Annotated Bibliography on Open Innovation

The provided document is an annotated bibliography on open innovation, covering a wide range of topics related to innovation, entrepreneurship, and technology transfer. The bibliography features 17 research papers and studies published in reputable journals and books between 2011 and 2016. The articles explore various aspects of open innovation, including its definition, types, and impact on businesses and society. The annotated bibliography provides a detailed summary of each article, highlighting the key findings, methodology, and contributions to the field of open innovation.

INNOVATION AND
COMMERCIALISAT
ION
1

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its importance to organization in comparison to invention...........................1
P2 Role of Organizational vision, leadership, culture and teamwork to shape innovation and
commercialisation........................................................................................................................3
TASK 2............................................................................................................................................5
P3. 4Ps of innovation and the use of innovation funnel to examine and shape innovative ideas5
P4. Development in frugal innovation and examples of how it is used in an organizational
context..........................................................................................................................................6
TASK 3............................................................................................................................................7
P5. The importance of the commercial funnel and the application of New Product
Development(NPD) processing for commercialization of innovation............................................7
P6. Innovation Business Case for Tesco Plc for accessing funding...........................................9
TASK 4..........................................................................................................................................10
P7. Different tools to protect, develop and retain intellectual property and knowledge...........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
2

INTRODUCTION
Innovation refers to creation of new products from existing one through ideas and
imagination. It is a method in which new ideas or imagination is generated and converted into
useful products. This process results when company applies ideas to produce new products to
satisfy needs and demands of consumer's. Innovation is beneficial for company as it will attract
more consumers towards organisation (Kim and et. al., 2014). This report is prepared in context of
UK based company Tesco Plc. It is a British multinational retailer which deals in grocery
products. The company offers various products such as books, clothing, electronics, furniture,
etc. Further, this project also discusses about difference between invention and innovation. In
addition to this, there are also some process which is required to commercialise innovation which
is stated below (Shapira, Youtie and Kay, 2011). Lastly, there are some types of innovation and 4Ps
of innovation which is beneficial for company to introduce products at market place.
TASK 1
Overview of company
Tesco Plc is a British multinational retailer company which operates its business in UK.
This company is operated by Jack Cohen. In this, approx 476000 million employees are
performing their activities in achieving goals by their efforts. It provides various food items such
as furniture, toys, foods items, groceries, etc. All goods and services offered by organisation to
its customers is at affordable prices. They also provide many discount coupons which helps them
to attract more consumers towards them.
P1 Innovation and its importance to organization in comparison to invention
Innovation is a changing or creating more effective process in form of new products and
services. In business, innovation helps in creating new and innovative products by implementing
ideas or thoughts. This method also helps Tesco Plc in manufacturing new products with
innovative features (Kamariah and et. al., 2012). It is essential for company as it assist them to
allure more clients towards them. On the other hand, Invention is a process of developing new
products for the first time. This also assist company in increasing their market value and
implementing new schemes in introducing products at market place.
Importance of innovation
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In this modern era, innovation is a beneficial method for company in development and
growth of their business. Companies are said to be innovative that foster and use creativity in
creating their products. This process is also important for growth of Tesco Plc and to gain
competitive advantage at marketplace. The importance of innovation in company is as follows:
Continuous improvement: The process of innovation helps company in improving their
methods and products (Aarikka-Stenroos and Sandberg., 2012). It also assists Tesco Plc in
launching and introducing new schemes or business strategies. On the other hand, invention
leads company to introduce new product which have never been introduced at market place.
 Enhance creative development: This process give various advantages in building new
business operations. It is important for company to achieve new ideas or implement new
schemes within business. This enhances company in achieving more growth and to
accomplish targets or objectives. Creative development also enhances organisation
functions of Tesco Plc. This will results in higher productivity and also increases sales
revenue. In this, the process of invention also helps company in enhancing their creative
development and attracting more consumers.
Response to rivals and trends: Innovation also leads companies to stay at top at market place
from their rivals. They should follow new trends and produce goods according to their customers
demand (Engel, 2015). In context of Tesco Plc, innovation also helps company to gain
competitive advantage at market place in comparison to their competitors. On the other side,
invention is done on the basis on current market trends and products invented better than rivals.
Company uses many strategies and techniques to manufacture a unique product.
Difference between Invention and Innovation
Basis for comparison Invention Innovation
Meaning Invention is a process of
producing new product which
have never been introduced by
implementing ideas and
thoughts.
