Innovation and Commercialisation Culture

Innovation and
Commercialisation

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
LO 1 ................................................................................................................................................1
Innovation and its significance in comparison with invention....................................................1
Organizational culture, leadership, vision and team work shape innovation and
commercialization ......................................................................................................................2
LO 2.................................................................................................................................................4
4P's of innovation and use of innovation funnel ........................................................................4
Developments in frugal innovation and provide its example used in the organization .............6
LO 3.................................................................................................................................................7
Importance of commercial funnel and application of new product development processing for
commercialization of innovation ................................................................................................7
Build innovation case for firm involving ways of access funding .............................................8
LO 4.................................................................................................................................................9
Different tool to used to develop, retain and protect knowledge and intellectual property .......9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Commercialization is the procedure of bringing new goods and services to the
marketplace. The concept of commercialization depicts the changes taking place in marketing,
sales, production and distribution as well as customers support to achieve the commercialised
profits of the new developed products and services. On other side, innovation is the procedure of
translating thought or invention into product and services which create value or for which
consumers will pay (Dincer, 2017). This study is based on Marks and Spencer (M&S). It is the
British multinational retailer in London which selling appeal, home appliances and luxury foods
products. Now they want to introduce new clothing product that is 3D printing T-shirts for men
and women in the UK. Report will explain innovation and its significance in comparison with
invention. It will state leadership, culture of organization, team work, vision which leads to
commercialization and innovation. Furthermore, study will state Developments in frugal
innovation and provide its example used in the organization.
LO 1
Innovation and its significance in comparison with invention
The term innovation is referred to as the process that involves taking different types of
actions to outline or highlight new methods of doing anything. It creates higher chances and
critical for living, economic development and success of the organization. Organizations are able
to innovative for setting the firm in various paradigm in relation to determine new chances and
best technique to solve recent difficulties (Chun, Chung and Bang, 2015). It helps to M&S for
introducing the new clothing product in the UK which is 3D printing T-shirts for men and
women due to increase demand. In contrast, invention is the action of bringing thoughts or object
together in new manner to make something which did not exist before. It is the unique and new
device, composition or procedure.
Difference between Innovation and Invention:
Basis Invention Innovation
Meaning It means to the occurrence of
thoughts for goods or procedures
which has never been created
As compared to that, it expresses
the execution of thoughts for
goods or procedures for the first
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before. time.
Importance It is the essential element for
aesthetic and design creativity.
Besides that, it is the important
to competitive advantage and
creating value of M&S (Polzin,
von Flotow and Klerkx, 2016.)
Concept It is the real thoughts and its
working in theory.
As opposed to that, it is practical
execution of the new thoughts.
Actions It is limited research and
development department in the
M&S.
Besides that, the activities of
innovation spread across the
company.
Concerned with There are individual goods or
procedures. (Pynnönen, Hallikas
and Immonen, 2019)
There are combination of various
goods and procedures.
Source of innovation:
Innovation is the larger terms which includes many more things. It involves
differentiation. It is a more extended processes compared to just bringing a simple change or
modification to have an impact which lasts for long. In addition to this there are various types of
source of innovation like changes in market structure, unexpected changes in perception of
consumers or changes in the pattern of knowledge. Also, another source of getting an
opportunity is from the changes taking place in the existing market. With this source, Marks and
Spencer easily introduce the new clothing product in the existing market structure (Pustovrh and
et.al., 2017). The lifestyle can also be sourced of innovation. Therefore, selected company want
to introduce new goods as per the life style of consumers and recent fashion trend in the retail
market. There is always changes in perception relating to things which can also provide the born
to innovation. Thus, M&S want to launch new products for increasing the attraction of
consumer. Therefore, company needs to adopt the source of innovation for introducing the new
products 3D printing T-Shirts in the UK.
