Innovation and Commercialization

This report examines the concepts of innovation and commercialization, analyzing their importance in organizations like Deliveroo. It explores the role of vision, leadership, culture, and teamwork in shaping innovation and commercialization. The report also delves into the 4Ps of Innovation and the use of the innovation funnel, concluding with a discussion on frugal innovation and its potential application in Deliveroo's business model.

INNOVATION AND
COMMERCIALISATION
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Contents
INTRODUCTION.........................................................................................................................................................3
TASK 1...........................................................................................................................................................................3
P1. CONCEPT OF INNOVATION AND ITS IMPORTANCE IN ORGANIZATIONS IN COMPARISON TO INVENTION...............3
P2. CONTRIBUTION OF ORGANIZATION’S VISION, LEADERSHIP, CULTURE AND TEAMWORK IN SHAPING UP
INNOVATION AND COMMERCIALIZATION....................................................................................................................5
TASK 2...........................................................................................................................................................................6
P3 .4PS OF INNOVATION AND USE OF INNOVATION FUNNEL......................................................................................6
P4. HOW AN ORGANIZATION COULD USE FRUGAL INNOVATION AND STEPS REQUIRED TO DERIVE AN INNOVATIVE
SERVICE.......................................................................................................................................................................8
CONCLUSION...........................................................................................................................................................10
REFERENCES............................................................................................................................................................11
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INTRODUCTION
Multiple tasks undertaken to uncover new methods to do tasks is known as Innovation
(Greenaway and Rudd, 2014). Whether small or big, it is essential for every business
organization to implement some sort of innovation in their organization’s working or products to
add new customers and gain a competitive advantage. The assignment below is based on
Deliveroo, an online food deliver company headquartered in London, United Kingdom. This
project deals with the concept of invention, innovation and commercialization. It also includes
the value of innovation in organizations and how it can be embedded within organizational
leadership and culture at the company. The assessment also deals with 4p’s of innovation and
how these support the management of innovation.
TASK 1
P1. Concept of Innovation and its importance in organizations in comparison to invention
Innovation- It can be termed as a process of developing and implementing new ideas
about a company’s service or its products which could add value to the organization. In this era
of increasing globalization and ongoing technological advancements, it is very important that
organizations use innovation as a crucial tool to attract its customers. There are many factors that
drive innovation in Deliveroo like management practices, motivation, leadership, organization’s
resources, etc (Chun, Chung and Bang, 2015).
Invention- Creation of any method, product or service that has never been created before
is known as invention. It is equally important in an organization and this process aims at
developing of new products and services that can help the company stand ahead in the
competition.
Difference between Innovation and Invention
BASIS INNOVATION INVENTION
CONCEPT It refers to implementation of
new ideas for the firm’s
existing products and services.
It adds value to company’s
It refers to the creation of a
new product or service for a
company. It serves as a
concept for innovators by
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products which helps to
increase its sales revenue and
enhances the firm’s efficiency.
creation of unique products
and services that haven’t been
created before (Miller and et.
al., 2016).
SKILLS
It is required from the
employees of the company to
possess technical, marketing
and strategic skills in order to
bring innovation in the
company’s products.
For invention of a new
commodity or service, the
employees of the company
must possess scientific skills.
OCCURRENCE
Innovation occurs when there
is a need and scope for
improvement in existing
products and services of a
company (Sengoku, 2015).
Invention occurs when there is
a unique idea in minds of the
company’s scientists.
CONCERN
It takes into consideration all
the products and services of
the firm
It is concerned with
development of a single
product and service for the
firm.
LIMITATIONS
Innovation is not limited to a
single department; rather it
spreads across the company.
Invention is generally limited
to R&D departments of
companies.
Importance of Innovation
Innovation is necessary for organizations where a need for a change or modifications
arise. These modifications help firms to expand their customer base and increase their
profitability. This is because no customer wants standard or recurring product types anymore. In
these changing times, organizations look for ways to engage their customers (Hemphill, 2014).
