Innovation and Commercialization: Importance, Organizational Vision, Frugal Innovation, Commercial Funnel, and New Product Development

This study discusses the importance of innovation and commercialization, the role of organizational vision, culture, leadership, and teamwork in shaping innovation and commercialization. It also explores the 4 Ps of innovation, the use of the innovation funnel to shape innovative ideas, developments in frugal innovation, the importance of the commercial funnel, and the application of new product development. The case of F-drones is used as an example throughout the study.

Innovation and
commercialization drive

Table of Contents
INTRODUCTION...........................................................................................................................3
P1. Innovation and its importance and comparison with invention. ...........................................3
P2. Organizational visions, culture, leadership and teamwork that can change the innovation
and commercialisation. ...............................................................................................................4
P3 4 Ps of innovation and use of innovation funnel to shape the innovative ideas.....................5
P4 Developments in frugal innovation........................................................................................6
P5 Importance of commercial funnel and application of new product development..................7
P6. Business case of F-drones......................................................................................................8
P7. Tools to protect intellectual properties................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is the process of creating something new or doing anything in a new and
innovative manner. Innovation comes with the improvement. Innovation does not include only
different things but to do those things with perfection. When new products and services are
launched in the market that process is called commercialization. F-drones launched transition
drones to provide aerial deliveries to offshore platforms. Their drones have a unique designs with
long range capabilities and heavy payload. Company also launches aviation grade drones which
are very safe and reliable. They want to become leader in heavy payload drones. This study will
discuss innovation and its importance and also explain organizational vision, leadership, culture
and teamwork will shape innovation and commercialization. Further it will discuss 4 P's of
innovation with the use of innovation funnel to shape innovative ideas. Also, evaluated
development in frugal innovation and its usage in the organization. This study will also discuss
importance of commercial funnel and application of new product development. Building
innovation case and providing ways to access funds. Evaluating tools which organization uses to
develop, retain and protect knowledge and intellectual property.
P1. Innovation and its importance and comparison with invention.
Innovation can be defined as creating something new combinations that consider launching of
new products, generating into new market, new methods of production, different way of
supplying goods, supplying to new organization of any industry.
Invention means process of developing new product process. It may be improvement upon with
some machine or creating something new result (Chege and Wang, 2020). Invention can also
provide security to inventor, property rights and also helps in identifying the actual invention.
Innovation is quite important for standing up with competitors. When new product is introducing
by organization, many peoples become excited about knowing the product, at the same time
competitors of F-drones also tries to balance their brand image, vision and missions and also by
innovating something new product in market. Through this innovation in organization have
better market share and also earn huge amount of profit in having some innovative product. But
innovation is not only enough, F-drones also focuses on technology instead of solving customer
problems.

For employee working in F-drones innovation can be also related to developing new services that
the company supply to their customer. Due to exploding demand and orientation of global
economy, the organization have starting innovative something new product or services in order
to create position of their business resources in making maximum effectively.
Basis Innovation Invention
Definition Innovation refers to execution
the new thought for goods and
services for first time in F-
drones company.
Invention states about the
presence of new ideas for
goods and services which are
being already exist.
Deals Deals with new services for
achieving new goals.
Deals with active services for
achieving target.
Required skills Fixed of commerce, method
and strategic skills.
It required scientific skills in
F-drones.
Obsessed with Aggregation of different
products and services.
Individual product.
Action Speeding across the
organization.
Controlled to research and
development department.
P2. Organizational visions, culture, leadership and teamwork that can change the innovation and
commercialisation.
In F-drones organization big issues in establishing the plans and major issue with people in every
transformation and developing new products (Gabriel, 2019). Training employee in organization
that are to be more creative, developing their new skills and be confident with creating thinks,
while working with new opportunities that could be more benefits for company in generating
new ideas.
The main purpose of innovation is creating new ideas and invention helps to create the
innovation and respect those new thinking. The main objectives of innovation and invention is to
commercialisation of new goods and services (Meissner,Polt and Vonortas, 2017).
Organizational culture have bound with all area of future objective or goals of company. In order

