Understanding Innovation and its Drivers

This assignment delves into the crucial distinction between invention and innovation, examining their respective roles in driving economic progress. It investigates various factors that stimulate innovation, including technological advancements, entrepreneurial spirit, and government policies. The analysis highlights the significance of innovation across diverse sectors, emphasizing its contribution to societal well-being and global competitiveness.

INNOVATION AND
COMMERCIALISATION

Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Innovation and its importance for organisation as compared to invention.......................1
P2 Vision, leadership, teamwork and culture for shaping innovation....................................1
LO2..................................................................................................................................................3
P3 4Ps of innovation and use of innovation funnel................................................................3
P4 Development in frugal innovation and its use...................................................................4
LO 3.................................................................................................................................................5
P5 Importance of commercial funnel and application of new product development.............5
P6 Innovation business case...................................................................................................7
LO 4.................................................................................................................................................8
P7 Tools used to develop, retain and protect knowledge and intellectual property...............8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is a termed that is used for new ideas for getting better solutions with the help
of latest technologies or business models (Koirala and et. al., 2016). Thus, it is defined as a
substance that is more effective and new in the market area. 4Com is one of the leading
companies all over the world and providing its services and facilities in a better manner. In this
report, basically innovation along with its importance is explained so as to compare it with
invention. Organisational vision, leadership, culture and teamwork for shaping innovation and
commercialisation are mentioned in this assignment. Apart from this 4Ps of innovation is
included with the help of innovation funnel in order to shape innovative ideas are explained in
this report. New product development and its application of commercialising a product is
mentioned in this assignment. Lastly, various tools that an organisation can use in order to
protect its intellectual property are explained beneath in this report.
LO1
P1 Innovation and its importance for organisation as compared to invention
Company 4Com is a leading organisation that provides services to regarding networking
sites across United Kingdom. They are providing facilities through which people can connect
with others in an effective manner. Therefore, innovation always plays an important role in
developing ones business. This enable an organisation in providing top class services thus, 4Com
is using digital technology for attaining the goals and objectives. Other like other companies
those are working in same field 4Com is doing great and they are giving ample number of
reasons that organisation is using innovating programmes:
 Managers of 4Com are collaborating with other merchandises so as to attract more and
more customers towards their organisation.
Generating innovative strategies for achieving the set targets and objectives in given specific
time period (Hausman and Johnston, 2014).
 Therefore, it is assisting them in generating more and more funds.
 This helps an organisation in manufacturing products that has not launched yet by any
other rival companies.
Difference between innovation and invention is mentioned below:

INNOVATION INVENTION
Innovation is a term that is used for any new
ideas for making changes and alterations in
existed products or fresh commodities. Thus it
can be said as a thought or any imaginative
concepts.
Invention happens all of a sudden and it
requires skilled people who are experts in their
fields. Thus, it is used optimised for new
commodities that have not come yet in the
market.
According to the mentioned scenario Apple is
making changes in their phones by launching
new applications that are compatible according
to the features that are present in the market.
Whereas, new phone with unique features
launched by Apple that has not been used by
any other company can be said as invention
(Difference between Invention and Innovation,
2016).
Apart from this, company 4Com should utilise all the innovative and new ideas which
they can apply for making their products unique from others. This will assist them in getting
maximum benefits which will gradually increase the sales and productivity at the same time.
Company is taking feedbacks and reviews of their existing commodities. It will help them in
doing modifications according to people’s preferences. Other than this, 4Com will get to know
about the key to progress so that firm can enhance the brand image. An example can be taken
from Apple that in the latest iPhoneX they have added many innovative features like face
recognition, upgraded camera and as a result an increase in purchase can be seen and the
company has become the most loved brand amongst people (Datta, Mukherjee and Jessup,
2015).
P2 Vision, leadership, teamwork and culture for shaping innovation
4Com in order to accomplish all its goals and objectives it is necessary that they set a
vision which company can attain so as to evaluate whether organisation will be able to achieve
the set targets or not. Thus, for this it is important that firm is optimising all the resources that are
available to them in a proper manner so that creative and innovative things can be made.
Therefore, vision, leadership, culture and teamwork can help an organisation without making
changes can shape innovation and also play a crucial role in providing success to a firm.

