Analysis of Innovation and Entrepreneurship

The provided assignment is a comprehensive analysis of innovation and entrepreneurship. It includes a list of references to research papers and publications on the topic, such as 'Innovation and Entrepreneurship' by Peter Drucker and 'Systems of Innovation' by Carl Edquist. The assignment also includes an online resource link, 'Innovation Funnel', which provides a tool for analyzing innovation. Overall, this assignment is suitable for students studying business or entrepreneurship and requires them to analyze various concepts related to innovation.

INNOVATON AND
COMMERCIALISATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Importance of innovation in comparison to invention.....................................................1
Importance of innovation in comparison to invention for the case of Ensoft:.......................3
P2. Explanation about how Vision, leadership, culture and teamwork can shape innovation
and commercialisation............................................................................................................3
P3. 4Ps of innovation and use of the innovation funnel to examine and shape innovative ideas
................................................................................................................................................5
P4. Frugal innovation.............................................................................................................6
TASK 3............................................................................................................................................8
P5.Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation. .......................................................8
P6. Build an Innovation Business Case for an organisation, including ways to access funding.
................................................................................................................................................9
TASK 4..........................................................................................................................................11
P7. Different tools organisations use to develop, retain and protect knowledge and intellectual
property.................................................................................................................................11
CONCLUSION AND RECOMMENDATION.............................................................................12
REFRENCES ................................................................................................................................13

INTRODUCTION
Innovation is described as a tactics which included multiple operations and activities in
identifying new ways to carry out things. The process of creation is different from the process of
innovation but with creativity, innovation can reach a new height. Concept of innovation is vital
to survive in business world. Companies that are innovating applies new concept on a regular
basis grab new opportunities easily whereas commercialization is the manner in which new
commodities are introduced into marketplace. This present assignment will consider Ensoft
software Ltd which is a small software firm and established in 1997. This firm is going to launch
a new advanced software for finance department to carryout fiscal activities efficiently and in a
faster way.
This research will discuss about the merits of innovation while comparing it with
invention. Along with it, report will discuss about impacts of organizational teamwork, visions,
leadership and culture in shaping innovation and commercialization. At last, research will
focuses on the the tactics that a firm can implement while developing, protecting and retaining
knowledge and related rights.
MAIN BODY
TASK 1
P1. Importance of innovation in comparison to invention.
Innovation: It can either be a process or an outcome. It involves the transformation of a
concept or idea into the reality. In simple words, innovation is defined as a manner by which
value of product that the firm is producing increases. Value is only added when customers are
satisfied with the services and products offered by the firm. Innovating will be meritorious for
Ensoft Ltd because it will help the firm in enhancing their profit margins. Along with it, this will
help them in maintaining their market position and ranking. More level of satisfaction for clients
will helps Ensoft in achieving competitive advantage.
Invention: This term implies the act of developing, designing, modifying and
discovering a process, that is never used or introduced in the market before. In simplified way, it
is an idea which is incorporated through several experiments and research which result in the
development of a tangible product. Invention is a necessary aspect for every firm. In case of
Ensoft, it will improve the image of company and the products they are offering to consumers.

Also, the business shares and profit margins of Ensoft will also increase because the clients
always prefer those items which are modern and improved.
Comparison between innovation and invention
Innovation Invention
It is explained as implementing a new idea
either for a process or an item, which has never
introduced in market before.
It is described as a thought about an idea for a
specific process, product or service for the first
time.
Innovation acts as a deriving force which
increases the value of a product that is already
present in market.
Invention involves the development of a new
product or commodity to satisfy the demands
of consumers
It involves the practical execution of a new
concept.
It is based on a fresh idea and its theoretical
working.
For innovating a proper set of strategic and
marketing skills is needed.
To carry out invention, skills related with
scientific approach are needed.
Innovation takes place when improvement in a
service or product is required. It is concerned
with aggregation of several process and
products.
Invention occurs at that time when a new
concept or idea strikes the minds of scientific
personnels. It includes a single process or
individual product.
Activities related with innovation are widely
dispersed within the entire organisation.
Activities concerned with invention is limited
to only research and development department
of an organisation.
Merits of innovations in context to Ensoft company are mentioned below:
 solving impossible issues: Problems that occurs while working in a firm, which are
not resolving even after many trials can be easily solved by using innovation. The
issues Ensoft company faces most of the time while delivering service to their clients
can be resolved in an easy way by improving the existing product with some better
solutions. This will help the firm in improving their customer base.

