Innovation and commercialisation in organisations

INNOVATION AND COMMERCIALISATION INTRODUCTION 3 TASK 13 P1 Innovation and its importance to organisations with invention 3 P2 Vision leadership, culture and team work can shape innovation and commercialisation4 TASK 26 P3 INTRODUCTION 4P's of Innovation and use of the innovation funnel6 P4 Development in frugal innovation (FI) 7 TASK 38 P5 Importance of commercial funnel and application ofnewproduct development processing innovations8 P6 Innovation Business case for Ensoft ltd.

INNOVATION
AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Innovation and its importance to organisations with invention.............................................3
P2 Vision leadership, culture and team work can shape innovation and commercialisation......4
TASK 2............................................................................................................................................6
P3 4P's of Innovation and use of the innovation funnel..............................................................6
P4 Development in frugal innovation (FI)..................................................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and application of new product development processings
.....................................................................................................................................................8
P6 Innovation Business case for Ensoft ltd. For accessing funds...............................................9
TASK 4 .........................................................................................................................................10
P7 Different tools to protect, develop and retain intellectual property and knowledge............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is an important aspect of any organisation which focus on crating a healthy
environment so that their customers are increased. Whereas, commercialisation provide
assistance to management by introducing new product and a new method in the existing product.
In other words, Innovation and commercialisation provide help to organisation in developing a
new product with new idea. It also increases the number of customers in market and provide
sustainability to firm. The taken organisation for this assignment is Ensoft Ltd. which is a small
medium scale company in UK and deals in Networking softwares. This report covers leadership
team work and vision of the firm at the time of innovation in the marketplace.
TASK 1
P1 Innovation and its importance to organisations with invention
Innovation is defined as a procedure in which a new idea, method or device are
developing. Furthermore, changes makes the goods or services different for getting satisfaction
from the customers in order to achieve the predetermined targets in limited time period.
Inventions are done for meet the requirement of customers and it gave profitability and growth to
the firm. In context of small scale industries it provide assistance in identifying their market
share and improves the company's position in marketplace. For this, conception is an essential
part because it provide aid in developing new methods and techniques at market. Modifying the
existing product and developing a new concept is essential for achieving customer's attraction in
market. It can be possible through the help of Innovation because it improves effeciency and
develop skills of the employees in the organisation. Whereas, it provide additional value in the
existing product or in a new product for getting customer's attraction towards products. It assists
management for making a better quality product so that, they will easily meet the requirement of
customers. Ensoft is a software company who deals in networking software. There are various
innovations which can be adopt by Ensoft for increasing their market share and satisfaction of
the customers (Kosuhina, 2015). In the context of Ensoft, their team innovated a software '
Location tracker' which helps the security forces to find out the lost child. With the help of this,
the lost child will be tracked in a short time period and the criminals will be get penalties. The
main objective behind this innovation is to provide support to the armed forces. The staff
members of ensoft are working on project management along with designing, coding and testing

for developing innovative software through which their brand image is building. In invention, the
employees of Ensoft are working on launching 'Location tracker' which provide assistance to the
security forces in finding the lost child.
Importance of Innovation which is given as under
 Every organisation requires innovation for adopting new ideas and methods
 It provides growth and sustainability to firm which makes the brand image of
organisation.
 Innovation provide assistance to organisation in developing new methods of technology.
 It provide assistance to management in maintaining the competitive advantage in the
marketplace.
 Innovation is defined as adopting new tools and techniques due to which company can
achieve their preset objectives in limited time period
 In present scenario, there are various customers who have different perceptions so,
company has to implement best features in their products for meeting the requirements of
such type customers (Chen, 2012).
Difference between innovation and invention
Innovation Invention
It is a determination of new ideas for making
advancement in products and production
functions.
It is defined as a founding of new tools and
techniques which is implemented by the
organisation at first time and they are never
used it in before.
It is necessary for providing value in the
existing products and services.
It helps in making new products in the
organisation which helps in increasing number
of customers.
This activity is related with existing products
and services that are offered to customers so,
for this, firm has no need to hiring new
employees.
For this, firm have to recruit new
knowledgeable employees so that, they can
develop a new product or services.
As per the differences between innovation and invention it has analysed both factors are
important and essential for the firm. Both have their own importance. Ensoft has to consider the

