Importance of Innovation and its Comparison with Invention

This report discusses the importance of innovation and its comparison with invention. It also explores the use of innovation funnel to shape innovation ideas and the application of frugal innovation in business.

Innovation and
commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Importance of Innovation and its comparison with invention...............................................1
P2 Organisation vision, culture, leaderships and team work that shape innovation and
commercialization.......................................................................................................................2
LO 2.................................................................................................................................................3
P 3 4 P's of innovation and use of innovation funnel to shape innovation ideas........................3
P4 Developments in frugal innovation and its use in organisation.............................................3
LO 3.................................................................................................................................................4
P5 Importance of commercial funnel and application of NPD processing for
commercialisation of innovation.................................................................................................4
P6 Innovation business case for Magmatic and ways it accesses funds.....................................5
LO 4.................................................................................................................................................6
P7 Different tools that Magmatic can use to develop, retain and protect knowledge and
intellectual property....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation and commercialization are two important aspects which relates the business
activities with one another. In respect of determining the terms innovation, it results in bring new
ideas or thought on new products or also amending the usages, ingredients or designs on existing
products. Usually very few innovation are patented but they mist be unique and different from
other existing products (Innovation, 2019). Once the innovation is accomplished in market,
commercialization is done in respect of bringing such products in market. Present report is based
upon the innovation which is made by Mr. law regarding innovating Trunki a suitcase ride for
children. But due to not using proper marketing strategies it results in failure of their concepts.
Thus, the innovation is undertaken in respect of Jurni, a ride on suitcase. This report will
includes the importance of innovation and also its comparison with invention. It also includes the
use of innovation funnel to shape the innovation and the use of frugal innovation in business.
Further the report carries with the various ways through which the application of new products
development is carries on. Lastly it ends up with the various methods which is available to
Magmatic to protect the ideas of the business.
LO 1
P1 Importance of Innovation and its comparison with invention.
Innovation refers to bringing new or innovative ideas in products and services which
attract the needs of the customer towards such services for longer time period. Thus, through this
aspects they satisfy the needs of the customer regarding providing such products which are in
demands (Akter and Rathnayaka, 2019). The importance which is determined to organisation in
respect of adapting the procedure through innovation in comparison with invention is that:
1. Reinforcing the brand name: By innovating the products, results in reinforcing the
brand and this can be attaining through undertaking the guidance of leaders. As through
this ideas, they maintain the brand name in market. It results in attracting the new and
existing customer towards the products while in case of invention, they had to target
the new customers.
2. Continuous improvement: This is examined in respect of innovating the products when
the demand of the customer are raised regarding changing the identity of the products
(Bagno, Salerno and da Silva, 2017). In case of invention, the chances of failure is
higher in the products.
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The comparison between the invention and innovation are resulting to:
Factors Invention Innovation
Meaning It means carrying the unique
thing which is not existed in
market before.
The innovation can be done by
changing the integrity of the
existing products.
Patent rights Inventions are patented under
the patent act (Baldwin and
Henkel, 2015).
Innovation as such are not
patented until they are unique
and different from others.
Examples Telephone concept, electricity,
computers etc.
Wind turbines, solar power, i-
Phone
In this concept, the innovation is undertaken by the rob law in respect of innovating the
Jurni which came out from the Trunki. As the innovation is done in respect of carrying this suit
case by youngsters also.
P2 Organisation vision, culture, leaderships and team work that shape innovation and
commercialization
In respect of undertaking the innovation and commercialization procedure, it carries
various aspects which determine overall working strategy of the Rob law.
 Organisation vision: The vision is set regarding providing the flexibility to traveller to
enjoy their journey and thus, rob law is respect of innovating Jurni is relating to
making the traveller feel comfortable during travelling and also enjoy their journey at its
best. As by innovating trunki which is specially designed for children resulting in getting
success but not manage to sustain in market for longer period (Bertoni and Tykvová,
2015). Thus, by this concept the Jurni is innovated so that it is not only available to
children but also for youngsters as well. Thus, in such manner their vision is to use the
social media platform to attract large number of customer towards their products.
