Innovation and Commercialization: A Comprehensive Analysis

This assignment delves into the complex realm of innovation and commercialization, covering a wide range of topics from technological to non-technological innovations. It examines the impact of firm size and industry type on R&D efficiency throughout innovation and commercialization stages. The analysis also touches upon the importance of innovation radar, predicting anticipated rent from innovation commercialisation in SMEs, and addresses barriers to eco-innovation through institutional innovation intermediaries.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Defining innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................3
P2.How organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation...................................................................................................................5
TASK 2............................................................................................................................................6
P3.Innovation mix and innovation funnel to examine the shape of innovate ideas...............6
P4.Developments in frugal innovation...................................................................................8
TASK 3............................................................................................................................................9
P5.The importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation.........................................................9
P6.Building an innovate business case for Ma Baker and ways to access funds.................10
TASK 4..........................................................................................................................................10
P7.Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property..............................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation and commercialisation is an important element for businesses. It helps in
creation of new and innovative products in the market. Innovation can be explained as an process
of identifying new solution of problems. Where as Commercialisation comprises with launching
new goods and services or launching new services for production in the market place and also
involves making the new product available to the target audience. Organisation undertaken under
this report is Ma baker which is an Micro bakery situated in the hearts of Fulham London and is
being run by Liz Wilson. It provide products such as fresh and home-made real bread courses
that are offered across different areas of London. This report will highlight difference between
innovation and invention and also enlighten importance of innovation for the organisation
(Abdul Razak, Murray and Roberts, 2014). It will also study different form of innovation along
with explaining 4p's of the same. Later part of the report deals with the steps that innovation
manager goes through in order to drive a new and innovative product.
TASK 1
P1.Defining innovation and determine its importance to organisations in comparison with
invention.
Innovation can be expressed as activities that can be related with product, process and
organizational routine. It comprises of enhancing profitability by paying more attention to the
potential customers existing in the target market. Business unit uses these developing processes
in order to capture the latest trends, access market information and increase the availability of
their products to the customer. It can also be focussed on enhancing customer experience by
providing better experience through providing more choice from which they can shop. Ma Baker
provide fresh and delicious handmade loaves. The ingredients used by businesses is of high
quality and flour which is used in different process are stoneground and are organic. In every
week they email customers a choices of bread that they can choose from as per their need. It also
offers different courses which comprises of classes which provide an learning and introduction to
Bread, Italian, Artisan and sour dough (Ajagbe and et. al., 2015). They provide equipments such
as ingredients, recipes and home baked treats in order to create a healthy environment for their
students. In order to get more grasp inn the market and also to compete with other competitors
organisation can launch gluten free breads in order to attract a larger number of audience. Gluten

is a protein which is found in some grains such as wheat, rye and barley it makes bead chewy.
Gluten free bread are made from ingredients such as brown rice flour, potato flour, sorghum and
flaxseed. By launching gluten free breads the businesses will be able to get benefit in certain
ways-
Able to attract Customer suffering from Celiac disease- Individuals who suffer from
celiac disease cannot tolerate any type of protein comprising in wheat, oats or barely. As there is
gluten in breads they are not able to enjoy it because of their dietary restriction. By launching
gluten free breads Ma Baker will be able to attract this segment of customer as well.
Helps in promoting a Healthy diet- As the new product which is gluten free bread is
friendly to digest which is because gluten free bread nutrients encourage the production of
friendly bacteria populations in the intestines. As the problems related to obesity is getting on
peak and people are looking for a healthier option it will be able to attract healthy audience
(Brown, 2016).
Thus, innovation plays an important role in the businesses in order to attract more
customer and retaining it's position in the market. It comprises of improving r making an
significant changes in current product which being done by Ma baker as they are introducing
new range of breads which is gluten free breads. Where as invention comprises of creation of
product or introduction of a process which is being done for the first time. The difference
between the both can be further be further elaborated below-
Difference between innovation and inventions:
Bases of comparison Innovation Invention
Meaning It involves new development
in existing products.
It comprises of creation of
product and process for the
first time.
Concept Based on adoption of new
ideas practical procedures.
Based on working with
original opinion and theories.
Required skills Comprises of combination of
different marketing skills,
technical and strategic skills.
It requires scientific skills.

