Innovation and Commercialisation: A Comparative Study

This report discusses the concepts of innovation and commercialisation in the context of F-Drones. It compares innovation and invention, explores the importance of innovation, and discusses the role of organisational vision, culture, and teamwork in shaping innovation and commercialisation. It also examines the 4Ps of innovation and the use of innovation funnel. Additionally, it discusses the concept of frugal innovation and its developments.

INNOVATION
AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Comparison between innovation and invention and their importance..............................4
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation7
TASK 2............................................................................................................................................8
P3 4Ps of innovation and use of innovation funnel................................................................8
P4 Developments in frugal innovation.................................................................................10
TASK 3..........................................................................................................................................11
P5 Commercial funnel and its importance in context of F-Drones and application of NPD11
P6 Build an Innovation Business Case for an organisation, including ways to access funding
..............................................................................................................................................13
TASK 4..........................................................................................................................................14
P7 Various tool to retain intellectual property for longer period.........................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is categorised as preparing of appropriate modification in the existing
product or inventing new one so that problems of customers can be dealt in better way.
Innovation is defined as the dimension in which product in go under modification through
which sales and profit can be intensified (Byun, Sung and Park, 2018). The aim of innovation is
to attain competitive advantage within marketplace and as current market is dynamic in nature
so innovation may lead the market to grab knowledge regarding what could be possible in order
to accomplish higher level of satisfaction and comfort. So this can be said that innovation is a
process of improvement in which development ideas are being undertaken by businesses so as
to commercialise their product and to receive various opportunities of marketplace for
sustaining. Besides this commercialisation is the process which is associated with introduction
of product and services to the marketplace by using varied methods of marketing in order to
emphasis over enhancing sales and profits. This report is prepared in order to understand
various concepts of innovation and commercialisation in the background of F-Drones. The
company has come up with a highly innovative solution to deal with aerial deliveries to ships
and offshore platforms. The company is having long run vision to enhance drone deliveries
which are made according to aviation grade which are highly reliable and safe.
TASK 1
P1 Comparison between innovation and invention and their importance
Innovation: Innovation is known as the process in which generation of new idea takes
place within existing product in order to solve problem of customer and to meet higher
succession ratio for the organisation. Innovation could lead an organisation to enhance sales of
their product or services in early manner due to which customer feels motivated in order to buy
that particular offering. In the context of F-Drones as the company is introducing drones which
can carry up to 100 kg of material at once. This can make deliveries to overseas and offshore
platform easier as this is associated with economic solution and requires lesser manpower as in
comparison of traditional methods of logistics and shipping. F-Drones have come up with their

innovation of world’s first transition drone for marine and offshore logistics which may save up
to 80% of time, cost and manpower.
Invention: This is term which is used in order to monitor idea of new product
development in order to grab attention of new customers. Invention is the process in which
generation of new and emerging idea takes place in order to fulfil requirement of target
customer and to deal with problem faced by them by providing them solution through
invention. Invention is a time taking process in which customer’s perception is undertaken at
first so that to receive their attention (Hacklin, Björkdahl and Wallin, 2018)
.
Basis Invention Innovation
Meaning This is defined as developing
of a new product or brand
which are having new and
emerging idea so as to make
prominent position within
marketplace. Invention is
associated with accumulation
of new concept in which
businesses are emphasised
over meeting needs and
demands of customer which
may lead in enhancing sales
and profit (Glennie and
Bound, 2016)
This is defined as appropriate
activity in which prominent
modification are introduced
within existing product so as
to make effective changes
within marketplace. Under
this process new ways for idea
germination is being provided
which may lead to modifying
their characteristics.
Aim The major aim of invention
for F-Drones is to provide
easy solution for offshore
deliveries via drone as this is
safe and economical as well.
Objective of innovation is to
put additional efforts within
existing product so as to
enhance is market image and
customer usage as well.

