Business Innovation & Commercialisation: A Comprehensive Guide

This comprehensive guide explores the concepts of innovation and commercialization, examining their importance in organizational growth. It delves into the 4Ps of innovation, the innovation funnel, and the role of frugal innovation. The guide also discusses the commercialization process, including the commercial funnel and new product development (NPD). It provides a detailed innovation business case, outlining funding strategies and methods for measuring effectiveness. Finally, it examines tools for developing, retaining, and protecting knowledge and intellectual property.

BUSINESS INNOVATION & COMMERCIALISATION
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Table of Contents
Introduction......................................................................................................................................3
P1.Explain innovation and determine its importance to organizations in comparison with
invention..........................................................................................................................................4
P2 Explain how organizational vision, leadership, culture and teamwork can shape innovation
and commercialization.....................................................................................................................5
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas. [P3]......................................................................................................................6
To achieve M2, you should analyze and apply the innovation funnel in organizational context of
Mr. Green’s healthy drinks..............................................................................................................8
Explain developments in and provide examples of how it is used in an organizational context.
[P4]..................................................................................................................................................9
To achieve M3, you should evaluate the role of frugal innovation in organizational context of
Mr. Green’s healthy drinks............................................................................................................11
Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialization of innovation. [P5].................................12
Build an innovation business case for an organisation, including ways to access funding. [P6]. .14
To achieve M4, you should build a detailed innovation business case which includes how to
measure its overall effectiveness using appropriate techniques available to test, iterate and
improve..........................................................................................................................................14
Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge and
intellectual property. [P7]..............................................................................................................16
Conclusion.....................................................................................................................................17
Reference list.................................................................................................................................18
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Introduction
Innovation has shaped the man kind from time to time and commercialization has changed our
society’s structure. Both innovation and commercialization went side by side to make this planet
what it is today. From the invention of wheel to the invention of computers, mankind always
have pursued on achieving comfort. Every innovation helped our society on getting safety,
healthy, and many more objectives. Most of the time innovation is considered as better solution
to everything. But the invention of dynamite by Alfred Nobel and nuclear weapon by Albert
Einstein has made this planet’s people to fear for their life. Although the alternative use of these
technologies is in progress the destructive power of this cannot be ignored. Through nuclear
energy electricity is made and sometimes dynamite is used as fertilizer to grow plants. Invention
like cars, telephone and television has provider human race to increase the standard of living.
This study will be investigating on difference between invention and innovation along with its
important in business growth. On the other hand, 4ps of innovation along with role of vision,
teamwork in developing innovative workplace will be discussed in this study.
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P1.Explain innovation and determine its importance to organizations in comparison with
invention.
Innovation can be an idea, device, or method and many more. It has always been looked like a
better salutation to every issue in hand. Innovation has always been a gift to humanity. It takes a
lot of energy, thinking capacity to come up with new ideas. There are many features and of
innovation for example, relative advantage, compatibility, trial ability, compatibility and many
more. There is also a feature of invention called complexity and simplicity which is highly
debatable. For example, Kalashnikov has made a rifle called Ak-47, Enougene stoner also
made a rifle called Ar 15 both of these rifle’s function remain the same the only difference being
simplicity and complexity. Similarly, Mr Daniel green could come up with a lot of new
ingredients or may simply add one or two more ingredients to make it more approachable
(Jaumandreu, and Mairesse, 2015).
A company always needs to come up with new innovative ideas to stay in the business. If a
company stops experimenting with new product than the sale of the company will decrease
gradually. For example, in 2010 the company Levin’s decided to go on with the same type of
products. This decision cost them dearly, they lost their market grip in no time. Other companies
were experimenting with new products which gave them a strategic advantage in achieving
company’s support. Healthy juice should also try to come up with new product so that it can be
beneficial to the company. They should never stop researching about new and healthy products
to keep their sales number high. They should carefully analyse their competitor’s strategies so
that they can come up with new and better one. Mr Daniel should always look for its weakness
and come up with new and better technological devices to satisfy the rising demand of the
consumers (Lendel, Hittmár, and Siantová, 2015).
Mr Daniel should examine carefully the demand of the consumer and come up with a new
product. After the research if it is found that the need of a new drink is not required than healthy
Juice Company should never go for any new types of products. MrDanial green should always be
flexible in leading a team. The costumer’s demand and feedback always need to be taken into the
consideration. The main reason why MrDanial lost his market share is he did not consider his
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competition. His focus was diversified from the product to the sale and distribution of the
product.
