Importance of Commercial Funnel and NPD for Innovation Commercialisation

Learn about the significance of commercial funnel and NPD in the commercialisation of innovation in this comprehensive guide. Understand the concept of innovation, its importance to organisations, and how it can be shaped by organisational vision, leadership, culture, and teamwork. Explore the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. Discover the developments in frugal innovation and how it is used in an organisational context. Gain insights into the commercial funnel and the application of New Product Development (NPD) processing for the commercialisation of innovation.

Innovation and
Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1................................................................................................................................................3
Explain the concept of innovation and determine its importance to organisations in
comparison with invention.....................................................................................................3
Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation............................................................................................................5
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................6
Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................9
PART 2............................................................................................................................................9
An explanation of the importance of the commercial funnel and the application of New
Product Development (NPD) processing for commercialisation of innovation. ...................9
Build an Innovation Business Case for an organisation, including ways to access funding.10
Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................11
Critically evaluation the nature of innovation and the context in which it is developed.
Different ways though which Big belly organisation can overcome challenges to develop
successful innovation. ..........................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Innovation and commercialisation can be describe as process though which company can
enhance its business practices (Anadon and et. al., 2016). Innovation will lead to developing new
and creative products that is helpful in meeting with customers requirements. This is helpful in
attracting large number of customers towards business as well as grabbing various opportunities
for growth and development of business. Company chosen for this report is Big belly company
that is UK based company. This one of the well known organisation that is world leader as it
provide smart waste as well as recycling solution. This organisation is producing bottle for cold
water which is stylish as well as convenient for use. This company is developing this products in
order to reduce the waste material such as paper, Bottles, cans and other trash. This report
includes importance of innovation as well as its impact on vision, leadership, culture and
teamwork. In this 4 P's of innovation has been identified and frugal innovation has been
developed. Analysis of commercial funnel and new product development process. Apart from
this, different tools for development, retain, knowledge protection as well as intellectual
property.
MAIN BODY
Part 1
Explain the concept of innovation and determine its importance to organisations in comparison
with invention.
Innovation
Innovation can be describe as a new and different idea or method that has been never
used before. This will lead to offer or sale completely new products that is as per need and wants
of customers. The process of innovation will support company to develop as well as introduce
new products which will lead to attract more customers towards business (Drucker, 2014).
Innovation can be considered as cost effective methods that will aid in full fulling customers
requirement. Big belly company is developing as well as producing new and innovate products
that is Big belly Bottle that is useful for on the go cold water. It is has been identified that 35. 5
% of waste material is developed due to bottles and Cans. So this product is is eco friendly as
well as developed with new and innovative technology.
Importance of Innovation
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There are several importance of innovation for Big belly company which is describe
below.
 This is helpful in resolving the issues of organisation as well as meeting with the needs of
customers.
 This is essential in increasing the productivity of respective company and developing
strong market image.
 Innovation is important for Big belly company to gain competitive advantage over other
rival companies.
Inventions
This refers to developing or originating new product that is has been never used by
anyone. Invention is a process of creating a products and services with different ideas and those
product which is never developed by any organisation (Toivanen and Väänänen, 2016). The
process of invention is helpful in providing creative products in order to satisfy customers needs.
Important of Inventions
Importance of invention in context of Big belly business is describe below.
 This process in helpful in creating as well as developing something new or original to
attract more customers.
 Invention will also support in resolving the various issues or challenges that is faced by
society.
 This is significant for growth and development of business as well as enhancing market
share of respective company.
Comparison between innovation and invention
Innovation Invention
This can be describe as a process in which
company can develop and produce significant
contribution.
In this process company will change or modify
current products in order to full fill customer
requirement.
Invention can be consider as a process in which
company is creating or building completely
new products idea.
The process of invention will lead to enhance
the market share as well as resolve issues of
customers.
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Thus it has been determined that innovation and invention are very different from each
other as well as play crucial role in overall growth and development of business. It has been
determine inspire of several different both innovation as well as invention will interrelated with
each other in order to achieve desired goals.
Explain how organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.
It has been determined that it is very important for an organisation to shape innovation
and commercialisation. This will help in accomplish the desired goals and objective of Big belly
organisation. Commercialisation can be define as a process through which company introduce as
well as sales creative or innovative product in marker area (Johnston, Carthey and Hutchings,
2015). The method of commercialization will support in informing about innovate product to
potential customers as well as targeted market place. It is significant for this company to manage
its organisation process as well as functions effectively in order to shape its innovation and
commercialisation process. Impact of vision, leadership teamwork as well as culture on
innovation or commercialisation is mention below.
