Innovation and Commercialisation in organisations

Innovation and Commercialisation INTRODUCTION .3 MAIN BODY 3 LO1 3 Innovation and determine its importance to organisations in comparison with invention 3 How organisational vision, leadership, culture and teamwork can shape innovation and commercialisation4 Different sources of innovation, and how organisations can foster and develop an environment and culture of innovation.5 LO2 6 4Ps of innovation and use of the innovation funnel to examine and shape innovative ideas6 Innovation funnel and its application to M&S 7 Developments in frugal

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
Innovation and determine its importance to organisations in comparison with invention..........3
How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation........................................................................................................................4
Different sources of innovation, and how organisations can foster and develop an environment
and culture of innovation.............................................................................................................5
LO2..................................................................................................................................................6
4Ps of innovation and use of the innovation funnel to examine and shape innovative ideas......6
Innovation funnel and its application to M&S............................................................................7
Developments in frugal innovation.............................................................................................7
Role of frugal innovation in M&S...............................................................................................8
LO3..................................................................................................................................................8
Importance of the commercial funnel and the application of new product development (NPD)
processing for commercialisation of innovation..........................................................................8
Innovation business case..............................................................................................................9
LO4................................................................................................................................................11
Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property...................................................................................................................11
Different tools in the context of the wider business environment.............................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation can be defined as a Process through which individual or organisation turns an
idea into a solution that its value from the perspective of customer organisation. This means that
having an idea and turning Idea into reality and creating something new that did not had any
existence earlier is known as innovation. Innovation in present business environment has become
very important for growth and success of organisation. This report will discuss different aspects
of innovation in context of Marks and Spencer. Is an British multinational retailer founded in
1884 in Leeds UK and is headquartered at London UK. Organisation has worldwide presence
and operate at 1463 locations inform of its stores. This report will discuss Innovation and its
importance and how it is different from invention. Report letter will discuss about different types
of innovation and process that is required for an organisation to complete in order to
commercialize innovation. In addition to this report will discuss about a range of methods for
protecting ideas and understand their advantages and disadvantages in an organisation.
MAIN BODY
LO1
Innovation and determine its importance to organisations in comparison with invention
Innovation is an effective or a process of converting Idea into product or service and
using this for the purpose of increasing and enhancing value that an organisation provides to its
customers (Powell, 2017). In present business environment there are several reasons that make
innovation important for M&S some of the reasons are as follows-
 Innovation helps organisations differentiate themselves. This means that with help of
innovation M&S can differentiate it from its competitors making it more attractive and
enabling customers to identify organization easily on the basis of its attributes and
characteristics.
 Innovation is important for organisations as that keep organisations relevant. This is
because as other organisations undertake Innovation and provide different products and

services to their customers in Retail Industry in order to become limited come very
important that organisation also undertakes Innovation and provide something new of
added value.
 Innovation is also important as it helps companies sustain for longer in competition. This
is because innovation enables M&S to offer something new to its customers and this
increase is business cycle and organization becomes successful and capable of sustaining
in competition for longer than its usual business cycle.
 Increase productivity of the organisation. Innovation is mainly considered with
innovating and developing a new product but innovation is not limited to developing
products. In organisations innovation also take place in form of process innovation and
because of such developments companies can increase their productivity.
 Competitive advantage is also one of the most important reasons for organisations to
innovate. Innovative product and service enables organisation to perform better than
competitors and this also provide competitive advantage to organisations. Innovation
enable organisation to offer something that competitors do not offer and this creates
advantage for organisation over its competitors.
Several importance of innovation for an organisation were discussed however when compared
with the invention both terms are different from each other. Invention refers to occurrence of an
idea for a product or process that has never been made before (Grafström and Lindman, 2017).
On the other hand innovation is implementation of idea for a product or process for the very first
time. In other words invention is creation of new product whereas innovation is adding value to
something already existing.
How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Innovation in organisation required support and assistance of several other factors
through which it can be facilitated within organisation and also to encourage workforce to be
innovative. Organisational vision, leadership, culture and teamwork are certain elements that
shape Innovation and commercialisation (Dincer, 2017). Organisational vision has significant
impact on Innovation and commercialization. This is because vision sets way for innovative
ideas and also guide on how to achieve it. Reason for innovation takes organisation from its