 Enhances workplace productivity: While working in a company, one of the main
objectives is to improve overall productivity level. To achieve this high productivity,
Ensoft needs to implement some new processes which will enhance their efficiency
while performing work for the organization.
 Competing with rivals: With the help of creativity, new products can be modified and
designed which will satisfies the clients in a better way. With the advancement in
technology, needs of consumers are also upgraded. This will provide Ensoft limited a
competitive advantage against their potential rivals and competitors
Importance of innovation in comparison to invention for the case of Ensoft:
Ensoft Ltd is a software developing company which develops all kinds of networking
related software. This company needs to incorporate innovation on a regular basis to improve
their existing software. In present scenario they are planning to launch a new software to
improve the working efficiency of finance departments by improving fiscal aspects. Lack of
innovation can result the concerned firm with loss of market value or reduction in efficiency of
staff members. By implementing new ideas Ensoft will attain competitive merits and invention
will helps the company in converting these merits into action.
P2. Explanation about how Vision, leadership, culture and teamwork can shape innovation and
commercialisation
To attain a positive growth in the business world, it is necessary for a every firm to
identify their vision and acknowledge it to the entire working staff. Ensoft must be clear in
explaining their vision to their employees so that targeted results can be achieved. Along with
this, experienced and knowledgeable leaders are needed to encourage the subordinates to
accomplish their working goals. Some fine details related with the culture, teamwork, leadership
and vision in respect with the organizations are outlined below:
Vision: It is a desired position which the organization wants to attain. In a more simple
way, it can be defined as a statement or a declaration which specifies the high targets, desired
objectives and goals that the firm wishes to attain in future. In case of Ensoft Ltd, this firm wants
to develop different software that will carter the needs of different sections of the society. This
will also help them in increasing their market shares. This shows the manner in which vision
promotes the shaping of commercialization and innovation

. It is under the work duty of the appointed manager of Ensoft company to encourage their
working staff so that they can create their own innovative ideas while delivering their services to
the company. This will supports Ensoft in achieving their targeted vision which is to be a market
leader in the field of software.
Leadership: It describes the capabilities that a leader need to posses to set desired aims
and goals by taking best possible decision for a particular problem. It can also be specified as a
skill posses by a person to influence, guide and manage other individuals that are working under
him in order to achieve required results from them. In context to Ensoft, leader there plays a
crucial role while shaping innovation and commercialisation in the firm. So HR department in
Ensoft needs to select that individual as a leader which incorporate new ideas and concepts while
conducting the specific task. Hence, innovation and commercialisation will supports the firm in
achieving their wanted results and improves their revenue generation. Efficient leader with
leadership skills promotes innovating ideas within the concerned firm.
Teamwork: It is an essential aspect for every organization as tasks carried out in teams
results in more better outcomes. It is must for the teams within the company to perform
efficiently and deliver their best no matter how the circumstances are. A team is created by
selecting individuals which are interested in performing same kind of tasks. Manager of Ensoft
needs to select those individuals within the team which delivers their best as a group where each
worker contribute by delivering some innovative ideas, concepts and knowledge to complete task
in a appropriate manner. This will supports in enhancing the revenue generation of the firm. This
shows the way by which teamwork promotes shaping of innovation and commercialization.
Culture: It is concerned with the behavior of workers and management regarding the
work affairs or company itself. Value and norms specifies the culture and behavior within an
organisation. It is a system of shared beliefs and assumptions that specifies inappropriate or
appropriate behaviour in the firm. Hence, to shape both commercialization and innovation within
Ensoft, concerned managers must take care regarding proper policies, regulations and cultures.
Seniors need to liberate the staff members so that they can innovate new concepts that will
enhance the productivity with in the firm.
TASK 2