 Vision – Vision of company is considered as an statement which is representing future
aims or targets. Mission and vision statement of Big belly company include that this
organisation wants to increase the adoption as well as usage of reusable products. This is
one of the leader company that is providing appropriate solutions by developing effective
and smart products that support in dealing with the issues of society. This will lead to
have positive impact on society and keeping environment healthy. The mission and
vision set by respective company will influences the overall performance of organisation
and promoting innovation or commercialization in business process. This company has
vision to promote reusable products with the help of new and innovative practices. So
this company is developing water bottle that can be reused by customer. The major aim
of Big Belly organisation is reduce the wastage from society as well as reduce the waste
material such as paper, bottles and so on.
 Leadership – This can be describe as a method or approach through which company can
enhance or increase performance of employees. There are different types of leadership
style which will have effect on productivity of respective business (Arts and Veugelers,
2015). In context of Big belly organisation, it is using supportive leadership style in
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which leaders are supporting as well as encouraging employees to conduct task and
activities in effective manner. Through his leadership style Big belly company is able to
enhance performance of employees so that they can focus on developing new and
innovative water bottle products. This leadership style will support in improving the
skills as well as capabilities of employees. Effective leadership will support in enhancing
the positive impact on society as well as reducing the waste from society.
 Culture – Culture refers to the environment of workplace and this will have direct as
well as indirect impact on profitability as well as productivity of company. It is
significant for Big belly company to maintain healthy and friendly working culture as this
will support in developing better relationships with employees. Positive and healthy
working environment of respective company will lead to reduces conflicts with in
organisation as well as help in focusing on attaining desired goals and objective of
company. So it has been determined that working culture of Big belly company will help
in innovation and commercialisation of products.
 Teamwork – This refers to the capabilities of employees to work collaborates with other
in order to accomplish common objectives. It has been analysed that team work will have
major impact on shaping innovating as well as commercialisation of organisation
(Bertoni and Tykvová, 2015). In respect to Big belly organisation this company needs to
enhance team work of employees so that each and every employees of organisation could
effectively adopt innovative methods as well as unique ideas of business.
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.
There are four major P's of innovation that is helpful in developing as well as creating
new and innovative idea. It has been determined that 4 P's of innovation will support in
improvement in business as well as its process to accomplish desire goals. This concept was
developed by Joe Tidd and John Bessant. In this 4 P's can be refer as product, process, position
and paradigm (Currie, 2018). All of these elements are significant for directing the business
activities as well as analysing which area of organisation need to enhance innovative activities. 4
P's of innovation is mention below in detail.
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4 P's of Innovation Paradigm – This is the innovative method that will help organisation to improve its
functions. Paradigm innovation refers to the way Big belly company is conducting its
business practices in order to achieve desired objectives. This innovation will lead to
improve the way in which respective company do business. Product – Product refers to the goods or commodity that is offered by company in order
to earn more profits. It has been identified that Big belly company is providing innovative
products which is water bottle for cold water that is useable. Innovation in products and
commodity offered by respective company will help in gaining competitive advantage
over other rival companies. Process – It includes the various process of business which is supporting in timely
accomplishment of set goals. Process innovation in respective company will lead to
increase the overall process of products development. This will lead to improve the
hiring process, delivery and supply, training of employee. So that work can flow
effectively.
 Position – This can be describe as the way in which company is targeting its customers.
Position refers the manner in which Big belly company is attract as well as influencing
customers towards business. This is helpful in enhancing sales and revenues of
respective business. Positioning of Big belly bottle needs to be done in innovative manner
such as its products is reusable and have ability to provide cold water on the go.
Innovation funnel
Innovation funnel consist of various steps that is helping in development of an innovative
product and services. In this funnel ideas and data is passed through refinery system as well as
creating an innovative idea (Daemmrich, 2017). Innovation funnel process includes three stages
in which different ideas pass in order to select the most appropriate business idea. The main
purpose of innovation funnel is to build an effective process that will lead to full fill customer
requirements. Innovation funnel consist of three steps that is mention below in detail.