Activities It is spread all across the
business .
It is limited to only research
and development department.
Consideration Consider combination of
several products or services.
It comprises of focussing only
on a particular product.
Various sources of innovations
Peter Drucker explores seven sources of innovation that could be understand by following
points:
 The unexpected: Environment in which an organisation operate is full of new
opportunities. A business manager requires to study the same as this help in gain
information about the any new change take place in it and also help in identify if there are
ways through which company can achieve unexpected success.
 The incongruity: This is another source of innovation and this refers to thinking
differently not only from the rivals but also from the society. It consists finding a creative
idea and sell it to customers. This can be possible by thinking differently from other
individuals in order to produce and offer something new to customers.
 Process need: This factor is similar with incongruities as this require to think different
form others. If there is some gap or something is missing from the society that individual
require to think in creatively in order to fix the same.
 Change in structure of market and industry: This sources is related with the unexpected,
a business owner must expect the unexpected from the industry. Various forces are there
which could bring some changes in the market.
 Demographics: This reflect the change take place in the population. For example, change
in the number of kids riding bikes, change in the number of women over 50 and many
more. These kind of changes in demographics change the way in which entrepreneurs and
innovators run their business activities.
 Change in perception: Way in which people perceive something is known as perception.
Perception is something which is changes over the time this also affect the innovation
introduce by organisations in their product and services.

 New knowledge: Scientific and non-scientific knowledge about technology is come under
this. It is very essential for business owners to have updated knowledge about the
technology as this help in run the business in an appropriate manner.
P2.How organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation.
An organisation's vision comprises of an insight about their goals. These goals
encourages individuals who are associated with the business to more more efficiently and
effectively and finish different task assigned to them on time. In respect of new Ma Baker should
clear there vision to which is focussed on attaining future goals. Along with them leaders should
focus on facing challenges and developing ways in order to face these challenges (Chun, Chung
and Bang, 2015). They understand the culture of the company and treat employees in
accordance with it by encouraging them to work in teams these aspects are discussed below:
Organizational vision: These comprise of clearing the organisational goals and
objectives to every individuals who is working for the same. The vision of business by launching
Gluten free bread is to address the demand of customer more effectively and encouraging healthy
eating habits among them. It will hep them to foster the current market needs more effectively
and will help them to compete with other rivalry in a more effective manner. For example
organizational vision create better results related to product in particular organization. This
brings innovation and inspiration for every worker who is associated with particular
organization.
Leadership: It involve several processes such as establishment of vision and providing
information and methods in Order to realize that vision. It also involve coordinating and
balancing the conflicts among the members of the business. Good leaders will enable
Counselling, coaching and support to employees so that they can carry out their work easily in
the market. In the Ma Baker managers provide opportunities to customers to choice their own
bread choice through mails and understand customer convenience and further develop strategies
according to that. They understand the concept of customer needs and male innovation in the
businesses accordingly (De Prato, Nepelski, and Piroli, 2015)(Hang Do and et. al., 2014).
Leadership is very essential component in any organization. Leader can make decisions and
goals regarding developments so that it can implement in product. If leaders will be effective

they can motivate and inspire theirs staff work in more creative way to get better results.
Leadership helps to regulate any task or work in order to get best results, this will increase
marketing of product as well as impact on company. For example, being a good leader can be a
role model for staff member, which will encourage them to perform well to get best results
regarding their task.
Culture: These comprise of policies, norms and procedure that exist within an
organisation. Organisation should focus on following a positive working environment which
comprises of no discrimination and also it assists in development of an encouraging work place
environment. By collaboration and enabling positive work environment it will lead to
development of creative ideas while working in the workplace. As example staff members have
to follow some procedures and policies which gives clarity for their work.
Teamwork: Teams serves as an important part in the business processes which helps in
encouraging people to work together for achievement of overall organisational goals. In order to
develop new ideas individuals can be collected in teams which will help in creation of innovative
ideas and results that can contribute towards inventions. Working in team will be always
beneficial as in this case work can be distributed according their skills and working ability.
Effective team work provides good results for every practice which is taken place to make gluten
free bread.
In order to facilitates innovation manger can develop an open environment that can use
different methods such as brainstorming for development of innovate ideas. It involves
employees to explore various requirement of customers and teams who will be working in order
to achieve business objectives. More over advices can be taken from individuals related to
changes in working environment this entire process will help the Managers to acquire innovative
ideas and efforts (Ismail and et. al., 2015).