P2 Explain how organizational vision, leadership, culture and teamwork can shape
innovation and commercialization.
A company should always have goal or vision to follow. Without any vision or goal the company
can never function properly and make profit for the founder and stakeholders. A desired goal
always helps in making clear decision from a lower level worker to all the way up to the top-
level management. Setting a goal has always been an important part of business. Healthy juice
should always set a goal on what basis they want to improve themselves. For example, their goal
can be cutting the cost of production for a better and more appropriate price tag in the product.
Or it can be of coming up with such a product that will be appropriate and better liked by the all
the consumers. Without a proper goal, the companies will not be able to achieve their objectives
(Kotler, 2015).
Leadership plays a vital role in providing goal to a company. In case Mr.Daniel does not provide
a goal and lead the company with his intelligence and sense of responsibilities, the company will
ultimately fail to meet the desired sale target. Mr.Daniel should follow the functions and roles
of leadership closely in order to make his organization run smoothly. The functions like
organizing, motivating, controlling, setting an example, guidance and should be closely followed
by Mr.Daniel (Răducan and Răducan, 2014).
A good working environment makes a great impact on company and its employee. a company
with a perfect working environment does not exist. Every firm and company should look for a
better environment by equipping itself with better and newer technologies. It doesn’t matter if
it’s an audit firm or a consultancy a good working environment with proper mode of
communication brings efficiency to the firm. Mr.Daniel should create a proper working
environment and a formal mode of communication so that the company can run smoothly (Dul,
and Ceylan, 2014).
Teamwork helps divide a work among the employees hence reducing the work load among the
subordinates. This also brings efficiency in the work, which ultimately results in bringing better
and faster product and services. There is also some drawback to the teamwork because of
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different individual and ideas, which ultimately results in creating conflict among the
subordinates. Mr Daniel green should always try to avoid the negativity of teamwork by putting
right man for the right job. The healthy juice company should always look for innovation and put
its finding to commercialization (Tumen, 2016).
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas. [P3].
The business organization of healthy juice which is owned by Mr. Daniel Green survived the
first two years in the market successfully. Now the company is facing problems because they
have competition in the market. Through the model 4P innovation model the new innovation
consultant of the company willing to come with a solution for this. The 4P’s of this model is
discussed below.
Figure 1: 4Ps of innovation model
(Source: Bryman and Bell, 2015)
 Product innovation
The production innovation states about the problems of products and services of the business
organization. Now the innovation consultant will suggest different kind of ideas and strategies
regarding the usage of different kind of new technologies which help the services of production
and manufacturing of the product. Marketing and brand promotion plays a huge part in terms of
building a product into a brand. The targeted customers of the health juice company should know
the benefits of buying the product. Once the company gets to know about all this they get to have
the huge potential to gain their popularity back in term of sales.
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Process Innovation
The process innovation is the second stage considers the ways and changes if the services and
products to be created and delivered. This particular structure of innovation is very important for
each of the companies. There is a key factor to develop the business that is the demands of the
customers need to be served. In order to reach the goal to satisfy the customers, but still one
thing is there in which can offer that is beyond competition. The things are the warranty period
can be there for a longer period. In order to make it even better, the company can offer attractive
discounts or the free collaborative products and so on (CORTIMIGLIA et al., 2015).
 Position Innovation
The position innovation is the third part of the 4P model. This product should focus particularly
focus on the purpose of framing and the communication with the products and services. The
position innovation should be particularly specific about the usage of the product. From this
innovation of position the company can visualize that the product was made without the purpose
of the right kind of target market.
 Paradigm Innovation
This is the last and final innovation. This suggests the health drink company to make few of the
changes in the manufacturing of the product. Like as a strategy the innovation consultant can
give them strategies to make some sort of mix and match in the drinks. Paradigm innovation
includes some of the other factors such as leadership, local ownership and responsibilities and
others (Cummings and Worley, 2014).
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To achieve M2, you should analyze and apply the innovation funnel in organizational
context of Mr. Green’s healthy drinks.
Innovation funnel helps the business to development of the business organization’s product or
process. All the innovation purpose of each product has the aim to reach a certain need of the
market. Otherwise there is no need of the product to exist in the market in the form of
manufacturing or economical. There are three initial stages of the innovation funnel in
organizational context of Mr. Green’s healthy drinks.
 The first step talks about the wide mouth funnel. This step states about initiating different
ideas and strategy to make the business development better.
