Assessing Innovation Commercialization Strategies

This assignment examines the process of bringing new technologies to market. Students analyze different commercialization strategies by reviewing a set of scholarly articles and applying them to real-world scenarios. The focus is on understanding the factors influencing successful technology adoption and commercial success.

Innovation and
Commercialisation Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explanation of innovation and its importance and comparison with invention.....................1
P2 Organisational vision, leadership, team work and culture can shape innovation and
commercialisation.......................................................................................................................2
M1 Different sources of innovation............................................................................................3
D1 Examination of scope, development and growth of entrepreneurial venture........................3
P3 Explanation of 4Ps of innovation...........................................................................................4
P4 Developments in frugal innovation and their use..................................................................5
M2 Application of innovation funnel in an organisation............................................................6
M3 evaluation of frugal innovation.............................................................................................6
D2 Impact of small business on different level of the economy.................................................7
TASK 2............................................................................................................................................7
P5 Covered under PPT................................................................................................................7
P6 Covered under PPT................................................................................................................7
M4 Covered under PPT...............................................................................................................7
P7 Covered under PPT................................................................................................................7
M5 Covered under PPT...............................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation can be described as a new idea which is used by various organisations to find
solutions to meet their requirements such as profit maximisations and customers attractions. It is
an activity that includes the creations of new things that may help to run a business smoothly.
Commercialisation is the process of launching a new product or an innovative manufacturing
method in the market in order to gather funds to run the business (Budzianowski, 2016). It is also
known as new product development and includes various activities like sales promotions,
advertising and other marketing efforts to acquire higher market share. Company chosen for this
report is Sainsbury’s which is a chain of supermarket and operating business in UK.
This assignment covers various topics such as difference between innovation and
invention, importance of innovation for an organisation, 4Ps of innovations application of
different approaches like innovation funnel and frugal. Problems of an organisation, new product
development, solutions for the problems with the help of commercial funnel, tools and
techniques for testing effectiveness of the new product and the way in which the organisation can
protect intellectual property of new product.
TASK 1
P1 Explanation of innovation and its importance and comparison with invention
Innovation: It can be defined as new ideas that are introduced and implemented by the
managers or directors of the companies in order to achieve business goals. It includes all the
elements that are required while applying new and innovative things in the management of the
company or new product so that the organisation may attain higher level of profits. It is very
important for an organisation to introduce new and innovative products or services so that profit
can be maximised (Jacobsson, 2013).
Invention: It can be defined as an idea of a new thing which haven’t yet introduced in
the market. It is totally a new concept in which a new idea is implemented by the organisation to
grab attentions of their prospect customers. It requires technical knowledge to form an
extraordinary invention that may help to reach all the predetermined goals of a company.
Difference between innovation and invention:
Innovation Invention
It can be defined as the idea which is used to It is the creation and introduction of an idea
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modify a present product or service. for the first time.
It requires professional skills to formulate an
innovative idea.
Technical and scientific skills are required to
introduce an invention in the market.
Innovation help to find solutions for the
current problems that are faced by an
organisation.
It helps to offer a new product to the
customers to grab their attention.
Main objective of innovation is to launch a
modified product in the market to satisfy the
customers.
Objective of invention is to introduce a new
product in the market that may facilitate the
individuals.
It is something new which is uniquely useful
for the consumers.
It is something that have potential value
through the utilities and features.
It is very important for an organisation it is
willing to acquire higher market share with
the help of existing products by modifying
them.
It is essential for the organisation while
managers want to attract potential and retain
existing customers with the help of a complete
new product (Hsieh, 2013).
As Sainsbury’s is a supermarket chain and it can attract more and more customers with
the help of innovative products and a new invention that may help to acquire more market share.
Both the elements also help to attain long term sustainability for the future period (Dereli and
Altun, 2013).
P2 Organisational vision, leadership, team work and culture can shape innovation and
commercialisation
Innovation and commercialisation is very important for the organisation to launch
modified products in the market so that higher market share can be acquired. Organisational
vision, leadership, team work and culture can shape the process of innovation and
commercialisation. It can be understood with the help of following points:
Organisational vision: It is the view of future place where the organisation is willing to
be. Vision of Sainsbury’s is to be the most trusted retailer and first choice of employees and
customers where they love to work or shop (Walsh, 2012). The company is willing to set a
positive image in the minds and hearts of customers in order to expand the business. The vision
may help the organisation for the innovation in business by modifying existing product or
services. Sainsbury’s can modify the way of providing services or make any innovations in the
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product line that are supplied by the organisation. If the company is having clear vision than it
may help make innovations to reach to the same. As Sainsbury’s is willing to be the most
preferable supermarket by customers, for this purpose the owner of the organisation have to
modify the current products and services so that it may grab attention (Cho and Lee, 2013).
