Innovation and Commercialisation - Deliveroo Assignment

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
)P1Overview of the Deliveroo company.....................................................................................3
)P2Innovation and its importance in relation to invention..........................................................4
)P3Culture, vision, leadership and teamwork help to shape innovation and commercialisation
.....................................................................................................................................................5
)P4 4Ps of innovation and the use of innovation funnel to shape innovative ideas....................6
)P5Development of frugal innovation.........................................................................................7
)P6 Commercial funnel and its importance ................................................................................8
)P7 Ways to access funding for innovation ................................................................................9
)P8 Evaluation of different tools use to develop, retain and protect knowledge .......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation means generating the new ideas and then implementing in the organisation. It
is the way of doing something new that helps in creativity in the business.
Present study will be based on the Deliveroo company is a British online food delivery
company founded by Will Shu in 2013.Its headquarter was situated at United Kingdom. It takes
order online and provide services through courier transport from restaurants to
customers(Stoneman, 2016).
Report will include importance of innovation and difference between invention and
innovation. It will also include different types of innovation and innovation funnel. Further more
it will include 4Ps of innovation and importance of commercial funnel.
)P1Overview of the Deliveroo company
Deliveroo is a British company that delivers online food to the people in many countries.
It was founded by Will Shu in 2013. Its headquarter was situated at United Kingdom. It provides
services to many countries like France, Germany, Ireland, Spain, Italy etc. The company earns
money by charging from restaurants a commission fee as well as from customers per order fee. It
introduced a subscription service to the customers of UK that can avail them unlimited free
delivery. It has the largest chain of restaurants across UK. In January 2017, it employed more
than 1000 full-time staff(Gault, 2018 ). It earns revenue of £129 million (2016) .13000
employees are working and 20000 technically self-employed couriers. It plans to create 300 UK
tech jobs in London in 2017. It uses data to identify areas where the customer demand for certain
cuisines is high and which restaurants have been likely to achieve success in the market. The
company received Fastest Rising Start up of the Year and the Europas Grand Prix award. It
provides delivery as well as marketing and order taking to provide food from restaurants that not
usually offer by other companies. The main competitors of Deliveroo are Just Eat, Grub hub and
Ubereats. It provides rider safety service to the delivery boy by introducing the new app that
allows riders to raise security concerns, plus trial of helmet cameras to allow Deliveroo to gather
evidence and report to the police. The company hired 50 new staff across the country that focus
on rider safety. Deliveroo's drivers held a long strike to increase their minimum wage and also
providing them sick and accident pay(Hristov and Reynolds, 2015).

)P2Innovation and its importance in relation to invention
Innovation: It refers to the process of implementing the new ideas in the business that
helps in achieving the organisational success. These ideas were applied in the business to satisfy
the needs and wants of the customers. There are different drivers that helps in innovation process
in the organisation as courage, thinking differently from the others all these may be the drivers of
the innovation process.
Invention:It is the process of taking action to implement the new idea in the organisation. It is
the second step after inventing the new product. There are three types of invention such as
scientific-technological, socio political and humanistic or cultural(Bertoni and Tykvová, 2015)
Difference between innovation and invention
Innovation Invention
Innovation means implementing the new idea
in the business for the first time.
Invention means introducing new idea for
developing of a product that has not been
implement before.
In innovation adding value to the existing
product.
In invention new product is created for the first
time.
In innovation practical implementation is
done
In invention original idea is being implemented.
Technical skills is required. Scientific skills is required.
Combination of various products Single product is implemented at one time.
It is done in whole the organisation. It is limited upto to the research and
development department(Muthukrishna and
Henrich, 2016).
Importance of Innovation in comparison to invention
Innovation means thinking of implementing the new idea and the invention means taking
action to actually implement the new idea in the business. Deliveroo is an online food delivery
company in UK and implementing the new ideas in the business helps in getting competitive
advantage for the company. Invention helps in implementing the action to gain competitive

advantage because innovative products helps in achieve success in the competitive market. For
example innovating any new product every year helps in increasing the sale of the product. As
apple is the most successful company in present scenario. Innovation has a great impact on the
working of the company. As consumer is the king of the market they need distinctive products so
because of this innovative company get success as they offer innovative product to the customer.
In case of Deliveroo it tries to innovate some new product and idea into the food items then it
will ultimately get success. By innovating new things Deliveroo was able to get success and
become unique to its customer in short time(Witell and et. al., 2016)
Sources of innovation
There are different sources of innovation
Market structure: Market structure emphasizes on chances of innovation in the company. For
example: Google is a search engine it comes up by innovation as before it the search engines
were not perfect and it brought it in the world. Thus through market structure innovation can be
done.
Lifestyle : Changes in the lifestyle of people can lead to innovation. Lifestyles of people are
changing day by day so for that company have to manufacture innovative product to satisfy the
needs and wants of the people(Forés and Camisón, 2016).
)P3Culture, vision, leadership and teamwork help to shape innovation and commercialisation
Creating new idea is the main purpose of the innovation, invention helps in taking action
on the new ideas. Innovation and invention leads to commercialisation of product and services.
Commercialisation means implementing the new product method in the market. For
commercialising a product in the market different factors that help to shape the innovation and
invention in Deliveroo.Organisational culture helps in innovating the product in the market. For
example: Deliveroo has vision to provide the best food services to the customer and for that it
have to provide different food items as compared to others by doing innovation in the product.
Vision plays an important role for every company to achieve success for that innovation and
invention plays an important role in the business. Company's vision can be achieved only if the
work done by the people in the company helps in achieving the organisational goal(Christensen
and et. al., 2015).
Organisational culture means values, norms and attitude of the employees followed from long
time in the company. Culture might be vary from country to country so the cultural differences

