Innovation and Commercialisation: A Comparison and Importance

This report discusses the comparison between invention and innovation, their importance, and the role of organizational culture, vision, teamwork, and leadership in innovation. It also explores the 4Ps of innovation and the concept of frugal innovation in an organizational context.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
LO1..................................................................................................................................................4
P1 Comparison between invention and innovation and their importance ..................................4
P2 Role of organizational culture, vision, teamwork and leadership in innovation...................7
LO2..................................................................................................................................................8
P3 4Ps of innovation and innovation funnel...............................................................................8
P4 Frugal innovation in organisational context........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is basically the process through which organizations developed new ideas,
process or the practice which eventually helps them to achieve their strategic goals and
objectives. Commercialisation is the mechanism through which organizations brings the new
product as well as services within marketplace.
Augmented furniture is basically the reality app that is developed to encompass all the
furnitures from different manufactures of furnitures as well as professionals. It assists the
customers to take the right decision and thus help them to choose the best manufactures of
furniture for their house or commercial place.
This report gives a brief about comparison between invention and innovation and their
importance, sources of innovation, role of organizational culture, vision, teamwork and
leadership in innovation, 4Ps of innovation and innovation funnel, frugal innovation in
organisational context.
MAIN BODY
LO1
P1 Comparison between invention and innovation and their importance
Innovation
Innovation is basically the process which helps the organizations to generate new ideas
and hence develop new process, practice and procedure that will help to achieve organizational
goals. The importance of innovation inn Augmented furniture are
Continuous improvement
Innovation helps the company to make continuous improvement in the various products,
services, processes, practice etc. Through innovation Augmented furniture is able to recognize
and identify the need for innovations and therefore makes improvement. This improvement in
turn help the organization to achieve their goals and objective and also gain the competitive
advantage (Dincer, 2017).
Branding
Making the brand successful is the major goal of each and every organization which
enables them to achieve the competitive advantage and gain edge over their competitors. When
the company innovate its product, services or their structure then it gains the different image
within the minds of customers and the customer perceive that organization as good and reliable.

Thus, this helps them to take the branding message to customers and capture the great market
share. Therefore, this innovation capability helps Augmented furniture to gain the market share
and establish position within the hearts of customers. Thus, eventually becomes the unique
selling point of the company which enables them to enlarge customer base (Ahn, Minshall and
Mortara, 2015).
Invention
Invention is predominately the method in which organizations produces the new process
or the product or any practice that is totally different from the existing ones and hence help the
company to protect its intellectual property.
Protecting the property
When an organization invent any new thing like product, service, processes, machines
then it eventually helps them to protect their intellectual property. The company have their rights
on that particular product which cannot be taken by any other organization or competitor.
Therefore, through invention Augmented furniture is able to protect its intellectual property like
trademark, copyrights and this will help the to remain differentiated in the eyes of customers
from their competitors (Mazzarol and Reboud, 2017).
Improvement
Invention is basically done when the organization feels that there something missing in
their existing product or service thus in order to build the new pyramid of these products,
company generally innovate the process through which it is manufactured. Invention helps the
company to improve its products and services and deliver the customer the best possible
outcomes which will satisfy their needs and demands. It enables the company to manufacture
something new which is more efficient, healthier, reliable as well as faster in all the aspects
which will at the end fulfil the needs and requirements of customers.
M1 sources of innovation
There are basically various sources of innovation which helps Augmented furniture to
derive value and thus chive competitive advantage. These are
The unexpected
This is the first and most important source of innovation which states that innovation
generally occurs unexpectedly. It assumes that innovation occurs by chance and is not pre-
planned (Pynnönen, Hallikas and Immonen, 2019). Organizations does not plan the years before

for innovating the product and thus in short, it is unexpected that at the end shocks humans. For
example- the management of Augmented furniture while looking out for something like
customer preference for furniture innovates a new product which has all the essential feature that
customer wants.
Incongruities
This is the second sources of innovation which addressees that when needs and the
demands are incongruent along with supply then innovation takes place. In short, this is basically
the large difference between customer needs as well as the product or service which is delivered.
For example- for resolving the problem of customers as which furniture will go with the interior
of their house like paint, augmented furniture developed the smart app where the customers can
easily try the furnitures from different manufactures directly within their house.
Market structure
This is considered as the important determinant of the innovation and thus becomes an
important source. The existing structure of market also leads to the development of innovation.
Market structure is the prime parameter for the organization to know where they stand in the
crowd and helps in measuring their overall performance. When company gets the information on
the market trends and structure then they come to know that what customer needs and leads to
innovation (Amponsah and Adams, 2017). For example- After market research, Augmented
furniture finds out that most of the customers want the technology where they can easily view
their room on the mobile and select the furniture which will suit their house thus this led
Augmented furniture to develop technology where customers can browse through the products
and place that product in their room with the help of 3D technology.
Necessity
It is generally considered as the mother of innovation and leads to the fulfilment of needs
and demands of customers. When the organization comes across the needs of the customer or the
entire society they begin to engage in the product which will satisfy that needs hence it gives rise
to innovation. For example- When Augmented furniture find out that due to busy schedule,
people nowadays does not have time to visit shops and outlets then they developed their own app
where customers can just by sitting at home purchase their products.