 The second step is the narrow segment of the funnel. After have a plenty amount of
strategy, the organization needs to narrow down and filter according to which ideas
they’ll run the organization.
 The third and final step of the innovation funnel is the segmentation. After narrowing
down the strategies, the company need to do certain amount segmentation, it makes the
work lead in a proper manner (Greene, 2017).
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Explain developments in and provide examples of how it is used in an organizational
context. [P4].
Frugal innovation mainly aims to achieve more sources towards the business. It talks about those
products in the market which are stripping down in front of the care essentials. Now the
situational context talks about the factor of taking the business of Mr. Green towards a better
position. The elements are described below.
Figure 2: Frugal innovation model
(Source: Salah, 2017)
The basic concept of the frugal innovation model is to make the business develop in certain kind
of limitation in resources; such as providing the business organization certain kind of practical
solution and ideas in the term of financial and intuitional matters.
 The first and initial stage is the lackluster growth and cutting funds to deduct the dept in
the development of the economics that will help to increasing the demands for the sake of
frugal products, services and frugal innovation process.
 Whenever, any business is there to make profit in the market the environmental
constraints are always there to be counted. In this environmental constraints few factors
be associated they are climate, energy, water and other resources (Van den Berg and
Pietersma, 2015).
 New technologies should always be there to make the business run in the lowest
manufacture cost. The cost form of the innovations, creating huge and fresh opportunity
for the sake of the frugal innovators.
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 Each business organization creates their product to fulfill the need of the market. This is
why the business organization of Mr. Green should take care of the factor of rapidly
changing society. This will require the company to have new approaches such as social
and health care, it needs rethinking of the business models and a point of value chains.
 The frugal services are very high in the fast developing market and emerging the
continuous growth in the economy. For this reason Mr. Green’s company should focus on
the factor of economical development.
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To achieve M3, you should evaluate the role of frugal innovation in organizational context
of Mr. Green’s healthy drinks.
The concept of the frugal innovation model is to make the business develop, in this kind of
limitation in resources; such as providing the business organization certain kind of practical
solution and ideas in the term of financial and organizational matters. Frugal innovation mainly
aims to achieve more sources towards the business. It talks about those products in the market
which are stripping down in front of the care essentials. Every business organization creates their
product to fulfill the need of the market. This is why the business organization of Mr. Green
should take care of the factor of rapidly changing society. This will require the company to have
new approaches such as social and health care, it needs rethinking of the business models and a
point of value chains (Vrgovic, et al., 2015).
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Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialization of innovation. [P5]
New product development is a process through which the organization sustains itself through
regular inventions and innovations of the products and produce similar kind of products. Like
Mr. Daniel Green, Healthy Juice started with a milkshake. After a sudden loss, Mr. Green will be
looking for better products for his organization (Colver, 2017) these better products will be
invented and can be innovated with the help of a specialized team. Along with this the company
will also have to inculcate various models and strategies that would help in invention or
innovation. Among the commercial strategies, t he process of commercial funnel is to understand
the product and then how to advertise the product and market it. It also includes the process of
bringing or collection of funds. The ever-changing market demands new technologies for its
customers. The customers continuously demand an innovation in the products that is already in
the market having demand. Without innovation, the same product becomes boring for the
customer. Hence, customer preference shifts to other similar products of other brands. In order to
bring in the innovation in the products the company needs to do commercial funneling. Thus,
Mr. Daniel Greene, and his company Healthy Juice company needs to bring in new techniques
and technologies to do commercial funneling. Commercial funneling includes adoption of new
product like fruit juice instead of milk shake. The older product may stay along with the new
product. Both the old and new products are marketed in different new ways.
In this way a new market can be built as there may be demand for the new bunch of products. A
new market can also be created through improvement of relations among customers and
distributors. The reputation of firm remains intact. A new product process may create financers
for future, increase the market share, or else it may act as a replacement to the older products.
Among the many stages of new product development process, commercial funneling plays an
important role. The process may be initiated with SWOT analysis. That process could be defined
as opportunity analysis. Prior to assign resources in the new product, the company may go
through idea screening. In this case the screener must see through various obstacles that may be
faced like benefit of the customer, foreseeing the growth of the company, the pressure coming
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from the competitors in the market, the technical feasibility to market the product and the
profitability of the product (Ahmadi, and O'Cass, 2016).
Secondly, market strategy plan like size, position of the product, market share, and budget for the
first year. The mixing of different strategies over time may also be taken into account. Financial
analysis like the selling price, cost incurred, volume of sales in the market and profitability, is to
be made before the launch.
