Innovation and Commercialisation in Organizations

This report discusses the importance of innovation and commercialisation in organizations. It explains the difference between innovation and invention and how innovation can contribute to the success and sustainability of businesses. It also explores the ways in which organizational vision, leadership, culture, and teamwork can shape innovation and commercialisation. The report further discusses the 4 Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. It also covers developments in frugal innovation and the application of new product development.

INNOVATION
AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explanation of innovation and determine its importance to organisations in comparison
with invention..............................................................................................................................1
P2 Explanation of ways in which organisational vision, leadership, culture and teamwork can
shape innovation and commercialisation.....................................................................................2
LO 2.................................................................................................................................................3
P3 Explanation of 4 Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas...........................................................................................................3
P4 Developments in frugal innovation........................................................................................5
LO 3.................................................................................................................................................6
P5 Commercial funnels and the application of new product development (NDP)......................6
P6 Innovation business case.........................................................................................................7
LO 4.................................................................................................................................................8
P7 Tools that organization can use to develop, retain and protect knowledge............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation includes creative thoughts, new imagination and new ideas so that there is a
new device or product which can be generated. Commercialization is new processes which are
being involved and new products in the market so that there are going to be higher achievement
which is going to be present for competitive advantage.
Unmanned aerial vehicle industry from which F-Drone is a part of which is a very
developing company so that there is going to be higher functioning. Unmanned Aerial Vehicle
market is available in different countries but mostly they cover UK market. This business will be
able to develop effectively especially delivery drones which the organization has come up with.
The satisfaction and delivery mode is going to be higher so that there is going to be effective
functioning and operations that is going to be present.
The following report is going to discuss the innovation and commercialization which is
taking place in organizations so that there are going to be higher achievement. There are a lot of
ideas which F-Drone has come up with and for that there has to be good methods, thinking and
processing which would be required in order to make sure that there are effective working that is
present and is beneficial for the organization.
LO 1
P1 Explanation of innovation and determine its importance to organisations in comparison with
invention.
Innovation can be explained as a kind of action or process through which creation,
development and implementation of a new product, process, service of an organization (Amabile
and Pratt, 2016). Innovation is one of the most important factors that every business needs to
focus upon for development of new ideas through which innovative or new products and services
can be done. It can further help companies like F-drones to attract a greater number of customers
and for gaining competitive advantage as well as sustainability. Using innovations companies
can bring improvement within their existing products and services as per the changing needs and
demand of customers or for making their lives easier. This further helps companies in enhancing
overall satisfaction level and loyalty of their customers towards organization. There are majorly
two most important type of innovation that can be done by an organization: evolutionary and
revolutionary. Evolutionary innovation is a kind of innovation that focuses upon bring some kind
of important changes or development within existing products and services of organization. It
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comes under continuous innovation category which is extremely important for organizations to
be focused upon in order to retain their existing customers by bringing changes or development
within existing products and services as per changing demand of customers (Pons, Ramos and
Ramos, 2016). For technical organizations like F-drone it is important to focus upon
evolutionary innovation in order to sustain within the market and compete with their existing
competitors. F-drone focuses upon implementing evolutionary innovation so that they can make
placement of orders and receiving of orders much easier. Revolutionary innovation is another
type of innovation. It is a disruptive type of innovation that help organization to develop
something new for customers but with this innovation there are various kinds of risk associated
and can bring success as well as failure to organization.
Innovation is different from invention because invention is about creating something new
for the first time and can be success and failure. But innovation is done to retail customers,
attract a greater number of customers and for achievement of main goals and objectives in an
accurate manner. innovation is much more important for companies like F-drone as compared to
invention because it will not only help them to fulfil their customers’ needs and requirement but
will also help them in contributing in a positive manner towards environment by developing
drone for deliveries that emit zero percent carbon emission.
P2 Explanation of ways in which organisational vision, leadership, culture and teamwork can
shape innovation and commercialisation
There are many different kinds of factors that can help in shaping innovation and
commercialization that can further help in achievement of success (Hon and Lui, 2016). These
factors are organizational leadership, vision, culture and leadership. All of these factors
contribute in different manner and can help in shaping innovation within organization.
Organizational vision is one of the most important factors that can help customers in
understanding what organization wants to become in future. It further helps employees of a
company to understand what organization expects from them and what contribution they have to
give in order to achieve their vision. It further helps organizations like F-drone to shape
innovation and commercialization within their business.
