Innovation and Commercialization: Importance for Organizations

This report highlights the significance of innovation and commercialization within organizations. It delves into new-product development, commercialization through networks, and strategic considerations for innovation and commercialization. The importance of innovation creation, open innovation, and technology commercialization are also discussed. Various research studies and academic papers on these topics are referenced, providing a comprehensive understanding of the role of innovation and commercialization in organizational success.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain innovation and its importance for organisation and comparison with inventions....1
P2 Organisational vision, leadership, culture and teamwork that can shape innovation and
commercialisation.......................................................................................................................3
TASK 2............................................................................................................................................4
P3 The 4ps of innovation and use of innovation funnel for shaping innovative ideas...............4
P4 Development in frugal innovation with examples.................................................................5
TASK 3............................................................................................................................................6
P5 The importance of the commercial funnel and process of New Product Development........6
P6 Build an innovation business case for organisation...............................................................7
TASK 4............................................................................................................................................8
P7 Different tools for organisation to develop, retain, protect knowledge and intellectual
property.......................................................................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Innovation is defined as the process in which translate an ideas as well as inventions into
a goods or services that create some values and customers will pay to consume and satisfy their
needs and wants. In this involved an application of information, creativeness, initiative in
delivering products, imaginations and many more which helps in generating new ideas as well as
converts into effective goods or services in an efficient manner (Aarikka and Stenroos, 2012).
This report is based on Ensoft which small software firm in UK. It will explain the innovation
and comparison with inventions. This will defined how organisational vision, leadership, culture
and teamwork for innovation and commercialisation. 4Ps of innovation and use of its funnel also
will discuss for shaping innovation ideas. It will explain development in frugal innovation and
importance of the commercial funnel with new product development process. It build an
innovation business case for the company and define ways to access funding. Different tools or
techniques for develop, retain, protect knowledge and intellectual property for organisation.
TASK 1
P1 Explain innovation and its importance for organisation and comparison with inventions
Innovation may be defined as the new ideas and imagination for business so that better
goods or services can be produced. Innovation support in bringing effectiveness and creativity in
the production process for the purpose of creating better quality of products as it will helps in
satisfying customers needs or wants in very efficient manner. Many of organisations consider
this in the manufacturing procedure to convert the innovative ideas for producing best items so
that number of customers can be attracted in more appropriate way. They undertake the
innovation for developing the firm because it is beneficial to the company in retaining consumers
and meet their desired expectations in better ways (Sandberg, 2012). It directly affects on the
buyer purchasing behaviours and attracts them towards company's products or services so that
they will be loyal with particular firm. It is also beneficial for small and medium enterprises as
they can develop their firms with adopting new innovation and ideas. Ensoft company that deals
in software field and provide network solutions and services to the customers. They consider the
innovation while making strategies so that competitive advantages can be achieved.
Inventions: it is defined as the process for designing, creating and discover something
new that not exist before. It is very difficult task so company hire any expert, genius as well as
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craftsmanship for completing this project in more appropriate manner. Therefore, it can be
concern with those tools or techniques such as machine that support in improving those elements
that did not find previously. This can be helpful in developing the business products or services
in an effective manner. There are some difference between inventions and innovation such as:
Comparison of inventions and innovation
Basic Inventions Innovation
Meaning It is defined as the development
process for new ideas so that better
goods or services can be produced
(Bagchi, 2010).
Innovation is concern with new
creative thinking and execute ideas
for producing effective products or
procedure.
Concept Several theories and concepts are
included in this.
In this required ideas
implementation in practical
manner.
Necessary skills There are necessary to have scientific
knowledge and skills for proper
inventions.
In this required marketing, strategic
as well as technical skills and many
more for innovation.
Occurrence Inventions included creativity and
new ideas for better development.
It can support in improving
existing products or services by
innovation in an appropriate
manner.
Activities Research and development activity
required for inventions.
Innovation have broad as well as
spread activities for business
development.
Importance of Innovation
 Innovation is very beneficial tool for every firms as they can be developed and grow fast
and rapidly.
 Small and medium enterprises adopt new innovative ideas and creativity to achieve
particular goals or objectives and generate more profits within the firm.
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 Company can enhance its productivity and improve performances by adopting
innovation.
