Innovation and Commercialisation

This report explores the concept of innovation and commercialisation and their importance in an organisation, specifically focusing on Samsung. It discusses the difference between innovation and invention, and how organisational vision, leadership, culture, and teamwork shape innovation and commercialisation. The report also delves into the 4 Ps of innovation and the use of the innovation funnel to shape innovative ideas. Additionally, it explores the development of frugal innovation in the context of Samsung's plans to introduce holographic phones.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Explain innovation and its importance to organisation in comparison with invention.....2
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialization..................................................................................................................4
TASK 2............................................................................................................................................6
P3 4 Ps of innovation and the use of innovation funnel to shape the innovative ideas..........6
P4 Development in frugal innovation in organisation context...............................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial and application of new product development........................8
P6 Build a business case.......................................................................................................10
TASK 4..........................................................................................................................................11
P7 Various tools that the company use to develop, retain and protect knowledge and
intellectual property rights....................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
1

INTRODUCTION
Innovation refers to something new or change in the existing product, field or idea.
Commercialization is an activity of bringing new and modified goods and services in the market.
Samsung is the world largest electronic company founded in 1938 by Lee Byung-chul. Company
manufactures various electronic items such as TV, Mobile Phones, Watches, Refrigerators,
cameras, laptop, computers etc. hence this report explains the innovation and invention and how
they differ from each other. It also discussed the different types, process and range of protecting
ideas. In this project Samsung plans to innovate a product to earn maximum profits.
TASK 1
P1 Explain innovation and its importance to organisation in comparison with invention
Innovation and Invention- Innovation is the process of development,creation and
development of the new product and invention is the process of innovation of product or
introduce in the market for the first time. In context of Samsung company, it is inspire the world
with their creativeness in products and enrich the whole market in all over the world. It deals in
TV, mobile phones, refrigerators, watch etc. When the company modify the phones in a creative
way that is called innovation and in terms of invention is firstly connect with the market and the
customers that guides the business to do changes in the product according to the customers
needs.
Importance of innovation and invention- The importance of innovation in context of
Samsung is that it is an important aspects to make an successful organisation. It is the global
leader in screen technology , TVs, batteries and chip. Innovation attracts the best talent that
provide great opportunity. The trump card of invention in Samsung is that it proof the
creditability of scientific knowledge with unexpected results while taking major risk(Eberhardt
and et. al., 2017). Economic growth- Innovation in technology is considered as one of the major source of
increase in the growth of the economy. It is measured in terms of increase in gross
domestic product. Samsung is based on innovation and technology which is considered as
a major source increase in economy because many people attracts towards its innovation
and buy it.
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 Continuous improvement- Innovation in the product offering increase in sustainability of
the organisation. In context of Samsung, regular creation in goods and services helps in
longer survival of business. In this invention can provide one time growth and profits in
the company.
Difference Between innovation and invention-
Basis Innovation Invention
Activities and skills required It is limited to research and
development department and
require scientific knowledge.
It spread across the
organisation that require a set
of technical, strategic and
marketing knowledge.
Concept It is an original idea or thought
and its working in theory.
It is the concept of practically
executed of new idea.
Examples Successful goods and services
like Samsung mobile phones,
QED television, refrigerators
etc.
Invention in product
design,business model and
working prototypes.
Samsung invention in
innovating a solid and working
business model that is based
upon the ideas which is formed
in the generation stage.
Happens when When there is a need of
improvement in existing
product.
New and fresh idea strikes
scientist and how it works in a
theory.
Definition Innovation defines the
successful exploitation of new
and innovative ideas which
ties everything together in the
organisation.
Invention is an idea of doing or
making something without any
verification that is
commercially valuable.
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P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialization
Innovation and invention is an essential part of the organisation sustainability and growth
for the long period of time. It can shape the culture, vision and leadership activities of the
Samsung company. It provides the healthy working culture to the staff members and discussed
their vision in a simple way that should easily be understood by the team members which helps
in accomplishing the task on a deadline.
Vision- Samsung vision is to inspire the universe with their innovative technology,design
and products that help people to enrich their life and it also contribute to creating new future.
Culture- It is the part of the organisational design that focus on employees skills, ability
for innovating new technology. It is based on belief, customs, values etc. For this Samsung
company use handy culture model which is relating to the individual culture in the organisation.