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 Wide mouth of funnel - In this stage respective company will be able to gather and
collect information from different sources. Big belly business is creating products that is
able to provide cold water for longer term.
 Narrowing segment of funnel – At this phase of innovation funnel proper screen of
ideas is done that is collect in first stage (Open Innovation Funnel Model Showing
Creative Process, 2020). Once different ideas has been evaluate this company is focusing
in developing bottle that is stylish as well as reusable in order to provide cold water in the
way.
 Narrow segment of funnel – Big belly company is producing innovative product that is
convenience as plastic bottle as well as developed with high technology (Dereli, 2015).
This is the last step of innovation funnel and in this respective company will be able to
develop proper business ideas to solve customer issues.
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Illustration 1: Innovation Funnel Model
Sources : Open Innovation Funnel Model Showing Creative Process,
2020

Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation refers to the process that will reduces the issues related to development
of products. This is an effective process that needs to be used by Big belly company in order to
resolve complexity from business process as well as reducing cost of product. It is significant for
respective company to develop in frugal innovation in order to enhance business profits. In
context of Big belly company it is developing high quality water bottle products. Its products is
developed with high technology and it is reusable product for maintaining eco friendly
environment. This company needs to use product and services that is cost effective as well as
help in creating high quality product with less cost. This development in frugal innovation will
help in accomplishing desired goals and objectives. This will support Big belly company to earn
more profits as well as gain competitive advantage over other rival companies. Respective
company will be able to modify its product in such a manner that will lead to meet with
customers need and wants. Big belly company can enhance its market share by effectively using
frugal innovation.
PART 2
An explanation of the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel is also known as sales funnel and this is an effective tool that will
help respective company to enhance its sales. This will help in conducting marketing activities of
respective company is effective and efficient manner (García and Martínez-Borreguero, 2016).
This can be describe as a process in which customers buy product and services of Big belly
company. Commercial funnel is very important for respective company and its significance is
mention.
 Commercial funnel will lead to increase the awareness of respective product in market
area. This is an effective business process that will lead to inform as well as communicate
with customers in order to enhance the knowledge about the innovate product developed
by Big belly company
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 This will help in attracting more and more customers towards business. With the help of
commercial funnel respective company will be able to earn more and more customer
towards organisation.
Application of New Product development
New product development is an effective process that will help in creating and
developing completely new products. Big belly company is creating innovative product for
resolving customer issues as well as meeting with customer requirement (Godin, 2015). It is
essential for this company to identify as well as analyse need and wants of customer in order to
develop appropriate product. In context of Big belly company, it is developing product with new
and innovative technology which has ability to provide cold water during travelling. It has been
identified that many people use plastic water bottle while travelling from one to another. This
lead to have negative impact society as well as environment. So in order to resolve these issues
respective company is building new product which is water bottle that is reusable. Application of
new product development includes different aspects that is helpful in creating better and
effective product. This is helpful in gaining competitive advantage over other rival companies.
Build an Innovation Business Case for an organisation, including ways to access funding.
Business case
It can be describe as a well written documents that include the complete detail about the
organisation. Business case of Big belly organisation will help in determining all those aspect on
which this company is performing its activities (Godin, 2016). This will help in identifying
different market opportunities as well as promotional strategies of respective company. It
includes different sources though which this company is accessing its funds.
Executive summary – Big belly company is producing water bottle products in order to
resolve issues of customers as well as society. It is significant for respective company to use new
and innovative tools and techniques in developing products. Commercialization of water bottle
products will help in attracting more customers towards business.
Background – Big belly business is created by James Butterfield and Tim Bouscarle in
2010. It is producing cold water bottle products which is stylish as well as easily to use during
journey. This company is focusing on resolving environment as well as society issues by
providing eco friendly or reusable products to customers.
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Vision – Vision of Big belly company is to enhance the usage or utilisation of reusable
products in order to decrease the use of plastic material bottles.
Mission- It mission statement includes to create a goods for importing lifestyle of urban
society. This company wants to have perfect balance between unrivalled performance as well as
distinctive style.
Opportunity in market – It has been identify that there are various marketing
opportunities for respective company (Grafström and Lindman, 2017). There are more customers
who are well aware about the consequences of plastic products. This can be considered as
opportunity for Big belly company to promote its products.