Commercialization on the other hand is the process of introducing the product in the general
market with mass production. The concept takes into account different phases like initial
introduction of the product, then the distribution process followed by marketing, sales and
customer support. Commercialization is a strategy that requires a market plan, supply of the new
or innovated product, build customer support and ultimately make it a success (Baines and
Lawton Smith, 2016).
Figure 3- The marketing funnel
(Source: Baines and Lawton Smith, 2016)
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Build an innovation business case for an organisation, including ways to access funding.
[P6]
The case of Daniel green, and his company The Healthy Juice, can be taken as an organisation
where there can be seen the role of funding in developing innovation as a business in the
organization. Hence developing an innovative business case based on this will include some
principles. The most important point to make an innovative business is to have a product view
(Product Overview). The information obtained from market research; own ideas and other
sources may prove wrong.
Innovative Aspect of the new Product-A new methodical approach, access to new techniques
may be analyzed. To make this happen a n excellent well skilled group of people to make
strategies and execute them
Models and Techniques used for this Product (incorporate NPD) - The approach that should be
taken to make a good business case is to make a good business plan. A plan helps to give a clear
idea. A plan may consist of details of the product, assessment of the market, identification of
probable customers, competitor identification as barrier, the efficiency of the team, pricing,
planning to handle risks, fund management and other requirements of resources.
Funding Resources- The resources of the new innovative product needs to be managed.
Resources may include workforce that is highly skilled, technologies, cash or funds,
infrastructure. Funding for these resources may be obtained from external funding. These may be
loans from banks or other financial institutions. Asset funding loan is also very important to
purchase the assets that enable to purchase new technologies and machineries. Growth funding is
the kind of funding that helps in growth of company. A loan to restructure the debt and thus
reduce the cost of the company (Dhewanto and Sohal, 2015).
To achieve M4, you should build a detailed innovation business case which includes how to
measure its overall effectiveness using appropriate techniques available to test, iterate and
improve.
The new technology has its impacts on innovation. Right choice of new technologies may bring
in profitable business. This can be done through business process reengineering. The company
may go through its previous business processes and rethink over it and bring in new ideas. The
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critical rethinking of all strategies like manufacturing, budgeting and others. For this constant
monitoring through data charts can be done. Incorporating the BPR principles may also help.
Enabling of IT technologies may also help. IT may help in lowering cost, increase the
reachability over wide geographical areas, reduce time, cost, and may increase employee
participation. The combination of large data and computer technology known as the Big Data
helps to predict the future. Promotion and marketing through media, social media, and live
demonstrations also helps in developing new product business (Hernandez et al., 2017).
Figure:2 the new product development processing.
(Source: Hernandez et al., 2017)
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Evaluate the different tools that Mr Green can use to develop, retain and protect
knowledge and intellectual property. [P7]
The intellectual property rights are the exclusive legal right which prevents the owner from
exploitation of their intellectual innovations or inventions. Such exploitation is punishable
offence. Such safety guards are good for the business as it reaps benefit for the sole proprietor of
the particular product. Such rights reward creativity of the entrepreneur like Mr.Green. It brings
around a sense of pride and exclusivity for the proprietor (Godley et al., 2017).
Patents as protection to the particular product may help or motivate a person like Mr. Green to
innovate or invent more different kind of products under his belt. The patent owner may decide
on the fact that who can use the formula of the product and who is barred from it.
Trade marking- Much like patenting trademark owners have the right to allow or disallow
others from using the product’s formulation. Trade marking is possible for brand names, designs,
logo, signs and symbols, shape and packaging of the goods.
Geographical indications- This prevents the product from getting out of the specific
geographical area. WIPO in Poland and European countries controls this.
Copyrights and the other related rights- such rights make Mr. Green secure from stealing the
sole human creativity and barring others from demanding it someone else’s own. This can
enhance the innovators creative mind and will to produce newer projects and products. Thus,
venturing into new business (Godley et al., 2017).
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Conclusion
From the assignment, it has been found that Mr Daniel green has the potential to come back in
the business through innovation and commercialization. Healthy Juice Company should follow a
proper mode of communication and bring efficiency in the production line. Mr Daniel Green
should always follow the leadership role, 4 p’s of innovation, should examine the market and
many more. MrDanial Green should always be set a goal for his firm to follow and lead them
with motivation. MrDanial Green should open his mind to other opportunities and always be
flexible in leading a team. Consideration of competitions should always be taken by MrDanial
Green.
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