Innovation and Commercialisation

This document explores the concept of innovation and commercialisation and their importance in organizations. It discusses the comparison between innovation and invention, and how organizational vision, leadership, culture, and teamwork shape innovation. It also explains the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. Additionally, it explores the developments in frugal innovation and provides examples of how it is used in an organizational context. Lastly, it explains the importance of the commercial funnel and the application of new product development (NPD) processing for the commercialization of innovation.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention. ....................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................4
TASK 2............................................................................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas. ...............................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................8
TASK 3............................................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation. ......................................9
P6 Build an innovation business case for an organisation, including ways to access funding. 12
TASK 4..........................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................13
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is referred to as the means to improve something or to replace something. It is
a process which involves changes in the existing product or service or replacing the existing one
from the new innovative offering. Commercialisation is the subset of broader process of the
innovation. It is a process which involves transformation of ideas, invention or knowledge into
the greater wealth for the people, business or the society at large. It also involves a process of
brining new product or service into the market and also entails production, marketing,
distribution, sales and other key functions which are critical for achieving the commercial growth
and success of a new product or service (Boretti, 2020). The organisation chosen for this report is
Clove club, a famous dining house situated in London, UK. It offers wide range of delicious
dishes to its customers. This report shall cover the comparison between innovation and invention
and its importance, how organisational leadership, vision, culture and teamwork shape
innovation, 4Ps of innovation, innovation funnel and frugal innovation. Further it will cover
importance of commercial funnel, New product development process, innovation business case
and tools of intellectual property.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation is derived from the Latin term innovare whose meaning is to renew. It
basically means improvisation or replacement of something. It is a process through which any
product or service is brought up by the application of new process, idea or technique or renewing
the existing offering in order to create a new value out of it (Monotti, 2017).
Invention is a noval or the unique process, device, method or composition which
involves the process for the overall engineering and product development process. It may me
improvement in the machine or product or the usage of new new process for creating the result
out of it.
In context to Clove club, which is a famous dining house located in London the
importance of innovation is illustrated below- It helps company grow- Innovation helps the organisations to grow and succeed and this
can be done by setting such objectives which meet the requirements of the innovation.

The companies who wishes to succeed in the market and wants to take an edge over the
competitors make continuous innovations. It takes time but it helps in growth. Clove club
is continuously using such methods which brings innovation in their existing product or
brings any new offering. This helps in attracting potential customers and help the
restaurant to grow. It keeps organisation relevant- The market is dynamic which keeps on changing and to
keep the companies relevant, it is important that they keep on adopting such changes so
that it can remain profitable and relevant. Innovation helps the companies to bring change
in the market and capture as much share as they can. Clove Club must work to adapt the
changing needs of the people so that it can sustain in the market and stay relevant (Yildiz,
2020). Innovation helps in making differentiation- It helps the companies to bring something
which is different from the existing one. For attracting and retaining the customers,
innovations helps the companies in doing so as it helps the enterprise to build the brand
identity in order to standout of the competitors.
Basis Innovation Invention
Meaning It brings changes or
improvement in the product or
service in order to add value to
it.
It involves coming up with a
new idea or development of
new product which is not been
created previously.
Involves It involves mixture of many
products and services.
It involves a single product or
service.
Skills required It requires technical, marketing
and strategic skills for bring
innovation in the market.
It involves technical skills for
bringing an invention (Razak
and Murray, 2017).
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
An organisation is required to carry out the activities in order to achieve its aims and
objectives and ensure its survival. The organisational vision, culture, leadership and teamwork