Handy culture's model
A well known philosopher who is experienced in the company culture.
Power culture- It is a culture in which power is in the hands of few individuals who
spread their orders throughout the organisation. In Samsung company use power culture to take
important decisions regarding the product innovation.
Role culture- This culture defines the roles and responsibility of an individual in the
organisation. If the manager use role culture in the Samsung than it makes the decision making
process slow.
Task culture- This culture formed to address the progress report or specific problems in
the organisation. If Samsung use this culture in their organisation than it is very beneficial to the
employees productivity or company proficiency. In this teams are formed to solve the problem
that was arise in the innovation part.
Person culture- In this culture every individual see themselves as a superior in the
organisation. In context of Samsung if this type of culture follow in the organisation than it
creates conflicts among the team members in the company.
From the above information, Samsung follow Task culture which is based on results and
solutions and marked the flexibility,empowerment and adaptability. This culture helps the
company in innovation and invention process and grow the market share(Henttonen and
Lehtimäki, 2017).
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Teamwork- For promoting the teamwork leaders of Samsung follows the tuck man
theory because this theory improves the coordination between the staff members. It is the
company where employees work with new innovation in short -lead time which means every
worker work hard to meet the deadlines set. This all possible with the tuck-man theory i.e.
norming,forming,performing,adjourning that quickly turned out the task into flexibility with no
problem.
Tuckman's theory
Forming- At this stage manager of Samsung conduct a induction program for their
employees because they do not understand each other which is very important to achieve the
goal in the organisation. Here, top management spend time with their subordinates, collecting
information and make a strong bond.
Storming- In this stage team start to suggest ideas to their staff members. Every person
have different perception this will create conflicts among them. In this manager of Samsung
properly managed the relationship between them to complete the task on time.
Norming- This stage develops the trust among the teammates that leads to be harmonious
working environment because employees are agree on the rules and regulations which they
operate. In this team leader assigns the task and set rules and values so the staff members work
very efficiently.
Performing- At this stage team members are maturely deals with the situation and solve
the problems that arise in the functions of the company. At this stage staff members of Samsung
majorly focus on completing the task and compromise with the problem arising.
Adjourning- This is the last stage of this model where team task is complete which
influences the wrapping up final goal and identifying the results and efforts. In this stage
manager of Samsung gives a winning party to their team mates(Xiao and Yan, 2017).
Leadership- This factor is all about the encouraging and motivating the employees so
they work effectively and efficiently. It also helps in achieving the task on deadline and increase
market share by earning more goodwill and profits. This also helps in longer sustainability of the
organisation. To become a successful samsung develops their leadership style that enables it to
sustain during its difficult time. Leader of Samsung follows a transformational leadership style
which is very much suitable to change the old ways of production and mindsets of the employees
and helps in adopting the changes according to the dynamic environment. With this model
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managers grow their innovative skills and introduced it to many peoples and in the electronic
industry. It also follows a contingency theory because it depends on the changing environment
and conditions. In this leaders are very task oriented to achieving the task. Leaders focus on the
innovation in products and provide a description to their teammates so they work effectively and
efficiently.
TASK 2
P3 4 Ps of innovation and the use of innovation funnel to shape the innovative ideas
Innovation is the combination of four major elements which includes person,
process,product and press. Samsung is going to innovative in its mobile phones in terms of
holographic display that projects 3D images(Rasmussen and Eliason, 2017).
Person- A person is the business enterpriser or the intrapreneur who use their
skills,creativity, and motivation to create a product. In this component manager examine the
level of creativity in an individual. This element help in developing and sustaining the
organisation for a long period of time.
Process- It refers to that process whichprivate sector companies is used to making the
product and at the time planing the product. The manger of Samsung ensures that the process
that should follow in producing the products “ holographic phones” is very effective to earn a
maximum profit by capturing the wide market.
Press- In this manager creates a relationship between human being and its environment.
In this it ensure that the innovation in mobile phone is not harm the environment and people life
but its better the life of both.
Product- This refers to that goods that was innovated and recognised to its customers.
Samsung managers assure that the innovation in mobiles i.e. “holographic phones” is unique and
new which is not used by other rival firms this will leads firm product valuable(Walsh, Lee and
Nagaoka, 2016).
