The Importance of Innovation and Commercialization

This assignment provides an analysis of the importance of innovation and commercialization in a highly competitive business environment. It demonstrates the differences between invention and innovation, and highlights the tools used by businesses to retain knowledge and protect intellectual property rights. The assignment also discusses the significance of commercial funnel and its impact on firm performance.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its importance...........................................................................................1
P2 Impact of organizational factors on shaping innovation...................................................1
TASK 2............................................................................................................................................2
P3 Four P’s of innovation and utilization of innovation funnel for examining and shaping
innovative ideas......................................................................................................................2
P4 Development in frugal innovation.....................................................................................3
Analysing as well as applying the funnel in organizational context......................................4
Role of frugal innovation in an organizational context..........................................................5
TASK 3............................................................................................................................................5
P5 Significance of commercial funnel...................................................................................5
P6 Creating an innovation business case for an organization................................................6
TASK 4............................................................................................................................................7
P7 Evaluating the several tools which can be utilized by business for protecting, retaining
knowledge and intellectual property......................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation is considered as a process in which an organization can use some new ideas
and thoughts in the processing of already existing product or service. It can be applied to any
product that is already being used in the company (Biemans, 2018). The factor to be considered
here is that some innovative ideas or changes can be made to the same product. Invention is quite
different from innovation. As in case of innovation, new and innovative ideas are being used on
an existing product or strategy but in case of invention, a completely new range of products or
services are being developed. Healthy Juice is one of the leading companies that deals with the
beverages such as drinks, shakes and juices. But from a few times, the company has faced a huge
decrease in sales, so for coping with that they can include some innovative ideas in their products
to gain the attraction of the people again. This report is about analysing the influence of
innovation and its various aspects.
TASK 1
P1 Innovation and its importance
Innovation is considered as a process in which new and creative ideas can be added in a
product that is already existing in the company. Healthy Juice can make involvement of some
modifications in their products as the company deals with milk shakes, drinks etc. So, they want
to add something interesting and different so that they can be able enough to gain the attention of
the customers but they did not to move away from juices. Therefore, they can add some flavours
to the juices. It can act capable enough for attracting a huge number of customers. Thus, by
these means, they can also regain an increase in the sales. This can be very useful as it can attract
a huge number of customers to the company (Dahlander and Gann, 2010). Therefore, it can also
help the business entity in an increased rate of sales. Rather than making a completely new
product as in case of invention, Healthy Juice can make some changes in their juices and drinks
as well. Invention can be considered as a process when the company makes involvement of
completely new products or services, but innovation is adding up some new , creative and
innovative ideas in order to bring something different to attract the customers. A very common
example of this can be considered as that they can add up some changes by adding flavours to
their juices and shakes as it can be a different concept. Also, it can prove helpful enough in
gaining the attention of a huge amount of customers.
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P2 Impact of organizational factors on shaping innovation
There are various factors involved within an organization and consists of vision,
teamwork, leadership etc. So, discussing the impact of innovation on Healthy Juice as below :
Leadership
Leadership can be termed as an important concept because it helps in managing all the
employees as well as operations in an appropriate manner (Osoro, Kirama and Vermeulen,
2017). Healthy Juice can ensure to involve a leader so that they can be able to manage all the
operations successfully.
Teamwork
Teamwork is an important aspect because when Healthy Juice will make implementation
of the idea of adding flavours to their juices and shakes there should be an effective availability
of the team work (Drucker, 2014). It is because it will help in managing the discussions very
efficiently so that they can reach to a better conclusion. Therefore, teamwork plays an important
role in attracting a higher rate of satisfied customers.
Culture
It plays an important role as well. Healthy Juice must maintain a healthier and happier
culture so that the employees can focus on the work effectively, thus Health Juice can be able to
achieve all their targets and goals. In addition, maintaining interactions with others is also
important (Teece, 2010). It is because after a hectic schedule, employees can interact in order to
relax themselves. So, it can further help in making the environment in Healthy Juice much
healthier and happier.
Vision
The vision of Healthy Juice is to involve some ways and processes so that they can be
able to gain the attention of a huge number of customers. A wider vision can help the company
to achieve all the goals and targets and that too at faster rates (Manyika and Byers, 2011). So, the
involvement of flavoured substances etc. as a part of innovation in Healthy Juice can gain many
customers, so that it can help the company in an increased rate of productivity and popularity.
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TASK 2
P3 Four P’s of innovation and utilization of innovation funnel for examining and shaping
innovative ideas
The four P’s of an innovation are paradigm, product, procedure and position.
Paradigm: This is considered to be a special change management strategy which is utilised by
most of the firm for fostering growth and achieving success. New change management or
innovation strategy purpose is to bring positive as well as drastic improvement at workplace.
Healthy juice organization by using an online platform can allow customer to place online order
for cold drink. As this strategy will help in increasing sales.
Product: As Healthy juice company is producing the healthy drink, it is required by an
organization to produce the drink with new taste by adding new flavours (Ahn, Minshall and
Mortara, 2015). Healthy juice organisation is need to develop focus on other aspects as well
such as quality, delivery method, packaging etc.