all mutually contribute in the success and growth of the companies. In order shape the
innovation and the commercialisation, Clove club may use the elements like vision, culture,
leadership and team work so that innovation can be brought easily. In context to clove club, these
elements are discussed below-
Organisational vision
The vision statement of the companies denote the long term objectives of the company.
The vision statement of the organisation is prepared at the time of start up and the working of it
is ensured on the basis of it. The vision statement of Clove club is to provide such menu to the
customers which offers impeccably sourced seasonal produce of British. It shows that company
engages in creating something new for the customers so that they can attract more and more
consumers.
Organisational leadership
It is the style which is adopted by the leaders in order to lead their teams or groups. The
leaders must possess such skills and knowledge which helps in leading the team in order to
achieve the organisational goals (Wang, 2017). The clove club have efficient leaders which lead
their teams with the sole purpose to attract customers. They follow participative leadership style
where they welcome the ideas of everyone and shape a innovation on the basis of it. This helps
in making the best innovation which may attract more customers and helps in capturing the
larger market.
Organisational culture
The culture can be said to be the set of values, experience and belief which helps in
guiding the employees so that the workforce is able to work properly and effectively. Clove club
has such organisational culture which motivates and encourages the employees to bring out their
best so that they can improve the performance of the restaurant. This culture also helps in
making the innovative idea a reality as it turns the idea into the reality.
Teamwork
In order to shape the innovation, it involves team work as efforts of whole team is
required. The clove club has divided its operations in different teams which makes their task easy
(Yun, 2017). The restaurant focus on their employee engagement so that every one can work
collectively for the organisational goals and objectives. This is an important element for giving
shape to the innovation as it is a big responsibility which involves efforts of whole team.

TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
The space model of 4Ps of innovation is developed by Joe Tidd and John Bessant which
is used to clarify how comprehensive an innovation is, this model has four categories which
helps in shaping the innovative idea into a reality (Aloini and et. al., 2016). In context to Clove
Club, the 4Ps of innovation is discussed below-
 Product- It involves what the company is offering to its target market. The Clove club is
planning to make an innovative dish which will involve gelato in their cold beverages as
it is low fat based and contains low sugar. This can be used in cold beverages instead of
ice cream in order to give healthy offering to the customers. Process- It involves the way in which the innovation (product or service) shall be created
and delivered to the target market or customers. In context to Clove club, the restaurant
shall use gelato in their cold beverages so that it can give a milky texture to the beverages
and will be served to the customers on order.
Illustration 1: 4Ps of innovation, 2020

 Position- It includes the people to whom the offering is to be served. In simple words, it
is the target market of the innovative product. The clove club shall offer the gelato
beverages to its customers who are health conscious and are of the age 18- 35.
 Paradigm- It involves the changes as to how, why, where and hows are to be carried on.
It includes different theories, concepts and doctrines. In context to clove club, it shall
adopt such theories and methods which can bring change in their offering and help them
in implementation. It may make use of a systematic innovation which can enhance its
knowledge about the minor ingredients which is to be introduced at different different
levels.
Innovation funnel
It basically describe the steps which take place in developing the product or the process.
All innovation have common purpose which involves making a new product or the process. It
enables the idea which is to be evaluated for the viability through the process of rules (Colakoglu
and et. al., 2019). In context to Clove cafe, the restaurant can make use of the innovation funnel
which is discussed below-
 Investigation- It is the first step which involves the collection of idea. The Research and
development team of Clove cafe shall engage in collecting different idea fro, their
sources in order to bring an innovation. After screening the market condition and the
demand, the selection of the idea can be done.
Illustration 2: Innovation Funnel, 2016

