New project Outline
This particular innovation plan report is aimed to provide a detailed insight of the innovation processes associated with the profit increasing as well as damage control activities of any given firm. The study has assessed an operation of Planet Innovation to gain a greater understanding on the role of innovation in the attainment of competitive edge in global market. Plane Innovation is an Australian based leading company that aims to develop and commercialize most advanced and leading products around the world. It operates its business through provision of product development, technology innovation as well as commercialization expertise to leading hi-tech, clean-tech and biomedical industries.
It can be easily observed that Plane Innovation is one of the most renowned companies for its innovative product development and commercialization capability. The firm has been able to fulfil its business goals and values by successful employment of global strategies (De Massis et al., 2015). The company has been always focused on the innovation to acquire the current unprecedented market share and competitive advantage. Recently the form has developed ‘Zen thermostat’ maintaining its tradition of innovation.
Figure 1: New product Zen Thermostat
(Source: Planet Innovation, 2017))
This particular thermostat is equipped with the technology to sync with the smart phone. The access of home thermostat through smart phone has immensely increased its convenience and estimate to attain most popularity in the market.
Planet Innovation has been always passionate about acquiring sustainable business venture relying on the innovation. The company is focused on making the user’s life better with the use of technology and science in product development. The entire innovative product development process of Planet Innovation is immensely depended on three major activities, which are feasibility research, development as well as promotion. In this context, the organization vastly put emphasize on constructing a robust new product development (NPD) process (Stark, 2015). The NPD helps the organization to manage as well as mitigate the risks associated with the product development. It also enhances the effectiveness and efficiency of the entire manufacturing process. There are several steps which are quite influential for successful accomplishment of product development process. These steps are depicted below:
Figure 2: New Product Development Stages
(Sources: Visser, 2015)
As identified by Mabogunje (2015), in order to produce efficient IDD outcome, the organization needs R&D intensity. Moreover, the company with the greater IDD outcome ensures that they have the capability to commercialize ‘champion’ innovation. At the same time, it has been identified that the organization with insignificant intensity in the context of research and development has the tendency to commercialize ‘shrink’ innovation. In order to, construct the innovative diagnostic diagram, four indexes are considered most crucial. These indexes are discussed below:
- Innovation Index:
Outlining the development process of new product
The innovation index refers to the effectiveness for any product in the context of technique and legislation. Planet Innovation has emphasized on these particular issues in a crucial fashion (Ebrahim, 2015).
- Market Index:
The market index represents the level of awareness of the adoption-diffusion rate, pricing strategy and necessity of the market (Kahn et al., 2012). Planet Innovation is founded by four most experienced executives, which enables the organization to have the knowledge basic attributes of the market. Hence, the organization has determined to promote the product in Australian Market.
Figure 3: IDD diagram
(Source: Burke & Noumair, 2015)
- Strategy Index:
The strategy index refers to the ability of the firm to conduct necessary strategic alliance as well as business planning (Povilionis and Bargelis, 2015_. In this context, Planet Innovation has always focused on effective business planning. However, the organization has not formed any strategic alliance.
- Resource Index:
The resource index refers to the ability to conduct any project with sufficient resources. Planet Innovation needed to focus on the required technology, financial stability as well as human resource at the time of launching the product (Myers, Montgomery & Anderson-Cook, 2016).
The risks as well as return of the profit associated with the product, which has been launched in the market, is highly depended on several major factors. These factors are length, rate as well as volume.
Amount of Rate = Cumulative Volume × Rate × Length
Figure 4: RENT Model
(Source: Tyagi et al., 2015)
Volume:
The volume factor is mostly focused on the potential annual sales of the newly launched product. The product ‘Zen Thermostat’ has recently launched in Australian Market, one of the largest industry around the world. In addition to that, the other products promoted by Planet Innovation have already been quite successful in the Australian market. Hence it can be easily assumed that the size of end-user market is quite satisfactory in comparison with others. However, there are various competitor brands of thermostat such as ecobee, Honeywell, etc. This competition effectively limits the business growth potential of Planet Innovation (Tajvidi & Karami, 2015).
Potential Profit Margin:
This particular factor immensely focuses on the potential profit range. The profit margin has been noticed to be dependent on the nature of innovation used in the development of product (MacCormack et al., 2012). Planet Innovation uses most modern and futuristic innovation, which ensures a better life-style for the users. The effective investment and focus on the continuous innovation keeps the organization most upfront for every market situation as well as enhancement of products.
