Innovation and Commercialisation

INNOVATION AND
COMMERCIALISATI
ON

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain innovation and determine importance to organisation in comparison with invention
.....................................................................................................................................................1
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................2
TASK 2............................................................................................................................................4
P3 Explain 4 Ps of innovation and explain use of innovation funnel to examine and shape
innovative ideas...........................................................................................................................4
P4 Explain developments of Frugal innovation and provide examples......................................7
TASK 3............................................................................................................................................8
P5 Explain importance of commercial funnel and application of new product development
processing for commercialisation of innovation..........................................................................8
P6 Build innovation business case for organisation..................................................................11
TASK 4..........................................................................................................................................13
P7 Evaluate different tools that organisational can use to develop, retain and protect
knowledge and intellectual property..........................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation defines as a carrying out new combination that helps in attracting the number
of customers by involving the launching the new goods and services within new or existing
market. It represents as a modifications and changes in order to sustain in the business market.
This helps in gaining the high profits and revenues that also gain the competitive advantage
within competitive marketplace. In this commercialisation refers to the process of introducing
the new products and services in front of customers so that high sustainability can be gained and
achieved (Rasmussen and Eliason, 2017). This report includes the Rowntree's company that is a
confectionery business operated in York, London. This company can offers the varieties of
commodities like Kitkat, Fruit pastilles, Smarties. Further it introduces the thin mint chocolates
in 1962 that can attracts number5 of customers. But in recent year company sales is to be
affected and due to this manager can focus on introducing the new products that can gain their
market share. IT includes the innovation, commercialisation and Invention terms with their
importance that helps in process the NPD and developing business case for gaining profits.
TASK 1
P1 Explain innovation and determine importance to organisation in comparison with invention
Innovation Refers to the new concept that represent new ideas of a person mind that are
occurring as per the changing needs of business environment. The innovation can be done by
organisation when there is a need of gaining higher profits and attracting customers in market. IN
case of Rowntree's tree manager can introduce new range of products so that customers get
attracted towards it (Wang, Phillips and Yang and et. al., 2018).
Invention defines as a process of creating and developing the new things or products. For
example- If a person can make a Bike that doesnot need any kind of fuel to run than it will
represents as an invention. In context of Rowntree's comparison between Innovation and
invention can be shown below:
Comparison between innovation and invention
Basis Innovation Invention
Skills For doing the innovation high
marketing and strategic skills
Within Invention scientific
knowledge is to be needed at
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are required. the time of inventing some
product or device.
Concept Innovation refer to
development in the existing
goods and services.
Invention refers to the creation
of something unique and
creative.
Focusing elements Within innovation major
focused is on the change due
to business will gain high
profits.
The main focus of invention is
developing the new product.
Importance of innovation and invention
Innovation and invention is very essential for the business in gaining higher profits and
revenues. In case of Rowntree's these both contain some importance that can shown below:
 Increases productivity- The main importance of innovation in Rowntree's is that it will
enhance the productivity within business due to which business can sustain for longer
time and also gain the higher profits. In this they can prioritise their task as per the
innovation so that large base of customers are retain with company (Lim, Darley and
Marion, 2017).
 To create something- In Rowntree's the importance of Invention is that it helps in
attracting the large number of people by introducing the new products within
marketplace. In this company can focus on step by step process so that mistakes can be
removed and task can be improved.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
Vision- The vision of the company helps in attaining the target in specific form. In case
of Rowntree's company the vision is to lead, competitive, nutrition and health delivering to the
people so that long term survival can be enjoyed.
Mission- The major mission of company is to get the higher success in producing the
chocolates and cocoa butter. These are very demanding in the public and because of this they can
gain higher profits and market share.
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Team work- This term reflects as the group of two of two or more than two persons in
attaining the goals for a specific period of time. In case of Rowntree's manager can develops the
effective team in which they can do innovation in effective and efficient manner. In this workers
can work in a cross functional team so that their skills and knowledge regarding several areas. In
Rowntree's this culture helps in attaining the goals in productive and proficient manner.
Leadership- It refers to the action that is helpful to influence and lead the other persons
so that they work effectively for gaining higher profits. In this Rowntree's can adopt the
participative style of leadership so that high innovative ideas can be attained by firm by workers.