present state to a better future and this is why it is very important that M&S focusing on
innovation should have an appropriate vision for innovation.
Leadership in M&S is also important for innovation in organisation. This is because
leadership is concerned with influencing thoughts and actions of employees and followers this is
why it is important that when leaders are working with innovative approach employees will also
consider a innovative approach in their performance. Other than that leadership also requires
innovation in order to guide and support employees for innovation.
Along with vision and leadership culture of organisation is also important for Innovation
and commercialization (Srisathan, Ketkaew and Naruetharadhol, 2020). This is because culture
has significant influence on how people think and act within organisation this is why and culture
emphasizing on innovation will encourage employees to think in similar direction. Culture also
involves values and practices of organisation and this is why having adequate values that
consider innovation important then only employees will consider innovation as an important.
Teamwork is also important and plays a vital role in shaping innovation. This is because
it is very normal to have creative ideas but in order to commercialization Idea as and convert
them into product or services opinion and assistance of other is very important. Teamwork can
facilitate thinking in different areas of an idea and how it will impact our organisation and
customers. Teamwork also facilitate ideas through which innovation can be developed andfor
commercialisation of innovation teamwork is vital (Yun and et.al., 2020). This is because
individual cannot perform every activity that is required to undertake in order to convert an idea
into a product or service and also for commercialization of innovation.
This means that in order to shape Innovation and commercialization organizational vision
leadership culture and teamwork has a significant role.
Different sources of innovation, and how organisations can foster and develop an environment
and culture of innovation
Sources of innovation includes unexpected that means innovation can take please
unexpectedly or by chance. Market structure that is existing market structure can also give rise to
chances for innovation. Necessity is also a source of innovation in which innovation sourced by a

need. New knowledge is also a source of innovation in which getting new knowledge lead to
new ideas that ultimately create innovation.
In order to foster and develop an environment and culture of innovation M&S required having
adequate and suitable leadership for innovation (Arfi, Hikkerova and Sahut, 2018). In addition to
leadership culture of innovation can also be fostered by having right values on the place. This is
because only when there are right values to guide employees’ in M&S it can develop and foster
environment and culture of innovation.
LO2
4Ps of innovation and use of the innovation funnel to examine and shape innovative ideas
Figure 1 4P's of Innovation
Product- This is first P of innovation and product is concerned with offerings of the
organisation. Innovation in product refers to how company can create an innovative new product
and also so how they can make an existing product better with innovation. This element of
innovation is concerned with changes, updation, redesign and reengineering of existing product
or service of the organisation.
Process- This is another P innovation and process refers to how company create and Delivers
products and services to its customers.Process innovation involves developing new way to create

product and delivering them to customers by making it better. Innovation in process is about
making process faster more efficient and cost friendly and process that can make products and
services of better quality.
Position- This P of innovation is concerned with market segment that product or service is
currently targeted. In other words position refers to market segment that a company targets for
delivering and providing its goods and services (Akgun and et.al., 2017). Innovation in position
organisation to a new market segment and this is a way through which M&S can figure out
where and how another market segment might be interested in their product or services that they
have not been used it before. This involves identifying a new market segment where services of
M&S or any similar services never been used.
Paradigm- This is related to changes to where how and why the product is used and how
organisation get the things done. This is about theories, principle, values, beliefs and mental
models. In relation with innovation changes are brought in principles, values, beliefs and mental
models.
Figure 2 Innovation Funnel
Innovation funnel is a model through which a process of Ideas collecting and then
converting them into the service and the commercialization is reflected. Organisations
considering innovation use of innovation funnel can add value and simplify their overall process
of innovation. This is because innovation funnel outlines different stages through which an idea

