Innovation Culture and Entrepreneurial Success

This assignment delves into the concept of innovation culture, its impact on entrepreneurial success, and provides insights into strategies for small and medium-sized enterprises (SMEs) to adopt innovation. It covers various resources including books, journals, and online articles that discuss innovation in entrepreneurship, marketing, leadership, and organizational development.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Difference between invention and innovation ...................................................................1
2. Importance of innovation for Land Rover .........................................................................2
3. 4p's of innovation mix........................................................................................................5
4. Approaches to process the idea in frugal and funnel innovation........................................7
CONCLUSION..............................................................................................................................10
REFERENCE ................................................................................................................................11

INTRODUCTION
Innovation, represent new idea and imagination in product, process and service, whereas
commercialisation is the process of introducing new product and service in existing market with
profit earning objectives. Present report will cover the difference between invention and
innovation and their contribution in commercialisation. Report also articulate the role of
innovation in business success. Study will render understanding about 4p's of innovation and the
way they help in growth of Land Rover.
Lastly frugal and funnel innovation's description will be given along with idea
generation approach uses by the company. Land Rover is luxury four wheeler automotive
company, which is now owned by Tata Motors since 2008. Company deliver its cars across the
globe with having the latest technology, equipped in them.
TASK 1
1. Difference between invention and innovation
Innovation is the process of converting a new idea or invention into economical product
and process, which should satisfy any need. Innovation is not a single action, but it comprises all
the actions and activities which help in making the new product. It can be categorised in two
class i.e. revolutionary and evolutionary innovation. In business context, innovations are brought
to enhance the customer experience and to full-fill customer need and desire (Grossb and et.al.,
2018). Former one is related to a fresh and brand new development, where latter one belongs to
incremental improvement in existing product and service. Like hybrid car technology is example
of revolutionary, where fuel cell vehicles are present evolutionary innovation, bring in hybrid
class vehicles.
Invention is also new idea but it in scientific and technical sector. It can be understood
that Innovation is application of invention. Invention can be new experiment, research and
investigation, which must be eligible to get patent for its uniqueness. This new investigation
should have some utility as well (Dincer, 2017). Like V2V Communications, Pre-Collision
Technology and Land Rover’s Invisible Car are example of invention in automotive industry.
There is very thin line difference between the two concepts, which is given below
Invention belongs to scientific and technical research, which aim to develop new product,
method and service. Innovation is implementation form of invention. Innovation also, brings
value addition and improvement in existing product and service but based upon invention.
Invention is indigenous idea, generally working in hypothesis but innovation is execution of
idea, developed as invention. For instance, exploration of artificial intelligence first time, is
invention but application of AI in different process and function of vehicle is part of innovation.
Invention demands scientific skills like experimenting, testing, observing and classifying on the
hand second one requires bunch of strategic, technical and marketing skill (Kelly, 2016). Like
land rover introduced self-learning vehicle which is highly AI embedded car, but its sale does not
solely depend upon only on this value addition. Company also has to aware people about its
extra effort because its competitors are also using the same technology.
Invention are Restricted to research and development department in organization,
contrary, In all the department of company. Invention emerges, when some new idea strike in
mind. On the other side innovations are come out by full preparation and planned process.
(Witell and et.al., 2016). Innovation surrounded by market risk, like political, trend change,
economic, social and environment risk. Invention are subject to patent. Patent is not required.

2. Importance of innovation for Land Rover
 Innovation render opportunity to get competitor advantage, premium pricing, improve
image among customer, cost effectiveness, faster penetration in market and
comparatively fast growth in industry.
 Innovation in process, service and business structure help in keeping organization fresh,
motivated, creative (Ciabuschi, Dellestrand and Martín, 2015). It also saves time and
money, reduced wastage and other operational benefits. For instance Land Rover made
up its Evoke model is designed with the help of LRX concept.
 Go through the innovation need render in depth, relevant and essential knowledge and
information. This multidimensional data and information can be use in correction in
company as a whole.
 Innovation required updated knowledge T&D, the latest machine and technology,
improved management process etc. Manager also get to know the training and
development area, in the process of implementation of innovation (Andersson and et.al.,,
2016). Which eventually can be seen as improved performance, increased morale and job
satisfaction. Furthermore, new machines render quality product. Innovative management
techniques will provide continuous improvement in all business activity.
Innovation and leadership
Generally, it is assumed that, innovations are result of changes in external business
environment, but it is not all true. Invention and innovation can be initiated from within company
if leader create favourable environment to do so. Like Analytical Leaders measure and encourage
small wins and, these small achievements latter contribute in revolutionary change. Structural
leaders play role like supportive leadership in innovation (Kuratko, 2017). These leaders develop
guideline to help the employee in innovation, also facilitate platform to personnel to come with
their idea and present in front of other. Conceptual leaders appreciate new methods of
innovation.
Leaders encourages people to learn by experiments, show creativity in thinking and
handle goal with innovation perceptive too. Social leaders focus on innovation inductive
environment. These bosses fabricate open communication and flexibility. These two elements
are core of creativity which contributes in innovation (Zacher and Rosing,2015). Leader uses
majorly three behavioural approach, like Expressiveness, in which leader uses the different
employee personality in new idea formation and communication. Leaders know the most
introvert and extrovert people in team, and they motivate them accordingly. As per the
Assertiveness technique, leaders try to control the enthusiasm in order to stimulate the new idea.
In flexibility approach, they make innovation oriented culture, value, vision, mission and
process.