In this employees can take part ion sharing their ideas and thoughts so that firm will gain more
ideas for maximising their market share. This will helps in attracting more customers because
employees are satisfies with the controlling style of leaders (Zhou and et. al., 2018).
Culture- In this for doing the innovation and invention successful within organisation,
implementing creative cultures is effective. In this organisation can gain productive results by
highly focus on innovation so that they can gain the competitive advantage. It is a core need of
any business organisation so that they can attain the successful results and maintain the positive
and creative working environment that will helpful in recognition in the marketplace.
Analyse different sources of innovation
There are several source of innovation that helps in foster the culture of the business to do
innovation for gaining high market share and profits. Some of the sources can be reflected
below:
Sources of innovation
 Process needs- It is the best source of innovation within company in which firm will
identifying their weak spots so that they can effectively understand what kind of
innovation is to be done that can fulfil the demands of the market and gain high profits. In
this Rowntree's can focus on introducing the new launching i.e. range of sauces so that
high profits can be attained (Gong and Peng, S., 2018).
 Industry and market structure- In this source Rowntree's can focus on enhancing their
market structure within their industry. For this they can do innovation so that large
number of people are attracted towards purchasing the company goods and services.
Critically analyse innovation is developed embedded and measure
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From above explanation it is critically analysed that the innovation is helpful and
essential for the company. Due to this high profits and sustainability can be enjoyed by the
company. By innovation more customers get retained and attracted towards the firm
commodities. But at the same time developing innovation needs more investment due to which
firm operating cost is to be affected. This will also impact the profit margin of the organisation.
TASK 2
P3 Explain 4 Ps of innovation and explain use of innovation funnel to examine and shape
innovative ideas
The 4Ps of innovation refers to a good strategy that is helpful for the Rowntree's to
enhance their capabilities by using four aspects:
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 Paradigm- It defines the basis of change which reflects the several model and frame
according to several requirements and demand of market. In this Rowntree's can focus on
fulfilling customers demands and so that they can innovate something new for enhancing
the position within market and inclined higher profit margin (Ma and et. al., 2018).
 Process- It defines that aspect in which changes are implemented for producing things
hat helps the business firm to gain higher profits. In terms of Rowntree's manager
emphasis on producing the sauces that offers the unique and organic taste to the
customers.
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 Product- In innovation this factor is very prominent because without focusing on this
determinant no other aspects can be useful. In Rowntree's firm will focus on introducing
the organic and granola sauces so that they can attracts the large base of customers due
to which high advantage can be gained by the firm in competitive marketplace.
 Position- In this Rowntree's can focus on attaining the competitive market and
developing their market position by introducing the organic sauces that are healthy and
tasty so that potential customers are also attracted and firm will gain more sales (Kelly
and Kim, H., 2018).
Innovation funnel
It defines as a mechanism which enables the regular stream of ideas that can be looked as
gaining the successful results in work. It helps the business enterprise to innovate the new
product in effective way. It includes various factors that can reflects the use of innovation funnel
in examine innovative ideas to Rowntree's company which can shown below:
 Operation for opportunity- It is the core step which is used by the Rowntree's manager
for researching the market so that they can capture the opportunities for business for
enhancing the profits and revenues.
 Thinking process- This reflects the use of innovation that is build after the first step was
completed. In this Rowntree's can use the participative model so that employees are also
includes in decision making process so that they suggest the best idea for company
success.
 Formulation- This term is adopted by Rowntree's in which they can adopt the strategy
and formulate it for gaining the profits and success. Without it no profits can be gained
by the company.
 Benchmarking- In this Rowntree's can set their position in market by implementing the
several strategies so that targets can be attained on time that is introducing organic sauces
that are healthy and tasty (Zhou and et. al., 2018).
All these factors are reflects the use of innovation within Rowntree's due to which
company can take the effective decisions and implement effective strategy by doing proper
research so that growth and success can also be attained.