both factors for getting satisfaction from the customers which provide supports to them in getting
sustainability and growth in marketplace.
P2 Vision leadership, culture and team work can shape innovation and commercialisation
Improvement in the existing product or developing a new product are the most impartant
factor, which provides help to management in expansion of their business. So, development is
the aid which can be used by organisation in creating new product with providing satisfaction to
the customers. Ensoft is a small scale industry in the market who wants to improvements in their
products it can be possible by analysing the needs of customers. In other hand,
commercialisation is an important process by which organisation can generate new ideas for
improvement in the existing products. It also helps to organisation in getting profitability at
marketplace. Innovation and commercialisation can be adopt through focusing on such factors
which are as under:
Vision – Innovation is based on the need of inside workplace visions are the preset
guidelines of a firm which have to followed by the management for getting success and growth
in future time. It gave right direction to management for performing functions in the firm at
effective manner. Every organisation wants sustainability and growth in the marketplace. There
are various organisation and they have different vision and mission. It is a statement by which
organisation can describe the roles and responsibilities to their employees along with their tasks.
Higher authorities and management are involved in decision making process at Ensoft. Vision
provide assistance to management in achievement of desired goals at limited time period. All the
functions and operational activities of the firm are depends on vision and mission. Through this,
organisation can build their huge marketpresence in the customer's mind (Vanhaverbeke, 2014).
Culture – This factor influences on the process of commercialisation and innovation.
Ensoft is a small scale organisation who provides networking software to their customers.
Company has a good atmosphere which provides opportunities and strengths to employees.
Therefore, they can utilize their resources in effective manner. culture gave a significant
assistance in modifying the existing products. Employees can do their tasks as per their ability.
Through culture their loyalty will be increased therefore they gave their maximum efforts in
completing their task. There are two types of organisational culture which are briefly explained
as under:

Clan culture – In this type of culture, the staff members are working in the workplace like a
family so that, the staff members are aware about the goals and objectives of firm and it is the
most suitable culture which removes partiality and ineffectiveness from the employees.
Adhocracy culture- it is a kind of formal structure in which the managers play their nature as
adaptive and flexible behaviour as per the situations arise in the workplace. Therefore, this
structure is uses in the big organisation where a large number of employees providing their
services.
Management of Ensoft has uses clan culture in their workplace as they are performing
their functions on a small level due to which the issues and conflicts are low in nature.
Leadership – Leaders are the essential factor of a firm. A proper leadership provide
guidance to the employees during the task. Leades are necessary for assigning jobs to employees
as per their ability. Their prior responsibilities is assigning the task to a right person therefore
they can complete the task in a systematic manner. Company recruits knowledgeable and skilled
employees for achieving their objectives in efficient manner. Leaders can select the employees
who have the ability to gave better suggestions due to which, organisation can get growth and
sustainability in marketplace.
There are various leadership style which are explained as under:
Democratic – In this kind of leadership, the management gave freeness to their employees so
they working on their assigned task in effective manner. It also enhance skills and efficiency of
employees due to which they can use better innovative ideas for completing their task.
Supportive- In it, the leaders or managers have to play their role in supportive nature as
employees have to face lots of pressure during the task so, leaders have duty to support them due
to which they can work in efficient manner.
The management of Ensoft uses supportive leadership style in their structure, through this
structure they are supporting their inefficient staff members due to which their skills and ability
are increased and they works towards the goals and objectives of the firm.
Team spirit – every organisation wants to achieve their preset objectives in a limited
period of time. For this, they have to formulate various teams to getting cooperation from their
employees. In a small scale company like Ensoft ltd. Their management has to motivate their
employees in order to increasing their performance level. Therefore, they gave their better