 Culture: The culture of the people are different and thus preference of choosing such
products is also different. Thus, the products which is designed with high quality
and low pricing mainly satisfy all the needs of the customer. As the buying capability
of the person is also different, thus nominal rate is charged in respect of purchasing the
Jurni suit case.
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 Leaderships: To bring innovative ideas in business, leader role are important and also
they carry various skills (Cooper, 2018). Thus, in this manner, democratic leadership
skills are used to interact with employees personally and also giving them right to share
their ideas with each other’s. Through this manner, it results in increasing the
employee’s retention at work place.
 Team work: The task is to be accomplished with team if company uses Belbin team
work theory to maintain work polices to enhance their interest at work place. In
such manner, by accomplishing the task with the group of team reduces the risk which
attaining in respect of producing the products.
LO 2
P 3 4 P's of innovation and use of innovation funnel to shape innovation ideas
In context of innovation, the 4P's of innovation are undertaken as follows:
 Product: In this, the first thing which sticks to mind regarding innovating such products.
In respect of jurni, this is the concept which came out from trunki, a most unique and
demanding concept of suit case in market. Thus, it results in designing the traveller
bags which is unique from others.
 Process: It carries the overall planning which is required in respect of accomplishing such
product or completing such products in time and also saving money (CORTIMIGLIA and
et.al., 2015). It mainly carries through displaying the products in which market and
also making available to physical stores within the set time duration.
 Position: It related with the promotion of the innovation in market and this can be
undertaken through adapting the accurate aspect to promote the products. In this case the
uses the social media platform in which advertising is the best strategy to promote
Jurni a new design of suit case in market.
 Paradigm: In this, it mainly round around the specific innovation which exists in
business. It results in determining the changes which helps company to build strong
relationship with the customers (Archibald and Archibald, 2016). In this market
research is to be conducted regarding examining the current trends emerging in
market.
Innovation funnel: In this the ideas are circulated and steam from different person and from
such ideas the best strategies is to be adapted. In this it mainly carries the structure through
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which the visibility is determined regarding undertaking the innovation to bring new changes at
work place (Costello, 2015). Rob law use this innovation funnel in respect of viewing different
thoughts and judgement which is raised by employees regarding changing the trunkis. By
gathering various ideas from employees, they use the innovation funnel to design Jurni.
P4 Developments in frugal innovation and its use in organisation
Frugal innovation is the process that helps the business to reduce the convolution and
associated cost with respect of its offerings and process of production. This is developed in such
a manner that all the respective non-essential features are removed from a durable good so that
business can sell the offerings in developing countries. Frugal innovation is generally created
with the help of circular and sharing economy, open and social innovation, and also with maker
movement and co-creation(Knorringa and et.al, 2016). In respect of linking the frugal
innovation in the business, Rob law have to use frugal innovation in its organisation as
Magmatic is bearing a huge loss due to its rival company such PMS international that is
the maker of Kiddee case. With the help of frugal innovation, Rob law brought another
innovation that is the Jurni that have outgrown their Trunkis. It is very important for the business
to have continuous innovation in order to keep the business afloat. The benefits that the
Magmatic have with the help of Frugal innovation is that it creates the offerings with design
thinking at product level and system thinking as macro level. With the help of frugal innovation,
Magmatic is able to leverage modern technologies in order to produce low cost solution for their
offerings. Law Robert is in need to implement frugal innovation in order to have lackluster
growth of its offerings and to have new technology platforms that can help the business to reduce
cost with respect to innovation and to compete in the fastest growing markets that are demanding
for frugal products and services.
LO 3
P5 Importance of commercial funnel and application of NPD processing for commercialisation
of innovation
Commercial funnel is the process that business uses in order to generate more leads and
to engage the respective customers of the organisation. Commercial funnel is the form of
innovation where all the respective innovation are included altogether in order to have product
and services that are valuable for the customers by improving the business model of Magmatic.