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P4 Explain developments of Frugal innovation and provide examples
Frugal innovation- It refers to that process which reflects the complexity within
innovation and also eliminates the extra cost within the production. In this non essential
requirements can be removed to get the innovatory commodity effectively and efficiently. In
case of Rowntree's some development of frugal innovation can be shown below:
 Immerse and grow- In this Rowntree's research department can focus on attain the
effective outcome by understanding the several aspects that is collected from the several
processes. In this company can focus on ensuring that each employee can work with clear
transparency so that positive and favourable results can be attained on time frame.
 To be qualitative- This aspect is used to develop the quality of the work so that firm will
gain the task and objectives on specified period of time. In this implementation of an
activity can relate to the managerial aspect (Uprety and et. al., 2017).
 Develops sustainable results- In this Rowntree's can try to attain the long term
sustainability and for this they can highly focused on accomplishing the long term targets.
Due to this firm will focus on protecting the risk related to market so that profitability of
organisation cannot impact negatively.
 Enhance customer activeness- In this business success and failure is highly dependent
on the customers behaviour and their actions. In this Rowntree's can highly focus on their
targeted customers so that their needs are to be analysed effectively to make the
innovation to match the suitability.
 Co-develop worth- It is very essential for the company i.e. Rowntree's to attain the high
profit margin by doing the better changes. In this innovation can be done by the firm to
attracts the attention of customers so that long term profits can be gained by the company
and it will sustain for a longer period of time.
Analyse and apply innovation funnel in organisational contextualization
To the above explanation it is analysed that a innovation funnel is very essential for the
organisation because it helps in developing the creative ideas so that Rowntree's can design their
structure effectively so that high results can be seen out. This funnel is very useful to make a
decisions so that market share and profits can be maximised. In this success innovation 4Ps can
also very helpful to attracting the innovative ideas and process so that targets can be attained on
time.
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Evaluate role of frugal innovation
From above research it is evaluated that frugal innovation reflecting as a significant role
within Rowntree's company that will helps in eliminating the wastage so that cost can also be
reduced in producing the new innovation offerings. It represents as a positive factor for the
company which can maximise the market so that it will gain the competitive advantage within
the rival industry.
TASK 3
P5 Explain importance of commercial funnel and application of new product development
processing for commercialisation of innovation
Commercial funnel refers to the sales funnel that represents the concept of showing the
direction related to purchase decision making of the customer. Organisation can use the
commercial funnel to attract more customers so that they will retail with the company for a
longer period of time. It includes the four stages of commercial funnel in context of
Rowntree’s that can be elaborated below:
 Awareness- It is suggested as a first stage of the commercial funnel in which
company products and services can be prospected that are existed within the
marketplace. In this company can research the market so that problem related to
customers switching another company can solved and due to this customers can
retain within the organisation again for a longer period of time. For instance- New
organic sauce of Rowntree’s is not trendy within market because it is not offering
that previously. For this firm can create awareness in customer related to
specification and benefit so that more and more customers are attracted
(Suryawanshi and et. al., 2018).
 Interest- It is the second stage customer find the relevant solution to the issues. In
this several processes are to be identified so that objectives can be accomplished. In
this Rowntree’s can focus on creating the interest in customers so that high profits
can be attained.
 Decision- After generating the interest decisions can be taken by the customers
related to the end purchase. At this stage more attention can be paid by the
Rowntree’s company sop that they can take final decision regarding their purchase.
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 Action- This is the last stage where customer can finalised the decision related to
buying. In this several steps is to be taken related to during and future purchase on
the basis of benefits of the commodities. In case of Rowntree’s manager can
develops the organisation product in such a way that can attracts large base of
customers for a longer period of time (Novikov, 2018).
Importance of commercial funnel in context of Rowntree’s company
Commercialsation funnel is an prominent factor that is adopted as a business model. In
case of Rowntree’s manager can admire the purchase decision of customers and provide the
solutions to their issues. This commercial funnel is also known as a marketing tool for the
business enterprise because it is helpful to attracts the customers. This also helps in retaining the
customers for the longer period of time. Some of the importance in case of Rowntree’s can be
shown below:
 Enhanced brand image- The main importance of commercial funnel is to enhance the
base of customers by introducing the organic sauce to the public by optimum utilisation
of resources.
 Increased quality- Another major importance of commercial funnel is to maximise the
quality of products and services by adding new features by innovating commodities so tat
high profits can be gained (Cao and et. al., 2018).