P2 Role of organizational culture, vision, teamwork and leadership in innovation
Commercialisation is basically the method through which organizations introduce the
new product and production method within their business for the market.
Organizational vision
Vision is basically the statement which guides an organization towards achieving their
strategic goals and hence tells that what path to take for achieving it. It has a direct link with
innovation. On one hand, When augmented furniture will innovate their products and products
then they will be able to achieve their vision which is becoming the leading furniture app across
the world and enlarge customer base. On the other hand, its vision will guide the company
towards the right direction that what innovative approach to take for enticing customers. For
example- the vision of augmented furniture is to become the market leader thus to achieve this
company is constantly involved in making innovation like 3D images of the furniture(Tsai,
2015).
Leadership
This is another most important aspect within organization which drives the innovation in
right direction and shares a close relation with innovation and commercialisation. When the
leaders guide their employees by adopting the correct leadership style according to the scenario
and encourage them to contribute equally towards innovation and commercialisation then at the
end it helps to make this innovation successful. For example- If the leaders of Augmented
furniture encourages their employees and guide them as to how to correctly persuade customers
for new product then employees will give their best and this will make that innovative product a
success.
Culture
This is another determinant of innovation and commercialisation. When the company
have supportive and teamwork culture along with the culture of continuous innovation then the
employees will be more committed towards their work and will try to give their valuable ideas
for innovation and commercialisation. On the other hand, continuously innovating the products,
organizational structure etc. that are in favour of all the employees and stakeholder will make the
organizational culture more imperative and transparent. For example- the culture within
Augmented furniture is directed towards teamwork where the ideas of all employees towards

innovation are given equal weightage and due to this they are able to constantly innovate every
aspect.
Teamwork
This is the most important part of organisation which shapes innovation and
commercialisation (Abdul Razak and Murray, 2017). When employees work in a team then each
one of them have their own perspective and thus give different ideas towards different project.
These ideas help the company to innovate the various attributes and establish their position in
market. For example- The employees in Augmented furniture works in a team and each one of
them give their different views for innovation and the company then takes the most relevant
ideas which eventually helps them to make innovation a success.
LO2
P3 4Ps of innovation and innovation funnel
Product
This is basically innovating and inventing the new product or the service which is offered
by the organization. In this, innovation is mainly measured in terms of product and a new
product is developed which will fulfil the needs and demands of customer. For example-
Augmented furniture developed an app where customers can easily choose among the various
furniture which will best suit their house (Paré, 2019).
Process
This basically defines the way and the manner through which products are being
delivered to the customers and clients. This forms the most important part f innovation where the
innovative product is being supplied to customers. For example- Augmented furniture generally
takes the use of augmented reality where after the customers have booked their furniture set seek
the support of their supply chain where the product is delivered and a continuous tracking of the
product occurs.
Position
Position tells the company that where their products as well as service stand within the
market. It generally refers the way in which products are introduced within target market and
what position they hold in the eyes of customers. For example- Augmented furniture generally
takes the support of social media where they make customers aware of their new and innovative

products through social media websites like Facebook, Instagram and also advertise it on various
other internet tools like SEO.
Paradigm innovation
Paradigm innovation predominately addresses that what the company does and for what
their products are being used. It generally consists of various theories and models which shoes
that how organization actually works. For example- the main aim of Augmented furniture
initially was to leverage the technology with the organizational goals to provide customers with a
broader view of innovating within furniture and interior. After this, a paradigm shift took place
where company then used augmented technology to provide customers with 3D view of the
furniture (Maritz and Donovan, 2015).
Innovation funnel
Innovation funnel is basically the mechanism which helps the organization to have a
continuous stream of the ideas which can be later on screened fir the viability. Thus, it is the
main tool which help organizations for innovating their business. Innovation funnel helps the
organization in various ways in shaping the innovative ideas.
Generating new ideas
Innovation funnel helps Augmented Furniture to generate new ideas that will help them
to innovate their products as well as services. The core of this funnel is to build as many views
and ideas as possible thus it helps the company to have the large pool of ideas from which they
can select the most favourable one. For example- for increasing the customer base, Augmented
furniture generated various technological ideas like developing app, increasing production
efficient, using advance technological tools etc. Thus, it will help the company to have various
ideas(Daellenbach, Davenport and Ruckstuhl, 2017).
Fulfilling strategic objectives
The innovation funnel helps the organization to achieve their strategic objectives as well
as goals and thus helps in gaining the market share. The ideas which are being generated through
innovation funnel is then screened that where they aligned to objectives or not. For example- in
developing the innovative product, Augmented furniture finds out that the production efficient
would need to increase which will require a large investment which is not aligned to their
objective of achieving innovation in low cost. Thus, this will help company to filter out those
ideas which does not meet objective.