P3. 4Ps of innovation and use of the innovation funnel to examine and shape innovative ideas
Innovation is a crucial factor for every organisation to increase their competence
advantage within the market. Ensoft has considered this approach of 4P's to accomplish their
desired goals within a specific time period. Also, this approach helps the concerned firm in
understanding the position of the company and the manner in which innovation improves
process, paradigm, position and product.
4P's of innovation are outlined below:
 Product innovation: The main purpose of every organization is to deliver their products
to the customers in an appropriate manner. If the clients will appreciate their products,
only then it will add value to the company. Ensoft limited can use this approach to
specify their customer base regarding the services and commodities they are offering. Process innovation: It is an important approach which specifies the process that is going
to take place for that particular task. Ensoft company can take advantage of this aspect to
understand when and in which way they need to change their procedures and techniques.
This will results in providing better services to the consumers. Position innovation: This is the final objective of every organization in respect with
commercialisation and innovation. The presented firm Ensoft can use this aspect to
measure their position within the market after offering the services and products to the
clients.
 Paradigm innovation: It include the ways in which an organisation complete their
specific tasks and faces the threats & challenges given by other competitors. In case of
Ensoft, the firm can consider it to acknowledge changes that they are going to make in
existing models.
Use of innovation funnel

Illustration 1: Innovation Funnel
(Source: Innovation Funnel, 2016)
This tool is used to justify various steps that will be carried out when a process or object
will develop. The main motive of innovation is to handle the process or development that is
needed to carter the needs of customers along with generating profitable revenues. This approach
can be used by Ensoft firm so that they can assess concepts and conceptualize their products.
One example is the new software which is developed by Ensoft to conduct finance operations
effectively. For this, the firm will use this innovation funnel to determine the process of
development that will take place. This help in improving the already existing products which will
increase the overall productivity within the firm.
P4. Frugal innovation
Frugal Innovation is also called as reverse, constraint and inclusive innovation. In
accordance with the concept, innovative and technically advanced products are rated at less price
to emerge in the market place. The firm Ensoft limited can use this tactics as it supports in
producing commodities within limited resources. These limited resources can be physical,
marketing or financial. It also includes several methods that scope opportunities to convert these
constraints in an advantages for the organisation. By using only required resources at the time of
production and distribution process, this frugal innovation results in low cost products, services
and commodities. In respect with Ensoft Ltd, it not only reduces the prices but helps in
outperforming substitutes due to which the scarcity of services and products never take place in
the business world. Also, it will help Ensoft in eliminating those software that includes non-
essential features so that they can be sold in other countries also due to their improved efficiency.

This firm has considered frugal innovation tactics because of its structural process which stresses
on providing customized software according to the plan.
Examples of Frugal Innovation:
It will assist Ensoft Ltd in reducing their production rates of products. Along with it, it
considers the process by which the commodity is offered to the consumers. It also determines
whether a product or procedure is beneficial or harmful for different sections prevailed in the
society. For example, Ensoft is a small software developing company. If they want to invest their
business in other countries, they need to change their strategies that they are using for UK. This
is because different countries have different way of living, culture, standard, needs and
requirements. They will demand products in accordance with the factors which satisfies them. In
UK case funnel innovation is to developed advanced technology software that even if priced high
fulfill the needs of clients because living standard of people in UK is high. They will pay more if
product satisfies their demands. In case of other country like Iran, frugal innovation is to launch
those software which are affordable and needed by people to carryout their activities properly.
They will not buy software if it coast high. So Ensoft need to limit their finical resources in this
case.
Principle of frugal innovation:
 Engage and iterate: In this, departments rely on guesses predicted by the educated
individuals about the wants of consumers rather than R&D team. In this Ensoft observe
the behavior of their potential clients and figure out to make their items more relevant.
 Flex assets: By using new tools and tactics the demands of the clients can be easily
fulfilled by the Ensoft firm. New tools will flex their service, production and logistics.
 Create sustainable solutions: Manufacturing team and R&D of Ensoft can implement
solutions that take care of both environment and business. They can recycle the old
material of software while developing a new one.
 Shape customer behavior: Ensoft can influence their clients to use their software more
and more. This can be done by making them realize the need of their software in early
completion of tasks.
 Co-create value with prosumers: Clients now a days are evolving as a community of
prosumers that together create, design and share product they wish. The R&D and leader
of Ensoft are working with DIY norm to reinforce the skill of consumers.