 Innovation is helpful in producing better quality of goods or services so that number of
customers can be attracted and also influence their buying behaviours to purchase any
items or consume services for satisfying their needs or wants in an appropriate manner
 Ensoft firm also focus on adopting new innovation and commercialisation for better
software applications so that they can create market awareness and achieve target
audiences.
P2 Organisational vision, leadership, culture and teamwork that can shape innovation and
commercialisation
In the present scenario, modern businesses are looking for new ideas and innovation to
develop the particular product as it helps in creating unique and qualitative goods and services in
an appropriate way (Bogers, 2010). This can be helpful in differentiate from competitor's
products with the help of new innovative ideas and creations. Innovation and commercialisation
are best methods for creating more market awareness, therefore small and medium enterprise
undertakes these so that they can build brand image and goodwill in the marketplace. Ensoft
consider innovation because these are very supportive in increasing the sales volume and
generate profits as well as revenues. Therefore, many of firms focus on innovation and
commercialisation to create more unique and creative products as Ensoft use some tools or
technologies for providing better networking services and software applications for the purpose
of satisfying customers demands and expectations as well (West, 2010). Here describe some
important aspects of innovation such as:
Visions: in this consider a statement for establishing long terms goals or objectives of an
organisation. Company set their vision for achieving particular goal in a define time period.
Vision of Ensoft: “To create an effective firm where bright engineers could work on
exceptionally challenging issues or problems.” this company is providing various types of
solutions regarding network issue and software related problems to satisfy customers needs or
wants.
Mission: It also defined as the statement in which organisations set their short term goals
to run the business operations. Company describe about their targets or objectives which are
going to be achieved with adopting innovation so that productivity can be achieved.
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Mission of Ensoft: “This is AI oriented software firm who wants lead edge software
technologies.” therefore, the goals or objectives of this firm is Artificial Intelligence.
Leadership: This term is define that a person who have capabilities or ability to inspire
human behaviours for the purpose of achieving predefined goals or targets. It is very important
for every business firm to develop the business (Cunningham, 2011). Leadership qualities must
be required who can manage and maintains the workforce as well as staff members in an
appropriate manner. Leaders helps in bringing innovations and effective ideas so that
organisation can attains set objectives. Ensoft firm always try to introduce new products
regarding software applications by motivating engineers and enhance their skills or abilities for
providing better solutions.
Culture: It is refers to a particular structure of organisation that established by the top
level of management to operate the business in an effective manner. It include various
components such as value systems, rules or regulations, policies and procedures and norms so
that effective environment can be created. This is very beneficial to motivate people for bringing
new ideas or creativeness when completing tasks or work. Ensoft firm also have their own
structure which allow to each engineer that to come up with innovative thinking for new
software applications.
Teamwork: It generally concern with group of people which is necessary for achieving
set goals or targets in an effective manner. Teamwork play an important role in developing the
business. In the Ensoft company, they perform every task by considering teamwork which
support to bring different ideas, innovative thinking, their opinion so that common goals can be
accomplished.
TASK 2
P3 The 4ps of innovation and use of innovation funnel for shaping innovative ideas
Innovations and commercialisation are helpful components for every business
organisation because they support in operating activities or functions and create better positions
in the marketplace (Porter, 2011). These are essential for organisation as they can improve
existing products or services which can meet customers desired expectations in an appropriate
way. Innovation funnel is related with manufacturing process for developing particular products
or services. this method is used for presentation in the graphical form that must be implement.
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There are several combinations mixed for creating goods or services to meet customers desired
expectations in an effective ways. There 4ps of innovation which are as following such as:
Product: It is concern with specific goods or items that company produce and deliver for
fulfilling buyers demands or wants. It can be both as tangible and intangible which based on
products natures so these are provided to the customers. Ensoft provide several services such as
networks, IT solutions, software applications and resolve issues regarding these problems.
Process: It is related with procedures that must be required to produce goods or services
so that customers can be satisfied with effective products (Ettlie and Rosenthal, 2012). Many of
firms undertakes various process and add some innovation or extra features so that unique
quality of goods or services can be produced. Manufacture procedures should be more
appropriate because there are number of factors which can be affects on the productivity and
efficiencies as well.
Positions: In this process, company formulate strategies and make decision about
creating positions in the market as Ensoft is belongs to small enterprise and deals in providing
software services in the UK. It must be required to build good brand image or reputation among
competitors at marketplace.