The aim of invention is to
deal with requirement of
customer along with giving
easy solution as compared to
pertained one in the
marketplace.
Innovation may lead an
organisation to meet
expectation of their customer
in prominent way due to
which profitability can be
intensified.
Occurrence Occurrence of invention is
possible when customer face
problems and their solution is
being exerted with the help of
innovation. This is helpful in
order to shape needs of
customer by modifying
product benefits and portfolio
as well.
Occurrence is possible in case
businesses are willing to
enhance their market share
and customer capture as well.
As market is dynamic in
nature so continuous new
things are required to be
introduced so as to meet goals
and objectives of the
organisation.
Importance of Innovation: Innovation is required to be exerted by management of each and
every business so that to capture more customers that may add value to the organisation. For F-
Drones, the company has analyse that logistic services are costly and taking so much time to
reach out a product to their ultimate customer. So the innovation of F-Drones may provide
prominent benefits to customer and logistic industry as well. The importance of innovation is
elaborated as under:
To gain competitive edge: The most prominent advantage of innovation is to receive
competitive edge in the marketplace in which business may get help to sustain and survive for
long term. F-Drones is having various competitors in terms of service provider but as the
company is associated with emerging solution they have innovated solution for logistic services
due to which problem of logistic department has been solved (Rosca, Arnold and Bendul,
2017).

Fast recognise of customers’ expectations: Innovation may help in recognising needs
and demands of customer and particular industry as well. As in context of F-Drones the
company has recognised needs of logistic industry and aviation sector which helped them to
make new transition drones in order to meet customer expectations.
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation
Innovation is one of the prominent factor which helps society, industry and customer to
solve various problems and issues which are being faced by them in order to attain ease in
lifestyle and performance of any task. In the context of F-Drones various elements are there
which could be helpful for them in order to shape innovation and process of commercialising
their innovation, the same are elaborated as under:
Organizational vision: This concept is defined as the objective which is being decided by
the business before initiation of process of innovation. Defining organisational vision is one of
the significant aspects of the business in order to modernise their way and tactics as well. For F-
Drones the company is coming up with idea of providing transition drone which may help
logistic industry to inhale standardisation within their delivery system. The company is highly
emphasised on providing economic solution to deliver goods from one place to other offshores
areas.
Leadership: This is defined as the style in which whole process is being managed and
controlled. With the help of appropriate leadership style employees and other workforce may
receive appropriate guidance in order to develop business idea in prominent manner. The major
objective of innovation is to deal with modifications and new ideas in order to develop
advanced system which could lead in solving various problems (Li, 2017). With the help of
effective leadership style these modifications can be rendered in significant manner.
Culture: This is associated with intrinsic environment factors which are existed inside the
business and involves way in which business is managed. Culture is defined as set of rules and
regulation which are utilised by a business in order to perform their function in appropriate and
defined manner. For F-Drones as the company is coming up with an emerging solution so that
to deal with faster deliveries within logistic department and in order to attain prominence in
their function internal culture is playing essential role in their appropriate execution.

Teamwork: This is defined as collaborative working which is required in order to perform all
the operational activities in sufficient way. In F-Drones teams are arranged in such a way that
proper guidance can be received by each team mate in effective way so that alignment can be
made for organisational goals and objectives (Xiao, Li and Liu, 2016).
Sources of innovation
Innovation is one of the extensive process which is associated with improvements and
adoption of changes as well. Innovation is having various sources through which it is derived
the same are explained as under:
The unexpected: Innovation takes place in order to solve doubtful situation faced by
people. As in context of F-Drones, the company has analysed that logistic industry is facing
problem of using higher cost methods of deliveries which are taking too much time and
involves high manpower.
Necessity: This is said that needs are mother of innovation. This idiom has vital
meaning in which when needs are created by customer and are fulfilled as well by innovations.
For instance F-Drones has recognised need of economic method of deliveries and in this way
new innovation has been introduced by them.
TASK 2
P3 4Ps of innovation and use of innovation funnel
The 4P’s of innovation is requisite to be adopted by F-Drones so that to commercialise
their innovation within market in prominent manner. Dimensions of innovation funnel are being
elaborated as under:
Product: In order to satisfy needs of customers the offering which is given to them is
called product. In the context of F-Drones the company is launching their transition drones
which are economic and time saving in order to satisfy needs of logistic industry. The company
has provided easy and economical solution to perform aerial deliveries to ships and offshore
platforms.