Process of New product development in relation to Rowntree’s company
New product development process is that vital process to sustain in the marketplace for
gaining higher profits. To attain the goals this process involves the several steps that helps in
achieving the new product within marketplace. In context of Rowntree’s company this process is
very helpful that can be shown below:
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 Idea generation- In this step idea is to be generated related to product and services that
the company can offered to their customers for gaining higher profits (Colombo and et.
al., 2017).
 Idea evaluation- In this stage several ideas that are generated in first stage is filtered so
that best one can be adopted for gaining higher returns. This will helps in fulfilling
objectives.
 Concept development- In this step technical ability of the product is checked that is
innovative by the company related to their features.
 Strategic analysis- In this stage Rowntree’s company manager can analyse the
effectiveness in the strategic plans according to their cost, time and feasibility (Eckhardt,
Ciuchta and Carpenter, 2018).
 Rowntree’s product development and testing- In this step company can judge the
reaction and action of the market related to product so that appropriateness can be shown
regarding the new launching of the offerings.
 Market testing- In this stage company can test the product development to inhale the
modifications within the goods and services. and to fulfil this criteria organisation can
take the follow-ups to their customers so that their reviews can be collected related to
products which helps in deciding the right time of launching the new offerings in front of
large audience.
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 Commercialsation- In this step company can analyse the final amount of goods and for
this marketing plan is to be developed so that product launching is to be successful in
effective and efficient manner.
 Product launch- It is the last step in which Rowntree’s can take the step to launch the
product for the customers so that they can purchase the same and firm will attracts the
attention of more and more customers (Min, Vonortas and Kim, 2019).
P6 Build innovation business case for organisation
Business case defines as a framework that can outlines the structure if the document which can
explain the reason related to complete the task and project. This process includes several
frameworks so that effective decision can be taken out(Aarikka-Stenroos and et. al., 2017). In
terms of Rowntree’s manager can prepare business case for implementing the innovation
successful. The business case can be demonstrated below:
Executive summary- Business case is very helpful to understand the rules and policies related to
innovation so that it will provide effective results to organisation. In this firm will focus on target
market so that more profits can be attained. Developing business case of very vital because of
removing the issues related to financial and other causes.
Background of Rowntree’s- It is a British confectionary business that is situated in York UK.
This firm will developed the Aero, Kitkat, smarties brands and also Quality street and Rolo
brands and in 1969 it will developed as a Rowntree Mackintosh confectionary. This will majorly
deals in UK with some chocolates but now the company will face the major issue related to
profits and sales and in this business case of very helpful for getting the innovation and attracting
new customers.
Vision- The major vision of the firm is to attaining the goal related to offer the healthy and
nutrition type products and services to their customers so that they can attain higher profits.
Mission- In this mission company is focused on manufacturing the chocolates and cocoa butter
so that high market share can be capture.
Satisfaction from need of innovation- In this Rowntree’s can focus on offering the organic
sauce that is very healthy and tasty to make the food. This will attracts the large number of
customers so that size of the customers is to be increased.
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Opportunities in market- In current market business of confectionary is facing major
completion for this Rowntree can innovate new offering to retain and attracts the customers.
Innovation within sauce helps in attracting more new customers.
Competitive edge- It is very essential for Rowntree’s to spend the financial resource in research
process due to this profit margin is to be affected. It is essential too to gain the competitive
advantage within marketplace.
Growth and size possibilities- in this manager can focus on several options to analyse the
overall growth and market. In this new innovation that is organic granola sauce is having a
calibre to attract the number of customers so that more growth opportunities can be attained.
Target market- In this Rowntree’s can target the health conscious people who are also food
lover want to eat the fast food in which sauce is the major ingredient helps the company to gain
more profits and revenues.
Strategy- In this Rowntree’s can adopts the price skimming and competitive based pricing in
order to attract the new customers within marketplace.
Promotional development- To attracts the large base of customers Rowntree’s can adopts the
social media tool for promoting their new organic Granola sauce so that manager can attracts the
large number of people in small period of time(Ho and Chuah, 2018).