Paradigm: It describe that updates are necessary to make work easy and efficient within
the firm so it is required that up to date every aspects for achieving set targets. Ensoft firm also
focus on bringing effectiveness and they make proper changes for providing better products or
services to the targeted audiences.
P4 Development in frugal innovation with examples
There are number of firms in the market who consider frugal innovation for minimising
risk factors and overcome the uncertainties. It is an essential which support in enhancing the
abilities and skills for solving risk to operate particular business in smooth manner. Ensoft also
undertakes frugal innovation for minimising the costs or expenses by adopting best strategies and
tools or techniques (Huizingh, 2011). It is helpful component that support in generating more
funds or revenues in more appropriate way. The frugal innovation is best and efficient approach
which helps in achieving growth and competitive advantages as well. Some principles of frugal
innovation for creating effective brand image in the market and these are as following:
Enhance purchasing power of customers: This is very beneficial in improving the
buying behaviours and increase the sales volume with the help of attracting number of
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consumers towards company's products or services in an efficient way. Ensoft company is
dealing with several products or services so they are providing various software application and
services at reasonable price so customers can afford and consume those in better manner.
Utilisation of resources: Every organisation wants to get more outcomes with limited
resources so frugal innovation is very helpful managing the available inputs in well manner
(Inauen, 2012). Ensoft is also adopted frugal innovation so that they can optimise resources by
allocating those among several activities as they allocate task between engineers for better
solution providing.
Redesign: Every organisation try to make better products or services through effective
technologies as well as innovative thinking so that better goods can be created. In this consider
research or survey process for analysing demand and redesign the product as per their
expectations.
Roles of Frugal innovation:
Frugal innovation is considered as effective component which helps to the firm in
improving existing products or services in well manner. Ensoft firm is always focus on adopting
innovation for achieving competitive advantages and set targets or goals in an appropriate way.
There are several roles or responsibilities of the frugal innovation such as:
Influence consumer behaviours: frugal innovation is one of the best method which
provide effective goods or services to the potential customers so that customers can be satisfied.
It will also help to increase sales volume and generate profits in better manner (Schenker, 2012).
Ensoft firm attracts more customers by offering various software applications at reasonable price
or costs.
Customers engagement: company focus on engaging internal or external customers
while making any business decisions or taking corrective actions so it will support in managing
or maintaining relationship among people within the firm. It is an essential for achieving future
growth or advantages within the organisation.
Helpful in sustainable solutions: Frugal innovation is very supportive in achieving
sustainability so that best method also can be found with the help of this. Ensoft can provide
better networks and appropriate solutions as well.
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TASK 3
P5 The importance of the commercial funnel and process of New Product Development
Commercial funnel is defined as the set of activities and process in which effective or
rights customers are to be found for particular goods or services. company conduct the study and
research regarding customers and their buying behaviours as per organisational products.
Researcher consider proper segmentations of the customers by dividing or categories them as per
the basis such as gender, occupational, income, age and choices etc. in this also defined the
environmental study for analysing particular consumer demand, taste or preferences, market
trends and strong competitors and many more (Jagoda, 2011). Ensoft can launch new network
service or solution to achieve specific goals.
Cost minimisations: It is very beneficial in cutting costs and expenses in better manner
by allocating available resources while manufacturing goods or services. Ensoft also consider the
cost factor and utilise better resources in an appropriate way. Therefore, they adopt new
innovative ideas or creativities for getting best outcomes with minimum inputs.
Quality improvement: It is another benefit of commercial funnels that they support in
increasing sales volume by satisfying customers needs or wants in an effective manner.
Commercial funnel and innovation are best components that Ensoft consider for improving
quality of services of networks and software facilities to the targeted audiences.
Increase profitability and productivity: Commercial funnel also support in generating
more revenues and profits while running business operations. Ensoft utilise its available funds
and for the purpose of getting hire returns. It is required to manage the business operations so
that better brand can be build in the marketplace or among competitors.
P6 Build an innovation business case for organisation
In this defined that every organisations can be run in smooth manner by undertaking
some innovative ideas or creative thinking within the business (Kilelu and Klerkx, 2014). In this
required an effective or efficient case to get succeed so it is very helpful in developing the
business in an efficient way. It concern with various policies or procedures which support in
achieving business goals or objectives. Ensoft also focus on new ideas or thoughts with including
various plans such as:
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Identification of organisational objectives: In this defined that if any firm formulate
strategies for running the business by considering some ideas or techniques that must be based
on organisation's objectives and goals (Leeuwis, 2014). Therefore, it is necessary to identify the
business objectives for implementing the plan in an appropriate way.