IDD analysis of the new project
Length:
The length factor is focused on the potential life cycle of the developed product. The product life cycle is depended on the effectiveness of the used technology in the light of contemporary market requirement (Bullinger & Warschat, 2012). As Planet Innovation relies on the most advanced technology, it helps the organization to compete with the rival brands in an efficient fashion.
There are various commercialization issues which plays a significant part in the promotion of any product. These issues can be major hindrance for the business growth of many organizations. However, there are certain organizations, which have the capability to skilfully manage these problematic elements Mabogunje (2015). It has been identified that the use of disruptive technology in the innovation is a most crucial issue for the commercialization. Therefore, the organizations must be continuously ready to response the moves of existing competitors, customers as well as markets. It will evidently help the organization to identify the market gaps for premium product pricing. In this context the use of disruptive technology need to be intended by the end-users, instead of retailers and firms (Tajvidi & Karami, 2015). This particular condition essentially marks the effectiveness as well as success of the innovation. At the same time, it has been also identified that ‘demand pull’ marketing can be most beneficial for marketing activities in comparison with ‘demand push’ marketing. In this context, it has been also considered that the use of disruptive technology in the rival brands, including ecobee and Honeywell, might be most damaging for the business of Planet Innovation.
It has been observed that the balance between incremental innovation and radical innovation is apt for the promotion of new product in the desired market. The major reason of this fact is that the organization gains profit by provision of new experience to the customers (Tyagi et al., 2015). The consideration of change at the time of innovation plays a very significant part in the company’s success. The major purpose behind the product launch is satisfying the customers with the innovative technology application. Therefore, in order to attain reasonable profit the organization must consider overall annual turnover as well as R&D investment. It can be successfully identified that the earning turnover is highly depended on the amount of R&D investment (Bullinger & Warschat, 2012). In this context, Planet Innovation always invest ample amount of capital in research and development as the company mad the innovation as their unique selling points.
It has been identified from that above described evaluation that Planet Innovation has the capability to launch ‘Zen Thermostat’ with a greater scope of profitable market share. The assessment report also revealed that the Planet Innovation has never failed in any product launch due to its commitment of innovative technology. Being an expert in this sector, the organization has been able to grasp the idea of dynamic nature of the market has noted to respond quite efficiently to the market factors. The expertise and market experience enables the organization to adapt to new strategy or environment without any hindrance.
Conclusion
The above-discussed report has effectively identified that Planet Innovation has been embodiment of true innovator throughout the world. The innovation has been a major pillar for its approach of sustainable business since the establishment of the company. The customers’ necessity and demand are the key factor that kept in mind at the time of product innovation. Hence, it can be assumed that the product launch would evidently make significant profit for the organization.
Reference List:
Bullinger, H. J., & Warschat, J. (Eds.). (2012). Concurrent simultaneous engineering systems: the way to successful product development. Springer Science & Business Media.
Burke, W. W., & Noumair, D. A. (2015). Organization development: A process of learning and changing. FT Press.
De Massis, A., Frattini, F., Pizzurno, E., & Cassia, L. (2015). Product innovation in family versus nonfamily firms: An exploratory analysis. Journal of Small Business Management, 53(1), 1-36.
Ebrahim, N. A. (2015). Virtual R&D Teams: A New Model for Product Development. International Journal of Innovation, 3(2), 1.
Innovation in Unilever. (2016). Unilever global company website. Retrieved 6 November 2016, from https://www.unilever.com/about/innovation/innovation-in-unilever/
Kahn, K. B., Barczak, G., Nicholas, J., Ledwith, A., & Perks, H. (2012). An examination of new product development best practice. Journal of Product Innovation Management, 29(2), 180-192.
Mabogunje, A. (2015). The development process: A spatial perspective (Vol. 14). Routledge.
MacCormack, A., Crandall, W., Henderson, P., & Toft, P. (2012). Do you need a new product-development strategy?. Research-Technology Management, 55(1), 34-43.
Myers, R. H., Montgomery, D. C., & Anderson-Cook, C. M. (2016). Response surface methodology: process and product optimization using designed experiments. John Wiley & Sons. ENTREPRENEURSHIP AND INNOVATION
Planet Innovation. (2017). Planet Innovation. Retrieved 21 April 2017, from https://planetinnovation.com.au/about/
Povilionis, A., & Bargelis, A. (2015). Structural optimization in product design process Mechanics, 81(1), 66-70.
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