TASK 2
P3.Innovation mix and innovation funnel to examine the shape of innovate ideas
(Source: 4PS- EXPLORING THE INNOVATION SPACE, 2015)
Product- It comprises of the current product which are being offered by business and
innovation among them is important in order to attract customer with innovative product features
. It is also important for meeting the customer changing demands and also to capture the market
trends. Through the launch of Gluten free bread the organisation will be able attract large
audience and will be able to create a strong position in the market.
Process- It comprises of different activities that are being involved in the launch of
innovation in the businesses. The managers will have to plan out the entire process which will
involve certain activities such as selling, promotion and marketing of the product. The promotion
of the innovation can be done by adoption of various promotional activities such as selling
product with the use of online platform and also taking feedback of customer through the same
mode.
Position- It comprise of setting a specific position of their product and services in the
minds of customers. Managers can highlight the unique feature of their product in order to attract
larger audience such as Gluten free bread will help the people to eat healthy as well as it will
Illustration 1: 4PS- EXPLORING THE INNOVATION SPACE

also attract individual suffering from celiac disease as they can have these and it will not impact
their medical condition (Maritz and Donovan, 2015).
Paradigm- While introducing change which comes along with innovation Managers
needs to ensure the staff members that changes are not always positive and it helps in
development of the businesses. As they also needs to make sure that employees are involved in
the entire process of enabling innovation in business in order to effectively introduce it.
Innovation funnel: It involves steps that are involved in development of product amend
process. The objective of the funnel is to convert an idea into product or services in order to
satisfy the market demand. It comprises of collections of ideas at first stage and last stage
involves consideration of few ideas for further development of idea or concepts. In order to
develop new idea Ma Baker needs to develop innovation funnel. It involves three steps that can
be further elaborated below-
Investigation: In the first step organisation needs to collect information and knowledge
in order to collect as much ideas as possible. By having large numbers of ideas the organisation
will be able to develop more innovative products and concepts. Ma Baker have to gather
information from different source such as external and internal environment factors which
involves employees, rivalries and by conducting research from other institutions. In order to do
this the management needs to establish clear objectives for the development of new ideas. It
should also posses deep knowledge about converting the ideas into realities. Thus the process

involves analysing market data in order to find out about the opportunities existing for launching
new product line or for extending the current product line (Mazzarol and e. al., 2014).
Development: After collecting the data from different externals and internal sources then
comes the part which comprises of screening of the already collected data. It involves
comprising the range of selected data in relation with the goals and objectives of the organisation
in order to find out whether they are related or not. It also involves assessment of risk and return
which is associated with goals and objective of the businesses. In this stage business test
different ideas I the actual target market. Along with it involves allocation of required resources
in order to use them for utilising different market opportunities.
Shipping products: This stage comprises with section of appropriate ideas in order to
fulfil organisation goals and objectives. The new product or ideas are the being introduced in the
market in order to satisfy needs of consumers. It will help Ma baker in development of strategies.
It is an easy concept which helps businesses in development of ideas by already testing them in
the market place and then going for their release in the market the process reduces the risk
associated with launch of new product in the market.
P4.Developments in frugal innovation
Frugal innovation is process which involves minimising the complexity of cost that is
being applied to a product. This concept urges businesses to respond to limited resources it can
be either financial or material or institutional and focusses on turning these constraints into
creative ideas and ways to solve problems. Therefore it help the business in developing and
providing better services to the customers. It involves removal of the feature that is not adding
value to the product which automatically reduces the overall cost associated with the commodity.
It is being applies by different companies in order to gain more profits and leading a superior
position in the marketplace (Mohannak, and Samtani, 2014).
Frugal innovation practices are primary associated with emerging markets. Which is
because frugal innovation procedures tent to output practices that can fit the emerging market's
special needs and requirements. It also involves products and services that are affordable by
every section of customers. As the Ma baker is situated in the London and the current statics
have shown that the rate at which people are dealing with problems such as obesity and diabetes
have increased at a tremendous level. So the market is demanding product that are healthy and
can fit their medical requirements at the same. In order to capture these market opportunities they

