Innovation and Commercialization

This report analyzes concepts of innovation, commercialization, and invention along with their differences. It also evaluates the various different types of innovations possible within an organization and determines the process which is required to commercialize innovation in an organization.

Innovation and
Commercialization

Table of Content
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Importance of innovation in comparison with invention........................................................3
P2 Organizational vision, leadership, culture and teamwork shape innovation and
commercialization........................................................................................................................4
LO2..................................................................................................................................................5
P3 4Ps of innovation and how it leads to shape innovative ideas................................................5
P4 Developments in frugal innovation........................................................................................6
LO3..................................................................................................................................................7
P5 Importance of commercial funnel and New Product Development for commercialization of
innovation....................................................................................................................................7
P6 Innovation business case and ways to access funding............................................................8
P7: Tools to protect and retain intellectual property and knowledge .......................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is the process through which ideas and inventions are made into valuable
goods and services for which customers and consumers will pay. There are primarily four
different types of innovations: Incremental Innovation, Disruptive Innovation, Architectural
Innovation and Radical Innovation respectively (Lambert, 2019). While commercialization is the
procedure through which new goods and services are brought into the market. Broadly
commercialization also includes manufacturing, distribution, marketing and promotion, sales,
customer service and other key operations which are necessary in achieving commercial success
for new goods and services.
This report analyses concepts of innovation, commercialization and invention along with
their differences. It also evaluates the various different types of innovations possible within an
organisation and determines the process which is required to commercialise innovation in an
organisation. Finally it studies the range of methods which can be used to protect knowledge and
ideas along with their advantages and disadvantages. In this report we have evaluated these
operations within the organisation Samsung Electronics, as part of its Product-Innovation team.
Samsung Electronics is one of the biggest and well recognised brands globally, beginning
operations in 1969 it has continued to expand its operations and market share ever since.
LO1
P1 Importance of innovation in comparison with invention
Innovation- It refers to the process of making an idea or invention already invented into
good or service which has innovative approach behind it, by increasing comfort levels for
customers and to meet the changing requirements. It can be understood as application of better
solutions by companies for creating higher value for customers through implementation of new
product and services. Innovation brings improved efficiency, effectiveness which is highly
relevant for enhancing production levels in competitive business environment for organizations.
Innovation brings high creativity to the process which eliminates chances of errors of products
and enhances the quality performance for customers. For example innovation of iPhone is one of
the most innovative breakthrough advanced in technology which has improved networking for
people to large extent (Wan and Ding, 2019).

Invention- It can be understood as unique device, method or composition of process
within an overall product development process which enhance the functioning levels . Invention
helps to overcome barrier by creating something new which increases level of efficiency through
constructing imagination into practical outputs. It brings imagination of humans into practical
actions where visualization of ideas has played an important role in inventing new objects. For
example Galileo invented Telescope in 1609 which has played an important role in human
history by advancing our understanding of Earths place in universe.
The difference between Innovation and Invention can be understood on various points which are
as follows:
 Innovation connects the dots between inventions. This statement can be understood as a
foremost creation step or introduction of process for the first time which brings
revolutionary change for humans. Whereas Innovation on other hand occurs when
significant change with help of technology comes in existing product or method for
enhancement in performance levels.
 Invention creates something entirely new which has not been functioning until now,
innovation creates something which has high chances for selling in companies.
Innovation along with creativity speed up the process of invention which has an already
implemented function to deliver.
Implementation of innovation- Samsung aims to deliver high innovation criteria of
technologies in already invented networking systems by advancement in quality service and
superfast communication standards (Wang,2019).Company is committed to transform the digital
world with highly innovative technologies, products and design which enriches life of people
creatively. Company inspires constantly by delivering ground breaking innovations constantly in
digital appliances, network systems for enhancing global community living. Samsung Vision
2020 is an ambitious growth target by company where company aims to deliver operational
excellence and innovation in highly competitive digital business environment (Djamasbi and
Strong, 2019).
P2 Organizational vision, leadership, culture and teamwork shape innovation and
commercialization
Vision- Organization vision of Samsung shape innovation and commercialization to a
great extent as company visions to enhance the productivity levels with high technological up-