Innovation refers to
implementation of ideas or
imagination for first time.
Creation It is a creation of new
products.
It refers to adding value in
existing product.
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Skills needed In this, advanced and scientific
skills needed.
According to this, technical,
strategic and marketing skills
are implemented.
Concept It occurs on original ideas and
working.
It is based on practical ideas.
Concerned with It is concerned with individual
process or products.
Under this, combination of
process or products are taken
into consideration.
Activities The activities involved in this
process is related with research
and development sector.
It is done across the country.
Occurrence New skills and ideas are
formulated.
It occurs when improvement is
required to be done.
P2 Role of Organizational vision, leadership, culture and teamwork to shape innovation and
commercialisation
In every company, innovation occurs which helps business enterprise in developing
opportunities and growth. This lead in obtaining better outcomes and attracting more customers
towards company. In this, organizational vision, leadership, culture and teamwork also assist in
shaping innovation and commercialism. In context of Tesco Plc, the vision of company is to
deliver best products to its service users at affordable rates. This results in making customer base
strong along with achieving company's goals and targets (Kutvonen, 2011). In addition to this,
team work and culture of organization also plays essential role in shape innovation and
commercialization.
Leadership: It is the process of coordinating or managing business operations with aim of
achieving goals and objectives of company. This role is played by the leader of company which
helps them improving overall performance of organization. Leadership is essential for company
as it lead in shaping innovation and commercialization. In addition to this, the leaders of Tesco
Plc also helps company and motivate employees to get best outcomes by performing activities.
Good leadership helps company to make fast and appropriate decisions. The leaders of company
provides knowledge and training to employees so that they can perform their tasks easily. This
5

also assists employees in developing and creating new ideas. Thus, this will results in shaping
innovation and commercialization.
Organization culture: It refers to beliefs, customs, behavior of employees, etc. The culture of
company also plays a vital role in shaping innovation and commercialization. It is an important
within business enterprise which can affect on performance of employees positively as well as
negatively. Positive environment of company lead in improving performance of employees and
better outcomes. On the other hand, discrimination between employees will result negatively and
create gaps between workers. In Tesco Plc, the culture of company should be good and managed
in a proper way. This will aid them in shaping innovation and commercialization. Innovation will
takes place in organization when there are professional employees who brings modern ideas and
makes innovative products by their efforts and advanced techniques (Inauen and Schenker-Wicki,
2012). This will help company to shape innovation and commercialization.
Organizational vision: In order to shape innovation and commercialization, it is important for
company to have clear vision or objectives. This will assists them to follow strategies which are
helpful in achieving their goals and visions. The leaders of Tesco Plc should also have cleared
vision so that they can guide their employees. It is also important for them to give proper training
and knowledge to workers so that they can easily deal with all circumstances.
Vision: The vision of Tesco Plc is to become a pioneer in providing online services to their
potential clients (Gupta, 2011). These services are concerned with purchasing clothes, accessories
and other related stuff.
Teamwork: Teams are considered to be an essential part of company in achieving goals and
objectives. Teamwork is refers to when employees are segmented into different groups and
performs their activities in common. They are also helpful in carrying out business tasks
according to their plans. In Tesco Plc, teamwork also aid company in shaping innovation and
commercialization. They work on a common and specific projects get better results or outcomes.
Furthermore, they also deliver new ideas and concepts to their customers which attract them
towards company.
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TASK 2
P3. 4Ps of innovation and the use of innovation funnel to examine and shape innovative ideas
The main objective of innovation is to create new products by implementing ideas or
thoughts through existing products. In this, there are 4Ps of innovative mix which are considered
by Tesco Plc in formulating new plans or goods. These mix are given by John Bessant and Joe
Tidd which are as follows:
 Paradigm: It refers to changing of manner by which new and innovative ideas or
products can be introduced within management. By this, company faces new challenges
and situations by competing with their competitors. In Tesco Plc, this element of
innovative mix is also considers by company which helps them to faces different
challenges. This also aid company in delivering goods to satisfy needs of consumers at
affordable rates.
Product: The another element of innovation mix is product. Product refers to items or goods
which company offers to consumer have to fulfill their wants. Delivering better products helps
company to gain competitive advantage at market place. In Tesco Plc, company should produce
valuable and innovative products to satisfy its consumers from all aspects. Innovative products
will lead them to attract more services users towards them (Kilelu, Klerkx and Leeuwis, 2014). They
also manufacture goods by focusing on demands and requirements of customers. This assists
them to increase their sales turnover along with level of production.