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Shaping innovation through leadership, team work, vision and organizational culture
The major purpose of invenion is to create of the new thought. Creativity helps in
realizing the need of innovation and to make plans to bring this innovation in practice. The
primary objective of these innovations and invention is to commercialize the goods and services.
Commercialization is the process or an activity of collective to all the innovation and invention,
marketing and interaction to the consumers. It is the procedure of introducing the new clothing
product and services into the existing marketplace (Tsai, 2015). In relation to that, different
kinds of components effects the process of innovation and commercialization within the Marks
and Spencer. Factors involves organizational culture, vision, leadership and team work in the
firm.
Organizational Culture shape innovation:
 Organizational culture expresses all the areas of upcoming goals and objectives of
organization.
 It is the multiple values, standards and attitudes of the worker which preserver by M&S
for many years as well as the procedure of ways of things that are doing in the company.
 Culture can be shaped by the principles and attitudes of nations, because of cultural
differences, so that it has effect on the procedure of innovation and products ans services
commercialization (Yun, 2017)
 For instance: Marks and Spencer is competitive and active to meet its objectives and
goals, so that, different culture helps in shaping the whole process of exploitation and
invention.
Innovation by leadership
 Leadership is the concept of directing firm according to goals and objectives of Marks
and Spencer.
 It is becoming success and planned standards and behaviour of firm.
 The consultative leadership or management style followed by company by which leader
advices with other before decision is made.
 In this context, there exist many different types of leadership methods such as Laissez
faire, autocratic and democratic which are suitable for M&S
 In order to that, democratic leadership is the best leadership method in which leaders are
involved their followers in the decision-making process (Aloini and et.al., 2015).
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 If the leaders follow this leadership method, so that it can be successful for selected firm
in relation to introduce the new clothing product in the existing market.
Vision shape innovation:
 Organizational vision can also be shaped innovation in the new goods and services of
firm within the marketplace.
 The vision of Marks and Spencer is to provide standard against which their challengers
can be assessed form consumer experience and to care the atmosphere and people.
 The vision of M&S is to introduce new clothing product in the existing market to the
consumers, for that, firm needs to innovative idea and thought which is introduced the 3D
printing T-shirts for men and women in the UK (Rosca, Arnold and Bendul, 2017).
 After inventing the product than finally marketing of goods and services in the
marketplace which is another method of entering into the market by introducing a newer
product into the market
 Thus, the process of innovation and invention is much affected by the vision of the
company.
Teamwork shape innovation:
 Team is a better option to find solution to the problems which occurs within the company
and to complete certain activities.
 M&S has some team who acts the whole required activity to innovative and
commercialize the goods for completing the every kind of job (Knorringa and et.al.,
2016).
 if the team within the company performs productively in accordance with the objectives
and goals of the company then it will be successful as the team will provide new ideas
and develop best quality products or facilities to the customers, so that M&S is in
position of accomplishing the goals and objectives of business productively.
 Therefore, effective team work aids to make the procedures of invention and
commercialization of organization.
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LO 2
4P's of innovation and use of innovation funnel
The 4P's of innovation is called as innovation mix which is technique or tool to allow for
find out improvement of innovation procedures and bring to business. The innovation mix
involve Paradigm, Product, Position and Process (Konrad and Wangler, 2018).
Paradigm:
It is the predetermined procedure by which company faces the modification of being
taken creative thoughts and procedure of doing all the works in relation to do the work by faced
new challenges and threats. Marks and Spencer has to plan by ways of doing business in
modifying situations and conditions. For that, company giving new clothing product3D printing
T-shirts for men and women (Duncan and Elkan, 2015).
Product:
It is main point of innovation mix which is provided to consumers. It will be precious to
organization if it able to add worth to firm. If case of M&S, if they introduce fresh clothing good
and provide the facilities to consumers, so that it will able to add the value to firm through
adding competitive edge. Therefore, product is main type of 4P's by that invention and
commercialization is done within firm as well as marketplace.