New product development
 Idea generation- In this step Rowntree’s manager can focus on analysing the needs and
action of customers which is move towards the healthy habits without compromising the
taste. Due to this company can develop the idea of offering the new sauce so that they can
enjoy their fast food and other type of food with that healthy sauce.
 Idea Evaluation- In this new idea is develop by the firm that is organic granola sauce in
which pure species and plant based herbs can be added to fulfils the demands of
customers.
 Concept develop- In this stage firm will analysed the issues related to product by the
customers at the time of their purchase so that it can be solved in effective and efficient
manner.
 Strategic analysis- In this step organisation can examine thee monetary and other
resources which is used in innovating organic granola sauce.
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 Product development and testing- In this factor Rowntree’s manager can focus on
implementing the free trial in some superstores and food stores so that their efficiency
can be analysed. If any issue is to found than it will be remove at that stage.
 Marketing Testing- In this stage customer feedback is to be taken by the company to
understand the customer behaviour and perception related to innovative product.
Funding- In this step functions are to play by the company i.e. Rowntree’s and for this they can
need several funds. In this manager can analyse the several sources of funds so that best one can
be used that gives high benefits to the company. In this firm will highly focus on adopting the
bank loan because it is very secured type of loan and also flexible in nature because in this client
can understand the repayment time. it is very effective to generate funds for innovation and attain
higher profits.
Market development- In this with the help of the commercial funnel several strategies can be
performed by the organisation for gathering the funds. In this with the help of source of fund
company can attain their profits by applying the small tactics related to promoting the product
i.e. use of social media tool, direct marketing so that there needs is to be analysed based on
innovation items.
TASK 4
P7 Evaluate different tools that organisational can use to develop, retain and protect knowledge
and intellectual property
Intellectual property right refers to that right which is given to the person over their
creation in their mind. This Intellectual property rights gives the exclusive rights to the person
for a limited period of time. Some of the rights in case of Rowntree's can be shown below:
 Copyright- It refers to the legal right which helps the person who mainly authors,
writers, musicians, painters etc. to secured their innovation by doing the copyright so that
no one can copy it and use as a secondary source without permission.
◦ Advantage- The main advantage of this intellectual property right is to preserves the
business for theft an d misusing so that high profitable results can be gained.
◦ Disadvantage- In this organisation cannot need the licence for copyright the products
and things as it can be done in a local manner. This will affect the image of the
company.
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 Trademark- It refers to a type of intellectual property right that reflects the recognisable
sign, design through which a person can examine the products and services easily and
effectively. In case of Rowntree's they can trademark their symbol which helps the
customers to examine their products (ymeonidou, Bruneel and Autio, 2017).
◦ Advantage- The major benefit of trademark is to build trust and goodwill in the
marketplace that is more essential for Rowntree's in sustaining long period.
◦ Disadvantages- The main disadvantage of adopting the trademark is very costly that
small organisation cannot adopted it. This cannot save the products and services but
only focus on fulfilling marketing tactic.
 Patent- A patent is a right that is granted to the inventor by the government of the
country on their selling, purchasing, manufacturing and using the processes. In this
another company or organisation cannot copy or steal the ideas or device without
permission. If any person can do that than they get high punishment.
◦ Advantage- The major advantage of patent within company is that it helps in
sparking the innovation so that more successful results can be gain out. It also gives
the exclusive right to the person in their making, using, selling, importing,
manufacturing etc.
◦ Disadvantage- The drawback of this type of right is that it includes major cost due to
which company overall cost would be affected. It can be done for a limited period of
time after that firm will renew this and it will includes the more financial resources
that will affect profit margin (Halibas, Sibayan and Maata, 2017).
From the above explanation it is to critical evaluate that Rowntree's can adopted the
patent right for securing their innovation in sauces so that they can gain high profits and
revenues. As it helps in securing the products from the creeping so that they can enjoy the large
customer base and also enhance the market position by gaining competitive advantage.
CONCLUSION
From the above report it is concluded that innovation and commercialisation is a vital
term for the business to sustain and gain the higher profitability gaining the competitive
advantage within marketplace. In this new development process is helpful to successful launch
the product into market so that profits can be gained. In this business plan helps in analysing the
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source of funds that can gain high values and market share. At last intellectual property rights
helps in securing the innovation from copying so that large number of customers get attracted.
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