are producing gluten free breads which will help the individuals to have healthy breads and also
helps in satisfying their needs and wants. The businesses will offer their product in the market at
an affordable price so that every section of the customer can be benefit and can afford the
products it will help the businesses to capture and please every section of the market. Hence,
increasing the market share of the businesses (Polzin, von Flotow, and Klerkx, 2016).
TASK 3
P5.The importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation
Commercial funnels comprises of visualization of customer's journey and thus depicting
the sales process. That starts with awareness to action. It act as an revenue funnel and comprises
of depicting the various ideas which are related with the beginning of sale which involves a
Hugh proportion of customers. It also tend to indicate how they get reduced to a smaller number
in the purchasing process. Commercial funnel includes awareness among customers and
identification of their problem. They tend to find solutions to theses problems by using different
methods such as by using social media for promotion. Furthermore it involves taking several
steps that are focussed on increasing the customers interest in order to increase sales. It leads an
increase in customer engagement in the businesses.
Ma baker provide different bakery products such as breads. In order to compete with
other competitors and fulfil consumer demands and to conquer the market trends the business is
offering gluten free breads which will help them to attract a large number of customers.
Organisation will provide these at a low cost and with high quality. There are several types of
risks that an organisation have to face when it is launching a new product. The initial stage new
product development process will comprises of challenges of increased cost associated with
producing new products. In the commercial funnel case the business should make sure that the
customers should be aware about the product in order to draw their interest in purchasing the
same. If the business are able to create interest in the customers they will consider the product in
their purchasing processes. In the NPD process key elements includes generation of idea and
screening of idea which is done after analysing the needs and wants of customer and market
trends. Furthermore the process of NPD involves development of product and business analysis.
Before the launch of the product the business will test them in the market it will help the business

in finding out about the potential which new product have in the market. Along with it market
testing and reviewing the new product performance will help the businesses monitor the
performance of new product in the market.. With the help of New product development process
and commercial funnel the organisation is able to drive products in the market and launch new
product accordingly (Schot and Steinmueller, 2016).
P6.Building an innovate business case for Ma Baker and ways to access funds.
Basis Description
Executive summary In order to effectively access the market and attract more customers
business is launching gluten free breads in their business model so that
they can attract a larger number of audience. As the company is using
email for asking the customer about the type of bread that they want to
receive by adding the gluten free breads in the products they will able to
please customer at higher degree of level.
Description of
business idea
In the United Kingdom problems such as obesity and diabetes are an
important issues among the people and in order to handles such issue
people are getting more intent towards adoption of healthy eating habits
and also eating as per their medical requirements. In order to resolve the
issues and to provide solution for the same Ma baker are launching
Gluten free breads so that they can increase the customer satisfaction
level.
Product description The product is gluten free bread is strictly exclude the gluten that is a
mixture of proteins commonly present in wheat as well as rye, oats and
barley which is caused by inadvertent ingestion of the gluten.
Market analysis In order to launch new product the businesses will have to have funds
required to produce the new product. The business will use two different
sources of funds firstly by getting a bank loan of £8000 and second
source of fund is self funding of £8000. Which will make a total of
£16000 which will be used by the business in making the new product
available to customers.