 Products: The important element of innovation mix is product. It is important for
company to offer products at valuable and at affordable rates which helps them to
increase sales and revenues. The manager of Tesco Plc, should provide proper training
and knowledge employees so that they can produce valuable products. It is also important
for company to introduce product with innovative feature at marketplace with aim to
increasing attraction of consumers. This also aid in shaping innovation and
commercialization.
Process: It refers to tactics by which company deliver products to its clients. This is a another
element of innovation mix which helps company in shaping innovation and commercialization
(Wong, 2011). Process is considered to be an important part in manufacturing innovative
products. The manager of Tesco Plc should also looks after the method of process. It is important
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for them to considers those methods which utilities all resources properly by reducing wastes.
This will also aid company in shaping innovation ad commercialization.
Position: It refers to the image or reputation of brand. The position of company is important at
market place. By position company can grow and expand its business at market for longer period
of time. Position is also an important innovative mix for Tesco Plc. They should offer better
services to their consumers at affordable rates then its rivals which results in creating brand
image and reputation (Hossain, 2015). This element is also beneficial for organization in shaping
innovation and commercialization.
Importance of innovation funnel
Innovation funnel refers to the steps or methods which is appropriate and used by
company to provide better services to its consumers. This process is also helpful for company in
achieving their goals and targets. In context of Tesco Plc, there are different kind of funnels
involved in processing of goods which are used by company in maximizing their sales and
profits. The two steps involved in innovation funnel are collecting appropriate information and
selecting best ideas. In the first step, company collects valuable information related to consumers
demand and needs. They generate information form market as which product is most preferred
by customer's. After this, the second step which company should consider is selecting ideas.
According to the second step, company implements ideas which are best suited and fulfill
demands of its service users. Thus, innovation funnel helps company in examining innovative
ideas and performance of employees through tactical thoughts.
P4. Development in frugal innovation and examples of how it is used in an organizational
context
Innovation frugal is the process of reducing complexity along with cost of goods and
production. This process helps in removing nonessential features from specific product. It is
dependent upon several factors such as, political, social, technological and environmental. It is
helpful in producing goods by reducing wastage and by optimizing all resources properly or
systematically (West and Bogers, 2014). The manager of Tesco Plc also considers this process
which helps them in producing producing goods by minimizing costs. This will enhance
production level of company along with its sales. For example, tastes and preference of
customers in UK is different from other countries. So to fulfill demand of people according to
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their requirements, the process of innovation frugal taken into consideration by company. These
help them to make customers base strong and to deliver goods on the basis of demand.
In additionally, there are some levels of innovation frugal which are considered by Tesco
Plc in introducing their products are as follows:
Identify the target market: This is the fist and important stage of frugal innovation. In this,
company analyzes their segmented or target market to serve customers. Tesco Plc should identify
requirements and demands of its customers related to products. They should manufacture only
those products which are demanded by service users at preferred prices (Ettlie and Rosenthal,
2012). This helps them to maximize their sales and profitability margins.
 Analysis of the environment: Analyzing business atmosphere is essential for company
to understand. They should make decision according to current or present situations. It
includes, social, political, technological and environmental factors. In reference of Tesco
Plc, these factors aid company and protect them from counter consequences which occur
while introducing products.
 Pattern based ideation: This is also an important determinant of frugal innovation.
Company considers these factors for evolving solutions and ideas while launching their
products at market place among consumers. By this company can find innovative ideas
and can easily deal with circumstances facing by them. This is also helpful for Tesco Plc,
in shaping, managing and unitizing operations in an effective manner.
TASK 3
P5. The importance of the commercial funnel and the application of New Product
Development(NPD) processing for commercialization of innovation
Commercial funnel refers to launching new thoughts or ideas which helps in production
of goods. This also helps company to satisfy needs and demand of customers. This process is
also known as sales funnel. By this, organization can also measure its growth and success that
reach in between steps of innovation funnel (Mueller, Rosenbusch and Bausch, 2013). This concept
is also used by Tesco Plc, which helps them to determine activities required to be improved. This
also aid company in process of promotion and advertisement are carried out. Due to this process,
it become easy to handle data and information for management of company. They can easily
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reach to the conclusion to make their task effective. It is important for managers as well as staff
members of company to reach their targets by satisfying demands of their service users.
Thus, this process is beneficial for company to measure positive strategies which will
result in positive image of company in minds of consumers. By this, many clients are attracted
towards business enterprise which helps them in increasing their sales.