Vision and Innovation: Clear vision and targets always help an organisation in achieving their
goals and objective in specific time period. Further for attaining this 4Com is making a proper
plan and strategies through which this can be accomplished. Apart from this, a clear vision Thus,
vision will help an organisation in setting up their scope by making appropriate plan and
strategies. Other than this, by optimising all the resources company can gain more profits along
with the better position in market area for longer period of time (West and Bogers, 2014).
Leadership and Innovation: Leaders are very important as they are the one who leads the
team form front. In case of innovation it is very crucial that leaders give full freedom to their
team mates this will encourage squad to use their innovative thinking for making any changes
this will assist the organisation in achieving goals and targets in set time period. Thus, for
manufacturing a new product it is necessary that all the changes are accepted in a positive
manner. Other than this, a healthy environment is required to maintain by leaders.
Culture and Innovation: It is an important aspect and 4Com is accepting people from
different culture and as a result they are helping them with new and innovative ideas. Therefore,
organisation should implement basic standards and convictions for a proper conduction of the
work.
Teamwork and Innovation: To attain the goals in a proper manner it is important that a
company build a strong team who can assist them in doing so. It denotes a cooperative
environment where all the staff members share the views and innovative ideas in order to make
something creative and innovative. Team tries to eliminate all the obstacles as a whole by taking
all the members along with them. For this, they use appropriate tools and technologies which can
help them in performing the task in a better manner (Ke and et.al., 2015).
Therefore, all the points mentioned above are assisting 4Com in developing new and
innovative gadgets. Like Apple and Virgin, where employees accomplish the work by using
different and innovative methods which are cost and time effective. Thus, it is prime role of
leaders to encourage their team mates in such a way that workers give their best for
accomplishing the task appropriately.

LO2
P3 4Ps of innovation and use of innovation funnel
It is one of the important criteria for sustaining in the market; 4Ps is a concept which is used for
getting into a better position (Mueller, Rosenbusch and Bausch, 2013). Basically, it consists of
four steps that help the organisation in knowing the value of the product as compared to others.
4Com is optimising all the methods through which they can promote their product and 4Ps is one
of them this is helping them in gaining international recognition. This model was formulated by
John Bessant and Joe Tidd in order to know the situation of market place (Innovation Funnel,
2016).
4 P's of innovation is mentioned below:
Product Innovation: This is considered as the first step under which the process of
turning raw material into final goods is conducted. For this all the resources that are present in
the company are utilised so that excellent products can be delivered to customers. This assists
them in developing goods that are according to the needs and wants of customers. 4Com is
launching a new product with a perfect combination of all the resources.
Process: To manufacture a commodity it is important that an adequate process is
followed so that a best quality product can be delivered to a large number of customers.
Therefore, 4Com is using appropriate tools and technologies and it is helping them in giving
suitable results. Furthermore, a definite strategies and policies are making by the company. Other
than this, it is a whole process of converting raw material to final goods, products go through a
certain steps like designing, assembly line etc.,
Position: Upgrading things is very important; this will help them in adding external
features through which company can enhance the brand image in front of the customers. Earlier
4Com was manufacturing goods for a specific sector but now they are incorporating others as
well. Thus, they are repositioning the existing items in market area with extra innovative ideas
(Qian and Haynes, 2014).
Paradigm: This is the last stage which is used for launching the product into commercial
markets. Thus, they are using appropriate machineries and technologies for making unique
products that can rely on customer’s satisfaction. Other than this, if any idea is not giving
appropriate results than company can drop the thought and may start it all over again.