Marketing strategies
and plans
In order to promote the new product company will use social media
platform such as Facebook, Twitter and Instagram and will promote their
new product in these platforms. As the social media will help them to
attract larger number of audience and it comprises less cost as compared
who other promotional tools (Swart, 2015).
Management
operations
Invest in training program so that people can get best training from
experts, that will increase quality of product.
Start with the meal planning and the recipe development which will
keeps every customers in the mind and also make more enjoyable for
consumers.
Risk management Gluten is type of protein which is mainly found in wheat. Gluten
ingestion can activate autoimmune such as systematic disorder. Products
which are made up of gluten are either based on inherently gluten free
which have processed to remove gluten sometimes in ingredients which
are with gluten that can be risky in practice of making bread as well as
market.
Business plan: This is a structured plan, in which a complete execution of any new products or
services of any given business. This involves vision & mission, strategic objectives, products or
services, Defined targets and sources of funds for the Ma baker drinks. In context of Ma baker
drinks, structured business plan for this business firm is as follows:
Vision & mission: The vision of the Ma baker is to “customer favourite taste” and
mission is to increase sales or revenues of the Ma baker to gather business outcomes in the given
period of time.
Strategic objectives: The major strategic objectives of the Ma baker is to business sales
and also boost business position to the optimised in a given point of time. The strategic
objectives of the Ma baker is to generates sales of the business by 5 percent in coming one year.
Budget: This mainly comprises of the cost structure which will consists of numerous
different costs which are as follows:
Activity: Amount (£)
Market Research 3000

Procurement of Resources 9000
Positioning and Strategy 1200
Product Branding and design 1000
Web Design and Social media marketing 500
Marketing support 1300
Total: 16000
Sources of the funds: For this project, angel investors will be major sources to raise
money to establishes this new product. Also, bank loan will also be suitable option, but demerits
is financial burden to the business firm.
TASK 4
P7. Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property
Intellectual property is a category of assets that consists intangible creations of human’s
mind. These mainly results from an individual’s creativity. Intellectual property is protected by
trademarks, patents and copyrights that enable an individual to get financial benefit from the
invention. With the increase in competition in the market, there is an increasing demand of
making the product distinguish than that of competitors as there is a chance of competitors taking
the product and duplicate it in order to take away the market share of Ma Baker. Ma Baker is a
small business where they create lots of pies and breads which are very popular in the market of
United Kingdom. So, to protect the product, then, that of competitors there are plenty of options
available to Ma Baker. One of the biggest and most used alternative is Intellectual Property.
Intellectual Property refers to the intangible asset that is the product of creativity. Some of the
intellectual property options available to Ma Baker are:
Patents: It refers to excluding others from the right of using, selling and creating the
stuff, patent by the owner. Patent is usually made for twenty years. Patents are usually made on
books, poetry, music or any software. Ma Baker can use this right to stop others from selling
their customised cakes and breads by patenting the rights of selling these products.
Trademark: It refers to any symbol, phrase or insignia of any product or service that

distinguish the product from others. The trademark is registered by the company who created the
product in order to recognize the company as the owner of the product. Ma Baker can trademark
their innovative logo which is a bread in the B of Bread.
(Source: Ma Baker, 2019)
Copyrights: A copyright is kind of protection provided by the laws in order provide the
ownership to the person created the work. Copyright can be provided to any literary, artistic or
music work. The work of the owner can be used with the permission of the owner in order to use.
Copyright prevent the other from the copying the work of the owner. Ma Baker can copyright
their recipes which are created by them with the efforts and hard work.
Trade Secret: It is the first step in the process of invention as it protects the creator from
sharing the ideas to others as people can take up the idea and can take away the profit and
success from the creator. This helps the creator in inventing the better product with as much as
time needed. This can be proved as a very useful intangible asset for Ma Baker as they can use
trade secret the recipes which they created and yet not used in their work. They can use this to
take away the rights from others from using the recipe.
CONCLUSION
From the above report it has been concluded that innovation and commercialisation plays
an important role in the market. It help the businesses in getting an competitive advantage.
Innovation comprises with creating new product for the businesses. Under this report the
organisation undertaken is Ma baker and new product which they are launching is Gluten free
breads. It will also highlight benefit of launching new product which the business will have.
Along with it it highlights the innovation mix and innovation funnel which is being used by
Illustration 2: Ma Baker

organisation in order to shape their ideas. In order to facilitates innovation company is adopting
innovative ideas such as frugal innovation and innovation funnel. In order to process
commercialization and innovation the new product development process is being used in context.
Later part of the report deals with building an innovation case for business and also highlight
different tolls that are being used by organisation in order to protect their intellectual property.

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4PS- EXPLORING THE INNOVATION SPACE. 2015. [Online]. Available through
:<https://egyptinnovate.com/en/innovation-tool/4ps-exploring-innovation-space>.