Process: This is the dimension is related with the procedure which is used in order to
deliver product or service to customer or final location. In the context of F-Drones the company
is making transition drone and the company is making these drones in order to provide early
deliveries to their customer and inhale innovation within logistic industry as well.
Position: This dimension is associated with providing position within market in front of
rivals. In this context F-Drones is world’s number one transition drone manufacturing
organisation so they are already having prominent position in the marketplace which leads them
capable of managing customer and market size as well.
Paradigm: This is denoted as the market progress inhaled by the organisation in order to
amend their capabilities. In this context F-Drones is setting a prominent benchmark for another
organisation and they have high business dealing capabilities along with prominent innovation
in which they are market pioneer (Arora, Cohen and Walsh, 2016).
Innovation Funnel:
Innovation funnel is defined as the process in which high effectiveness within product or
services which can be commercialised in order to meet customer needs and demands. The
major focus of innovation funnel is to attain higher customer satisfaction. For F-Drones as the
company is engaged in providing transition drones which is going to meet safety and reliable
standards with aviation and logistic industry.
Illustration 1: Innovation Funnel
(Source: Innovation Funnel, 2019)

 Investigations: The prominent aim of innovation funnel is to provide those ideas which
can be converted into reality in easy manner. Within this stage F-Drones are recognising
market needs and requirement of logistic industry and their customers as well. On the
other hand they are finding out market rivalry so as to find out market place for their
innovation.
 Development: Within this stage screening and generating of ideas takes place. For
example F-Drones is using combined process in order to deal with market demands. The
company is emphasised over solving delaying problem in deliveries and to deal with
this problem in economical manner (Tidd and Bessant, 2018).
 Benchmarking: Under this stage F-Drones is required to analyse their innovative ideas
and their position within marketplace. As the company is coming up with innovative
solution which is to launch transition drone so they already have benchmarked their
technology and product within marketplace which is going to lead them to enhance
overall profitability and productivity.
P4 Developments in frugal innovation
Frugal innovation is defined as the process which is associated with minimising
complexities faced within product and services. The prominent objective of implementation of
frugal innovation is to provide amplification within production process in order to minimise
wastages. The process of frugal innovation is being elaborated as under:
 Find opportunity in adversity: Under this process those problems are being analysed
which can be converted into opportunities. Under this F-Drones has analysed that
logistic industry is facing problem of delayed deliveries and at the same time deliveries
are costly due to which businesses has to sacrifice their profit. Resultantly the company
has come up with an idea of transition drones which are helpful in reducing cost and
time up to 80%.
 Use less performs more: This is associated with using lesser resources and giving
higher output. In this aspect F-Drones has decided to launch such product or process
which involves lesser cost and resources but at the same time gives higher quality
output. Their transition drones are using 3 times lesser energy than rotorcrafts and are 4
times faster (Cockburn, Henderson and Stern, 2018).

 Think and act flexibly: This stage is associated with various policies which are required
to be adopted by business in order to remove existed rigidity. In this regard F-Drone is
making flexible policies in order to deal with needs and demands of their customer and
to modify their offerings accordingly.
 Use simple methods: This is related with using simple and effective methods in order to
deal with market needs. Under this aspect F-Drones is examining those changes which
may lead them to conquer market. On the other hand as the company is proving new
business concept so this is necessary that they adopt simple business processes in order
to make their business function more effective (Fernandes, 2017).
 Include the margin: This is associated with examining level of margin which can be
added in order to understand market needs and demands and satisfying them as well. F-
Drones has introduced economical solution for providing fastening deliveries and this
manner they are required to predefine their margin so that to avoid any confusion
(Hossain, 2018).
TASK 3
P5 Commercial funnel and its importance in context of F-Drones and application of NPD
The commercial funnel is defined as the process in which purchasing capacity of
customer are examined in order to acknowledge innovation completed by the company. Under
this it is required by F-Drones that they analyse market conditions and needs so as to induce
their customers. There are various methods within commercial funnel and these are implicating
buying decision of customers. Commercial funnel is associated with four stages which are
explained as under:

Figure 1: The Beginner’s Guide to a Sales Funnel, 2019
 Awareness: This is defined as first stage within commercial funnel in which prominent
solution is being given to customer by performing high end market research. For
instance F-Drones has analysed problem of delayed deliveries and costly logistic
services so they have introduced innovation of transition drone in order to deal with this
problem.
 Interest: This is another stage in which F-Drones is going to analyse market demands
and inclination of their customer towards their innovation. This may lead F-Drones to
recognise their place within marketplace in order to serve customer needs by their
innovation.
 Decision: This stage is associated with purchasing decision of customer. For F-Drones
their customers are logistic companies and in this way F-Drones are trying to recognise
buying behaviour of them.
 Action: This is the last stage within commercial funnel and the stage is associated with
action taking against launching of transition drone within marketplace.
NPD for F-Drones is defined as the process in which the company is going to launch their
transition drone to marketplace. NPD in this context is elaborated as under:
Idea Generation: This is the primal stage within NPD under which new and emerging ideas are
gathered by F-Drones by performing ample research and development. Besides this the
company is examining regarding suppliers and supporters so that to support new idea obtained
by the company.