Process:
It is the mode by which product is given to the consumer. This is essential issue because
if the delivery procedure is long, so that decreasing the possibility of success (Dincer, 2017.).
But in case delivery is short, so that enhance the chances of success. For M&S process of
delivery of product which is based of being success.
Position:
If the company has specific objective of invention and exploitation of goods and services,
so that firm wants to accomplish the position. Therefore, M&S providing the best products and
services to the consumers for achieving the position.
Use of Innovation Funnel:
The innovation funnel is performance that enables constant flow of ideas that can be
protected for practicality (Chun, Chung and Bang, 2015). It is the method that helps companies
and individual to innovate with success. It is the essential concept for invention which is utilized
by many organizations top make the creative and realistic action plan.
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 Innovation funnel make funnel like shape from lots of thoughts too few ideas. As the best
through will remain, it is the superior technique to priorities thoughts and ensure that the
best will be entirely developed and advanced tasks, goods and other inventions can be
introduced (Innovation Funnel, 2016).
 The development of innovation funnel gives graphical structure for thinking about the
generation as well as showing of alternate improvement options and compounding subset
of these into product conception.
 It is the necessary to manage development of innovation funnel includes three challenges
or activity such as widen mouth of funnel, narrow funnel neck and selected projects
deliver on anticipated objectives when projects was approved.
 Innovation funnel is very useful for achieving the goals and objectives of Marks and
Spencer (Polzin, von Flotow and Klerkx, 2016).
Developments in frugal innovation and provide its example used in the organization
Frugal innovation is the procedure of decreasing the difficulties, cost of products and its
production. It is the process of formulate of products and facilities in order to scarce resources of
country. It also depends on other elements of nation like political, environmental and social
factors that are driving force of frugal innovation (Pynnönen, Hallikas and Immonen, 2019).
These elements are helpful to turn process of innovation.
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Illustration 1: Innovation Funnel
Source: (Innovation Funnel, 2016)

 Also, it is the operation of manufacturing the products through decreasing the
expenditures in the dramatically lower level.
 It is also given importance for products and services through moving to low level to the
purchasers.
 Therefore, in case of Marks and Spencer takes frugal innovation procedure which has to
consider these elements significantly & critically.
There are many examples of developments of frugal innovation around the world. For
example: Tata Swach the first water purifier to win the international awards across categories.
The creative technology and simplicity of use and value for money which Tata Swach offers has
been well appreciated across the world (Tsai, 2015). It is the 50% cheaper than its nearest
challengers. It combines one of the India's most common waste goods, risk husk ash with
covering of nano-particles to filter water. This can be successful by adopting frugal innovation.
In this mode, cutting boundary science is aiding create social and economic value from waste.
Tata are exploring sales chances not just in India, but in Latin America and Africa.
LO 3
Importance of commercial funnel and application of new product development processing for
commercialization of innovation
Commercial funnel is purchasing procedure which firms lead consumers through when
buying goods. Commercial funnel is also called as sales and revenue funnel. Commercial funnel
states the journey of the customers towards the buy of goods and services. It is the visual
depicting the sales procedure from awareness to action. There are five steps such as awareness,
opinion, consideration, preferences and last of all purchase.
Steps of commercial funnel:
Awareness:
The prospect learns about existing solution, goods or services. Also, company aware problems
that they want to solve and ways of dealing with it.
Interest:
Prospect actively looks for solutions to their issues and ways of accomplishing objectives of
firm. They show an interest in goods or services.
Decision-making:
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Prospect is make decisions that they need to take advantage of solution of firm. They focus to
various packages and options to make decision for purchase.
Action:
The outlook become consumer, finalizes the deal with them and clicks purchase button and
prospect enters purchase contract with them.