 Make innovative friends: Ensoft can launch frugal products, business modals and
services more appropriately by merging with external partners. This will enhance the
popularity of brand and product more, rather than while working alone.
TASK 3
P5.Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation.
Commercial funnel: It is the process through which ideas are discussed which will
bring attention of millions of people at a time, but it receives results only from those clients,
which are interested in buying their products. It involves processes like decisions while
purchasing, interest and assessment etc. Managers and marketing heads in Ensoft can use this
tool to advertise and promote their new developed finance related software, this will increase the
market presence of their brand. More customer will connect with the firm to purchase their
software which will improve their revenues. Some merits of commercial funnel in respect with
Ensoft is outlined below:
 It can be used by the manager of Ensoft to enhance the level of consumer's desire.
Manager needs to measure all the gathered data in a precise manner such that a
productive conclusion will be generated.
 Ensoft will be able to produce quality software due to which customer base will get
attracted towards the products and results in earning large sum of capitals. This is only
possible with the help of certain tools, one of them is commercial funnel.
New Product Development Process
It involves the processes through which a service or product is delivered in markets from
the conceptual phase. It included a step by step process through which development of a product
takes place. In this, the Ensoft company is going to launch a accounting software which will
helps the finance department in carryout out their activities properly. It begins with the concept
of idea generation and its last step is commercialization of commodities in market. Stages
involved are outlined below:
 Idea generation: In this step manager of Ensoft needs to consider the factors regarding
introduction of new ideas internally and externally to develop software in the

marketplace. Internal source are R&D and external ones are competitors, suppliers and
customers. After considering these idea screening takes place.
 Idea screening: In this, the Ensoft firm will pick up those ideas that are best and drop
those which are not beneficial. Due to cost rise in later stage, ideas that are not productive
while developing software will be dropped.
 Concept development and testing: Here the ideas assumed by the Ensoft will be
converted into product concept. The product concept is a detail involving the new
product ideas.
Concept development: Ensoft has created an idea of developing software and now it is to be
converted into a concept, the marketer of Ensoft needs to develop this new software into
alternative concept . Then the firm can choose the best one concept. Possible concepts for
software can be an affordable software that is easily accessible. A mid priced software that
appeals individual along with the companies. A high rated software exclusive for large
organisations.
Concept testing: These concepts were tested by considering targeted consumers and market.
 New product strategy: In this the manager of Ensoft has to formulate new strategies and
schemes in order to develop accounting software for finance department.
 Business analysis: In this future growth of developed software will be discussed.
 Product development: In this the concept of software will be developed into a physical
product. R&D department of Ensoft will launch and test physical version of software.
 Test marketing: In this step, the new software along with marketing plan is tested in
marketplace. It gives the experience of marketing to product before full introduction.
 Commercialization: This one is final step in which Ensoft limited will sell their software
in the market to carter the needs of clients. Sales of software will decide the revenue sales
of company.
P6. Build an Innovation Business Case for an organisation, including ways to access funding.
Business case helps an organisation in identifying the aims and goals related with
business concerns. Ensoft needs this business case to accomplish their desired targets in the
specified time. For instance, the concerned firm is developing a accounting software for finance
department by which the workload will decrease. This is because all the complex task which
takes a lot of manual efforts will be performed by software with a short span of time. This will

save a lot of time and prevails clarity related to work. Business case related with Ensoft is
outlined below:
Executive Summary: It is an overview of the business plan. The purpose of using it to
summarize the important aspects of a project or document. This helps in saving the time. This is
the reason it is considered as the most essential part within a business plan. The accounting
software developed by Ensoft saves a lot of time of finance department because now maintaining
accounts will be easy. It will reduce manual efforts also. The targeted market here is the firms
and individual who serves under finance department. The new software can be popularized in
marketplace by promoting and advertising it through social media or pamphlets etc.
Objective of business case: In developing an accounting software, the main aim behind business
case is to convince investors, capitalist and banks so that they can help in business by investing
capital either as a equity finance or as a debt. The more investment Ensoft will receive, more
easy it will be for them to introduce and improve their new or existing software easily.
Company's vision: The basic aspect of Ensoft is to identify the vision which will help them in
achieving their targeted results. This will help in increasing the sales of software along with
improving the brand image of company.
Target: It is the work of manager appointed in Ensoft to assign projects to different teams
according to their interest. This will set a target that they have to achieve in specific time.
Customer research: This aspect is very important as it will specify the potential sections of
customers for the software. Also, needs , demands and preferences of clients are take care by this
approach.
Funding: To manage the financial aspects that are needed for developing the software, Ensoft
needs sufficient amount of capital. With proper funds all the required task will be carried out
effectively. Company can get investment through venture capitalist and angel investor. Company
can also go for crowdfunding. They provide funding to small businesses on certain interest rates
which helps these companies in expanding their market reach.
Expect-able benefits: Benefits are linked with risk and costs. If the risks are eliminated this will
be a benefit for the firm. The benefits of using that accounting software will freed up a lot of
time which can be utilized in other tasks like allocation of budget to different sections, managing
financial statements etc. Along with it it provide some external benefits also. This accounting
software assist while ordering raw material and other needed commodities. Due to all the records