Screening: Under this out of numerous ideas most appropriate idea is being selected by keeping
needs and demands of market.
Development of Concept: Under this effectiveness of the idea is being tested by implementing
the concept within marketplace. In this respect F-Drones is going to develop their innovation by
taking help of their investors and technical team (Li, Zhang and Xu, 2016).
Marketing Strategy: Under this stage F-Drones is going to decide their marketing strategy so as
to meet market needs and to serve their customer in prominent manner. In this the company is
adopting various marketing tool which leads them to cover larger audience and platforms as
well.
Business Analysis: After deciding of marketing strategy F-Drones is required to analyse
benefits of their products so as to grab attention of customers.
Development: Under this stage F-Drones is introducing their transition drones which are going
to solve problem of delayed deliveries and high cost in the same. By performing internal testing
the company is making their product ready for test marketing.
Test Marketing: Under this stage F-Drones is performing test marketing activities within their
target market in order to know regarding market response. This way they may collect feedbacks
and render improvements in their products.
Commercialisation: This is the final stage under which F-Drones is going to launch their
product in the market in order to commercialise the same for public use.
P6 Build an Innovation Business Case for an organisation, including ways to access funding
Innovation is defined as most vital part for the business which involves usage of
effective strategies by which higher benefits can be rendered. In the context of F-Drones a
business case is prepared in which company is planning to launch their innovation; the same is
explained as under:
Executive summary: F-Drones is one of the emerging brand in which the company has
analysed problem faced by logistic and aviation industry in respect of delayed deliveries and
heavy cost (Wong, Soh and Goh, 2016). In order to solve this probelm F-Drones has introduced
transition drone which are 4 times faster and saves 80% of time and cost.

Vision: The vision of F-Drones is to attain high market size and commercialise with
major companies of aviation and logistic industry.
Mission: The mission of F-Drones is to enhance their market size and change working
of logistics by integrating their drones for logistic purpose.
Satisfaction of need from innovation: F-Drones is manufacturing transition drones
which may carry high load in lesser cost and deliver goods in 4 times lesser time.
Opportunity in market: The company is having high market opportunities as innovation
of F-Drones is new and emerging and they are the pioneer of this innovation.
Size and growth possibilities: Management of F-Drones is obtaining high end effort in
order to place their product in prominent place. Transition drones are highly innovative in
nature so they have high edge capabilities to acquire appropriate prominence within market.
Target market: Target market for F-Drones is logistic companies such as EASTERN
PACIFIC SHIPPING, GAC GROUP, SCHULTE GROUP etc.
Strategy: The company is using price skimming strategy in order to place their
innovation within market.
Funding: This is one of the vital decisions which is required to be performed by F-
Drones in order to acquire funds. The company is meeting with various investors in order to
accumulate funds on the other hand bank loan is another method by which F-Drones is
gathering funds.
TASK 4
P7 Various tool to retain intellectual property for longer period
Intellectual property: In order to stay ahead from market competitors F-Drones is
required to protect their innovation so there are some tools which can be used by F-Drones in
order to safeguard their innovation which is defined as under:

Patents: This is defined as a significant tool which provides right to the owner that their
product and services cannot be copied by other rivals (Peng and et. al., 2017). Patents are
required to be renewed after passage of time and this is associated with prominent advantage of
not to be copied by others. Besides this patents are costly and as F-Drones is planning to
provide economic solution to their customer so this may rise in their overall costing.
Trademarks: These are defined as symbols and signs which could be helpful for the
business to attain differentiation within their product or services in comparison of rivals. With
the help of this F-Drones may attain product differentiation in marketplace but at the same time
licence fees for trademark is high which may create burden for the company.
In the context of F-Drones patent is the most useful tool for them in order to safeguard
their innovation. This may lead F-Drones to get advantage of not copying their innovation
which makes them pioneer in making transition drones (Stefan, Bengtsson and von Haartman,
2016).
CONCLUSION
From the above report this can be concluded that innovation and commercialisation is
defined as one of the most vital concept in business development. This concept is helpful for
the business to inhale various opportunities by which they can survive for longer time and to
attain prominent business opportunities as well. For businesses this is imperative that they
understand importance of 4P’s within innovation so as to commercialise the same in effective
manner

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