Commercial funnel is illustrated the thought which every sales starts with big number of
possible consumer and ends with the much smaller number people who actually make buy (Yun,
2017). Sales or commercial stages will differ by firm but they are normally divided into sections
such as awareness, interest, decisions and actions. Commercial funnel is important for attracting
new consumers and turn them into conversions. Without having proper organizing and guide as
to ways firm want the consumers to convert. The funnel is visual help which has been made to
understand ways prospects turns into consumers. The concept of commercial funnel in selling
and marketing areas for closely century. Commercial funnel is essential for find out the chances
to efficiently and effectively modification strategy to more conversions.
The essential characteristic which lies within the commercial funnel is that it involves
awareness of consumers and also aids in recognizing their issues and difficulties thoroughly. It
further includes discovering out of various results to particular difficulties through making utilize
of email campaign & also through social media marketing (Aloini and et.al., 2015). This can
help to Mark and Spencer for introducing the new clothing product that is 3D printing T-shirt for
men and women in the UK. Further, commercial funnel also create attempts for raising interest
of consumers for assuring which sales gets enhances, even if consumers prospects decreases.
This tracks to take more consumer involvement within business organization like M&S in
different kinds such as questions or data. Commercial funnel assists in acquiring close knowing
for procedure of innovation and commercialization as well. Thus, it assures that organization
acquire competitive edge in target markets. Various strategies and methods are utilized in this
procedure which further aids in creating the sales and revenue funnel more effective.
The worker of organization like M&S are solely accountable for following the creative
thoughts and tools which is done by the selected organization. In order to that, millions of goods
enter marketplaces with aid of integration of new product Development (NPD). This procedure
also vary range for chances affiliated to employment (Rosca, Arnold and Bendul, 2017).
Essential stages of new product Development involve idea generation and screening and also
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stages which aid in evolving different conceptions and selling methods in effective manner. With
help and acceptation of new clothing product Development and commercial funnel, Marks and
Spencer is able to drive new clothing product that is 3D printing T-shirt for men and women in
the UK.
Build innovation case for firm involving ways of access funding
Marks and Spencer aims at launching new clothing product that is 3D printing T-shirt in
relation to raise sales and market share of organization. Company can direction on
individualizing the clothing products and transporting good to consumer's door. The organization
can also make utilize of social media marketing for advertising and supporting goods in the
marketplace (Weyrauch and Herstatt, 2017). It is the innovational business case which can
advantage to bring great advantage & benefits for firm as well as its target consumers. This
creative enterprise thought will advantage to attract great number of consumers as they will be
allowed to order the T-shirt from home and can also acquire it at home. Thus, innovative
business case that Marks and Spencer make utilise of is that allowing consumers to order
clothing from online and also receiving the order on the door steps.
The purpose of Marks and Spencer is to introduc new clothing product that is 3D printing
T-shirt in the marketplace which have different colours and sizes. This business case though
involves T-shirt having different sizes, colours and delivery at the door steps to consumers. Thus,
these characteristics of fresh good will in effect pull big number of consumers who need to
change their taste (Knorringa and et.al., 2016). Selected company purposes at creating and
utilization of the top-quality promotion as well as ads techniques for fresh good. Advertisement
means to paying promotion and communication for goods & facilities of the firm. There are
essential judgements of decisions of the ads campaign involves money, mission, media, message
and measurement. By ads and promotional campaign, consumers get awake about fresh goods &
services available in marketplaces. M&S can make utilize of various kinds of ads like print
media, direct marketing, telecommunication media or internet. In order to that, introduced new
product in the market, so company needs to large amount of money (Konrad and Wangler,
2018). For that, there are various sources and techniques to access funding that are assistive for
any new business thought such as:
 Friends and family: In this source, owner of company needs to take money from friends
and family for developing new product which is 3D T-shirt in the marketplace.
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 Bank loan or venture capitalist: This can take an equity position in firm to aid it carry out
promising but larger risk project. This includes providing up some ownership or equity in
business to outside party. On other side, bank loans are the most commonly utilized
source of funding for small and medium-sized companies.