Innovation helps them achieve just that. Deliveroo is one of the most successful companies of
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UK, in order to increase their customer base and profitability, the company has introduced
various strategies and innovative plans to enhance their food delivery service. Such innovations
would help the firms in ways that are described below:
 Increase Profitability: Innovation is one of the most crucial factors in driving a company
towards success and increasing its profitability. Deliveroo is known to modify its strategy
and methods to retain its customers. Innovation would help the company in providing
services to customers according to their preferences. More customers would opt the
company the presence of its competitors, thus, increasing the profit margin of the firm. Increase Customer Relationships: Deliveroo could really use innovation in order to
build better and long lasting relationships with its customers. Innovation would help the
company to build trust in customers who expect the firm to deliver something new and
innovative once in a while. Such modifications can expand its customer base in the
country and could attract more customers outside its target market (Dincer, 2017). Cost Reduction: Innovation can be a vital process in reduction of costs and waste for
Deliveroo. As better methods come into existence, it allows the firm to eradicate
inefficient resources and processes that were unnecessary adding to the cost of their
services.
P2. Contribution of organization’s vision, leadership, culture and teamwork in shaping up
innovation and commercialization
Innovation aids the need for modifications in a company and invention helps the firm to
move these ideas from a concept to an actual product or service. Their goal is to commercialize
the products and services produced by these elements. Commercialization accelerates these
innovations and inventions to the customers (Hang Do and et. al., 2014). There are many
contributors in shaping up innovation and commercialization in Deliveroo. These factors are
mentioned below:
 Vision: The vision of Deliveroo is to provide the best food service to its customers in the
world and to transform the way customers order food. To achieve such transformations
and set a trend in the market, the firm needs to innovate and commercialize firm’s
products. This would keep the change constant in its methods and it would achieve its
vision in an appropriate and systematic way.
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 Leadership: The leadership style adopted by the company is Autocratic. This means that
the CEO as well as the managers needs to adopt innovation and be agile according to the
changing needs of the customers. Such skills would encourage the employees to be
innovative as well, which in turn would help the company achieve its objectives (Ahn,
Minshall and Mortara, 2015). Culture: Organization culture refers to the combination of norms, attitudes and values of
company’s employees. These values present the psychological and social environment of
a firm. Organizational culture is an essential contributor towards innovation in Deliveroo.
To meet the set mission and vision, the firm adopts aggressive approach. Such might be
acceptable in some areas while not be so favorable in others. Therefore, the leaders and
managers must focus on the cultural aspects to effectively innovate and commercialize
their services and products according to customers’ culture. Teamwork: Effectiveness of a team facilitates innovation in a company. Different teams
in Deliveroo needs to coordinate their efforts collectively towards introducing innovative
methods that could serve the purpose of the organization and enhance its performance in
the market.
TASK 2
P3 .4Ps of Innovation and use of innovation funnel
Innovation, if used effectively can be a useful tool for gaining a strategic advantage. The
4Ps model of innovation or innovation mix was created by John Bessant and Joe Tidd. This
model was developed to showcase how innovation can help a business attain improvement in
their products, services and processes. This model is used during the planning stage and aims at
driving a business towards improvement (4Ps- Exploring the Innovative Space, 2015). The steps
of this model are described below:
 Paradigm Innovation: This step concerns with the framework of the management of
organizations. It focuses on ways in which effective strategies could be framed by a
company. It takes into consideration the change (sometimes radical) in the way an
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organization performs (Collet, Hine and du Plessis, 2015). For Deliveroo, it can be in the
way they provide food items to their customers. However, radical changes might not
enhance the performance of the organization. The firm must consider all the outcomes of
their innovation practices before making the modifications. Such hypothesis would help
the firm in cost reduction and expansion in their customer base. Product Innovation: The most standard innovation takes place when a need arises to
introduce or modify a commodity and a service. Managers of the company must
introduce incremental change, i.e., ways that could make a product or a service better.