to achieve the target, the employee working in organization are to be trained according to F-
drones culture working. Culture might be shaded by different countries and values of that goods
and services. The team work is well-known for concept of solving conflicts and for completing
the particular task. F-drones have different team for performing different task in innovating and
commercialise new goods and services. If teams in company will do work according to their plan
then they can provide new ideas and best services to the organization. Therefore, teamwork can
help in generating the process of organizational commercialisation and innovation.
The vision of F drones is to make such drones which provide aerial view with the best quality.
They want to become the leader of unique drones within 5 years (Yun, 2017). They also want to
explore some investment opportunities which help the company to get fixed return out of them.
They also have the vision to create awareness for drones within the people and give knowledge
of how to use it. This will increase the sale of the company. They also want to train their
employees in such a manner so that they can deliver their best.
The leadership style which is adopted by F drones is the Democratic leadership style because
company want to include their employees in the decision-making process. By doing this
company will get more creative and innovative ideas and employee will also feel that they are
valued by the organization. Employee will motivate by that and which will increase their
productivity. Freedom of speech is given to the employees. Employee will work hard more
because they feel that it is their company only as company care about them. Innovative ideas by
the employees also help the company to launch new products in the market (Cooper, 2019).
P3 4 Ps of innovation and use of innovation funnel to shape the innovative ideas.
Product: innovation product means to launch completely new product in the market to attract
more customers. Products which are advanced. Innovation can be called to those products when
certain improvements are made in the existing product or new products are invented. F drones
aims to launch such unique drones which are heavy duty and have unique designs. In product
innovation company's approach is incremental. They want to do improvement in their existing
drones to beat the market.
Process: process is the procedure of how a product is made by the organization. It is the ways
that the product has crossed before reaching its final stage. In this organization searches new
ways so that they can update their old process which are cost effective, saves time and give better

quality. Company has adopted radical approach in this. They had changed their process and
adopted new process of drone making so that they can take the competitive advantage.
Position: position means the market share which the product is having. Innovative products can
create new market share or position in the market. In this consumers and markets are evaluated
that how will the consumer behave or market will respond when new product will launch. F
drones can start doing business online to increase its market share. Nowadays consumer do
online shopping more because it saves their time and make them easy to compare one product
with other (Venermo, Rantala and Holopainen, 2020).
Paradigm: paradigm starts with changes which include where, how and why is the use of the
product and how things can be done. It involves certain theories, beliefs or principles. It is also
known as by mental models. F drone company is using such tools which tells them that how the
market operates and change in market trends.
Innovation funnel:
Innovation funnel is a model which is used in managing the process for new product
development. By using this funnel companies can innovate easily and successfully. It is also
Illustration 1: Innovation funnel
Source: The new extended innovation funnel. 2017

known as funnel management process. Innovation funnel is also used by F drones while
implementing innovative ideas. Company believes that while doing innovation, right innovative
tools should be adopted to make the innovative process faster and easier. At the initial stage
company do opportunity assessment of the market that what are the demands of the customers.
After identifying the opportunity, company should research about the product which will match
that opportunity this can be done through surveys and market research. Then company decide the
packaging and designs of the product. After that samples are given to the customers and
feedback are to be taken. After this company can decide that they should launch new product in
the market or not according to the feedback given by the consumers and if the feedback is good
then company can launch the product in market (Cui and Wu, 2017).
P4 Developments in frugal innovation.
Frugal innovation:
Frugal innovation is the process of decreasing the cost and steps involved in the process of the
product and its production. Frugal innovation can create an opportunity for the company to grow.
As customer demand quality of the product and their value for money. Frugal innovation give
sustainable growth. Under frugal innovation it creates new landscape where small firms can do
innovations who have limited resources with them to fulfil the low income customer's demands.
It facilitates new market opportunities and ensure sustainability.
F drones also uses frugal innovation so that they can make affordable and good quality products.
It can be done by changing in the design of the product and services or creating new ways of
product development and adopting new technology so that they can reduce cost of production
and can offer low price products in the market. Company believe that the environment which
include climate, weather, water and resources are demanding frugal innovations. New
technologies plays a vital role for frugal innovators. They are reducing costs in terms of human
or production costs. Frugal innovation is emerged because it is the need of the market. As people
have limited income and everybody cannot buy costly products, company also have limited
resources and infrastructure which give birth to frugal innovation. Innovation is done with the
available resources.
F drones saw the opportunity in frugal innovation. They already have resources and techniques
and hire some experts who can use the existing resources and can do innovation. This is the cost
effective innovation method. Company uses their old process to make such drones which have