Innovation funnel
It refers to an activity to generate the new product to achieving the growth in the
upcoming year(Sebastianski and et. al., 2015). It is also refers to funnel management process
which is a very recognisable term for the companies like Samsung who create an innovative and
action plan to earn a maximum market share and longer sustainability in the competitive world.
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In this process top management carefully and continuously compared a series of rules,criteria
and filters that is used in innovating the new product. This innovation funnel consider the various
steps that are described below.
Investigation- In this Samsung monitor the market and generate the holographic phones
to capture the wide market. In this company monitor and analyse the various growth options and
on the basis of this decided the best strategy for the organisation product(Sun and et. al., 2018).
Market investigation- Manager of Samsung examine the area where they launch its new
product for the first time. It is an important part to identifying the whole market where the phone
has been launched. Without it a company cannot identify what the customer needs.
Delivering products- It is the final stage where the best idea will be selected that
delivers the company objectives. Here, the products offering released in the market place. In
context of Samsung, managers use various promotional tools to deliver the products in the
market to the targeted consumers.
P4 Development in frugal innovation in organisation context
Frugal Innovation-
It is the process of eliminating the cost and problems of a goods in its manufacturing
process. This is also known as commercialisation in the form of quality products and services
with affordable price(Rubera, Chandrasekaran and Ordanini, 2016). Product frugality can
increase the consumers willingness to generate the word-of- mouth. This index is applicable in
different countries in different context. Samsung company planning to introduce the holographic
phones with 3D images in market at minimum cost of production. This phones is very effective
and useful for the peoples and may help in increasing the higher profits. Holographic phones
contain 3D display which can be viewed without special glasses. In this images can be seen from
the sides,behind and interact with them with hand gestures. It looks and act like phones but when
a person see in the screen on the red hydrogen glass then it will surprise the that it never seen
anything like that. To innovate this Samsung except to increase the sales by 15% that is higher
then its competitors.
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Find opportunity in adversity- It is the first process of frugal innovation funnel. It helps
in garbing opportunities from the problems, in Samsung it introduce the holographic phones to
attract peoples which lead to increase its proficiency with its new design
cellphone(Paradkar,Knight and Hansen, 2015).
Use less perform more- This process suggest that using minimum resources or reuse it
in designing the holographic cellphones that helps in minimising the cost of production.
Think and act flexible- Samsung think and act flexible in making the new innovative
phone so this will increase its efficiency and effectively(NARIMANI and VAEZI, 2017).
Use simple methods- managers of Samsung use those methods in designing the new
phone that is easily understand by the employees in making that.
Include margins- This process explain that the Samsung can identify the customers
demand of improving so they make changes quickly.
Follow your heart- In this process Samsung make a good image in the users mind to
increase and gain the more market share.
TASK 3
P5 Importance of commercial and application of new product development
Commercialisation funnel
It is a marketing activities that includes the journey of a consumer when it goes through
making any kind of purchase. In context of Samsung, manager use this model to guide their
marketing efforts in the stages of sales funnel.It is an important for the company to attract
more customers and differentiate it from others competitors.
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Attract- It is the first step where Samsung attracts new investors and customers. Examine and
reviewing the content by using social media and pay more attention on the feedback that
is generate by the users. Here, the products are developed by identifying these
things(Kolch and et. al., 2015).
Converts- It refers to that process where company makes unknown user to the recognisable
consumer. For this Samsung make their product and adding some type of rebate to attract
more customers at the time of introducing the new 3D phone to the market.
Close- This stage suggest the activities of the consumers that should be measured by the
company. It identifies the information regarding the users desires and relation with the
organisation.
Delight- At this level Samsung company noticed the satisfaction level of the clients. By giving
them the many offers to hold the customers loyalty (Ge and et. al., 2016).
New product development process
There are several stages in launching the new product of Samsung that are as follows (Mollick
and Robb, 2016)-
Idea generation- In this state manager of Samsung thinks to fulfill the customers needs in a
very effective manner by offering the innovative product to get good returns and sales.
Screening- This stage generates the new idea after analysing the market. It is a crucial step in
Samsung to execute it in a very effective way.
Development of concept- It is the stage where Samsung develops its holographic phone in a
very effective and creative way
Marketing strategy- It is a stage where the company first analyse the market where they
introduce their products. Marketing manager of Samsung make a strategy to promote their
innovative product “ holographic phone” in the market to earn more profits. Here, the
Samsung fix the price of the product as per the customers demand.