is created into product and then is commercialized. First stage of the funnel is about
communicating challenge or problem and then ideas are collected from different employees and
this letter is analysed to develop concept and its viability to know whether the idea can be
developed or not (Anzola-Román and et.al., 2019). Only those ideas that are viable are selected
by organisation what the process of developing product or service. This is why in order to shape
innovative ideas innovation funnel can be very useful forM&S.
Innovation funnel and its application to M&S
Innovation funnel is very important when M&S is thinking to innovate something. With
help of innovation funnel, company can systemise its innovation process. As discussed in
previous heading innovation funnel is about how company can start innovation and it outlines
that innovation funnel involves communicating funnel and on the basis of that collecting ideas.
This is an important stage in M&S where every employee of the organisation can contribute in
and later this stage is followed by accepting and grouping ideas and proofing the concept of the
idea. In other words this is a stage of the funnel in which specific people identify and validate
idea and concept of the idea and context of organisational innovation requirements. This means
that innovation funnel can help M&S in systemising innovation and its development and
commercialisation. In its last stage M&S will develop innovation on the basis of suitable idea
and concept and commercialise by launching idea into market.
Developments in frugal innovation
Frugal innovation is a process of reducing and eliminating those elements of a product
that are not essential for product or service. Elimination of this element is aimed at reducing
complexity of the process and also to reduce cost of the product. This is mainly refers to
removing non essential features from durable goods and making them more suitable to sale in
developing countries (Weyrauch and Herstatt, 2017). This means that developing countries for
emerging economics have price conscious customers and this is why selling a product at lower
price has more possibilities of product being successful in a developing country. This means that
from its durable goods M&S required to eliminate features that are not essential for them and
adding such features only increases price of the product. Durable goods refer to those products
that are used for long period of time such as car or phone. M&S offer different types of product
that are considered under category of durable goods and also have its operations in developing

countries. This is why innovation is important and useful for company to increase sale and
increase market share. By selling products of low pricesM&S can become very successful in
developing countries. This is also important to identify opportunity and utilize them in
developing countries (Leliveld and Knorringa, 2018). For example M&S shelf furniture and
home accessories and removing non essential features of this product can make them suitable for
developing countries and emerging economies and this is that frugal innovation is useful for
M&S. In addition to developing countries M&S can also sell such products in countries where
customers are price sensitive. This means that because of recession and bad economic condition
customers in UK have also become price sensitive and this is why and it can also utilize frugal
innovation for countries with price sensitive customers.
Role of frugal innovation in M&S
As discussed in previous heading frugal innovation involves removing non-essential
features from a durable product. This also involves reducing complexity and cost of product and
its manufacturing. M&S is a company and brand that is known for its quality products and this is
why products of M&S are also between medium to high. As M&S is an multinational
organisation it is important for M&S to consider frugal innovation when its operating is low
income or emerging countries (Gandenberger, Kroll and Walz, 2020). This is because low prices
products are primarily considered by such countries. In addition to this M&S also have several
products in its product category that are durable and M&S can increase its presence and sales by
frugal innovation in countries with low income and also in countries where customers are price
sensitive.
LO3
Importance of the commercial funnel and the application of new product development (NPD)
processing for commercialisation of innovation
Commercial funnel is a marketing tool through which companies find qualify and trade it
product or services to consumers or customers. Commercial funnel is a model that breaks down
consumer journey from Awareness to purchase.

For organisation it is very important to consider commercial funnel in order to find right
audience to which company wants to sell its product or services. Certain reasons that make it
important for M&S is that it helps company in selecting a marketing strategy. On the basis of
different stages of commercial funnel company can select a suitable marketing strategy through
which it can convert awareness into Purchase Decision (Paschen, Wilson and Ferreira, 2020).
Commercial funnel also help company to better relate with its target market and customers. This
means that company have identified certain section of audience that is interested in product of
company it can attract them using suitable strategy and relating with them in order to encourage
them to make purchase.
New product development process is a process through which organisations develop new
products.
Figure 3 New product development process