better features, designs and functions. By launching such drones in the market, company have
created demands for such drones because consumer always want something innovative, and they
get attracted towards it. Frugal innovation does not include only cheap products rather it is the
process of how to do innovation with limited resources and facilitate growth by providing
affordable products in the market (Gutierrez-Gutierrez, Barrales-Molina and Kaynak, 2018).
Take any type of innovation but every innovation requires research and development, F drones
have a good r&d team which studies the market carefully and make such innovative products
which provide growth to the company and help them to sustain for longer period. Frugal
innovation is trending because it provides affordable product without sacrificing on quality.
Frugal innovation is not limited, it is beyond that. This innovation help to meet the needs of the
customer in terms of affordable products. Company knows that customer demands innovation,
but they are not ready to pay high price for that they want to buy innovative products at the
reasonable prices.
P5 Importance of commercial funnel and application of new product development
Commercial funnel:
Commercial funnel is the marketing tool with the help of which company do trading with the
customers. It is the purchase stage for the consumers. It is the method to attract the consumers
towards your product and make them buy your product (Abramova and et.al., 2019). It is also
known as sales funnel.
Importance of Commercial funnel:
Commercial funnel plays a vital role in the company. This funnel helps to understand about the
preference of the customer and what are their behaviour at the purchasing stage (Franken and
et.al., 2020). F drones use google analytics to know the traffic which came on their website and
also give knowledge about the traffic who had exited from the funnel and how frequently.
Commercial funnel help the company to select a marketing strategy. It will help the company
and guide them to select that strategy which help them to reach towards success. This funnel also
guide the company about how to deal and attract customers. Through this, company understand
the need of the customer. Company showcase there product in such a manner which is
understandable by every customer and give exciting offers to them. This will help the company
to increase its sales because it is the efficient method and will give more customer base which
eventually increase the revenue .

NPD stages are:
Idea generation: it is the first stage. It involves new idea related to the product and services. F
drones ensure that they also take ideas from their employees.
Idea screening: in this step all the ideas are screened and best ones are selected.
Concept development and testing: here now the ideas are converted into new product.
Marketing strategy development: after the product is developed then marketing strategies are
made which include that how to do promotion of the product.
Business analysis: after this its costs, profits and sales are analysed. It is found that product is
satisfying company's objectives or not.
Product development: it is very important. Complete product is developed into this.
Test marketing: under this company is providing samples to do the test marketing it is very
important to the customer behaviour.
Commercialization: it means launching the new product in the market.
New technology changed the world a lot in terms of research, development, testing etc.
technology helps the research process to work smoothly. It increases the quality and quantity of
the research work. It makes the research more effective and efficient. With the improvement in
the technology results in the improvement of the research results.
P6. Business case of F-drones
Product description: The organisation is willing to build a drone with advanced technology and
mechanism, having unique attributes which makes the drone capable enough to carry loads of
machinery and items from one place to another at far distances and can also deliver products and
tools to off shore locations, ships etc. The company is willing to make them as unique and
advanced that it will defeat all of their competitors by outrunning them. Drone will be powerful
enough to store and transport heavy duty machinery and items with ease. The design and
infrastructure will be more like an aircraft. Also have a specialised feature to land on moving
vehicles like aeroplanes and cruises and ships etc.
Promotion strategy: The promotional tactics company uses is quiet different from the basic
advertising and marketing , as they are building a exceptionally advanced mechanism product.
The promotional , advertising ad marketing campaign of these drone will be done on a high-scale
platform. This will be done with the presence of government institutions, big business entities,
large scale marine and aircraft companies, information technology and manufacturing

organisations, defence and civil services departments etc. The conduct marketing by event
sponsoring and by the mode of print media and social media platforms (Kusumaningrum and
Hidayat, 2016).
Pricing strategy: F-Drones are providing an highly innovative and technologically advanced
machinery which is a superior product. So the pricing strategy will also be high as they have
distinct featured product in comparison with their competitors companies. They are using cost-
plus pricing and premium pricing strategy, they can also utilise value bases costing as the price
of these Arial drones a re very high and it is of affordable by the upper middle class segment of
the market. As these are not for personal utilisation but for business and industrial purposes.
These drones are high end machineries and so their pricing will be in accordance with that.
Target market: The targeted customers of these drones are basically the government
organisations which include civil and defence services, marines and the air force etc. and in
private sectors the big manufacturing and building companies and I.T industries can be the best
buyers for this product.
Financial plan:
Classification Cost
Raw material £9800,00,00
Licensing cost £60,00,00
Airline traffic direct cost £205,00,00
Machinery £800,000,00
Marketing £32,50,00
Engineering and maintenance £232,200, 0
Other expenses £45,00,000
Total £18,77,97,000
Key performance indicators:
Marketing: Company can acquire competitive advantage in the market with the advantage of the
innovativeness and uniqueness of their products features and specifications. Big enterprises will