Team work can also help in shaping innovation and commercialization by influencing
overall performance of employees. It can help in encouraging employees so that they can put
more efforts to think of innovative ideas and bring changes within their existing products and
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services. Team work is efforts based on collaborative of team to accomplish common business
goals and objectives, also to complete a business project in most effectual or efficient manner.
This model is seen in best structure of group, which is a team of interdependent individuals who
perform business task together towards common organisational goals. In team work will be done
in more efficient manner, teams and its members can monitor their self performance in work, in
team innovate become more faster, team members learn from each other and other advantages. In
team work members can solve difficult problems and perform activities towards final goals.
Leadership help employees to get motivated, put more efforts within their overall
performance, participate in innovating thinking, developing new ideas so that changing needs
and demands of customers can be fulfilled (Cano-Kollmann, Hannigan and Mudambi, 2018). F-
Drone have an effective leadership which has helped them in successfully developing heavy
payload and long-range capabilities drone for logistics. Leadership is important in each area of
management such as; leaders are initiates actions by communicating the plans and policies to
subordinates from where they need to start work. Leaders encourage and motivate to the team
members by giving them rewards and some extra facilities so that team members can perform in
better manner. Leaders provide guidance related to business task to subordinates. They create
confidence level in team members and build morale. They coordinate with each members so that
they can work together and create a positive working environment at workplace. Effective
leadership has also helped them in achieving desired objectives in timely manner and will further
help them in achieving their final objective of completing development of Hyper launch heavy
drones for delivery of 100 Kg over 100 Km with zero CO2 emission.
Lastly culture also plays a vital role in shaping innovation within company and can help in
shaping both innovation and commercialization. Positive culture can help in motivating and
encouraging employees so that they can work on innovative ideas for development of innovative
products and services for success and future development of organization.
LO 2
P3 Explanation of 4 Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
4 Ps of innovation are:
 Paradigm: it focuses upon bringing changes within ways in which operations or things
are done within organization in order to bring positive improvement within business.
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 Product: it focuses upon bringing innovative changes within existing product in order to
bring improvement within product as per changing needs and demands of customers
(Akgun and et.al., 2017). For example: F-drone is continuously focusing upon bringing
innovative changes within their drone so that it can deliver more weighted products for
much longer distance.
 Process: It focus upon ways in which changes within current process of organization can
be brought in order to increase operability, profitability or accuracy of current and
existing process. Position: it majorly focuses upon context within which a product or a service is framed.
Use of innovation funnel for shaping innovative ideas
Innovation funnel is a kind of mechanism that helps in screening stream of ideas which is
viable and can be implemented for development of innovative product or service. It enables the
business ideas to be measured for viability via procedures of rules, gates and filters. Key
business objective is to getting maximum number of ideas relevant to present business condition
to enables the new growth. Innovative idea can be shape in three main steps, these are:
Figure 1 Innovation funnel
 Idea: in this step maximum ideas are collected so that maximum number of solutions
though which development of innovative products and services can be done (Anzola-
Román and et.al., 2019).
 Criteria: in this stage some main criteria are set on the basis of which appropriate
solution is selected. F-drones has already set some criteria on the basis of which they can
focusing upon developing drone that can carry 100 Kg of weight to 100 Kms with zero
carbon dioxide emission.
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 Testing: this is the last stage in which selected idea is tested so that its appropriateness
can be tested and it can be worked upon or development of new innovative product or
service.
P4 Developments in frugal innovation
The cost and complexity of nature of the products must be well maintained so that there
are going to be higher productivity and operations of the raw material. The processes which are
not useful is analysed and eliminated from the working and takes place in goods like car and
phone. F-Drone is coming up with a unique product therefore pricing the product according to
the customers or the business class is very important so that capturing the audience is not going
to be a huge task (Nepelski, Van Roy and Pesole, 2019). Customers are shopping online and F-
Drone's will be helpful to make sure that the customers are getting their good and services
quickly which would be a great factor for the overall working. Technology takes in a lot of
pricing aspect which needs to be monitored and controlled so that there is effective working that
is going to be present. It is important to remove the unnecessary parts which are included and
that is going to be a cost friendly measure as well. The best example for frugal innovation is
Mercedes which introduced trucks in the market but had to sell its shares to Tata since they did
not use frugal innovation and Tata motors used this theory to make sure that they would be able
to make a profit out of this aspect which is going to be a great factor and the business flourished
further. It is also basically make changes in strategy of development to make with less. This is in
the line with reducing the consumption and because of less business resources will be utilize in
production chain. Development based on smart move or consumption will be continue. So that
an economy keeps performing business task. It motivates the investment at right place with zero
wastage.