available appropriately, company can ask supplier to send only required material. This helps the
supplier in understanding the company's need more properly. Also, the profit margins of
company will increase as wastage associated due to mismanagement of accounts is reduced.
Return on investment: It is the performance measurement that is required to measure the
efficiency investment an investment is carried out. It benefits in comparing efficiency of
different investment. Beside this, it evaluates the amount of return is going to be received by
company on a specific investment. So while innovating new accounting software for accounts
department the amount invested by Ensoft was 25000£ and expected sale and revenue of
accounting software will be 32000£, So ROI is 7000£. It shows that innovation carried out by
company helps in enhancing profitability.
Amount invested = 25000£
Revenue earned = 32000£
Return on investment = 7000£
ROI for Ensoft while investing on accounting software will be 7000£. This means it is profitable
for company to invest in this accounting software.
TASK 4
P7. Different tools organisations use to develop, retain and protect knowledge and intellectual
property
Intellectual property right (IPR) is the classification of property which includes
intangibles creations of people that includes trademarks, copyrights and patents. It has some
other rights including moral, trade secrets, publicity and right against unfair competition (Jay,
2013). The owner gives creator right to use those property for specified period of time. The main
purpose of this is encouraging large creation for intellectual goods. Ensoft has use copyrights,
trademarks, design rights and patents for developing, retaining and protecting knowledge of
creation which is described below:
Copyright- It is the right given to copyright holder or owner for original work. The holder
give right for limited or specified period of time mentioned in agreement. It includes novels,
musical works, plays, architectural designs, artistic works such as drawings, paintings, sculptures
and paintings. This right is applies for 70 years after death of holder. Ensoft should do copyright

of accounting software manufactured for finance department so that no other can use it. As
finance is very important for organisation so that confidential information cannot go out with
help of IPR. It motivates in developing more software by Ensoft.
Trademark- It is unique sign which identifies goods or services produced or provided
with help of individual or company (Lin and Chen, 2012). It can be any name, slogan, symbol,
design, word, which identifies product or corporation. It is registered at national or territory with
help of appointed body which is processed from 6 to 18 months. The abbreviation for registered
trademarks are 'TM' or ‘®’ symbol. It applies for 10 years and can be extended for more 10 years
at a time. Here Ensoft can use this right for protecting property so that other cannot copy name
and use. The sign and logo cannot be copied if trademark done. It create unique feature in market
for that software.
Design Rights- This right protect shape and appearance of product but not underlying
actual ideas. It is also called design patent or industrial design right. It is the pattern, colour,
shape and configuration right. It has two dimension which is colour or patterns and three
dimension feature includes shape, texture and surface. It is for maximum of 25 years. Here,
Ensoft should invent unique and attractive software for finance department and register under
design act for future misuse.
Patents- This is applicable to inventions and processes and protecting it from
unauthorized implementations. It is grant developed by national governments which give creator
for invention and right to use, manufacture or sell. It is also registered through territory or
national level appointed through government body. It is taken for 2 to 3 years for granted. It is
solution for protection of novel technical (Union, 2014). The application for this is published
after 18 months. It is applicable for 20 years. While doing invention or manufacturing of new
software by Ensoft should protect its through patent right. As it took long period of time for
application published.
CONCLUSION AND RECOMMENDATION
CONCLUSION
From the above discussed report, it is carried out that both innovation and
commercialization hold a fine position in attaining desired and targeted results. Manager needs to
implement tactics that will incorporate features of innovation. This will benefit the firm by

increasing their share growth. Overall productive level of the organisation also increase.
Company used 4P's to include right innovation tools. Aspect like funnel and commercial
innovation provide merits to the firm and tools to protect the information and content are vital to
be implemented by firm.
RECOMMENDATION
From the above mentioned information it can be recommended that innovation is more
essential and significant aspect for the success and growth of organization. There are some
recommendation to the Ensoft which are determined as under:
 Company should provide training to its staff members so that the employees will be
capable to carrying out their tasks efficiently.
 Company can use new and advance technology, this will helps the them in completing
their complex tasks in an easier way.

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Online
Innovation Funnel. 2016. [online]. Available through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>.