suggestions in innovating new products which will be helpful in reducing the cost of
organisation.
All above are the factors which influences the innovation and commercialisation procedures.
Ensoft can get maximum output from the innovation idea. It is essential for the management to
focus on such factors because it can improve their brand image. With adopting of such factors
management can get effective outcomes from their employees in future time. Furthermore,
innovation process of a product requires huge funds which influences the funds availabilty of
firm so, managers of Ensoft have to consider such things before starting the process of
innovation.
TASK 2
P3 4P's of Innovation and use of the innovation funnel
Innovation is an essential part of every firm which helps management in attracting new
customers towards their products and services. Customer's perceptions are changes according to
their needs and demands. Which affects the brand image of a firm (Chesbrough, 2012). Every
customer wants products with better quality so, company have to innovate products for meeting
the requirements. There are innovation's 4ps which can be furtherunderstood as under:
Products – these are the essential part of innovation process in which company have to
modify their existing products and services. Ensoft wants to introduce a new software which
helps the security forces in tracking lost childs with including a gps chip in it. It is an example of
innovation which helps management in achieving their goals.
Process – Inventions can be used in the procedures by which products are developed or
delivered. Because there are many softwares in the market who tracks the mobile phones and
locations of people. So ensoft have to focus on these software due to which they can introduce a
new software in the market.
Positions- it includes reinnovating the products which are already established in market it
involves changes in the specific goods for achievement of customer's attraction towards their
products.
Paradigm – In this part, company wants to add some changes in their existing products.
When they perform a change in their products it provide value in their growth so, it can be said
that new concepts can't changes the product completely it modifies the product with

implementation of new feature in it. Due to which, company can attract new customers and it
provides competitive advantage to firm in marketplace.
Use of Innovation funnel – It is defined as the process of collecting new idas and
concepts and selecting a suitable ideas from them. Innovation funnel are adopted by the
management for developing new products in a systematic manner. For e.g. sales manager wants
to achieve their targets for this, they have to adopt some techniques and formulate proper
strategies to complete their targets in effective manner. Thus, it can be said that the innovation
funnel are important in achieving the targets. Innovation funnel will provide assistance to Ensoft
ltd. In making decisions and formulation of specific strategies which are related to innovation of
a product. It provide guidance to management of ensoft in making procedures due to which they
can develop their new products or services in effective manner.
Illustration 1 : Innovation funnel
Source – Innovation funnel diagram
P4 Development in frugal innovation (FI)
Frugal innovation – It is a process in which management have to reduce the cost from
the cost of services. In other words it is defined as an elimination of unnecessary features from
the products in order to sell that product in developing countries that products may be car or
software. For increasing the revenues, all the countries are adopt frugal innovation (Brusakova,

2013). In current scenerio, frugal innovation is not entirely sphere of big, MNC, as small and
local firms are also adopting it for reducing the unessential costs from their products. In the
context of ensoft, their management is continuously working to develop new and improved
innovative product with using the concept of frugal innovation for eliminating the unessential
features from the product in order to save their cost and expenses. They can terminate their
inefficient workers from their workplace due to which they can better develop their new software
'Location tracker' in effective manner.
Use of frugal innovation
FI provide opportunities to the developed economies in many ways. Ensoft ltd. Can adopt this
for reducing their costs and sell their products at low price to their customers. It is very useful for
every organisation there are some uses of frugal innovation they are as following:
 It determines the other type of tools who provides solutions for low and medium scale
markets. It can be used as developing products with innovation.
 It provide assistance to customers for getting value of their money.
 It is adopted by developed industries for learning innovation from less developed
industries.
 It helps to management by reducing the unncessary features from the product therefore,
they can able in utilize their funds.
 It creates a value in the network of process in which the products are developing.
 It removes complexities from the development process due to this, organisation can use
their time in other functions.
 It creates efficiency and abilities in the employees so that, they can easily accomplish
their assigned tasks.
 It provide quality solutions in the products which gave great value of money to
customers.
TASK 3
P5 Importance of commercial funnel and application of new product development processings
Commercial funnel- Organisation emphasizing on the feature and quality of products.
There are various customers who attracts towards the quality. Basically this process are using by
marketing and sales companies for understanding their sale process. In other words, it is defined