gradation in all electronics services and appliances. (O'brien,2019).Vision is a long term plan for
company which aims to foster growth and innovation along with completion of organizational
set goals to reach high profit margins. It is imperatively important for company to foster
innovation along with high sustained customer loyalty growth in high volatile business
environment.
Culture- Organization culture plays an important role in shaping innovation and
commercialization within company to deliver high growth and success for long term
sustainability in market. Charles handy theory explores classification of business culture based
upon functions and role of management teams including superiors, leaders and subordinates
(Callaghan,2019).Theory focuses on six influence elements in company culture that shape
innovation and advanced growth, which are physical, exchange, rules in procedures, persuasion,
ecology and magnetism. Samsung aims to enhance innovation and commercialization targets by
training employees with advanced skills, strong persuasion by leaders which enables procedural
growth in ecology.
Teamwork- The importance of teamwork in bringing innovation and commercialization for
company growth can be understood through Bruce Tuckman theory which focuses on team
formation. Forming, storming,,norming, performing, adjourning and transforming are the steps
which analyses how team tackles performance levels from initial formation to completion of
tasks and projects. Samsung lays high importance in building strong technically advanced teams
where employees are given brainstorming sessions, opportunities to showcase their ideas by
which they are lead to transforming for reaching end targets of high innovation and
commercialization (David,2019).
LO2
P3 4Ps of innovation and how it leads to shape innovative ideas
The 4ps of innovation which contribute to construction of operational stricture with
innovative ideas for Samsung can be understood as follows-
 Product-Innovation in product and services is highly important for attaining target
customer growth market. Product is initial offering by company to customers which has
high potential to attract them, Samsung focuses on innovative technology in products to
compete in high volatile business environment.

 Process- It refers to way things are created and delivered for converting inputs into final
products innovatively. Samsung aims to reach cost efficiency through advanced
technologies in processing their electronic devices and eliminating all hazards.
 Position- It refers to change in context of introducing products and services to target
customers in market share innovatively. Samsung aims to deliver high innovation in
positioning itself in target market of all age groups which enables it to position itself
strongly in digital competitive world (Wong, and Ngai,2019).
 Paradigm- It refers to methods of how innovatively company frames about products and
services to customers globally. Samsung aims to enhance its paradigm globally among
consumers of all age groups by offering high technically advanced electronic products,
promoting about services on global platform.
Importance of Innovation funnel- It can be understood as mechanism which enables constant
stream of ideas which needs be screened for viability, strategies to introduce long term changes
in company through innovation. Innovation funnel includes brainstorming employees about
advanced usage of technology and ensuring the best methods are chosen for projects. Samsung
with the help of innovation funnel enhance its production levels with creation of advanced
processing technologies in all electronics, increase the profit margins by reaching cost efficiency.
It enables company to filter out the hazards which may come in innovation implementation
process and select the best alternatives through which company can enhance its products and
services (Callaghan,2019).
P4 Developments in frugal innovation
Frugal innovation can be understood as the procedural method of reducing complexity
and cost of goods which are inputs for final production innovatively for reaching cost efficiency
in targets. It is important for companies to work with frugal innovation techniques where it
becomes imperatively important to use resources available to their optimum utilization. It aims to
eliminate non-essential features from durable goods to increase efficiency for reaching target
market globally with high tech technology advancement. Samsung aims to enhance its
production targets with frugal innovation, developing electronics devices with high tech memory
system and instant networking opportunities for people. Company aims to use digital appliances
with upgrade technical advancement which reduces chances of error and eliminates hazards
during production process (Wong and Ngai, 2019).