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This funnel is basically used in order to bring new vision of the organisation with respect to
business potential and also to have technological development and product innovation in the
organisation. Commercial Funnel is playing an important role for the development of business in
following ways:-
 It helps the business to come out with effective marketing strategies in order to target the
potential customers. With this business is able to implement right approach for reaching
better decisions.
 Commercial funnel is playing an important part for building customer relationship as
right information is in hand of the managers and they can utilise the same for designing a
satisfactory products (Knorringa and et.al, 2016).
 This also helps the business to have growth opportunity in hand as product development
leads to customer’s satisfaction as their needs get fulfilled. This finally results in huge
revenue for Magmatic.
New product development process:-
It is the process that identifies the core methods that business have to use in order to
introduce and launch new product in the market. This process is usually adopted by Magmatic in
order to increase its business sales. The respective steps that are involved in this process are as
following:- Idea generation:-In order to offer products and services that match with the demand of
the customers, a new design of suit case was innovated. Magmatic generated idea to offer
new product in market that is the Jurni that can effectively work for the next generation
of young travellers. Previously, business focuses on its idea for global children’s suitcase
brands, Trunki and now expended its ideas(Gopalakrishnan, and et.al., 2015). Concept definition:- At this stage, organisation illustrate product specification to its
customers so that they get attracted and product differentiation is also been focused in
order to show their offerings different from others. While introducing Jurni, Magmatic
worked to differentiate its offerings from its rival companies such as PMS international
who introduced Kiddee case. Market analysing:- Business analyse the respective market before introducing its
offerings. This also includes analysis of market demand, so that respective products are
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offered in an effective manner. Magmatic analysed the market demand and accordingly
launched the new offering that is Jurni. The price of the products were also set on basis of
customer's satisfaction level. Product development:- As the market is analysed, business is ready to develop and design
the new offerings. Magmatic worked to make Jurni as an attractive brand for the
customers(Ernst and et.al., 2017).
 Commercialization:- At the end of NPD process, exhibition of new products is done
market and the respective market is tested with respect to the offerings so that product
can be finally launched.
P6 Innovation business case for Trunki and ways it accesses funds
To make the work of organisation more effective, innovation business case can work
effectively. This helps Trunki to measure their performance and have a clear about their future
tasks. Innovation business case includes product development process, pricing strategies,
customers awareness programs and market emergence. Business is required to develop its
product according to market needs and set the price of the offerings in such a manner that all the
customers are able to afford the same. As the product get ready, it is required to launched in
market with the customer awareness programs and finally, the product get emerged in market
after market is tested.
Competitive edge:-
The innovation in Trunki was in need in order to compete with other rivalries. Jurni, a
new concept that came out from Trunki was innovated in order to provide better quality to its
customers. Jurni was quite different concept from that from Trunki as it was not only for the
children but the youngsters can also use it. This concept was having flexible storage and provides
easy access to travel gadgets. This product was ultimate sit-on carry-on suitcase with a concept
that not introduced yet. It was having a strong structure and removable pod that makes it more
attractive in eyes of the customers.
STP:-
Segmentation:- Jurni segmented its market on bases of demographic, behavioural and
demographic segmentation. Jurni segmented the market on bases of different age groups and
provided the products that the respective age group is in requirement. It divided the products into
two categories that is for children and for youngsters and accordingly worked to provide the
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offerings. Every customer is having different purchase behaviour and loyalty. Jurni accordingly
provided the respective services by understanding the behaviour of these customers.
Target:- Jurni targeted the youngsters that were in need of a strong and flexible brand and
provides the features that can match with their expectations.
Positioning:- Jurni is having an effective positioning in market with the help of award winning
design by team at Trunki. This travel accessory positioned UK market by giving tough
competition to many of its rivalries.