About figure outlines different stages of new product development and considering this process
for new product development is very important for commercialization of product.
Commercialization is about managing something with a primary aim of financial gain. In order
to commercializeproduct company should consider process of new product development. This
means that in stage of Concept development and testing M&S should consider that idea that has
been considered for new product development is suitable for the purpose of commercialization
(Venermo, Rantala and Holopainen, 2020). This means that company should consider only
product that can be easily sold in market is developed. In addition to this business analysis and
test marketing that are included in new product development process also helps organization to
commercialize its product or services. This means that while developing a new product M&S
request to identify whether the product can be commercialized or not and this idea can be
provided by the process of new product development.
Innovation business case
Several types of innovation and their different purposes were discussed above and one
type of innovation that is highly considered by every organisation is M&S. This is product
innovation that involves innovating new product and new product that M&S can develop is
vegan bakery products. This is because demand for vegan products is increasing, M&S by
developing vegan bakery products can increase and attract customers who are conscious about
vegan and also those who are about health and wellness. This is why it is a suitable product that
M&S can develop.
M&S is focusing on increasing its food business and this is why adding a product in in food
category can play a crucial role for further success of organisations food business.
In order to evaluate its effectiveness company can utilise is market survey. This means
that company can utilise market survey in order to know whether company should continue with
this product or not. Once product has been developed company can also measure this through
test marketing of the product. Test marketing is a concept in which product is initially launched
to know feedback and comments of customers (Relich and Pawlewski, 2018). This is aimed to
know how larger audience will react to product and what are the elements that require to be
improved about the product that company have develop. Using these strategies company can
identify and evaluate overall effectiveness of the company.

Innovation cannot be done without having adequate funding this is why it is very important that
different ways through which organisation can collect funding for innovation is important full
stop certain ways through which M&S can access funding are-
Bank loan- M&S is a multinational established organisation and this is why in order to access
funding bank loan is very suitable as well as effective option for company to access funding.
This way of accessing funding can be very complex but for M&S it is not very complicated
compared to small organisations.
Organisational capital- This is another way to access funding in which M&S its capital for in
which thing for the purpose of innovation. As amended is organisation this way of access
funding is very suitable as well as facilitating for organisation.
LO4
Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property
There are several ways through which company can create retain and protect knowledge
and intellectual property. Tools for these are-
Patent- Patent is a tool through whichM&S can protect something that it has invented to stop
this includes any kind of machine or equipment or chemical composition (Olaisen and Revang,
2017). Patent is about granting a right to inventory organisation that has created something new
for specific and exclusive write and use of the product it has invented. By patent M&S can
ensure that it can only utilise it invented product for certain time. M&S can utilise this tool to
protect a new product or process that has been created by organisation.
Copyright- Copyright refers to the legal right of the owner of intellectual property. This means
that original creator of product are given exclusive right to reproduce the work. As the name
indicates copyright allows creator of the work to determine who can copy their work. Copyright
is mainly used for literary and artistic work in which creator is given exclusive rights of
reproducing or duplicating the material for a given amount of time.

Other than this, M&S can also utilise that another tools for the purpose of developing, retaining
and protecting knowledge. These tools are-
Customer relationship management- Customer relationship management is combination of
practices, strategies, and technologies that company can utilise to develop, retain and protect
knowledge about customers. For business organisations this is an very important knowledge
management tool in which that can enhance their practices of customer service and satisfaction
with the knowledge.
Enterprise resource planning- This is another tool for knowledge management. This is an
integrated system of key business processes (Ebrahim, 2018). This is a system that integrates
processes and data models.
Big Data- This is a tool that store manage and explore high velocity variety and volume of data.
In times of technology and digitalization this has become very important for M&S that helps in
decision making of the company. Organisation uses big data technologies to find knowledge in
high volumes of structured and unstructured data.
Different tools in the context of the wider business environment
In context of wider organisation environment tools for developing retaining and protecting
intellectual property and knowledgeincludes-
Learning management systems- This is a tool that M&S can use as a way to manage employee
training and education process. Learning management system technology to share online training
module and job related education resources and these help teams within organisation to optimise
process and improve their performance (Cantabella and et.al., 2019). This tool is frequently used
to address compliance issues and ensure that employees are aware of new regulations and how
they impact their job.
Knowledge base- This is an online knowledge base that is a searchable directory of content
about products of the company and how they are used. This is mainly used for technical content
that includes how to troubleshoot software air and answer commonly asked questions. This also
enables employees to learn how they can answer customer and how they can provide better
experience to customers about product.