It is important for SMEs to adopt frugal innovation in their processing units as it help to
achieve cost efficiency, speed up the process of operational structure and reduces chances of
failure. Through frugal innovation SME companies can save large amount of capital by utilizing
resources efficiently and reaching optimum results.
For example- A team of Cambridge computer scientists has developed highly affordable
solution for budding engineers looking to gain hands on experience by working with advanced
computer technologies and coding. Frugal innovation has helped them to utilize their capital
worth fully in eliminating any wastage of resources and bringing high production levels along
with profit margins.
LO3
P5 Importance of commercial funnel and New Product Development for commercialization of
innovation
Commercial Funnel- It refers to sales process or in detail can be understood as revenue
enhancement process where companies aim to bring efficiency in reaching production targets
along with focus on enlargement of profit margins. Samsung aims to deliver quality services to
all customers worldwide when it comes to technical advancement in electronics. It is divided into
variant steps which differ according to sale models of companies (Lambert, 2019).
 Marketing funnel- Nurture innovative contacts to enter the Sales funnel. It refers to
management by marketing teams and builds innovative prospects for reaching target
market efficiently.
 Sales Funnel- The purpose of this funnel can be understood as converting people who
are already in buying cycle to be loyal customers with innovative selling techniques for
reaching customer funnel.
 Customer Funnel- This funnel is managed by support staff and management services
looking after customer satisfaction services for attaining high customer loyalty and
obtaining repeat orders (Sun, 2019).
New Product Development(NPD)- This refers to process of bringing new products and services
into marketplace by engaging in research according to changing customer preferences, market
advancement or to capitalize innovative opportunities. Samsung aims to build global reputation
as dynamic innovation and creatively advanced digital company where consumer preferences are
given high importance. It enables companies to deliver more innovative products by better

functionality in performance levels, customization and interpersonal services. Samsung aims to
respond quickly to changing business environment and stay one step ahead in highly competitive
digital world by advancement and new high tech devices (Winch, 2019).
The 8 steps in NPD which companies follow for bringing new products and services in market
share are as follows:
Step 1- Generating the idea
Step 2- Screening
Step 3-Testing the concept
Step 4 -Business analytics
Step 5-Marketability test
Step6-Technicalities and product development
Step 7- Commercialize
Step 8- Post launch review
P6 Innovation business case and ways to access funding
Innovative business case with high product value, better control on capital utilization for
innovation portfolio and idea generation processes for reaching high value blend of products and
services in market share. It enables companies to analyse the benefits and risks involved in
proceeding with the recommendations, alternatives available before management. Innovation
business case includes segmentation, targeting and positioning opportunities for companies
where new customer market share is targeted for growth. Samsung to increase the productivity
levels and attain business goals needs to construct innovative techniques for implementation and
reach global audience with high tech digital devices (Bhimani, Mention and Barlatier, 2019).
Product development and marketing- Samsung aims to introduce new smartphone in market
Tech Radar which has high tech features with advanced technology and high quality camera
functions. Innovative business case will assist Samsung to introduce high tech digitally advanced
electronics and smartphones into people worldwide. Company aims to enhance marketing
techniques by engaging in partnerships, promoting about new goods and services on social media
platforms Samsung vision is to enhance customer loyalty worldwide, segment new tech savvy
customers of all age groups and deliver efficient quality services to them.
Ways to access funding- There lies high investment of capital finance by companies to bring
new products into market share, promotion and advertisements for reaching large amount of

people effectively. Samsung business case showcase the ways how company can access funding
on global platform and enhance public contribution by engaging them in promotional activities.
Equity financing- It refers to financing where money is invested in business by customers and
shareholders in exchange for part ownership (Velenturf and Jopson,2019).This is an effective
way to raise huge finance capital on global platform, as company has an already established
goodwill in delivering high quality advanced digital electronics and gadgets. Equity financing
will enable Samsung to promote about its new smartphones and other advanced technical
gadgets to people who look for investment opportunities in big companies.
P7: Tools to protect and retain intellectual property and knowledge
Intellectual property (IP) is defined as the ownership of design or any innovative ideas
developed by any person or organization. For the long term sustainability it is necessary that
Samsung must protect its intellectual property so that it can protect its innovation and valuable
knowledge from the competitors. Thus, organization uses various tools to protect these valuable
resources. These tools provide exclusive rights to innovations of organization so that no one else
can copy or use them without permission of organization. Samsung uses following tools to
protect its IP and knowledge resources:
Patent: With this tool Samsung is able to control the usability rights of its designs or innovation.
Further the patent allow organization to prevent any kind of unauthenticated and unauthorized
stealing or usage of organizational designs or processes. The design patent gives security to
valuable design of Samsung products which are not purely utilitarian (Manzini and Lazzarotti,
2016). It includes configuration, shape, patter or even colour of their products so that product
appealing features can be prevented from the other industrial competitors. The patent of
organizational sensitive information or products excludes other people or organizations from
selling or using the invention in exchange for public disclosure of invention.
Copyrights: For protecting creativity, artistic work as of brand organization uses copyrights on
its designs. Copyrights provide exclusive rights for the creativity for a specific period only, but
they do not cover the protection of information of ideas. The tool provides protection to only to
the manner of form in which ideas are expressed.
Trademarks: These IP protection tool distinguishes and identify the products and services of
organization from others. Thus, Samsung uses this tool to protect its brand name and service