 Bootstrapping
 Investors
 UK government: Company get funds from government for introduced the new product
3D printing T-shirt for men and women within the UK.
The following is given the estimation of budget for the new 3D printing T-shirt for men
and women launched by the Marks and Spencer.
Total Estimated Expenditure of the organization
Income Amount Expenses Amount
Revenue £5,00,0.00 Marketing Research £3500
Market Share £4,00,0.00 Designing of product £2000
Profits £4,500.00 Advertisement £6400
Net Income £4,00,0.00 Social media marketing £2500
Total £17500.00 Total £14400
LO 4
Different tool to used to develop, retain and protect knowledge and intellectual property
Marks and Spencer can make utilize of various techniques & tools for effectively
evolving, keeping and securing knowledge as well as intellectual property (Dincer, 2017).
Organization can also make utilize of information policy for securing the knowledge of firm.
Following are the explanation of different important techniques which can be utilized through
Marks and Spencer:
Trademark: It is the identifiable phrase or sign which denotes specific good or services
and legally differentiates it from all other goods. It provides to entirely acknowledge good &
facilities with specific firm. These are source for identification which is being marked between
the possible consumers. Trademark aids consumers for determining their brands and also the
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goods within same industry. It can be implemented to goods in kind of reputation, word, symbol
or any image format (Chun, Chung and Bang, 2015).
Copy right: It refers to legal right of the owner of intellectual property. In simple word,
copy right is the right to copy. This means which the original creator of good and anyone they
give mandate to the only one with the sole right to reproduce the work. Implementing copyright
is marked for securing the thought expression in literacy, musical or artistic work. It can be
granted only to proprietor for reproducing the material or good.
Trade secrets: A trade secret can be defined as any type of information and process that
is not readily known by the public. With the help of trade secret Mark and Spencer can achieve
economic advantages over its customers and competitors. It is not formal and not formal
protection is granted by the government but manager and businessman must take measure at own
on order to protect its own and personal trade secrets for its new launched product 3D printed T-
shirts (Pynnönen, Hallikas and Immonen, 2019). They are not protected under any law but they
are protected under federal statues. There are some benefits of trade secrets such as it is
comparatively easy and cheap to obtain. They do not require upfront fees and there is no
requirement to follow rules. Hence, it is time saving and affordable.
Patents: A patent is a form that provides the right to inventor of products and services to
exclude others from using, making, importing and selling an invention for a limited period. As a
new product, Marks and Spencer wants to launch its 3D printing t-shirts in order to increase sales
and productivity of their company. It will also make them differ from its competitors. So it is
important for them to patent on their products by which no other company can make same
products (Pustovrh and et.al., 2017). There are various types of patents such as design patent and
utility patent. Utility patents, protects a producer of products the way an invention work. From
patents on products it can stop other company from manufacturing and copying their invention
without having their permission.
Marks and Spencer can effectively secure their intellectual property rights in the UK in
that firm source goods and handles activities of business. The organization requires to first
determine that things are desirable for copy rights or trademark. Marks and Spencer can also take
lawful stage for their workers for securing intellectual property rights, so that they do share the
personal technological information with the person outside of the firm. By this mode, company's
personal information is effectively protected (Tsai, 2015).
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CONCLUSION
This report has summarized that describing innovation and its significance in comparison
with invention and also involves concept, activities that help to introduce the new goods and
services of the firm in the market. It can be concluded that organizational culture, leadership,
vision and team work shape innovation and commercialization aids to new product development
in the market. It can be discussed that 4P's of innovation that is paradigm, product, process and
position as well as use of innovation funnel which is more beneficial for innovative idea and
products in the existing market. It can be assessed that Developments in frugal innovation for
improving the innovation process for new goods in the marketplace. Furthermore, report has
completed that Different tool to used to develop, retain and protect knowledge and intellectual
property trademark, copy right and patent within the firm. It can be concluded that selected
company build innovation case as introduce new product in the existing market.
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