F-Drone needs to understand the needs and demands of the customers so that there is
going to be higher functioning and operations which is going to be present. A lot of technology is
being used in F-Drone to be able to operate effectively and also make sure that the employees are
motivated enough so that there are going to be higher outcomes (Milan and et.al., 2020). There
are a lot of ideas which have generated in F-Drone which is going to make the delivery
processing in the organization be better which would be a great factor for the overall
development. The satisfaction level of the customers is going to increase and F-Drone has come
up with a unique factor for the business to be able to operate effectively in the market as well.
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The purchasing power for F-Drone is high and this is going to add a lot of value to the portfolio
of the organization as well which is good for the competitive advantage for a long run in the
market.
LO 3
P5 Commercial funnels and the application of new product development (NDP)
Commercial funnel is a method which includes four stages which are awareness, interest,
decision and action. This model is going to help in making sure that there are effective actions
which are taking place. The stages can be applied as awareness is when the company has all the
data which is going to make the operations be higher, interest is that taking considerations of the
internal and external factors into consideration (Anawar and Strezov, 2019). Decision, after
understanding and being aware of the factors influencing the organization then there are
decisions which can be made and then comes the action which is implementing the decisions.
Importance of Commercial Funnel
 Ways to be improved for the business to grow and develop
To be able to find successful path in the market businesses in the market have to keep
changing their models and theories from time to time since there is no perfect model or path for
any organization present in the market. Methods and theories have to be moulded and success is
not going to come in overnight which the business must understand. Customers shift from one
company to another because of price and quality of the products therefore it is important for the
organization to make sure that this factor is well analysed and implemented.
 Create sales
Use of different techniques and strategies is applied in F-Drone which is a very good
factor for the company to have so that there is going to be higher operations. Commercial funnel
is one model which is implemented by F-Drone very effectively and that is a good factor for the
company to have for a long run (Dezi and et.al., 2018). Desires and expectations of the
customers is going to be fulfilled and the benefit is going to be there for the company for a
smooth functioning.
Boundary against the firm in new market
Reputation and brand image of F-Drone is high in the market and any kind of lacking in
direction is not going to be good for the overall development and processing of the company.
Using the funnel method is going to be very helpful for the overall functioning and operations of
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the organization so that the ideas can be used in practicality which is going to be beneficial for
the business in market. Use of right technique to make the ideas be implemented is essential so
that there is going to be higher achievements.
 Assist in associate to customers
F-Drone is operating in different languages and easier methods which are being used so
that there are more customers and employees which are going to be aware of this factor. To be
able to penetrate in the market effectively there are a lot of methods which have to be used and
this is a very effective measure which F-Drone has taken. Demands and needs are going to be
fulfilled faster.
 Picking a market strategy for the organization
To be able to give a direction to the company in the market there are a lot of strategies
and funnel technique is focused upon by F-Drone so that they would be able to gain competitive
advantage (Pustovrh and et.al., 2017). It is because of the unique identity of the company there
are not many competitors who would want to take away the customers from F-Drone and there
will be a strong base which the organization will be able to have in market.
P6 Innovation business case
SWOT of F-Drone
 Strengths
F-Drone is going to have a strong brand image because of the unique feature and working
and also because of the quality. Innovation and invention is making the company get a
competitive advantage in the market as well. Large organizations will want to purchase these
drones to be able to satisfy customers and make the delivery faster.
 Weaknesses
The soft wares and use of technological aspect is going to make the processing and
operations in the market be limited which is not a good factor for the portfolio of the
organization. Dependency nature is not going to make the standards of the company be higher
and satisfaction of the customers is going to be limited.
 Opportunities
To be able to gain competitive advantage in the market there are innovations and
inventions which F-Drone are doing. Delivery is going to be faster and long distance delivery is
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going to be present with irrespective of the traffic which is present (Cinar and Benneworth,
2020). Idea is going to be encouraged by large organizations since there can be heavy good as
well which can be delivered on time and is going to be good for the brand image in market.
 Threat
Large businesses and other businesses will try to get in competitive with F-Drone which
is going to create a lot of restrictions. Legal restrictions and allowance from the government is
going to take time which is going to be bad for the higher reputation which would be present.