as a best channel in which products are delievered at right place to right customer. There are
some importance of commercial funnel they are as following:
Encourages activity of selling – sales is an essential element of every organisation and
commercial funnel provide helps in building an efficient process by which organisation can get
growth and sustainability.
Reaching to customers- It gave guidance to firm in identifying a best way for reaching
to their customers. Better design is build by commercial funnel so that, firm can easily adopt the
channel for increasing their profitability.
New product development (NPD) – It is the effective process in which company have to
develop a idea for a new product or implement changes in the existing products in order to
getting competitive advantage in the marketplace. Ensoft is a small scale industry who thinks
about developing a new software which name is 'Location tracker' for tracking lost child and it is
developed for enhancement in efficiency of security forces (Clausen, 2014). It provide assistance
to the service industries who are providing the security in the whole countries. It assisting ensoft
to find out the lost children through tracking their locations by using their new software. NPD
includes several steps which are explained as under:
Idea generation- It is the first stage of the software development in this ensoft will
gather all the ideas from different sources which are essential for developing the software in
order to attracting security agencies for purchasing.
Idea evaluation – Under this step, concept is evaluated by the management with
identifying objectives of developing the goods. Concepts are selected in this step which will be
adopted in the development of software.
Concept development- In this, the selected idea will be modified into actuality through
taking a suitable decision for examine the idea's effectiveness. In the context of Ensoft their
management will chose idea for carrying out.
Development of Strategy- In it, a proper strategy will be formulated which is measured
by the management of Ensoft ltd.
Examine business condition- after formulating strategies managers of Ensoft will
evaluate the attractiveness of their new developed software 'Location tracker' regarding to its
sales, service and costs (Korneliussen, 2012).

Product development – In this part, the design and features of newly developed software
'Location tracker' will be selected on the basis of requirement of security agencies.
Test marketing- Under this part, Marketing team of Ensoft will collecting feedbacks and
reviews from various security agencies in order to improvement in 'Location tracker' .
Commercialisation- It is the final step of NPD in this, Ensoft have to evaluate various
parts where they can grow their business by launching 'Location tracker' .
P6 Innovation Business case for Ensoft ltd. For accessing funds
In present scenario, there is a huge competition between the players so that every firms
wants to implement innovation in their workplace so that they can increase the productivity and
profitability of firm at marketplace. Ensoft has created location tracker software which helps the
armed and security forces in finding lost child. With the help of It, management will support the
parents of lost kids. The main objective behind making of location tracker is to provide an
appropriate support to the security forces in order to removing child trafficking from the nation.
In the above case it is measured that Ensoft ltd. Follows time gap policy in which they are
introducing new location tracking software as per their measurement of every aspects
(Frishammar, 2012). Through this, they can easily achieve competitive advantage in
marketplace which is profitable for the organisation. The business cases for newly developed
products are explained as under:
Illustration 1: Location tracker
Executive summary- Ensoft is a small but rapidly growing networking software
company which is making new and innovative software in the marketplace in order to
developing their organisational performance and profitability. Innovation is more effective in
getting attention of large number of customers towards offerings of the firm. The management of