Innovation and culture
Culture is knowns as heart of the innovation, as culture comprised all the essential
dimension which brings the improvement. An innovation oriented company takes it all major
decision by considering, betterment in its core. Land rover also embedded element of innovation
i.e. process, environment and talent. It has innovative approach in making, designing, and testing
the cars. Also, company try the latest operational tools, techniques, fresh management approach
in idea generation etc (Rubin and Abramson, 2018). Land Rover send its employee in
international tours, automotive conference so that they can bring new idea by getting large
industrial exposure. HR of leading SUV manufacture, design job specification, recruitment
statement and selection process in such way, that render organisation the most technically
competitive people. Land rover opt open communication, supportive leadership, creativity
oriented HR practices.
Manager encourage risk taking attitude in personnel, also company welcomes diversity in
it human capital so that firm can advantage of different perception, more brain for brainstorming,
dissimilar background and their experiences. Land Rover embrace the change whenever is
required (Horibe, 2016). Leaders also try to build trust bin employee's brain, that new idea will
be consider as positively by gives them monetary and non- monetary benefits for their
contribution. These all practices collectively create the environment in which innovation born
and develops. Land rover articulates learning environment, so that its people always seek for
Illustration 1: Touch point of innovation oriented organizational culture
(Sources: Does your school have a culture of innovation, 2015)

continuous improvement (Gopalakrishnan and Zhang, 2017). Company take help of resources
allocation for innovation like it uses clouding, integrated information system, so that needy
department can avail the requirement information on time.
3. 4p's of innovation mix
Innovation mix is developed by Joe Tidd and John Bessant, which help manager in
planning for innovation. This model render information to leader about the existing position and
how they can move forward for the betterment. It guides manager about the innovation like on
which area company has to focus on for innovation.
Product
Innovation in product can be seen as change in material, colour, feature, embed new
technology or update the previous one, improvement in packaging and delivery method and
speed, service quality etc. Product rearrangements are done with objective to maintain happiness
satisfaction of customer and to bring efficiency in operations (Prónay and Buzás, 2015). Some
innovation in Automotive product are change the traditional way of car painting, tools for low
carbon emission, use different material for car body like nanocomposites, develop new
propulsion technology, fuel cell application, electronic car, development of different software
etc.
Land rover offer online and phone ordering methods to customer, it tries something new
in delivery method as it uses two methods regarding the delivery i.e. Tracked Standard Delivery
and Tracked Next Day Delivery (Wang and et.al., 2018). In first one customer can get their
order within 3 to 4 days after place the order, where in second option buyer can avail the car in
just after one day. Company move to reusable packaging in logistics by switch to ‘Magnum
Optimum containers. These containers are managed by Gefco’s Gef Box System (software)
which also help in reduced cost and less carbon dioxide emissions.
Recently company launch its most high tech SUV, which is equipped with unmatched
combination of AI, sensors and internet of things, to enhance the driving experience. Like car has
continuous communication with its owner with the help of app (Bali and et.al., 2016). It also has
face recognition technology, which enable SUV to recognise its driver and make change in seat
arrangement and temperature by itself.
Paradigm
It is a radical approach in which business now viewed with totally different perceptive by
its owner. It demands change in whole organisation structure, policy, process and approach for
specific objective. Like company who wants to take some innovation in pricing, it has to make
effort in cost cutting by eliminating extra expenses at each level. Company has to align it's all
procedures with cost effective approaches.
Land Rover brings some innovation, when it decided to maintain sustainable relation
with earth. Now, company do not see business as only an economy activity even, it becomes
more responsible for environment safety (Alsanad and Abdel-Razek, 2016). For this aim, firm
not only makes changes in process, packaging, and waste management, even it brings
arrangement in other business functions too. Like use renuable energy in office, grow plant in
premises, promote employee to reduce electronically and paper wastage, use Eco- friendly
electronic fitting and fixtures etc. Land Rover show its commitment by putting environment
concern as its prime objective in vision, mission and CSR statement.
Process

