesses
have a reputation for being inspiring places in which to work.
RISKS OF INNOVATION
A strategy of investing in R&D and innovation can bring significant rewards, but it
is not without risk. Amongst the potential pitfalls are:
Competition
An innovation only confers a competitive advantage if competitors are not able to
replicate it in their own businesses. Whilst patents provide some legal protection, the
reality is that many innovative products and processes are hard to protect. One
danger is that one research-driven, innovative company makes the initial investment
and takes all the risk – only to find it is competing with many me-too competitors
riding on the coat-tails of the innovation.

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Uncertain commercial returns
Much research is speculative and there is no guarantee of future revenues and
profits. The longer the development timescale the greater the risk that research is
overtaken by competitors too.
Availability of finance
Like other business activities, R&D has to compete for scarce cash. Given the risks
involved, R&D demands a high required rate of return. That means that for
businesses that have limited cash resources, the opportunity cost of investing in
R&D can be very high.
APPROACHES TO INNOVATION
There are many ways of improving a product from the way it is made to the
way it is packed and sold. You can also improve the materials used in crafting the
product. In addition, you can introduce new ways of using the product, making it
more useful and adaptable to the customers’ many needs. When you are improving
the product or enhancing it, you are doing an innovation. You can also do an
invention by introducing an entirely new product to replace the old one.
Innovation in your business can mean introducing new or improved products,
services or processes.
Analyze the marketplace
To move your business forward, study your marketplace and understand how
innovation can add value to your customers.

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Identify Opportunities for Innovation
-You can identify opportunities for innovation by adapting your product
or service to the way your marketplace is changing.
For example, if you're a specialist hamburger manufacturer, you might
consider lowering the fat content in your burgers to appeal to the health-
conscious consumer.
-You could also develop your business by identifying a completely new
product. For example, you could start producing vegetarian as well as meat
burgers.
-You could innovate by introducing new technology, techniques or
working practices - perhaps using better processes to give a more consistent
quality of product.
If research shows people have less time to go to the stores, you could
overhaul your distribution processes, offering customers a home-delivery
service, possibly tied in with online and telephone ordering.
If your main competitor's products have a reputation for being cheap
and cheerful, rather than trying to undercut them on price you could
innovate by revamping your marketing to emphasize the quality of your
merchandise - and consider charging a premium for them.

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 PLANNING INNOVATION
Some innovative ideas may just come to you out of the blue. However,
you should ideally have:
- innovation as part of your business strategy
a strategic vision of how you want your business to develop - if you
dedicate your time to monitoring trends in your business sector, you can
then focus your innovative efforts on the most important areas.
Innovation will not only improve the chances of your business
surviving, but also help it to thrive and drive increased profits.

There are lots of practical ways of assessing whether your ideas have profit
potential:
Assess the competition
Find out who your competitors are and where they operate. Use the
Internet and advertising sources such as the Yellow Pages to find out about
their products, prices and operating culture. This can give you an overview
of their selling points, as well as any areas you might be able to exploit.
For example, if the competition is focused on value for money, you

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might want to emphasize the quality of your product or service. Search for business
listings nationwide on the YellowPages.ca or Canada411.ca websites.

Study market or industry trends

Awareness of the climate in which your business is operating will help you to
plan.You can find a lot of information about your industry on the Internet. Business
and trade magazines will also feature useful articles.

Build a relationship with your customers

It's not enough simply to know who your customer base is. You need to
communicate effectively with them as well.
Communication involves not only listening to their needs but also actively
observing their behavior around current products and services and generating ideas
on how you can make improvements.
Involve your suppliers and other business partners
Pooling your resources with your suppliers or other business partners will help to
produce and develop creative ideas. Potential partnerships can also be developed
through business networking opportunities.

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 Next, consider what taking a particular innovative step could mean for your
business. Ask yourself:
what impact it will have on your business processes and practices
what extra training your staff may require
what extra resources you may need
how you'll finance the work
ENCOURAGE INNOVATION IN YOUR BUSINESS
There are many sources you can use to help generate new ideas for the
business.Suppliers, business partners and business network contacts can all make
valuable contributions to the creative process, as well as providing support and
encouragement.
Your employees are also a vital asset in generating innovative ideas.
To get the most from them, you need to create an innovative environment and
encourage creative thinking.
Steps to promote innovation
1.Make sure you have processes and events to capture ideas. For example, you
could set up suggestion boxes around the workplace or hold regular workshops or
occasional company away days to brainstorm ideas
2.Create a supportive atmosphere in which people feel free to express their
ideas without the risk of criticism or ridicule.