Business analysis- In this model managers can analysis their growth after introducing the 3D
phones and evaluate its modifications.
Product development- After examine the market and business its is time to develops the
product design. At this stage Samsung develops and design the innovative products in a way
that attracts more and more customers at the very first time.
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Test marketing- In this process manager of Samsung introduce the new product in the small
market and get customers feedbacks and then make corrective actions if needed.
Commercialization- After all the further step Samsung introduce their holographic phones in
the market place.
P6 Build a business case
Business case
Business case is an written and verbal presentation that is implemented to educate a
decision maker and convince them to devise some way of activities. In SAMSUNG it provide
information regarding the innovation and how they performed by the company in developer to
make creation (Xiao and Yan, 2017).
Steps Description
Executive summary Samsung is one of the leading electronic
company who innovate new design phone
“holographic 3D mobiles” which is totally a
creative concept to cover the large market
share and earns more profits.
Objective Samsung aims to devoting human resources
with innovation in goods and services they
serves in global society.
Mission To create innovative products and earns more
profits.
Sources of innovation Samsung innovates in mobile phones to attract
customers.
Solution Innovation the product in a effective way
attract more people and it earns profits.
Innovation in product Holographic mobiles phones that creates 3D
images without any special glass.
Target market They target the high- elite customers who are
very techno user.
Sources of funds There are various sources of funds that a
company can use to raise funds for their
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innovation in their products. It includes bank
loan, venture capital etc.
Bank loan – It is a secured type of loan in this
money can be borrowed by the person for a set
period of time and it is easily available to any
person who wants to invest in their business
with some innovation and modification
involved.
Venture capital – It refers to that investments
of funds that is manage by the person or
businesses to earn high amount of returns in
future. It is not a secured as compare to bank
loan but it can be done quickly because this
does not more paper work.
Angel investors- It refers to the family and
friends who provide funds for earning the
profits. it is more suitable for the small and
medium size organisation. Where the amount
is needed in a small terms as compare to the
large organisation.
In innovating new phones Samsung use bank
loan because it is very secures type of loan or it
contains a less interest rate as compare to other
source of funds (Kolch and et. al., 2015).
Benefits Maximize profits, increase market growth and
attract more and more user.
Monitoring and controlling Managers needs to examine all the facts that
are related to creating more opportunities in
earning more profits.
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TASK 4
P7 Various tools that the company use to develop, retain and protect knowledge and intellectual
property rights
Intellectual property rights
It refers to that right of individual which is given over its creation of minds. This is an
essential term for any business because they set the organisation apart from the competitors,
offers the people something unique and different, it is used as security for loans and provide a
important revenue stream. There are various types of rights(Ge and et. al., 2016).
Patent- It refers to the invention that is secured by the government issued rights that
does not allow someone to sell or make their product offerings for a certain period of time. It is a
type of licence that sole owner had in preventing it from producing,selling and using of the
innovation. It is the strongest type of legal right to protect the new and unique idea and product.
Trademark- It refers to that intellectual right which consist of identified design, sign and
expression which is used to protect the particular product packaging, labelling and services.
This legal right is given on the package, label and the product itself. (Yu and et. al., 2016). It is
the lowest form of right because in thisproducts of samsung it is very easy to copying.
Copyright- It refers to that work which is used to secure the artistic work such as
music,writing etc. It is less secure than patent but more to trademark. Company use this right to
protect the artistic work which is offers to its customers.
Before applying any of this rights, Samsung needs to follow the legal laws and rules. To
innovate new product Samsung use patent right to prevent it from other competitors from
producing, using and selling the products(Carayannis, Cherepovitsyn and Ilinova, 2016).
CONCLUSION
This report concludes the importance of innovation and commercialisation. In Samsung
using technology with more innovative ideas generates more sales and growth of the company.
There are various function like vision,objective,leaders and culture that would assist the
company to innovate new things and increase the share worldwide. It also concentrate on the
4Psof the innovation funnel. It also show the importance of funnel innovation and frugal stage in
innovation and commercialisation. After all this a company made a business case where they
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recognise all the activities that was needed in launching the new product. It will increase more
sales, market share of the organisation.
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