For improving the position of product innovation funnel is used and some of its stages are
mentioned below so that it can be understood in a better way:
 In the first step of innovation funnel gathering appropriate data is the biggest concern so
that all the materials are assembled in a right manner. Apart than this, fresh ideas come
up so as to make suitable products.
Under the second step it is important to evaluate the current as well as future objectives so that
company can get an overview, about the changes which they have to do for obtaining maximum
benefits. Thus, they try to determine the collected information whether it will be helpful or not
(Dutta and Folta, 2016).
 In the last step, which is the narrow part as compared with the above mentioned steps,
helps the organisation to assemble and accomplish the resources that are available to
them. This assists them in attaining the set targets and goals in specific time frame.
Therefore, as compared to Apple and Virgin they introduce new products on a regular basis,
which helps them in attracting a large number of customers towards their organisation. Thus, for
delivering quality products both the companies used new technologies which are according to the
latest trends and market situations. This is helping them in tough fight to its competitors and
getting a better position in market.
P4 Development in frugal innovation and its use
Frugal innovation help an organisation in making a product without any faults and tries to
eliminate all the issues that can act as a barrier in manufacturing products. Other than this, it tries
to make best quality products with low cost and produce goods for those who trust the brand an
rely on the commodities for a longer period of time.
Further, in coming days new and unique products will come and customers will buy the
products instead of high price so as to raise the standard of living. Thus, frugal innovation help
the organisation in manufacturing goods that normal people can also afford without giving a
second thought. 4Com is trying to develop same kind of products that are easy to handle and cost
efficient at the same time (Keohane, 2013).
Some of the steps of developing a frugal innovation are mentioned below:
Additional characteristics of existing products: Rely on the same products for a longer
period of time is not acceptable. Thus, 4Com must implement variety into their products by
applying appropriate methodologies and technologies in order to improve the quality of products

for the customers. It will assist the company in producing goods according to the needs and
wants so as to satisfy its customers.
Reduction in production cost: In recent days, manufacturing a commodity is very expensive.
Therefore, this method is used for eliminating the external cost of producing goods and for this,
4Com is buying raw materials at relatively low price so that they can give products are minimum
cost to enterprises and distributors (Lin and et. al., 2014).
Emergence of advanced devices: With the change in course of time, new and innovative
technologies have arises and as a result customers have a variety of options in buying latest
products that will upgrade the standard of living and cost effective as well. Therefore, 4Com is
making alterations in their commodities so as to sustain the loyalty of its customers.
Develop reasonable and durable commodity: By making products according to the need and
wants of customers 4Com is giving competitive advancement and as a result they are gradually
improving their brand image and market share as well (Hausman and Johnston, 2014).
Therefore, innovation funnel is utilised by most of the organisation for creating fresh
thoughts and ideas which can give them maximum benefits thus, 4Com is upgrading the features
by adding new innovative characters and this move is showing their dedication towards business
operations in order to get superior position in market area.
Henceforth, it is important for an organisation to collect related information through
which attaining goals can be easier. Thus, Apple and Virgin are using the collected data for
making the product more reliable and as per the satisfaction level of customers. As they are using
latest technologies that is aiding them in minimising the surplus cost.
Therefore, innovation funnel is assisting them in lower down the additional pricing by
reducing the wastages as well as raw materials.
LO 3
P5 Importance of commercial funnel and application of new product development
Funnel can be said as a term that is used in order to classify the change into three phases.
For this, appropriate strategies and policies are formed which company can follow so as to
manufacture appropriate products on time. Thus, it is essential for 4Com for accomplishing the
task on set time period.

Conduct research program: In order to know the behaviour of customers towards the product it
is important that a detailed research is being carried out so that information can be collected
which company may use in making the product more effective and impactful (Hemmelskamp,
Rennings and Leone, 2013). For this, 4Com is using new and latest technologies for collecting
adequate data, thus, this method is helping them in doing the same.
Enhancement of quality: For 4Com it is important to take competitive advancement it is
important that they enhance the quality of products according to the demands of its customers on
a regular basis so that they can maintain in the market for a longer period of time. This will assist
the organisation in enhancing the brand image, market value and share as well (Koirala and et.
al., 2016).
Techniques of capturing minds: Catchy themes and new innovative ideas always play a
important role in attracting more and more customers towards the company. Therefore, it is
essential for manager of 4Com to decide a new and fresh tagline through which consumers can
differentiate easily about the product.
Launching of advanced equipments: 4Com is planning to introduce a new product in the
market by adding fresh features on which customers can rely and spend as many money for that
commodity. This will assist them in increasing revenues at the same time will help them in
reducing all the unwanted cost.
Pricing policy: This is one of the important factor, on which every company give
importance, thus, they must implement process after looking at the current market position and
discussing with managers and superiors so that they can decide a reasonable rates.
Along with this, in order to develop a new product it is required that a proper strategies are
implemented so as to maintain the standard of commodity that will attract more and more
customers and better outcomes can be received (Datta, Mukherjee and Jessup, 2015).
Other than this, there are various steps of developing a new commodity are mentioned
below which is determined while producing a new product:
Emergence of new ideas: Before launching a new product it is important that a proper
planning is done and this is the step in which new ideas generates. Therefore, it is considered as
the first stage of developing a fresh product. Thus, it is done by conducting a research.
Screening of idea: Under this step, the idea is evaluated whether it will is effective or not
and help the organisation to determine if will give maximum benefits.