CONCLUSION
On the basis of above discussion it can be concluded that innovation is a very important
factor for continuous growth and success of an organisation. But an organisation cannot innovate
without having adequate supportive elements. This supportive elements are organisational vision
leadership culture and teamwork that not only shape innovation but also commercialization.
There are different types of innovation that an organisation can consider and they are known as
the four P’s of innovation as discussed in the report. Innovation is an Complex and difficult
process in order to customise the process and make it easy organization can utilise innovation
funnel to examine the idea and shape innovation. Report also discussed about frugal innovation
and followed by this commercial funnel and new product development was also discussed in
report. In addition to this report also included a business case foreign organisation and ways to
access funding. But as innovation is not possible without having adequate knowledge and this
also includes intellectual property different tools were also discussed to create retain and protect
them.

REFERENCES
Books and Journals
Akgun, A.E and et.al., 2017. Why companies go positive marketing innovations: a new
theoretical prototype for 4ps of innovation. Journal of Business Economics and
Finance. 6(2). pp.70-77.
Anzola-Román, P and et.al., 2019. Technological proximity and the intensity of collaboration
along the innovation funnel: direct and joint effects on innovative
performance. Journal of knowledge management.
Arfi, W.B., Hikkerova, L. and Sahut, J.M., 2018. External knowledge sources, green innovation
and performance. Technological Forecasting and Social Change. 129. pp.210-220.
Cantabella, M and et.al., 2019. Analysis of student behavior in learning management systems
through a Big Data framework. Future Generation Computer Systems. 90. pp.262-272.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Ebrahim, T.Y., 2018. Data-Centric Technologies: Patent and Copyright Doctrinal
Disruptions. Nova L. Rev.. 43. p.287.
Gandenberger, C., Kroll, H. and Walz, R., 2020. The role of frugal innovation in the global
diffusion of green technologies. International Journal of Technology
Management. 83(1-3). pp.97-113.
Grafström, J. and Lindman, Å., 2017. Invention, innovation and diffusion in the European wind
power sector. Technological Forecasting and Social Change. 114. pp.179-191.
Leliveld, A. and Knorringa, P., 2018. Frugal innovation and development research.
Olaisen, J. and Revang, O., 2017. The dynamics of intellectual property rights for trust,
knowledge sharing and innovation in project teams. International Journal of
Information Management. 37(6). pp.583-589.
Paschen, J., Wilson, M. and Ferreira, J.J., 2020. Collaborative intelligence: How human and
artificial intelligence create value along the B2B sales funnel. Business Horizons.
Powell, W.W., 2017. A sociologist looks at crowds: Innovation or invention?. Strategic
Organization. 15(2). pp.289-297.
Relich, M. and Pawlewski, P., 2018. A case-based reasoning approach to cost estimation of new
product development. Neurocomputing. 272. pp.40-45.

Srisathan, W.A., Ketkaew, C. and Naruetharadhol, P., 2020. The intervention of organizational
sustainability in the effect of organizational culture on open innovation performance: A
case of thai and chinese SMEs. Cogent business & management. 7(1). p.1717408.
Venermo, A., Rantala, J. and Holopainen, T., 2020, July. From Sales Funnel to Customer
Journey. In International Conference on Applied Human Factors and Ergonomics (pp.
200-206). Springer, Cham.
Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining criteria. Journal
of frugal innovation. 2(1). p.1.
Yun, J.J and et.al., 2020. The culture for open innovation dynamics.