Vision of Sainsbury's: Vision of the organisation is to be on the top of the supermarkets
in world and increase its profits by 10% in upcoming two years by increasing its market share.
Leadership: if the leaders of the organisation are very cooperative with the subordinates
that it may help them to motivate and work harder to attain predetermined goals. In Sainsbury’s
the leaders are following transformational leadership style in which they take valuable opinions
from staff members and involve them in decision making. As workers directly communicate with
the customers hence they have more information about them. Leaders take advice of them to
make any innovation and to attain a success with the help of the same. It helps to shape the
innovation in an effective manner. As transformational leadership is followed in Sainsbury's in
which changes in individuals and social system is being done. It results in positive and favorable
changes in the subordinates with the end objective of developing them into leaders.
Team work: Success of a business project depends upon the team work of employees
who are responsible to produce the goods and supply services. If Sainsbury’s is willing to
introduce an innovative product in the market than it is very important to enhance team work at
workplace this may help to get the success in all the fields. If there is no team work than it is not
possible to get success.
Organizational culture: It refers to the behaviors of managers in which they treat all of
their employees. If the managers are showing good and cooperative behaviors than it will help
the staff members to be motivated and work hard. In Sainsbury’s managers are showing less
power to the employees that helps them to perform their duties more effectively and efficiently
(Datta, Mukherjee and Jessup, 2015). It also helps to increase work quality of the employees as
the leaders and managers in the company are not autocratic. In such type of culture the
motivation level of workers remain high.
M1 Different sources of innovation
There are various sources of innovations that may be used by the managers of
Sainsbury’s to introduce a modified product in the market. Different sources of innovation such
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as grab the unexpected opportunities, change according to market structure, change in the
perception of people etc.
 Unexpected opportunity: - Organisation have to ready with plan, if they find any
opportunity then try to grab it no matter how. Because there are very few chances to
identify the opportunities.
 Market structure: - Sainsbury's company need to know about what is the structure of
market regarding their products.
 Changes in perception: - There is requirement of research because customer's
perception will change according to trend and market demand.
These sources are new knowledge, changes in perception of customers and
demographics. If needs and demands of the customers changes with the time than organisation
have to make modifications according to the perception of them so that they can be retained by
the company. The organisation can develop an innovative environment at workplace and culture
with the help of effective plans and strategies. It will also help the organisation to lead toward
success.
D1 Examination of scope, development and growth of entrepreneurial venture
Entrepreneurial ventures can get higher level of growth by launching new and innovative
products in the market. Development of a business depends upon the work quality of employees
who contributes in the productivity and profitability of the organisation. In Sainsbury’s
development and growth can be achieved with the help of the new and innovative products and
services that may grab attention of prospect customers. If the organisation is operating business
at national or international level than it is very important to retain customers so that business can
be expanded world-wide. Managers and employees of the organisation are liable to formulate
innovative strategies so that higher level of success can be ascertained.
P3 Explanation of 4Ps of innovation
4Ps or innovation mix is introduced and developed by John Bessant and Joe Tidd. It can
help the managers to find the ways in which innovation process can be improved and
organisation can get a higher level of success and long-term sustainability (4Ps of innovation,
2015). It includes paradigm, product, position and process that are used while introducing new
and innovative product. Sainsbury’s can also use these tools while launching modified products
or services that may help to increase profitability. All of them are explained below:
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 Paradigm: It is the first stage of product innovation process in which it is analysed that
organisation is formulation proper strategies so that all the objectives can be attained. If
Sainsbury’s is willing to modify the product or service than it should change the business
model so that the organisation can launch the new product successfully (Abebe and et.
al., 2013).
 Product: It refers to the element in which an innovation in made in the product according
to the demand of customers so that it can satisfy the needs of them. If Sainsbury’s is
willing to acquire more market share than it very important to analyse that what
customers are thinking to buy and then the managers have to make effective strategies to
grab their attention.
 Process: It includes the steps of manufacturing as well as other activities that are
performed while introducing modified product in the market. Supply, hiring employees,
their training and work flow are also part of this step. It is very important for Sainsbury’s
to use effective processes while thinking to introduce innovative product in the maret.