Process: The procedure includes selling, supplying, recruiting, marketing etc. Change or
innovation in procedure includes bringing improvement in the business procedure as well as
activities. When new ideas are applied to the existing business procedures it helps in increasing
profitability.
Position: In today’s era, all the companies are taking the high initiatives for achieving as well as
maintaining leading position in the market. The reason which has supported Healthy juice
company in achieving good position in the market and gaining customer loyalty is the good
quality of healthy drink.
Innovation funnel is recognized as an effective model that assists in generation of new ideas. It
provides graphical. It is required by management team in Healthy juice organization to increase
their knowledge and collect information (Lim, Darley and Marion, 2017). This will assist
manager in making suitable decision, related to the launch of new item or development of
existing products. It is also essential for manager to screen the ideas before launching it
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P4 Development in frugal innovation
Frugal innovation is defined as design innovation procedure in which the needs of
customers in the market are given the first priority which helps the business entity in achieving
good position in the market’s company (Ahn, Minshall and Mortara, 2015). It also focuses on
identifying the demands of people. The important reason for growth in frugal innovation is that it
supports an organization in responding to the limitation of resources such as material,
technology, finance and helps in converting these elements into innovative ideas .It also aids firm
in identifying the appropriate solution to variety of business problems. Stinting change is helpful
as well as beneficial in terms or minimizing the complexities of specific item in order to make
the product look more attractive. The another reason for development of frugal innovation is the
fastest growing market (Teece, 2010)
This process include eliminating non essential characteristic from durable product.
Management team in an organization can plan to facilitate innovation only by enabling
employees to share their ideas. It is needed by manager in an organization to develop an
effective or creative environment. This will assist business entity in motivating employees to
develop critical thinking and inspiring them to provide suitable suggestions. Providing training to
employees is another method for developing the ideas for facilitating innovation.(Kirkegaard
Sløk-Madsen, Ritter and Sornn-Friese, 2017)
Healthy juice Company in order to gain benefits as well as other advantages
from frugal innovation needs to concentrate on analysing an effective solution which is easily
accessible and cost effective created with developing thinking at service or product level,
leveraging modern technology to deliver low cost solution.
The pattern approach to the development of frugal innovation has mainly three base
concepts which is based on various assumption these are:
Product developers might face same problems when producing or developing market services.
If the problems are similar then in such case the same solution can be applied to variety of issue.
By abstracting the applicable solutions to patterns, it can be utilized for creating marketing
services .
Analysing as well as applying the funnel in organizational context
Developing a catalogue for frugal innovation.
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At the initial phase of the procedure, it is essential for management team in a Healthy
juice organization to determine the existing frugal innovation. In the next phase, manager in an
enterprise should analyse the reason for development of frugal innovation. In next phase,
management team in an enterprise is required to apply the appropriate solution to problems
which already have been recognized in the second phase. The several solutions which can be
applied by the company are an organization can adopt several strategies such as improvement in
function, adoption of revenue model. After this stage, determined solutions are required to be
abstracted by the management team until and unless they get main solution. At this phase, the
correlations are visualized with the assistance or support of multiple domain matrices (Osoro,
Kirama and Vermeulen, 2017) There are mainly three types of diagonal matrix these are:
Frugal innovation matrix
It represents the ratio or extent of relationship between two identical frugal
innovations. The degree of relationship between two frugal innovations is based on the existing
or previously identified problematic field and the method or technique used for comparing two
frugal innovations. In context of Healthy juice Company, management team in an enterprise has
solved predominant problem using the similar pattern combination.
Problem area matrix
This is considered to be as very useful as well as beneficial matrix. It assists
the management team in recognizing the number of time same problem has occurred.
Solution pattern matrix
By utilizing this matrix, manager in a company can analyse the coo relationship
between two fugal innovation.
In context of healthy juice company can minimize the business complexities by
producing as well as selling small cans of healthy drink at low cost. This strategy will assist
business entity in increasing sales as well as profitability. The company should not make
compromise with the quality of drink .(Biemans, 2018)
Role of frugal innovation in an organizational context
The function of frugal innovation is to support an enterprise to increase its market
share .It role is to encourage firm to produce innovate products for catering the need of
customers in the market. As Mr. green healthy drinks has gained popularity in the market but still
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an organization is required to produce innovative product. As this will assist firm in reducing
competition and differentiating itself from other competitors in the market.
TASK 3
P5 Significance of commercial funnel
Sales funnel
A sales funnel is considered to be as the structure which indicates the path
followed by an individual in order to become a customer. This model is generally utilized by
marketing team in an organization for developing the understanding as well as visualizing their
sales procedures. It also assists an enterprise in measuring the business performance and also
supports in identifying the appropriate technique, strategy or method for increasing sales (Dincer,
2017). The shape of sales funnel model is like a pyramid and Width of it indicates the size of the
audience. When marketing activities are included in Sales funnel, it assists business entity in
generating brand awareness and increasing the demand for product or services. It also allows
marketing team in an organization to educate or inform the customer about the products and
benefits of using the same.