Testing and development: This is the ideal stage where the product goes through certain
process in which all the faults are eliminated so as to get reliable product.
Business analysis: Under this stage, company tries to evaluate the advantages and disadvantages
of the product after launching them in the market area. For this, it is essential that a critical
evaluation of market area is done so that organisation can have an overview of the situation
(West and Bogers, 2014).
Product development: This is the last step, in which after determining all the stages the
final action is taken so as to make the commodity as per the choices and preferences of its
customers.
As compared to Apple and Virgin, both the companies with the help of the managers they are
conducting research in order to know needs and wants of consumers so as to accomplish the task
in a better manner (Ke and et.al., 2015).
P6 Innovation business case
4Com is all set for launching a new product which will be unique in nature, therefore,
business case helps the company in knowing the impact of the commodity after putting all the
resources so as to get suitable products. Thus, it contains certain steps that are mentioned below
from which it can be understood in a better manner:
Executive summary: 4Com is a company that provides communication facilities all over
Britain along with some other parts also. Organisation is trying to enhance the connectivity by
establishing new mobile networks, web office etc.
The need: Main target of launching this product is to render the latest technologies to that a
people can communicate with one another every single day. On the other hand it will increase
the job opportunities and will help an individual who wants internet access for studying
(Mueller, Rosenbusch and Bausch, 2013).
Solution: 4Com is focussing on giving new network other than 4G and 3G in almost
every part of the United Kingdom so that it can be utilised by most of its citizens. Apart from
this, company is trying to provide connectivity in remote regions as well.
Why product is innovative: It is new because no other companies have launched these
services and they are still providing services (4G) to all people of United Kingdom.
Customer research: Before launching the services 4Com has gone through a research so
as to set the targeted audiences and market area from where they can get maximum benefits.

Design and development plan: Under this, it makes company eligible in providing best
suitable services to customers and distributors along with this they provide guarantee in all their
commodities (Lin and et. al., 2014).
Requirement of investment: It is important that firm have suitable amount of money
before manufacturing and launching the product. Thus, company is shaking hands with lot of
stakeholders and speculators who can help them in doing the same.
Expected benefits: In the initial days the product may not get recognition but after sale in
ostensible rates organisation will get maximum benefits which will gradually increase their
shares and market value.
LO 4
P7 Tools used to develop, retain and protect knowledge and intellectual property.
To remain in the market for a longer period of time, it is important that company know the
basic rights which will protect them from all kinds of fraud and illegal activities. Some of the
laws and section that is required to prevent them are mentioned below:
Trademark: It is a combination of symbols and images that make the product different
from others. This help the organisation in providing services that are unique in nature. Company
mainly uses signs which can be easily recognised by their customers (Hausman and Johnston,
2014).
Copyright: In this, firm secures their innovative ideas or views which no other firm can
copy. This includes certain norms under which company had to work. For example it is basically
done for any music, programmes and no other enterprise can copy their concepts without
permission.
Patent: It is somewhat same as copyright with a slight difference. Under this, companies
use latest technologies in order to save their thoughts. This is applicable for twenty years and not
more than that.
Therefore, both the companies Apple and Virgin uses new technologies so as to protect
their rights and intellectual property as well form other rival organisation (Keohane, 2013).
CONCLUSION
From the above report it can be concluded that innovation is one of the essential part and
it should be done on a regular basis so that company can sustain its position for a longer period

of time. This includes certain steps that must be followed so as to get better outcomes. Most of
the organisation uses innovation funnel and 4Ps of innovations in order to get excellent results.
Other than this, they also utilises new tools and technologies for achieving the set targets and
goals in specific time frame.

REFERENCES
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from the global financial crisis. Journal of Business Research, 67(1), pp.2720-2726.
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.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
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Hemmelskamp, J., Rennings, K. and Leone, F. eds., 2013. Innovation-oriented environmental
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<http://keydifferences.com/difference-between-invention-and-innovation.html>.
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<https://www.cleverism.com/lexicon/innovation-funnel-definition/>. [Accessed on 30th
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