Funding - There are different ways though which company can get funding in order to
perform business task and activities. It is very important that Big belly company have
appropriate funding order to perform business process in effective manner. Respective company
can access funds from angle investors as well as banks. Both of these source of funding will be
able to provide required funds to performing business task.
Evaluate the different tools that organisations can use to develop, retain and protect knowledge
and intellectual property.
Intellectual property
Intellectual property can be describe as a property of business that different and unique
from other companies. It is very important for Big belly company to protect it intellectual
property as this will lead to have positive impact on business. Intellectual property refer as the
original idea or concept that needs to be protected by other rival companies (Kelly, 2016). In
context of Big belly company, it is creating innovative products which is reusable as well as able
to provide cold water for longer time. Intellectual property can be classify as copyrights,
trademarks, patents and so on. It is significant for this company to develop strong business
strategies that will help in developing as well as protecting intellectual property of business.
Different strategies are mention below in detail. Business trademarks – It is important for company to develop as proper and unique trade
of Big bellys's business. Trademarks consist of logo, design of product that can be
considered as recognition of company as well as its products.
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 Avoid joint ownership – In order to maintaining or protect the intellectual property of
respective company, it is essential to avoid joint ownership. When company is
conducting business activities in joint ownership respective company will reduce the
control over business and its property.
Critically evaluation the nature of innovation and the context in which it is developed. Different
ways though which Big belly organisation can overcome challenges to develop successful
innovation.
The nature of innovation product can be describe as product which is developed in order
to enhancing social environment as well as reduce the wastage of products and services.
Reusable water bottle will lead to reduce the usage of plastic bottle products. This organisation
can overcome the issues that occur while developing products are lack of funds, advance
technology. In order to over come these issues respective company needs to collect appropriate
funds from investor so that all activities can be conducted effectively. This will help in using
right and appropriate technology for performing business activities.
CONCLUSION
From the above report it can be concluded that innovation and commercialisation play a
crucial role in overall growth and development of organisation. It has been determined that
organisational vision, leadership, culture or teamwork will help in promoting innovation and
commercialisation. Innovation includes 4 P's that will help in shaping innovative ideas and frugal
innovation will support effective functioning of organisation. It has been analysed that
commercial funnel is significant for business process and new product development is an
effective process of commercialisation of processing. There are different ways though which
company can get funds in order to enhance business practices. Apart form this it is essential to
analyse different tools for protecting knowledge and intellectual property of business.
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REFERENCES
Books and Journals
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Arts, S. and Veugelers, R., 2015. Technology familiarity, recombinant novelty, and breakthrough
invention. Industrial and Corporate Change. 24(6). pp.1215-1246.
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.
Currie, S. ed., 2018. Drawing, 1400-1600: Invention and Innovation: Invention and Innovation.
Routledge.
Daemmrich, A., 2017. Invention, innovation systems, and the Fourth Industrial
Revolution. Technology & Innovation. 18(4). pp.257-265.
Dereli, D. D., 2015. Innovation management in global competition and competitive
advantage. Procedia-Social and behavioral sciences. 195. pp.1365-1370.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
García-Gutiérrez, I. and Martínez-Borreguero, F.J., 2016. The Innovation Pivot Framework:
Fostering Business Model Innovation in Startups: A new tool helps entrepreneurs design
business models by identifying the sources of competitive advantage embedded in an
innovation. Research-Technology Management. 59(5). pp.48-56.
Godin, B., 2015. Innovation contested: The idea of innovation over the centuries. Routledge.
Godin, B., 2016. Technological innovation: on the origins and development of an inclusive
concept. Technology and Culture. 57(3). pp.527-556.
Grafström, J. and Lindman, Å., 2017. Invention, innovation and diffusion in the European wind
power sector. Technological Forecasting and Social Change. 114. pp.179-191.
Johnston, P., Carthey, N. and Hutchings, G.J., 2015. Discovery, development, and
commercialization of gold catalysts for acetylene hydrochlorination. Journal of the
American Chemical Society, 137(46), pp.14548-14557.
Kelly, R., 2016. Creative development: Transforming education through design thinking,
innovation, and invention. Brush Education.
Toivanen, O. and Väänänen, L., 2016. Education and invention. Review of Economics and
Statistics, 98(2), pp.382-396.
Online
Open Innovation Funnel Model Showing Creative Process. 2020. [Online]. Available
through:<https://www.slideteam.net/open-innovation-funnel-model-showing-creative-
process.html>.
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