New product development (NPD): It is the process in which company produces or develops
new products to satisfy customer’s needs. This method is considered by almost all companies to
increase their sales and profit margins (Mollick and Robb, 2016). The Tesco Plc also use this
process to attract more consumers towards them. They should provide training session to their
employees and gives proper knowledge about the product. By this, they can easily assist
consumers and give all details about product to them. NPD also helps company to stay
competitive at market place and also in gaining advantages. Thus, Tesco Plc is going to
introduce new cash less grocery store by which saves billing time consumers. In their new
innovation, they install scanners on the entrance doors of doors. These scanners scan consumer
which enters into store. This will already connected to the accounts of service users as whatever
they buys the money will credit from their accounts automatically. This new innovation helps
consumers in saving their time. They cannot carry money with them as this is a cashless
innovation.
Some process which are involved in NPD are as follows:
 Idea generation: The first and important process in NPD is idea generation. This process
helps company in producing new ideas. In reference of Tesco Plc, company generates
information from market related to consumers demands and requirements.
 Idea screening: After generating new ideas the second step which is involved in NPD is
idea screening. According to this process, company filters ideas and applies opinion
which is best suited to their operations. This process helps Tesco Plc in their achievement
and growth.
Concept testing: The third process of NPD is concept testing. After screening ideas, company
tests their concepts or products to identify whether their innovation is working properly or not
(Mount and Martinez, 2014). This is done before introducing products at marketplace among their
customers.
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 Business analyses: In this process, company analyses their business tactics or methods
which they have considered while introducing their new invention that is “new cash less
grocery store”. This includes, marketing, branding, and marketing mix of new product.
 Product development: After all these process, company goes through with the stage of
product development. In this, organization builds products by taking into consideration
above all stages.
Test marketing: This is the second last stages in NPD after process of product development. In
this, company launches its product at market place for testing and to identify whether the new
concept is liking by consumers or not (Qian and Haynes, 2014). They can get feedback in return
related to their product and then improvements are done if required.
 Commercialization: After processing all stages, commercialization takes place. At last,
according to this stage company launch and introduce final product at market place
among their consumers.
P6. Innovation Business Case for Tesco Plc for accessing funding
In this competitive and modern era, every company establish its firm to again competitive
advantage at market place and to achieve success. On the other hand, investment or funds are
also important to establish firm and to bring new products in market (Siegel and Wessner, 2012).
In this regard, there are some factors that help Tesco Plc to compete with their rivals or
competitors. Some business cases considered by company are as follows:
Executive summary: Tesco Plc is a retailer company which deals in grocery products. The
company operates its business in UK in which more than 476000 workers are performing their
activities. The company offers various discounts and provide products at affordable rates. The
main motto of Tesco Plc is to manufacture products to satisfy customer’s needs and wants. It
offers various items such as, books, clothing, furniture, toys, electronic items and many more.
Vision: The vision of Tesco Plc is to provide online services to its consumers which save their
time or to become highly valued company by customers which they serve.
Mission: The mission of Tesco Plc is to create best and valuable products for consumers to earn
their loyalty lifetime.
Objective: The main objective of Tesco Plc is to increase their sales of organic manufacture by
25% in upcoming 5 years and to increase market share by 20%.
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The problem statement: In this statement, all problems and issued which occurred in new
innovation or product is stated. By this company can easily monitor and control all risks factors.
For example, if any issue occurs in scanners while scanning customers company can easily
monitor in this statement.
Analysis of the situation: Under this statement, company analysis the situation and find best
solutions to overcome from these. This helps business enterprise to take actions fastly to improve
it.
Cost benefits analysis: Costing of product is also important for company to consider. It is
important for them to apply costs by which customers can easily buy them (Schroll and Mild,
2011). They should do make market research and identify which at which costs consumers prefer
to purchase products.
Recommendations: In this, company get recommendations or feedback by their service user
related to their products. This helps organisation to do changes and improvement in products if
required.
Funding: Funds refers to the amounts which company takes or generates by their investors.
Some investors are, angle investors, crowd funding, etc. It is important for company to generate
funds from them to manufacture or introduce products.
Benefits: This case is beneficial for company to prepare as it will aid to identify all issues related
to products. By this, they can also get feedback from their consumers whether they are liking the
new innovation or not.