 Position: It can also be defined as the promotion element in marketing mix which is done
to aware customers about the product which has been introduced by the organisation. In
Sainsbury’s firstly the managers have to find out that where the product is going to be
launched first and in which segment it will be introduced (Qian and Haynes, 2014). It is
very important to select right market segment so that large number of customers get
attracted toward the new product or service.
All the above mentioned points can help the organisation to attain higher level growth
and development that may help to establish a successful business. They also guide the managers
to make right and effective decisions in favour of the company (Thore, 2012). It is suggested to
the company that it should adopt the product development as it can help to grab attention of the
customers and to acquire higher market share by offering different varieties in one product.
Innovation Funnel: Innovation funnel means, identify the main aim of product or
project development process which transfer the idea into reality. Convert their products
according to customer and market requirement which helps to meet with manufacturing and
economical need. It includes three different elements such as investigation, development and
shipping products. These are the three steps that are followed by an organisation before
launching a product in the market.
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Investigation: First step is research in which information of customer’s preference is
gathered and then effective steps are taken to launch a new product.
Development: Next step is development in which modifications are made according to
customer’s needs and demand.
Shipping: Last step is shipping in which products are sent to different branches of the
company for sale. It helps to shape innovative ideas as it facilitates the managers to make right
decisions regarding the innovation process (Datta, Reed and Jessup, 2013). For example
innovation funnel can be used by Sainsbury's to conduct a market research and then make
products according to the requirements of the customers and at the end there are delivered to the
clients. The main purpose of it is to acquire more market share so that profits can be maximised.
P4 Developments in frugal innovation and their use
Frugal innovation is the process of reducing costs and complexity of products and
services in development and production. By frugal innovation, production and transportation
charges can be leveraged in new ways which will reduce the costs and the product will perform
well. Development of frugal innovation is very essential in this rapidly changing world due to the
customers ever changing need of change. It is necessary for each business to use frugal
innovations due to its effectiveness in meeting the demands and needs of organisation in the
market.
Example- SainsBury can adopt strategies for new products and services using frugal
innovations based on the demands of customers, which will result in a better product and
services attracting more customers. Company can reduce their expenditure with better
development of product which will bring better opportunities for the company in gaining more
market share. Better products and services helps in attracting and retaining the customers which
will improve the productivity of organisation (Kilelu, Klerkx and Leeuwis, 2014). Sainsbury's
company reduces assencial features from their products which reduce the cost of product and
increase the production. Sell their products in the devlpoing countries because they have huge
market demand.
Innovation funnel- It is described as the steps which should be taken for the
development of a product or a process from idea to reality in order to meet the demand of the
market. Innovation funnel will help the Sainsbury in deciding the steps and measures which need
to taken for the successful implemetation of strategies required for the development of new
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products and services. In the Sainsbury's organisation, market share of the firm was decreasing
countinously it is a big problem for the company. For example, Sainsbury's has decided for the
innovation in which it will offer online order and delivery services to the customers. It will help
the company to overcome from the problem of reduction in market share. It involves 3 stages
described below:
 First stage includes the strengthening of knowledge and skills of Sainsbury's in collecting
the ideas. More ideas results in development of more products. For meeting the
objectives, Sainsbury's should have clear understanding of the aim. Deep insight on
consumers, Markets and consumers demand is required for successful implementation of
ideas (Grimm and Jaenicke, 2012). Sainsbury need to collect all the relevent information
regarding their onlline delivery. Which will help it to sort out the problems. If consumers
prefer the online option than company proceed forther. It will helpful for increasing
market share of the organisation.
 In second stage Sainsbury's requires to screen the innovative ideas. This process requires
to match the ideas that are chosen by the organisation with the goals to see the
interrelation between them. After that assessment of these idea is done in order to findout
the returns and risks involved. If online delivery option provide more return in
conpoarision to offline than company will go futher for the development of this idea.
Provide a good return in comparision to acceptable risk than sainsbury execute this plan.
It will able to balancing market share price.
 In this last stage, Sainsbury's ensures that the selected ideas are matching the company's
objectives that are formulated during the establishment of it. After this, the new product
and services were introduced to the market. After all the market analysis and the reaserch
if result is come in the positive form than sainsbury will follow this plan. If this idea is
sauitable and increase the demand of the product. Than organiosation surely execute this
which can increase the market share of the company.