Conduct market research or survey: This is related with market trends or situations as
company conduct survey for analysing the environment and identify customers needs or wants,
choice as well as desired expectations for providing better goods or services to them.
Evaluation: It is very beneficial for reviewing or evaluating the planning process so that
it can be helpful in defining the outcomes or results. Manager take responsibility for evaluating
that procedures and check entire activities by considering that it will get positive outcomes or
achieve predefined goals or targets.
Hence, in this required enough or appropriate funds for running any particular
organisation because finance is back bone of the business firm. Therefore, Ensoft adopt planning
structure and develop plan so that more investors can be attracted towards organisation. Here are
some investors such as:
Venture capital funds: In this kinds of ventures, Investors do not want to take any types
of risks or bear losses while running an organisation (Kim, 2011). So that they prefer to ask
company about the partnership to invest funds and get higher returns.
Bank: It is another source which helps to get financial facilities as bank provide loan and
other funds to the businessman for running their firm in more appropriate manner. In this, Owner
have to share their business plan to the bank and disclose every ideas so that bank will decide as
they should invest or not.
TASK 4
P7 Different tools for organisation to develop, retain, protect knowledge and intellectual property
Every organisation use various tools or techniques as well as formulate strategies for
running their business. Government play vital role in providing protections to those firms by
forming some legal authorities, laws, rules or regulations and legislations so that company can
feel safe from outsiders. These are as follows:
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Copyrights: This components support in protecting from other copier or substitution
because of legislations and laws of the country (Teece, 2010). Some protection are considered in
this for intangible elements such as painting, photography, and novels as well as biopic etc.
Patents: It also defined as the legal authority which provide proper protections to the
company form the outsider. Government grants to the firm for adaptation of innovation in
products or services. businessman have some rights for preventing those copier who are
producing same items and sell into market.
Trademarks: It is an important aspect in which company can differentiate their products
or services from the competitors. In this included logo, brand name, symbols, punch lines and
tags of the company (Therrien and Doloreux, 2011). Government grant licenses to the firm about
protection so that no one can steal any symbols or signs of the organisation.
CONCLUSION
From the above report, it has been concluded that innovation and commercialisation are
very important for every small and medium enterprises. They play vital role in producing
effective and innovative products or services. Ensoft is providing better networks and software
services to the people with help of adopting new innovative ideas and tools or techniques in an
appropriate manner. This report defined about innovation and inventions with comparison and
how it is importance for organisation. In this also described regarding frugal innovation and
commercial funnel to achieve particular goals or objectives in well manner.
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REFRENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
commercialization through networks. Journal of Business Research. 65(2). pp.198-206.
Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Cunningham, S.W. and Porter, A.L., 2011, July. Bibliometric discovery of innovation and
commercialization pathways in nanotechnology. In Technology Management in the
Energy Smart World (PICMET), 2011 Proceedings of PICMET'11: (pp. 1-11). IEEE.
Ettlie, J.E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp.440-454.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Inauen, M. and Schenker-Wicki, A., 2012. Fostering radical innovations with open
innovation. European Journal of Innovation Management. 15(2). pp.212-231.
Jagoda, K., and et.al. 2011. Development and commercialization of renewable energy Hoque,
M., Chishty, M. and Halloway, R., 2011technologies in Canada: An innovation system
perspective. Renewable Energy. 36(4). pp.1Wonglimpiyarat, J., 2010266-1271.
Kilelu, C.W., Klerkx, L. and Leeuwis, C., 2014. How dynamics of learning are linked to
innovation support services: insights from a smallholder commercialization project in
Kenya. The Journal of Agricultural Education and Extension.20(2). pp.213-232.
Kim, S. K. And et.al., 2011. The effect of R&D, technology commercialization capabilities and
innovation performance. Technological and Economic Development of Economy. (4).
pp.563-578.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Therrien, P., Doloreux, D. and Chamberlin, T., 2011. Innovation novelty and (commercial)
performance in the service sector: A Canadian firm-level analysis. Technovation.
31(12). pp.655-665.
Thore, S.A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
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