marks such as its symbol, tag line, logo as well as its name. Trademarks prevent organization to
prohibit the competitors of business from using these IP from being misused or stolen (Alcacer,
Beukel and Cassiman, 2017).
Employment and nondisclosure agreement (NDAS): It is also obvious that IP can also face
threats from the internal environment of organization. Thus, Samsung uses these legal
agreements to limit the disclosure of protected information so that third parties cannot breach the
confidentiality intentionally or accidently. All employees of Samsung are also bounded with
legal employee agreements so that they handle confidential information of company carefully
and with sensitivity.
Cryptography for digital IP: With advancements in technology it has also become mandatory
for the organisation to secure their digital data. Organisations use cryptography method to
provide encryption to their transmitted as well as stored data. The encryption ensures that
knowledge is protected from the cyber threats and privacy risks.
CONCLUSION
In conclusion, through this report we learn about the concept of innovation and
importance of inventions and innovation to an organisation. The report analyses how an
organisation's vision, culture, leadership and teamwork attributes can shape commercialization
and innovation. Then it goes on to explain different P's of innovation, uses of innovation funnel
and frugal innovation along with their examples in organisational context. The report also
evaluates the importance of commercial funnel and applications of New Product Development
(NPD) and builds an innovation business case including ways of accessing funds. Finally it
determines the various tools used to develop, retain and protect knowledge and intellectual
property.

REFERENCES
Books and Journals
Alcacer, J., Beukel, K. and Cassiman, B., 2017. Capturing value from intellectual property (IP)
in a global environment. Geography, location, and strategy. 36. p.163À228.
Bhimani, H., Mention, A. L. and Barlatier, P. J., 2019. Social media and innovation: A
systematic literature review and future research directions. Technological Forecasting
and Social Change. 144. pp.251-269.
Callaghan, C.W., 2019. Rothwell’s augmented generations of innovation theory: Novel
theoretical insights and a proposed research agenda. South African Journal of Business
Management. 50(1). pp.1-8.
David, A., 2019. Understanding the invention phase of management innovation: a design theory
perspective. European Management Review.16(2).pp.383-398.
Djamasbi, S. and Strong, D., 2019. User Experience-driven Innovation—Theory and Practice:
Introduction to Special Issue. AIS Transactions on Human-Computer Interaction.
11(4).pp.208-214.
Lambert, P. A., 2019. Creativity and Innovation: A Complex Adaptive Systems Theory (Doctoral
dissertation, UNIVERSITY OF NEW BRUNSWICK).
Manzini, R. and Lazzarotti, V., 2016. Intellectual property protection mechanisms in
collaborative new product development. R&D Management. 46(S2). pp.579-595.
O'brien, J., 2019.Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
Sun, S., 2019. Product Innovation, Exporting, and Foreign Direct Investment: Theory and
Evidence from China.
Velenturf, A. P. and Jopson, J. S., 2019. Making the business case for resource recovery. Science
of the Total Environment. 648.pp.1031-1041.
Wan, L. and Ding, F., 2019. Decomposition-and gradient-based iterative identification
algorithms for multivariable systems using the multi-innovation theory. Circuits,
Systems, and Signal Processing.38(7). pp.2971-2991.
Wang, J., 2019. Analysis of Rural Planner System from the Perspective of Institutional
Innovation Theory.
Winch, G., 2019. Managing complex connective processes: Innovation broking. In Building
tomorrow: Innovation in construction and engineering (pp. 81-100). Routledge.
Wong, D. T. and Ngai, E. W., 2019. Critical review of supply chain innovation research (1999–
2016). Industrial Marketing Management.