Innovation in process deals with improvement in all business functions to get more
efficiency. This improvisation can bring, by imply all the new technology or change the way to
traditional method of perform a task. Like earlier Land rover earlier sale its standard car only in
its own showrooms. But, now company allow customer to come in factory layout and customise
their car by own (Goller and Bessant, 2017). BUILD YOUR OWN LAND ROVER is tag line of
firm, which shows its configure facility given to buyer. Rover try something new in selling the
product to customer. Process innovation enhance the organisation capacity by operational
efficiency, which eventually seen in cost effectiveness as well.
Positioning
Positioning innovation are done to bring change in firm image or to change the
positioning in customer mind. Like earlier Land Rover was known for its strong quality cars but
now company earned image of high tech SUVs. It now also known for rending the latest
technology along with maintained quality product (Resnick and et.al., 2016). These innovations
also seek to identify and target the untapped market, for instance company provide different
feature in SUV use by a family, an office person or for adventurer’s tour. Positions innovation
help in getting the increased market share, opt premium pricing for different products.
All the 4'p are main component of overall business success, and, they are interrelated too.
So Land Rover should continue its holistic approach of innovation as currently it is practising too
paradigm innovation is more suitable in all the innovation as it demands correction and
improvement in every function of business it is more like a wholistic correction approach. For
instance company has to change its change it's old machine to eco-frendly, if it decides to see
itself as environmental safely contributor, also it has to bring innovation in its logistic,
packaging, organisation culture and employee training for given purpose. .
Illustration 2: innovation 4P model
(Sources: Model-4-Ps-of-innovation, 2019)

4. Approaches to process the idea in frugal and funnel innovation
Frugal innovation, belongs to change in process to reduce cost and complexity. These
improvements focus on eliminating the non-essential attribute from durable product. Company's
opt these approach to render product in developing counties as, it is assumed that large sale unit
will offset the thin profit margin (Bessant, Trifilova and Alexander, 2015). Major aim of frugal
innovation is, to produce standard and durable product, but in less cost. Unconventional supply
chain methods are being used, when it comes to sale the product in market. Frugal innovation in
automotive industry are - area to lower the friction to better fuel efficiency, reduction of carbon
emission, lighten the weight of vehicle and recycle different wastage. To manage these areas
Land Rover R&D team should make direct interaction with local people, because they have
knowledge of local resources which can contribute to enhance the efficacy and lower the cost.
Like Guar Gum Powder now been used to thickening the oil. Also, it emits environment friendly
emissions. Frugal innovation should be always done after understand the customer need. So firm
should take suggestion, feedback from customer (Satpathy, Agrawal and Mohapatra, 2015).
Frugal collaboration in emerging market also can be done, for instance Land Rover can make
partnership with local distributor as company may not familiar with local market and
geographical condition. These co-partner also render local information to company. Firm should
empower its employee so that they can contribute in innovative idea generation.
Illustration 3: Funnel innovation process
Sources: (Presentation innovation funnel, 2019)

Funnel innovation aimed to achieve the strategic goal of the organization, this approach
demand to utilize the available resources to maximum extent so that overall value of firm can be
achieve. These innovations are practice for addition in existing product, cost reduction,
competence enhancement etc. (Ojo and et.al., 2017). to insure funnel innovation, organization
should enlarge its information and knowledge base so that it can know what kind of product, will
help in achieving the strategic goal. For instance, Land Rover's market research provide it
information about trend and customer preference in SUVs. Firm try to full-fill these expectations
in order to gain its vision “customer satisfaction”.
Funnel innovation has really wide mouth at there is so many opportunities available to
reach the strategic goal (Schramm ,2017). Therefore, Manager should try to narrow the funnel
neck by screening the ideas and information, which suits the most eye- catching opportunities.
And, at last manager should check the outcome of idea with anticipate result. Land rover can
follow these steps for funnel innovation, which are given below:
Step one: conduct offline and online marketing research via questionnaire, feedbacks, trend
analysis, follow up calls, review the customer opinion, suggestion on social media handle etc. for
instance people like more artificial intelligence in their vehicle which can easily observe by
company by trend analysing.
Step two: manager should make the list of customer wish and demand, then after number of
alternatives should be listed for opted area of innovation. Manager should go for internal audit to
know about company's capacity to start the innovation process, lastly the best alternatives should
be obtain based upon raking.
Final step : after choose the innovation, manager should test the alternative within organisation
or with small customer base, so that it can be implement in large market size.
CONCLUSION
From the above study it has been concluded that innovation and commercialization has
direct relation with each other. Business success nowadays very much depend on innovation as
automotive market already get saturated. And in a saturated market innovation is the only way to
get increase the profit margin. No single approach is best for improvement, firm should focus on
bring the correction in all the business function, than only it will achieve holistic customer
satisfaction objetive. Continuous efforts are essential for continuous and radical innovation.
Company's capacity to improve its product and process relay on competency, knowledge,
experience and skill of human capital. So every organization should also focus on increase the
competency of its personnel.