Significance of sales funnel
Developing the understanding about the sales funnel by management team in an
organization is important in terms of analysing the journey of customers from the awareness to
conversion. It also provides a structure through which marketing team in an enterprise can
analyse business (Schoonmaker, Solomon and Rau, 2017). Sales funnel also assist manager in
identify the area of improvement. It is also important in terms of building strong commercial
relationship. Sales funnel have great significance in context of concentrating on enquiries,
reviewing business opportunities etc.
Marketing funnel is important in terms of generating brand awareness as well as
achieving overall marketing objectives. It plays crucial role in determining the several activities
which are required to be executed for attracting customers and influencing them to buy product
or services. Marketing funnel also have essential role to play in inbound marketing
New product development is a procedure in which new ideas are being generated by employees
in order to develop goods and services. There are various process that are included in new
product development process (Therrien, Doloreux and Chamberlin, 2011).
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Stage 1-In the initial stage the idea is being obtained by business owner of Healthy drink about
developing new product. At this stage business owner has considered the advice from workers
and feedback from customers related to the idea of new product development.
Stage 2-At second stage The business owner of healthy drink ensures and confirms the idea after
conducting various analysis and research.
Stage 3-Concept Development and testing. In this stage The information related to product
development are being tested by manager in order to eliminate biasses in data.
Stage 4-In this stage various external analysis techniques are utilised by business in order to
examine the environment surrounding business (Chesbrough, 2010).
Stage 5-This phase involves executing internal audit in order to identify the organisation
potential of developing innovative product and analysing the business resources which are
needed to fulfil the requirement of producing new flavour of healthy drink.
Stage 6-This step include application product development procedure and
Stage 7-Last stage include evaluating the procedure.
P6 Creating an innovation business case for an organization
. It is impossible for any enterprise to continue its business operations and activities
without resources and funds. An organisation has adopted different sources of funding such as
Personal saving, bank loan etc. in order to introduce innovation in its business process
(Schoonmaker, Solomon and Rau, 2017). It has been analysed that bank loan is the effective
source in order to raise financial resources Mr. Green can raise funds from different sources
such as investors, sponsorship, product placement, making investment etc. For instance, Healthy
juice company can give the money to the media for promoting the product .Product placement is
initiated through an agreement between manufacture of product and the media company.
TASK 4
P7 Evaluating the several tools which can be utilized by business for protecting, retaining
knowledge and intellectual property
Patents: It involves utilities, design which protects inventions as well as helps in bringing
positive change in the existing inventions (Roldán Bravo, Lloréns Montes and Ruiz Moreno,
2017).
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Trademarks: An organization can use names, unique design, symbols images which are
imposed on its products. It helps customer in identifying the source of products. Trademarks
allows firm to differentiate its goods from that of its competitors.
Copyrights: It protects the expression of ideas and assists in retaining knowledge
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CONCLUSION
It has been concluded from the report that innovation is very imported to be conducted in
a companies in terms of sustaining in highly competitive and dynamic business environment.
Project has concluded that innovation is the factor which assist firm in achieving success and
fostering growth. Study has successfully demonstrated the differences between invention as well
as innovation. It has also highlighted the tools which can be used by a business entity for
retaining knowledge and protecting Intellectual Property Right. Assignment has also
demonstrated the importance of commercial funnel.
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REFERENCES
Books and Journals
Ahn, J.M., Minshall, T. and Mortara, L., 2015. Open innovation: a new classification and its
impact on firm performance in innovative SMEs.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2-3). pp.354-363.
Dahlander, L. and Gann, D.M., 2010. How open is innovation?. Research policy. 39(6). pp.699-
709.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kirkegaard Sløk-Madsen, S., Ritter, T. and Sornn-Friese, H., 2017. Commercialization in
Innovation Management: Defining the Concept and a Research Agenda. In Academy of
Management Proceedings (Vol. 2017, No. 1, p. 15880). Briarcliff Manor, NY 10510:
Academy of Management.
Lim, J.S., Darley, W.K. and Marion, D., 2017. Market orientation, innovation commercialization
capability and firm performance relationships: the moderating role of supply chain
influence. Journal of Business & Industrial Marketing. 32(7). pp.913-924.
Manyika, J. and Byers, A.H., 2011. Big data: The next frontier for innovation, competition, and
productivity.
Osoro, O., Kirama, S. and Vermeulen, P., 2017. Factors Affecting Engagement and
Commercialization Of Innovation Activities of Firms in Tanzania. Tanzania Economic
Review. 4(1-2).
Roldán Bravo, M.I., Lloréns Montes, F.J. and Ruiz Moreno, A., 2017. Open innovation in supply
networks: An expectation disconfirmation theory perspective. Journal of Business &
Industrial Marketing. 32(3). pp.432-444.
Schoonmaker, M.G., Solomon, G.T. and Rau, P.A., 2017. Early‐Stage of Innovations: Selection
System Criteria for Funding US Biotech SMEs. Journal of Small Business
Management.55(S1).pp.60-75.
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Teece, D.J., 2010. Business models, business strategy and innovation. Long range
planning. 43(2-3). pp.172-194.
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