deciding to launch new product 'Location tracker' in order to capture huge market share and
generate huge revenue.
Target- As it is a small firm so their main objective is to providing better products and
services to their customers. The company has targetting armed and security forces for their
newly developed software which will helpful for them in stopping child trafficking in the UK
nation. It will helpful for the firm in making sustainability and growth in future period.
Solution – This element is connected with the features and specifications of the product.
It defines that product needs to be attractive and attentive in nature so that the desired needs and
demands can be fulfilled of the customers. Location tracker will provide better solution for the
problem of child trafficking in the nation.
Why product is innovative – Innovation is the important element because it helps the
firm in getting attraction of the customers towards their offerings. Therefore, firm has to analyse
the needs of customers and innovate products accordingly. For example – location tracker is
developed for helping the security forces and civilians from any harm by continuously
monitoring their location in extreme cases and problems. So it can be termed as innovative for
eliminating the child trafficking in the nation.
Customer research – Ensoft has to create suitable changes in their new products and
services according to the results received after conducting customer research which enables
company to maximise their satisfaction level. In the context of Ensoft, their developing team
have to analyse the demands and needs of the clients so that they can able in making changes in
location tracker accordingly.
Funding- Without funds any operational activities cannot possible so, for developing
location tracker software organisation has to raising funds from various sources such as their
investors, banks and stakeholders and the expected amount for developing this product is
£100000.
Expected profit- It explains the benefits and profitability of firm which will be achieved
by the firm through implementation in existing products and services. As this software is
developed for the armed and security forces so the expected profit will be high and huge demand
will be achieved by the firm for this product in the marketplace.

Ensoft is a small scale industry so, they can take financial help from the ruling
government because as they are developing a servicing software thus, government of UK will
easily provide financial help to them (Dereli, 2013).
Recommendations- As the software developing team of Ensoft has been decided to
launching location tracker software. Therefore they have to analysing the needs and wants of this
software in the marketplace through which they will able in making changes in their newly
developed software. As this product is invented for protecting children from child trafficking
therefore, the company should continue to introduce its new product into market.
TASK 4
P7 Different tools to protect, develop and retain intellectual property and knowledge.
Intellectual property- It is a standard of property. Which includes the rights of producer
such as copyright trademarks and their design. Furthermore, it is a creation of human mind
because there is a big competition in the market place for this, companies have to take authorities
from government for protecting their brands and products. There are various tools are provided
by the government authorities to retain intellecual property which are further explained as under:
Copyright – It is a legal right which is given to originator for its work. It is authorised by
the government in it producer have the right to protect its product and production process.
Copyright is essential because there are a huge competition in the marketplace so, competitors
can use their brands. With taking this right any competitor cannot use their name if rivals will
use company have the right to file case against them.
Trademarks- It gave a label on the product which is provided by the producer to their
customers. This is used for attracting customers towards the products by the manufacturer In
addition with this, it can be defined as a symbol or a logo which is implemented by the producer
in order to stand their product at the market among the competitors.
Industrial design- It is defined as the method which is used by management in
producing a product. There is a huge competition between the competitors so companies have to
keep the aspects in their mind and taking authority from government for this.
From the above intellectual properties, management of Ensoft can use copyright as they
have developed 'Location tracker' so they have to secure it from misusing. From copyright, the
management can ensure that their products will not go in wrong hands. Through the copyright,

the firm can protect their innovation from other companies. Copyright is very essential for new
products and services for ensuring that the product will not be copied by anyone else except the
firm.
CONCLUSION
It has been analysed from the above report that innovation and commercialisation plays
crucial role in every business organisations. This two factors are the part of a coin but their use
are different. Innovation is used for developing innovative products. These goods are produced
for getting satisfaction from the customers in order to get sustainability and growth of firm.
Invention is a part in which producer can change in existing products by implementation of
innovative ideas in it. Whereas, the commercialisation is used by the producer for delivering
their products to targetted customers through their distribution channel. The funnel process is
used by the producer for removing unnecessary features from the production process. Intellectual
property's right is providing safety and security to the companies therefore, no one can use their
name in the marketplace.

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