TASK 4
P7. Different tools to protect, develop and retain intellectual property and knowledge
Intellectual property: It refers to the intangible property which company uses to secure their
products and brand image from their competitors at market place. Tesco Plc also uses in this
concept to protect its company name and products from copying. There are some properties
which company uses to secure its resources from others are as follows:
 Copyright: It refers to assignable legal right which is given by originator for fixed period
of time. It is a safeguard which company uses to protect their original creation from
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copying. Tesco Plc also considers copyrights by which their rivals cannot copy their
products without their permission.
Patents: It is also an another form of intellectual property. Patents give rights to owner of
company to exclude their rivals from making, using, selling and importing their invention
(Rosenbusch, Brinckmann and Bausch, 2011). Tesco Plc also considers rights of patents to protect
its products and innovations.
 Trademarks: These are recognisable signs, designs, expressions, etc. which helps to
identify their products and services offered by firm. It is a logo of symbol of company by
which consumer can identify companies along their products. Trademarks are granted for
usually 7 to 20 years. By this, Tesco Plc can also introduce their products by mentioning
their trademark over the product.
CONCLUSION
This above assignment concluded that innovation is an important aspect for company in
their growth and development. This helps company to attract more consumers towards them
and increases their sales. Along with this, organisational vision, leadership, teamwork and
culture of company also result in shaping innovation and commercialisation. In addition to
this, 4Ps of innovation mix and innovation funnel also helps organisation to examine and
shape innovative ideas. Furthermore, new product development and its process also help
company to attract more consumers towards them and increase their sales turnover. Lastly,
there are some important intellectual properties which company uses to protect its name and
products from all aspects.
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REFERENCES
Books and Journals
Kim, Y. W. and et. al., 2014. Gamma Titanium Aluminide Alloys 2014: A Collection of Research on
Innovation and Commercialization of Gamma Alloy Technology. John Wiley & Sons.
Kamariah, I. and et. al., 2012. Decision making process in the commercialization of University patent in
Malaysia. African Journal of Business Management. 6(2). pp.681-689.
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to commercialization
through networks. Journal of Business Research. 65(2). pp.198-206.
Kutvonen, A., 2011. Strategic application of outbound open innovation. European Journal of Innovation
Management. 14(4). pp.460-474.
Inauen, M. and Schenker-Wicki, A., 2012. Fostering radical innovations with open innovation. European
Journal of Innovation Management. 15(2). pp.212-231.
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.
Hossain, M., 2015. A review of literature on open innovation in small and medium-sized
enterprises. Journal of Global Entrepreneurship Research. 5(1). p.6.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation:
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Management. 31(4). pp.814-831.
Ettlie, J. E. and Rosenthal, S. R., 2012. Service innovation in
manufacturing. Journal of Service Management. 23(3). pp.440-454.
Brunswicker, S. and Van de Vrande, V., 2014. Exploring open innovation
in small and medium-sized enterprises. New frontiers in open
innovation. 1. pp.135-156.
Mueller, V., Rosenbusch, N. and Bausch, A., 2013. Success patterns of
exploratory and exploitative innovation: A meta-analysis of the influence of
institutional factors. Journal of Management. 39(6). pp.1606-1636.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital
access: The role of crowdfunding. California management review. 58(2).
pp.72-87.
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Wong, P. K. ed., 2011. Academic entrepreneurship in Asia: The role and
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Mount, M. and Martinez, M. G., 2014. Social media: A tool for open
innovation. California Management Review. 56(4). pp.124-143.
Siegel, D. S. and Wessner, C., 2012. Universities and the success of
entrepreneurial ventures: Evidence from the small business innovation
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research program. The Journal of Technology Transfer. 37(4). pp.404-
415.
Schroll, A. and Mild, A., 2011. Open innovation modes and the role of
internal R&D: An empirical study on open innovation adoption in
Europe. European Journal of Innovation Management. 14(4). pp.475-495.
Rosenbusch, N., Brinckmann, J. and Bausch, A., 2011. Is innovation
always beneficial? A meta-analysis of the relationship between innovation
and performance in SMEs. Journal of business Venturing. 26(4). pp.441-
457.
Gupta, P., 2011. Leading innovation change-The Kotter way. International
Journal of Innovation Science. 3(3). pp.141-150.
Engel, J. S., 2015. Global clusters of innovation: Lessons from Silicon
Valley. California Management Review. 57(2). pp.36-65.
Shapira, P., Youtie, J. and Kay, L., 2011. National innovation systems and
the globalization of nanotechnology innovation. The Journal of
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