may impact the innovation and commercialisation of product. If in the company there is friendly
environment then there is more chances of innovation.
Leadership is the process of motivating, guiding, influencing people to do the work. There are
different types of leadership styles such as autocratic, democratic and laissez faire style. If there
is good leadership style followed in the company it can lead to the innovation and
commercialisation of product. As if the leader is not good then there is lack of innovation in the
company as people cannot do productive work. (Sun, 2017).
Teamwork plays an important role in the company. It helps in solving the problem easily and to
complete the task on time. As Deliveroo also has some team to perform the task and to innovate
and commercialize the product. If the team can perform well and provide new ideas and best
services to the customers then the company can achieve its goal effectively and efficiently.
Teamwork helps in completing the task and helps in innovation and invention to commercialise
the product.
)P4 4Ps of innovation and the use of innovation funnel to shape innovative ideas
Innovation is the process of introducing the new idea and new product and services. The
4Ps of innovation was developed by John Bessant. 4Ps helps in understand that where we are and
how we can improve the innovation in the product(Pynnönen, Hallikas and Immonen, 2019).
4Ps of innovation are as follows:
Product: It is the important item that is offered to the customer. Product helps in adding value to
the organisation. For example: Deliveroo is launching some new product and services to the
customers then it will be a competitive advantage for the company. So, product plays an
important part in the company through which innovation and commercialisation can be done.
Position:Every company wants to stand in the first position in the market. By fulfilling the goals
of innovation and commercialisation process it can achieve its position. Deliveroo achieve its
position by providing best services to the customer.
Process: It is the way through which product reaches to the customer on time. Delivery of
products is the most important process of doing business if delivery is late customers may get
dissatisfied and chances of getting success very less. For deliveroo process plays an important
part in delivering the product on time.

Paradigm:It is the process of shifting from one technology to another. In this company faces
challenges in accepting the new technology. It may take time to accepting the new technology
easily. Deliveroo also have to plan to accept the changes in the company as sometimes the
changes may not be good for the company but it has to sustain by accepting the changes(Loya
and Rawani, 2016).
Innovation funnel
It means introducing the new idea by describing its steps from first to last so that the idea
can be best for providing services. There are different types of idea and thinking of funnel
through idea can be helpful in achieving the goal and objectives of the company. First step of
innovation funnel in Deliveroo is collection of information, it means how the collected
information is useful to satisfy the customers needs and demands. Second step is to select the
best idea from the different ideas that can be implemented in the company for achieving success.
Third step is to ensure that selected idea will fulfil the objective at the time of approval of ideas
in the company(Rasmussen and Eliason, 2017).
)P5Development of frugal innovation
Frugal innovation is the process of innovating the new business methods, implementing
the value chain and redesign the product so that minimum cost is beard by the company. To
remove the features from the innovation that is not useful for the product is the main aim of
frugal innovation. Frugal innovation can be depend on the other factors of the country like
political, social, legal and environmental etc. These factors also helps in shape of innovation. It
can be said that it is simply a process of reducing the cost of production by applying frugal
innovation. It also provides the importance for the product that can be moved from the lower
level to the customer and helps in reducing the cost of the product. The buyers may not be happy
with the frugal innovation as because this innovation as cost is reduced accordingly it will affect
the quality of the product. Deliveroo can use this frugal innovation process it have to consider
the factors that impact the innovation. The company uses this innovation by providing different
food items to the customers of UK. This innovation helps in providing the items that are of
consumer preference and demands. In UK customers are highly knowledgeable so Deliveroo
planned to launch new product in UK. As customers are more willing to pay more in UK they