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 3.Encourage risk taking and experimentation - don't penalise people who try
new ideas that fail.
4.Promote openness between individuals and teams. Good ideas and
knowledge in one part of your business should be shared with others. Teamwork,
newsletters and intranets can all help your people share information and encourage
innovation.
5.Stress that people at all levels of the business share responsibility for
innovation, so everybody feels involved in taking the business forward. The fewer
the layers
of management or decision making in your organization, the more people feel their
ideas matter.
6.Reward innovation and celebrate success. Appropriate incentives can play a
significant role in encouraging staff to think creatively.
7. Look for imagination and creativity when recruiting new employees.
Remember that innovative thinkers aren't always those with the most impressive list
of qualifications.
FUNDING INNOVATION
There are a number of ways you can fund your growth through innovation,
either by using your own funds or tapping into external funding such as loans or
equity finance.
Government programs
You may also wish to consider applying for a government program. This will only
usually cover part of your project, but you will retain control of the shares in your
business. 193
 Creativity is a function of knowledge, curiosity, imagination, and evaluation.
The greater your knowledge base and level of curiosity, the more ideas, patterns,
and combinations you can achieve, which then correlates to creating new and
innovative products and services.
To help you master that process, you first must understand three important
levels of creativity, which are discovery, invention, and creation.
1. Discovery: The lower level of creativity is discovery. Just as the name implies,
it’s when you become aware of or stumble upon something—discover it. For
example, there is art called “discovered art.” It might be a rock with a unique shape
or a piece of wood with an interesting pattern. If you have ever purchased a piece of
natural stone or wood art, that art was discovered art. Many inventions start with a
discovery.
2. Invention: A higher level of creativity is invention. For example, Alexander
Graham Bell invented the telephone. But you have to ask yourself, “Would the
telephone have been invented without Bell?” The answer is yes. Eventually the
telephone would have been invented because the science was there. It might have
taken longer, but it would have happened. So while invention is higher than
discovery, it’s something that is going to happen. If you don’t invent it, someone
else will.
3. Creation: Creation is the highest level of creativity. For example, the stage
play Othello is genuinely a creation. Elizabethan drama would have gone on
without Shakespeare, but no one else would have written Othello. Similarly, there
are things that only your organization can create! The key is tapping in to what
those things are. 194
 Here’s an example of how this could play out in your company. While at a
conference you might discover a tool, a technology, or a process that you didn’t
know before. You purchase the tool for your staff, and that discovery helps
everyone work better. After some time, that discovery may also spur an innovative
idea of how to apply the discovery. You may then use that innovative idea as an
inspiration that yields something never seen before, something created by your
company that helps you and your customers. That’s how the three levels of
creativity can work together.
Realize that creativity and innovation are different. Creativity refers to
generating new and novel ideas. Innovation refers to the application of an idea and,
in many cases, is a collaborative enterprise. So in other words, innovation is applied
creativity.

Product Development
When we talk of product development, we are referring to a process of making
a new product to be sold by a business or enterprise to its customers. Product
development may involve modification of an existing product or its presentation, or
formulation of an entirely new product that satisfies a newly-defined customer’s
needs, wants and/or a market place. The term development, refers collectively to
the entire process of identifying a market opportunity, creating a product to appeal
to the identified market, and testing, modifying, and refining the product until it
becomes ready for production.

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 There are basic, yet vital questions that you can ask yourself about product
development. When you find acceptable answers to them, you may now say that
you are ready to develop a product and/or render services.
These questions include the following:  
1. For whom are the product/services aimed at?
2. What benefit will the customers expect from product/service?
3. How will the product/service differ from the existing brand? From its
competitor?
In addition, needs and wants of the people within an area should also be taken
into big consideration. Needs can obviously help you generate business ideas and
subsequently to product development. Wants or desires are considered above all the
basic necessities of life.
Product development entirely depends on the needs and wants of the
customers. Another important issue to deal with is the key concepts of developing a
product.
Concepts of Developing a Product
Concept development is a critical phase in the development of a product. In
this stage, the needs of the target market are identified, and competitive products
are reviewed before the product specifications are defined. The product concept is
selected along with an economic analysis to come up with an outline of how a
product is being developed.

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 Stages of Concept Development

The process of product development follows the following stages:

1. Identify customer needs: Using survey forms, interviews, researches, focus
group discussions, and observations, an entrepreneur can easily identify
customers’ needs and wants. In this stage, the information that can be possibly
gathered are product specifications (performance, taste, size, color, shape, life
span of the product, etc.). This stage is very important because it would
determine the product to be produced or provided.
2. Establish target specifications: Based on customers' needs and reviews of
competitive products, you can now establish target specifications of the
prospective new product and/or services. A target specification is essentially a
wish-list.
3. Analyze competitive products: It is imperative to analyze existing competitive
products to provide important information in establishing product or service
specifications. Other products may exhibit successful design attributes that
should be emulated or improved upon in the new product or service.
4. Generate product concepts: After having gone through with the previous
processes, you may now develop a number of product concepts to illustrate the
types of products or services that are technically feasible and will best meet the
requirements of the target specifications.

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5. Select a product concept: Through the process of evaluation between attributes, a
final concept is selected. After the final selection, additional market research can be
applied to obtain feedback from certain key customers.
6. Refine product specifications: In this stage, product or services specifications are
refined on the basis of input from the foregoing activities. Final specifications are
the result of extensive study, expected service life, projected selling price among
others are being considered in this stage.
7. Perform economic analysis: Throughout the process of product development, it is
very important to always review and estimate the economic implications regarding
development expenses, manufacturing costs, and selling price of the product or
services to be offered or provided.
8. Plan the remaining development project: In this final stage of concept
development, you can prepare a detailed development plan which includes list of
activities, necessary resources and expenses, and development schedule with
milestones for
tracking progress.
A competitive entrepreneur always improve their products or services to
provide satisfaction and of course retention of customers. As your business grows,
you should always consider the process of asking your customers important
information and questions that you can use to improve your product or service.

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Task 1
How will you apply innovation techniques on the following
products to make it profitable.

A B

C D
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Task 2
What creative and innovative techniques did you adapt in the development
of your product or service? What was the effect of the innovative
techniques to the sales and profits of your business?
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Task 3
Make a short narrative report about creativity
or innovations in products and services
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