 Development- This step comes after the ideas are collected. In this stage, the scrutiny of
the idea is done and a best idea is selected which matches the company's vision, objective
and mission. The Clove cafe is innovating a new dish which shall include the gelato in
the cold beverages to give it a milky texture which is low fat and sugar.
 Shipping product- This the last step of innovation funnel where the finished product or
service is launched to the people. This stage tells the success and failure of the
innovation. So Clove club shall come up with the marketing strategy which can attract
the customers towards this innovative beverages.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is a process which involves reducing the cost and complexity of the
product and also its production. This process involves the removal of the non essential features
from the durable one so that it can be sold in developing countries at low cost (Sattayaraksa and
Boon-itt, 2016). There many principles of frugal innovation in order to create the age of
opportunity which is discussed below in context to Clove club- Principle 1- Engage and Iterate- in this, the Research and development team involves in
gathering the new ways rather than using the old one so that there is prevention of high
cost and time. Clove club may use social media platform and website to conduct the
market research so that it involves less cost and time. Principle 2- Flex your assets- Under this, the company may engage in micro factories ir
new tools and materials so that it can involve less cost for the production of innovation.
Clove club must engage in frugal innovation so that it can incur less cost and time for it. Principle 3- Create sustainable solutions- the resources are nowadays continuously
diminishing so there is a need to bring sustainable solution. Clove club must use its
leftover cakes and brownies in its cold beverage so that it can bring sustainable solution
to it. Principle 4- Shape customer behaviour- it is important that customers have positive
behaviour towards the offering so Clove club must engage in spreading the awareness
regarding the gelato so that people can become aware of this as it is low fat and sugar
based.

 Principle 6- Make innovative friends- It involves collaboration with the stakeholders like
government or suppliers so that the product can be delivered easily as it will help in
attracting larger customers for the restaurant Clove club.
TASK 3
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation.
Commercial funnel is also called the sales funnel which helps in understanding what
customers are thinking and also what they are doing at a particular stage of their purchasing
journey. This helps in making the right decision for the marketing activity and also create a
relevant message at each stage (Chauhan and et. al., 2018). The Clove club may use the
commercial funnel which consists of 4 stages which are discussed below-
 Awareness- It involves the time when people become aware of the product and service.
The Clove club must use its website and social media platform in order to spread
Illustration 3: Commercial Funnel, 2020

awareness about the new product so that large audience can be attracted in short time. It
must also begin to engage in attracting customers to increase their profitability. Interest- In this, the organisation can make leads towards those people who have taken
interest over the product. This can be judge by the number of visit on the social media
platform or mentioning in comment. This will definitely help the Clove club in reaching
large audience and attracting them. Decision- In this step, decision is taken by the people who have shown interest in the
product or service. Clove club can offer discounts and offers to their customers so that
they can increase their sale. Action- Under this step, the actual purchasing of the product takes place and the potential
customers are added in the list (Wowak and et. al., 2016). Clove club must ensure that it
satisfy the demand and needs of the customers from its new product so that it can build
the loyalty base with them.
New product development process
It is a process which helps in bringing the new product in the market. This process
ensures that the product which is innovated is created and brought in the market in the effective
manner. The product involved in this process may be existing one which is modified or improved
or may be original (Albert, 2019). The Clove club is innovating a new beverage which involves
gelato in the market. The steps involved in this process is discussed below-

 Idea generation- The new product development process begins with the generation of
idea which means undertaking a systematic research for the generation of idea for the
new product. Clove club may generate an idea by conducting research from their internal
and external research which shall be undertaken by the R&D team of the restaurant. Idea screening- This step involves filtering of the idea which are gathered at the initial
stage and picking up the best one which is thought to be relevant and reliable. Concept development- This step involves giving shape to the idea. It involves detailed
version of the idea so that a value can be given to the customers. Marketing strategy- In this step, the cost, profit and sale is reviewed with the sole motive
to find out whether it will satisfy the demand or need of the customers. These factors may
be evaluated by Clove club from different sources. Product development- This step requires implementation of the idea to form a new
product. Market test- This step involves testing the product and coming up with different
marketing strategy. The clove club can test whether the product which it is launching is
up to the standard fixed or not.
Illustration 4: New product development process, 2020