M3 Analysis of innovation funnel
Innovation funnel helps the organisation to continuously innovate their products and
make continuous improvement within products, services, organizational structure etc. Innovation
funnel assists the firm to modify their existing products as when the ideas from different sources
enter the organization then they are able to utilize the most beneficial ones which will help them
in achieving competitive advantage.
P4 Frugal innovation in organisational context
Frugal innovation is basically the methodology and process which helps the organizations
to reduce the complexity as well as cost of production and its goods. In shorty, this is concerned
with removing the non-essential features and characteristic from the durable goods for selling in
developing countries. This frugal innovation has now become a buzz within market which is
helping the organizations to become low cost producer along with providing the world-class
quality. It has helped them to achieve competitive advantage and establish position in the market.
There has been the recent developments in frugal innovation which has enabled organization to
develop their business (Lopes and et.al.,2018). The most important development which has taken
place in frugal innovation is the sustainability where there has been various advancement within
innovation to make the products more sustainable. Nowadays, organization have maintained
their focus on keeping their process and products more sustainable at low cost. They are
focussing on reducing the production cost and incorporating technology to make the
manufacturing process more pollution free by eliminating some of the resources.
Another development which has been observed in this frugal innovation is that it has
created a wide technology platforms for the organisation which eventually creates more
opportunities for them along with becoming low cost producer. It has allowed the organization
to produce their products at much lower cost and thus save money which can be later on invested
on other vital resources.
Example in organization
Frugal innovation is being used in organization and thus helps them to achieve
competitive advantage. It will help Augmented furniture to establish its position in the market
and hence enlarge the customer base. The most innovative approach which this company can
adopt while offering frugal innovative products to the customers is that they can lower down the
cost of managing its website (Azarmi, 2016). For example- company can seek the clean

technology for distributing product to their customers where it can instead of delivering its
products in plastic made packaging can make use of paper made packaging that is of low cost
and will also be sustainable. Besides this, company can in order to reduce to cost of hiring
employees can manage their work through subcontracting where their activities will be
performed by some small firms. This will cut down the major cost of hiring the candidates and
thus will help them to provide high quality products to different customers residing in different
counties.
M4 Role of frugal innovation
Frugal innovation helps the organizations to produce various products and services at low
cost and thus reduces their overall cost of production. It is the replacement of high cost methods
that are used for innovating the product It not only helps to produce products at much lower cost
but also contributes towards sustainability.
D1
Innovation is generally developed within an organization when it comes across the need
to innovate and this leads to the unexpected innovation of product or service. It is generally
measured in terms of its effectiveness as to how effective it is to achieve the organizational goals
and objectives.
CONCLUSION
It has been summarized that innovation plays an important role in an organization which
ultimately assist them to achieve competitive advantage ad establish position in market.
Innovation does not occur itself but various aspects like organizational culture, teamwork, vision
etc. helps to drive innovation in right direction. Besides this, the ideas for innovation mainly
comes from various sources and the most important innovation funnel generates a continuous
stream of ideas for the organization among which they can choose the best one. Frugal
innovation on the other hand, helps to build products and services at low cost and reduces the
production cost.

REFERENCES
Books & Journals
Abdul Razak, A. and Murray, P.A., 2017. Innovation strategies for successful commercialisation
in public universities. International Journal of Innovation Science.9(3). pp.296-314.
Ahn, J.M., Minshall, T. and Mortara, L., 2015. Open innovation: a new classification and its
impact on firm performance in innovative SMEs. Journal of Innovation
Management.3(2). pp.p33-54.
Amponsah, C.T. and Adams, S., 2017. Open Innovation: Systematisation Of Knowledge
Exploration And Exploitation For Commercialisation. International Journal of
Innovation Management. 21(03). p.1750027.
Azarmi, D., 2016. Factors affecting technology innovation and its commercialisation in firms.
Daellenbach, U., Davenport, S. and Ruckstuhl, K., 2017. Developing absorptive capacity for
midstream science in open innovation contexts. International Journal of Technology
Transfer and Commercialisation.15(4). pp.447-462.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation.1(1). pp.8-22.
Lopes, J.N and et.al.,2018. Peeking beyond the wall: analysing university technology transfer
and commercialisation processes. International Journal of Technology
Management.78(1-2). pp.107-132.
Maritz, A. and Donovan, J., 2015. Entrepreneurship and innovation: Setting an agenda for
greater discipline contextualisation. Education+ Training.57(1). pp.74-87.
Mazzarol, T.W. and Reboud, S., 2017. Entrepreneurship and innovation. Tilde Publishing and
Distribution.
Paré, L., 2019. FINANCEMENT & INNOVATION.
Pynnönen, M., Hallikas, J. and Immonen, M., 2019. Innovation Commercialisation: Processes,
Tools and Implications. In Advances in Systematic Creativity (pp. 341-366). Palgrave
Macmillan, Cham.
Tsai, S.P., 2015. Dynamic marketing capabilities and radical innovation commercialisation.
International journal of technology management.67(2-4). pp.174-195.