need innovative product so it will be easy for the company to use frugal innovation(Osoro,
Kirama and Vermeulen, 2017).
By using this frugal innovation Deliveroo can provide the best food item delivery and less
complex services to the customers so that they can easy access the delivery services. As UK is a
developed country and people are willing enough to pay the amount of the desired product. It
helps in providing best services to the customers of UK through the brand image of the company
also increases and it gain competitive advantage in the country. After globalisation the frugal
innovation came in the developing countries. The products are not of good quality but they are
cheap. Through this type of innovation the durability may increase of the product. The product
are cheap and can buy easily by the customers(Islam, 2018).
)P6 Commercial funnel and its importance
Commercial funnel refers to the process of introducing the product to the customer from
the action of purchasing the product. It also involves the sales process and the customer
awareness regarding the product. It is also known as purchase funnel.
Importance of commercial funnel
It helps in determining the process of evaluating purchasing power of the consumer.
There are five steps of the commercial funnel such as awareness, opinion, consideration,
preference and purchase. Awareness includes that the consumer is aware about the company's
product or not and then the second is the number of consumer take interest in knowing more
about the product. Then the consumer is able to take decision that the product is purchase or not.
And lastly the consumer is taking action to purchase the product or not. Hence, it is necessary to
use commercial funnel in the company as it helps in providing the information about the
consumer preference(Witell and et. al., 2016).
Stages of new product development
There are 6 stages of product development
Idea Generation: Before implementing any new product idea is to be generate. The idea
generated should be unique it cannot implemented before for innovating the product. So the
ideas are collected from different people and focus on the differentiated idea from other
company.
Research:Company have so many ideas from which it have to select the best one to introduce
the new product.

Development:The next stage is the development of the product. New version of the product is
being developed by the company so that consumers can buy it.
Testing:Before launching the product testing is being done by the research and development
department.
Analysis: From the feedback of consumers testing enables to make changes in the product and
how to launch the product in the market.
Introduction:Last stage is to introduce the product to the market so that consumer can purchase
the product. Deliveroo presently providing the fast food but in its new product development it
introduces the healthy drinks in the market(Hristov and Reynolds, 2015).
By developing the new product in the market there comes many challenges regarding the funding
of the product and research and development of the product as at the time of research and
development proper equipments are not available to develop the product. As this can be
overcome by using the taking funds from different sources of the business. By improving the
research and development process by using different techniques of development.
)P7 Ways to access funding for innovation
There are many ways to access funding for innovation such as taking loan from banks,
from investors and from retain profit of the business. Company can raise fund by influencing the
investor the invest fund in the company as the company is providing innovative product to the
customer. From retaining profits also business can access the fund for innovation. Similarly, by
visiting the bank for taking loan for the innovation.Through all these ways business can access
the fund for innovation(Gault, 2018).
)P8 Evaluation of different tools use to develop, retain and protect knowledge
It is essential for the Deliveroo that to protect innovative idea so that it can protect its designs
safely and can maintain its image in the market. There are several tools through which
knowledge and intellectual properties can be protected (Summary of intellectual property rights,
2019). These are explained as below:
Patent: It is one of the most essential technique that defines official rights of person for
particular goods and services. In order to protect knowledge of that unique idea Deliveroo can
get patent for its idea (McPhee, Giones and Dutta, 2019). By this way if other person uses this
idea then company would be in positon to claim and gOsoro, O., Kirama, S. and Vermeulen, P.,
2017. et compensation for the same. This tool is generally used to protect invention from

unauthorised use. Government gives exclusive rights to the creator of invention. It is registered at
national or international level. It takes 2 to 3 years for granting (Rasmussen and Eliason, 2017).
Once company has received patent for its invention then no other person will be liable to use that
idea. If someone try to use it then individual may face legal consequences for the same.
Trademark: This is another intellectual property that aids in retaining exclusive rights on actual
idea or work. By getting trademark firm will be able to protect its logo and design and will get
legal ownership on it. If Deliveroo gets trademark for its logo or new product, then no other firm
will be able to use this idea in their business (Osoro, Kirama and Vermeulen, 2017).
Copyright: As Deliveroo is planning to implement new idea which is offering healthy drinks to
consumes. This is a creative idea through copyright owner of the firm will be in position to
reproduce this product again, no other firm will be able to produce such material and they will
not be able to offer same healthy drinks to customers in UK (Islam, 2018).
It is essential to protect the designing of new healthy drink product, in order to protect
knowledge Deliveroo is required to follow legal guidelines of data protection act. Company
needs to provide training to its staff members so that they can know about privacy and they don’t
share confidential details with third person (Datta, Mukherjee and Jessup, 2015). Firm needs to
review its policies time to time in order to ensure that there is not risk of data leakage.
CONCLUSION
From the above study it can be concluded that innovation and commercialisation are
essential element that creates unique brand image of firm. By implementing innovative ideas in
the business, organisation may get competitive advantage. Consumers always prefer to buy such
products that have some uniqueness thus, innovation has significant impact on success of
business unit. Leadership and culture play significant role in shaping innovation, if leaders are
unable to lead team well then people will not support the firm. In such condition new idea will
not be implemented in the organisation successfully. Companies have to take support of
intellectual properties in order to protect ideas, material, logo, slogan etc. This aids in protecting
ownership and support in minimising legal consequences in the firm.

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Online
Summary of intellectual property rights. 2019. [Online].Available through <
https://www.copyrightservice.co.uk/copyright/intellectual_property>

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