Budget:-
For the respective product innovation following budget is required:-
Particulars Cost
Manufacturing cost $600
Raw material cost $550
Labour cost $450
Marketing cost $650
Management expenditure $750
Total $3000
There are different ways with the help of which Magmatic can accesses funds in market
and are as following:- Bank loan or Venture capital:-The best way with which Magmatic can access funds is
by taking loan from the banks as it is secure and business can easily apply for the
same(Bellavitis and et.al., 2017).
 Angel Investors:- There are many individuals that are interested to provide capital to
business so that they can exchange for convertible debt. Business can access funds from
these affluent individuals.
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LO 4
P7 Different tools that Magmatic can use to develop, retain and protect knowledge and
intellectual property
There are different tools that Magmatic can use in order to protect their intellectual
property and these tools are as following:-
Patents:- This tool can be used by Magmatic in order to protect its innovation that is Jurni so
that no other rivalry or organisation can design the same products.
Advantage:- It gives right to Trunki to stop other competitors to copy and manufacture their
innovative products in their name.
Disadvantage:-
 It is time consuming and also costly for Trunki.
Trademarks:- Another tool that business can use is trademarks. This helps Magmatic to make
its offering differentiated from their competitor's products(Manzini and Lazzarotti, 2016).
Advantage:- Trunki can take strict legal actions in order to protect their mark from other competitors if
they use it in there name.
Disadvantage:-
 It generally protects the marketing concept but not the actual innovation of Trunki
Copyright:- This tool is helpful for the company in order to secure its artistic works. By
following some legal requirements and formalities business is able to adopt these in their
business practices.
Advantage:- It gives sole right to Trunki to produce and reproduce their work and protects the
innovation from get stolen.
Disadvantage:-
 Here, protection is not last forever.
CONCLUSION
From the above study it is been concluded that there is a difference between invention
and innovation and different types of innovation helps the business to work in an effective
manner. Report also concluded that the business can use commercial funnel and NPD process in
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order to process commercialisation in the organisation. Report also concluded that there are
different tools the Magmatic can use in order to protect its intellectual rights.
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REFERENCES
Books and Journals
Akter, R. and Rathnayaka, S., 2019. The Impact of Organizational Culture and Leadership on
Organizational Innovation.
Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Bagno, R. B., Salerno, M. S. and da Silva, D. O., 2017. Models with graphical representation for
innovation management: a literature review. R&D Management. 47(4). pp.637-653.
Baldwin, C. Y. and Henkel, J., 2015. Modularity and intellectual property protection. Strategic
management journal. 36(11). pp.1637-1655.
Bellavitis, C. and et.al., 2017. Entrepreneurial finance: new frontiers of research and practice:
Editorial for the special issue Embracing entrepreneurial funding innovations.
Bertoni, F. and Tykvová, T., 2015. Does governmental venture capital spur invention and
innovation? Evidence from young European biotech companies. Research Policy. 44(4).
pp.925-935.
Cooper, R. G., 2018. 19. Best practices and success drivers in new product development.
Handbook of Research on New Product Development. 410.
CORTIMIGLIA, M.N. and et.al., 2015. A systematic literature review on firm-level innovation
management systems. International Association for Management of Technology,
pp.1698-1713.
Costello, G. J., 2015. innovation process frameworks.
Ernst, H. and et.al., 2017. Virtual Co-Creation with Customers in the Early Stages of New
Product Development. Available at SSRN 3053800.
Gopalakrishnan, M. and et.al., 2015. The effect of cost goal specificity and new product
development process on cost reduction performance. Accounting, Organizations and
Society. 42. pp.1-11.
Knorringa, P. and et.al, 2016. Frugal innovation and development: Aides or adversaries?. The
European Journal of Development Research. 28(2). pp.143-153.
Manzini, R. and Lazzarotti, V., 2016. Intellectual property protection mechanisms in
collaborative new product development. R&D Management. 46(S2). pp.579-595.
Online
Innovation. 2019. Online. Available through:
<https://www.merriam-webster.com/dictionary/innovation>
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