4 P’s of F-Drone
 Price
F-Drone will be using premium pricing strategy to enter the market since the product is
going to be in demand and customers will have to purchase irrespective of the price. This is a
great factor for the company and good opportunity as well.
 Product
The product is going to make the online industries have a higher profit since F-Drone is
going to make sure that customers are getting their products faster and there is going to be good
growth as well (Ardito, 2018). Heavy weights can not be lifted by drones but by F-Drone there is
going to be higher operations which are going to take place.
 Place
Online market is going to be focused upon by F-Drone so that there are good profits
which the company will be able to have. Physical stores is not going to be helpful but to gain the
trust of the customers this is also an important aspect therefore there are going to be limited
stores which F-Drone will invest within.
 Promotions
There is not going to be a lot of investment which F-Drone will have to make in
promotions since this is a unique factor and is going to capture market effectively and faster.
Still, televisions, radios, etc methods which are traditional methods will be used to attract more
customers.
LO 4
P7 Tools that organization can use to develop, retain and protect knowledge
Copyright of F-Drone
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F-Drone is going to have rights of copyrights for websites, content and database so that
the company will be able to make sure that other businesses are not being able to make a place in
the market like them. Images, icons, posts, transmits, broadcast, reproduce, etc. have to be done
strictly by the company so that there is going to be higher functioning (Planko and et.al., 2017).
Reputation of the company is also going to be maintained and permissions will have to be taken
by the organization so that there is higher agreement which the company will have to provide
others.
Trademark of F-Drone
To make sure that F-Drone is having the right unique nature in the market F-Drone will
have to take the trademarks effectively so that there is going to be higher outcomes
(Mazurkiewicz, 2018). Services which F-Drone is providing are very effective and in demand
therefore to make sure that they are the leading in this industry is a very essential factor for the
company to have to increase loyalty.
Patent of F-Drone
E-Drone has taken the right measures to be able to protect the products and services of
the organization so that the competitors will not be able to copy them. There are 35,000 drone
patents which are present and have been taken by F-Drone which is a great factor for a long run
in market.
CONCLUSION
From the above report it can be concluded that there must be good innovation and
invention level in the organization so that there is going to be higher achievement and processing
which would be present. Customers shift very easily and this factor must be controlled so that
there is going to be better brand image and reputation which the company would have in the
market. There are a lot of methods and techniques which can be used by businesses in order to be
able to make sure that the competitive advantage is going to be higher.
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REFERENCES
Books and Journals
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theoretical prototype for 4ps of innovation. Journal of Business Economics and
Finance. 6(2). pp.70-77.
Amabile, T.M. and Pratt, M.G., 2016. The dynamic componential model of creativity and
innovation in organizations: Making progress, making meaning. Research in organizational
behavior. 36. pp.157-183.
Anawar, H.M. and Strezov, V. eds., 2019. Sustainable and Economic Waste Management:
Resource Recovery Techniques. CRC Press.
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.
Ardito, L., 2018. Markets for university inventions: the role of patents' underlying knowledge in
university-to-industry technology commercialisation. International Journal of Technology
Management. 78(1-2). pp.9-27.
Cano-Kollmann, M., Hannigan, T.J. and Mudambi, R., 2018. Global innovation networks–
organizations and people. Journal of International Management. 24(2). pp.87-92.
Cinar, R. and Benneworth, P., 2020. Why do universities have little systemic impact with social
innovation? An institutional logics perspective. Growth and Change.
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on firms' innovation commercialisation. International Journal of Technology
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Hon, A.H. and Lui, S.S., 2016. Employee creativity and innovation in organizations: Review,
integration, and future directions for hospitality research. International Journal of
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encountered by R&D organisations. Journal of Machine Construction and Maintenance-
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Milan, E and et.al., 2020. Exploring the impact of organisational, technological and relational
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Nepelski, D., Van Roy, V. and Pesole, A., 2019. The organisational and geographic diversity and
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Planko, J., and et.al., 2017. Combining the technological innovation systems framework with the
entrepreneurs’ perspective on innovation. Technology Analysis & Strategic
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Pons, F.J., Ramos, J. and Ramos, A., 2016. Antecedent variables of innovation behaviors in
organizations: Differences between men and women. European Review of Applied
Psychology. 66(3). pp.117-126.
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