 Commercialisation- This is a last step which involves launching of the product as per the
planning.
P6 Build an innovation business case for an organisation, including ways to access funding.
The innovative idea which the restaurant Clove club is coming up with is the “cold
beverage with the gelato”. It is an innovative idea because it has a unique ingredient gelato
which will give milky and creamy texture to the beverage and the main plus point is that it is low
fat and low sugared ingredient so the health conscious people can also consume it. This idea will
help the Clove club in attracting more customers and enhance their sale and profits.
Steps Description
Summary This business case shall show the development of the new cold beverage
which is low fat and low sugar based. This innovation of the cold beverage
has taken place after scrutinising the market conditions and the needs of the
target customers. It is suitable for the health conscious people.
Objectives The main goal of Clove club is to enhance their sale and give its customers
the drink which has health benefits and no fat and sugar.
Mission The mission statement of the Clove club restaurant is to bring such dishes to
the table of the people which are healthy and according to the taste and
preference of the customers.
Vision The vision statement of the restaurant Clove club is to bring such dishes
which are product of the British taste.
Innovation in
product
The innovation which Clove club restaurant is coming up with is that it is
bringing such cold beverages which have a new ingredient of gelato which
will give creamy and milky texture to the drink and also it is low fat and
sugared. It will create a good impact on the people who believes in living a
healthy lifestyle.
Funding For giving shape to this innovation, the Clove Club shall arrange the funds
from external sources like bank loans.
Benefits The major benefit associated with this innovation is that it is suitable for the
people who wants to lead healthy lifestyle. It is a perfect combination which

Steps Description
involves low fat and sugar in the cold beverages.
Monitoring and
controlling
It is an important aspect which helps in monitoring the progress. The tool
which Clove club can use to monitor and control the progress of its
innovation shall be key performer indicator which will help the restaurant in
meeting the standards.
Sources of funds:
The Clove club restaurant can raise its funds from the internal and external source so that
it can implement its idea successfully. The restaurant can raise funds from- Bank loans- This is the most secured form of raising funds which involves payment of
interest and principle amount within a given time period.
 Investor- The company can attract the investors from different sources to invest in their
idea and they shall get high returns from it after the success of the innovation (Lim and
Fujimoto, 2019).
TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
There are different methods through which the companies can develop, protect and retain
their intellectual property. In context to Clove club, the restaurant can protect its innovative by
any of the tools which is discussed below-
 Patents- These are the set of right which is granted by the authorities and government to
the inventor. The inventor disclose the details of the innovation and in return gets the
right to protect it. It is generally for the fixed time period and can be renewed further
(Agarwal and Brem, 2017).
Advantages- It provides protection till a statutory life of the patent. It gives right to file suit in
case of infringement of the right.
Disadvantage- These rights are expensive to acquire and also the life of patent right is 20 years
only.

 Trade mark- It is generally a set of right which is given to protect the product or service
which is being offered to the general public. It is also for the fixed period of time which
gets the right to file the suit in case of infringement of right.
Advantage- The person taking the trademark gets the exclusive right which helps in building the
goodwill of the company.
Disadvantage- The trademark may not help the companies to remember their brand and
goodwill. It is expensive to acquire this right (Lu and et. al., 2020).
The Clove club may use the intellectual property right of trademark to protect its
innovative idea of cold beverage with gelatos. This will help in protecting its formula and also
help in building the brand image.

CONCLUSION
It is concluded from the above report that innovation is creating a new value by creating a
new idea for the new product or making improvements or modifications in the existing one. It
helps the businesses to grow and make distinction from that of the other competitors. The Clove
club may use its vision, leadership, culture and teamwork to make an innovative product so that
it can capture the large market share and take a competitive edge over others. The 4 Ps of
innovation involves product, process, paradigm and position helps in turning the innovative idea
into a reality. The commercial funnel helps me making known the product to the public so that
the awareness regarding the innovative product is spread. Further it is concluded that the new
product development process shall help the organisation to turn its idea into a reality effectively
and efficiently. A innovative business case helps in planning the innovative product into the
market place. At last the company can protect, develop and retain its innovation from different
intellectual property like copyright, trademark, patent, etc.

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