M2 Application of innovation funnel in an organisation
Innovation funnel helps the Sainsbury's company to choosing the appropriate idea from a
pool of ideas in order to bring a improved product in the market for the increasing demands of
market. Sainsbury's need to ensures that the developed product is up-to the expected level of
consumers and developers and it is meeting the organisational goals. Before making any product
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Sainsbury's need to identify the customers requirement and the demand of any specific product
in the market. In case the product is not meeting the requirements, the company uses the
feedbacks and recommendations of specialists obtained from beta version of the product. After
accepting all the modification Sainsbury's again introduce the product in the developing market.
M3 evaluation of frugal innovation
Frugal innovations help a organisation in building a new and improved quality product
for meeting the requirements of consumers. Advantages of the organisation is to saves expenses
and resources by building such type of innovative products which will enhance the productivity
and customer base of the company. Such innovations are likely to attract more customers as well
as help in retaining old customers. Organisations should adopt such practices in order to improve
their market share and in getting an upper edge over the other competitors. There is also
disadvantage of the frugal innovation in the Sainsbury's company. Such as lack of traditional
resources which is not easily available in the market. Lack of political power, dependency of
work on the other activities. It provide difficulties to identify the correct prospective.
D2 Impact of small business on different level of the economy
Small business directly affects the economy at regional and local levels by providing
employment to local individuals who won't get employed by larger organisations. Beacause the
requirement of big company is not fulfil by the every individual. They want highly qualified
person for any profil. By providing job opportunities and promoting economical growth, small
firms help in eradicating poverty. Small business tend to move higher from regional to state level
by providing adequate services and products in meeting the market requirement. By increasing
their customer base and market share, firms moves higher from state to national level.
Performance of these firms is crtically associated with economy growth. Every small business
start their production at the local level. Firstly they provide employement in their local area. So
that area will be developed and after this they move further for change in state level economy.
Small organisation have huge growth if they find the right path and it will grow from state to the
national level.
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TASK 2
P5 Covered under PPT
P6 Covered under PPT
M4 Covered under PPT
P7 Covered under PPT
M5 Covered under PPT
CONCLUSION
From the above project report it has been concluded that an organisation have to make
effective plans while launching a new or innovative product in the market. If the company is
following the appropriate procedure of new product development than it may help to acquire
higher market share as it help to attract prospect customers and retain existing customers.
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REFERENCES
Books and Journals:
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Jacobsson, S., Lindholm-Dahlstrand, Å. and Elg, L., 2013. Is the commercialization of European
academic R&D weak?—A critical assessment of a dominant belief and associated
policy responses. Research Policy. 42(4). pp.874-885.
Hsieh, C. H., 2013. Patent value assessment and commercialization strategy. Technological
Forecasting and Social Change. 80(2). pp.307-319.
Dereli, T. and Altun, K., 2013. A novel approach for assessment of candidate technologies with
respect to their innovation potentials: Quick innovation intelligence process. Expert
Systems with Application. 40(3). pp.881-891.
Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Cho, J. and Lee, J., 2013. Development of a new technology product evaluation model for
assessing commercialization opportunities using Delphi method and fuzzy AHP
approach. Expert Systems with Applications. 40(13). pp.5314-5330.
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&D Management. 45(3).
pp.215-249.
Abebe, G. K. and et. al., 2013. Adoption of improved potato varieties in Ethiopia: The role of
agricultural knowledge and innovation system and smallholder farmers’ quality
assessment. Agricultural Systems. 122. pp.22-32.
Qian, H. and Haynes, K. E., 2014. Beyond innovation: the Small Business Innovation Research
program as entrepreneurship policy. The Journal of Technology Transfer. 39(4). pp.524-
543.
Thore, S. A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
Datta, A., Reed, R. and Jessup, L., 2013. Commercialization of innovations: an overarching
framework and research agenda. American Journal of Business. 28(2). pp.147-191.
Kilelu, C. W., Klerkx, L. and Leeuwis, C., 2014. How dynamics of learning are linked to
innovation support services: insights from a smallholder commercialization project in
Kenya. The Journal of Agricultural Education and Extension. 20(2). pp.213-232.
Grimm, H. M. and Jaenicke, J., 2012. What drives patenting and commerzialisation activity at
East German universities? The role of new public policy, institutional environment and
individual prior knowledge. The Journal of Technology Transfer. 37(4). pp.454-477.
Online
4Ps of innovation. 2015. [Online]. Available through:
< https://egyptinnovate.com/en/innovation-tool/4ps-exploring-innovation-space>
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