REFERENCE
Books and journals
Alsanad, D. S. and Abdel-Razek, R., 2016. Mapping technological innovation: methodology and
implementation.
Andersson, U and et.al.,, 2016. Technology, innovation and knowledge: The importance of ideas
and international connectivity. Journal of World Business. 51(1). pp.153-162.
Bali, A and et.al., 2016, December. Demystifying the 4Ps in Singapore SMEs: does the
government hold the key to open innovation?. In 3rd Annual World Open Innovation
Conference.
Bessant, J., Trifilova, A. and Alexander, A., 2015. Evolving innovation through storytelling. In
ISPIM Conference Proceedings (p. 1). The International Society for Professional
Innovation Management (ISPIM).
Ciabuschi, F., Dellestrand, H. and Martín, O. M., 2015. Internal embeddedness, headquarters
involvement, and innovation importance in multinational enterprises. In Knowledge,
Networks and Power (pp. 284-317). Palgrave Macmillan, London.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1). pp.8-
22.
Goller, I. and Bessant, J., 2017. Creativity for innovation management. Routledge.
Gopalakrishnan, S. and Zhang, H., 2017. Client dependence and vendor innovation: The
moderating role of organizational culture. Industrial Marketing Management. 66. pp.80-
89.
Gross, R and et.al., 2018. How long does innovation and commercialisation in the energy sectors
take? Historical case studies of the timescale from invention to widespread
commercialisation in energy supply and end use technology. Energy Policy. 123. pp.682-
699.
Horibe, F., 2016. Creating the innovation culture: Leveraging visionaries, dissenters, and other
useful troublemakers in your organization. VisionArts Inc.
Kelly, R., 2016. Creative development: Transforming education through design thinking,
innovation, and invention. Brush Education.
Kuratko, D. F., 2017. Corporate Entrepreneurship & Innovation: Today's Leadership Challenge.
The Wiley Handbook of Entrepreneurship. pp.293-311.
Ojo, O. D and et.al., 2017. Impact of innovation on the entrepreneurial success: Evidence from
Nigeria. African Journal of Business Management. 11(12). pp.261-265.
Prónay, S. and Buzás, N., 2015. The evolution of marketing influence in the innovation process:
toward a new science-to-business marketing model in quadruple helix. Journal of the
knowledge economy. 6(3). pp.494-504.
Resnick, S. M and et.al., 2016. Marketing in SMEs: a “4Ps” self-branding model. International
Journal of Entrepreneurial Behavior & Research. 22(1). pp.155-174.
Rubin, G. D. and Abramson, R. G., 2018. Creating value through incremental innovation:
Managing culture, structure, and process. Radiology. 288(2). pp.330-340.
Satpathy, A., Agrawal, A. and Mohapatra, S., 2015. Innovation Strategy for Enterprises in
Emerging Economies: Case Studies for the Digital Age. Emerald Group Publishing.

Schramm, L. L., 2017. Innovation Technology: A Dictionary. Walter de Gruyter GmbH & Co
KG.
Wang, X and et.al., 2018. Teachers’ Knowledge Management Based on Knowledge Innovation.
Eurasia Journal of Mathematics, Science and Technology Education. 14(4). pp.1317-
1324.
Witell, L and et.al., 2016. Defining service innovation: A review and synthesis. Journal of
Business Research. 69(8). pp.2863-2872.
Zacher, H. and Rosing, K., 2015. Ambidextrous leadership and team innovation. Leadership &
Organization Development Journal. 36(1). pp.54-68.
Online
Does your school have a culture of innovation. 2015. [Online]. Available through<
https://www.gettingsmart.com/2015/06/does-your-school-have-a-culture-of-innovation/ >
Model-4-Ps-of-innovation. 2019. [Online]. Available through<
https://www.researchgate.net/figure/Model-4-Ps-of-innovation-Source-Bessant-Tidd-
2013_fig2_305310289>
Presentation innovation funnel. 2019. [Online]. Available through<
https://www.sketchbubble.com/en/presentation-innovation-funnel.html >