be involved in their marketing and advertising event. Their product launch campaign will be
conducted on a large scale affair (McKenzie and Sansone, 2017).
Innovation spendings: The total expenditure done on the creation,conception and the research
and production of the products will turn out to be advantageous and beneficial in regard with the
market acquisition and profit maximisation for the Drones. As the company is focused on
achieving competition advantage from their rival establishments.
Sales growth: The sales of F-Drones Arial drones will be grow at a rapid pace as they succeeded
in producing a creative and exceptionally advanced mechanism product which will bring
revolution in the industry. Their buyers will be mostly the defence services and the government
establishments and also the elite business personal working in the building manufacturing and
I.T sector. Defence departments will but these n high quantity as they required such products on
emergency situations.
Source to access funding for the company:
Crowd funding: Collection of finances from the source of crowd funding can be very beneficial
at the initial stage or the time of if we needed to launch and produce any new products. This
funding technique is all about gathering financial help from various small and large enterprises
and business firms and individuals. This can be done through online mode as company advertise
on their websites or public domain that they require funds for their project or starting up their
business people interested to invest will pay as per their wish.
Boos trapping: These are the personal savings and property owners possess which they can use
to start their business or can be utilise in the condition of shortage of funds.
Angel investors: These investors are individual or lone bodies which provide monetary support
to the companies or may invest in the establishments who are need of fund but sometimes in
exchange of the finances they demand for a certain part of shares in the company or can also
demand for the possession of companies assets.
Bank loans: This is the easiest and the safest mode of acquiring finances as banks provide loans
to commercial enterprises and people on pre determined and fixed interest rates and a fixed time
interval for repaying of the loan (Ahnert, 2018). The procedure of borrowing loans from banks
can be a bit complex as they required documentations and paper work. But the biggest benefit is
that, these financial institutions doesn't ask for ownership of any asset or share in any of the
profit earned by the establishment.

P7. Tools to protect intellectual properties
The theft of intellectual property is highly increasing the present era of piracy, data theft
and identity theft and this will cause a huge amount of monetary loss and it can also stain the
image and reputation of the company If the information or name of the company is used in
negative or wrong doings. There are various registration and licensing tools which can be used
by the companies to prevent the lose of rational belongings.
Copyright: Building a product or technology with creative thoughtfulness is very complex and
time consuming, and if get steal it will be a lose of ideas. To prevent the ideas and the creativity
incurred in the manufacturing and development of a commodity is is advised to F-Drones to do
copyrighting of the design and pattern of their drones to prevent them from imitated and copied
(Alcácer, Beukel and Cassiman, 2017.).
Trademark: Like every organisation the establishment also do have their own significant symbol
which in the shape of the aeroplane tail which forms a “F”, this indicates the name of the
company. Enterprises used different symbols, sign through which their customers can identify
and differentiate them from others. To prevent the use of the company logo for selfish purposes
trademarking of the logo ,tag-lines and catchphrases of the establishment is a good decision. If
someone use the companies logo or design on their products will tarnish the image of the
company and misguide their consumers.
Patenting: Patenting of the technology, mechanism, features, design and the specification used
in their Ariel drones is necessary. Through the patenting registration other competitors and
companies are restricted from using the same technology and designs and attributes in their
products (Demidenko, Malevskaia-Malevich and Dubolazova, 2018). As F-Drones are
determined to develop a total unique and different drones with having advanced facilities.
CONCLUSION
The above report examine the differentiation between innovation and invention and their
importance in the organisation perspective. Organisation vision, objectives and the leadership
techniques and cultures mould the establishment and their influence on the innovation was also
discussed. Further in the report the 4 P's and the use of innovation was explained and it was also
discussed that how this impact on the organisation. The development procedure of frugal

innovation was analysed. Lastly a systematic business plan and different source of funding was
evaluated for F-drones and also the tools required for the prevention of intellectual property was
discussed.
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