This step helps a firm to utilize their resources optimally and enhance the quality of their
products and services. For Deliveroo, it maybe modifications in container design in
which the food is delivered. Process Innovation: This innovation concerns with the process through which a
company develops and delivers commodities and services to its customers. This aims at
developing ways in of improving this process and help firm present a better self image in
the market. Deliveroo also must consider humanitarian aspects and must introduce ways
in which their services and products could serve in a scarce and rapidly changing
environment. Process innovation in the firm can be achieved by recycling of used
containers or modification in the process of acquiring and delivering food items. Position Innovation: This type of innovation deals with how a company positions its
innovative service or products in front of customers. It takes into consideration the
perception customers have about the firm’s products and services. Not only just
customers, perception of company’s employees, its stakeholders and even business
partners are considered. In Deliveroo’s case, these perceptions are influenced by a
number of factors, such as how punctual the firm is in delivering the food or does firm’s
employees receive their salaries on time and so forth. The firm must position itself in a
way that it is perceived well amongst the customers.
Deliveroo must adopt this model of innovation as it would help the firm gather customer’s
response towards the company’s innovations. This model would also enable the firm to achieve
more effective outcomes in long run.
Use of Innovation Funnel:
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Innovation funnel is a technique used to state all the steps that are included in
development of a product or a service. The main aim of innovation is to help a company create
products or services that are according to customer’s needs and preferences in economic forms.
There are three steps in this process that must be followed by Deliveroo so that it delivers
products and services according to market’s needs. The first step concerns with the firm
acquiring knowledge about the market and strengthening it information base. This information
can be gathered from customers, competitors, etc. through questionnaires or surveys. The firm
can also evaluate the market to gain knowledge.
The next step involves screening of company’s ideas and concepts. The more idea the
company has the more products or services it can produce for the customers. The aim of the
company through screening should be to identify an idea that provides maximum return on
investment and matches the needs of the customers.
The final stage considers with evaluation of the best possible idea in accordance with
company’s set objectives. The offering is then launched in the market. Deliveroo must choose
methods that are similar to customer expectations and are flexible enough for further
modifications. This would help the company in reinstating themselves and gaining a competitive
advantage.
P4. How an organization could use frugal innovation and steps required to derive an innovative
service.
Frugal innovation refers to a process in which a company provides products and services
with more inclination towards technology for emerging market at low prices. Political, social and
environmental factors of a country act as a driving force of frugal innovation. It aims at
development of a product or a service by reducing its cost at a low level. Customers who can’t
afford these products due to its price and complexity can easily acquire these under frugal
innovation (Ismail, Nor and Sidek, 2015). This, in turn, increases the importance of a company’s
offerings by making it cheaper and simpler.
Frugal innovation can help Deliveroo increase their profitability by reducing unnecessary
cost of their services. This method can be adopted in case the resources are scarce. Thus, it
allows the firm to attain higher return of investments. This process is useful for Deliveroo as it
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would help the firm to reduce labour cost. As a fine example of frugal invention, the firm could
use drones to deliver the food products. This would allow the firm to timely deliver their
products in its perfect condition. This would also prevent the risk of safety of the staff.
Managers and employees at the firm must adopt frugal innovation as a crucial operational
practice to expand their customer base and increase profitability. It would be fairly easier for the
company to deliver its food products in drones in complex terrains too where it is difficult to
deliver the food items.
Frugal innovation can really be a helpful tool for Deliveroo in driving out its competitors
as it would make it popular amongst the customers. Moreover it would increase firm’s efficiency
by improving time management, conserving energy, promoting safety and accuracy in food
delivery
Innovation Business case for Deliveroo
Innovation can be a major success factor for a company which is being suppressed by
heavy competition. It enables the firm to enhance its creativity and produce services that are
customer oriented (Mazzarol, T., and et. al., 2014). This helps a firm in increasing its efficiency
as well as sustainability. Moreover, if innovation is implemented on a periodic basis and
effectively, it would allow the firm to gain a strong competitive advantage over other firms in the
market. Deliveroo, through innovation can stay ahead of the competition and could get
recognition in UK as well as outside the country. The innovation business case for Deliveroo is
described below:
STEPS DESCRIPTION
SUMMARY Deliveroo is a UK based food deliver company which aims at giving
timely and accurate services to its client across the country.
OBJECTIVES
The objective of the organization is to introduce innovation in their
services to gain a competitive advantage as well as increase their
customer base in UK.
SOLUTION To achieve the objectives and stand by the vision of the company,
Deliveroo is formulating its process of delivery by introducing drones
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for door-to-door delivery of food items.
INNOVATION IN
SERVICES
This service introduced is innovative as it eliminates the extra time,
efforts, resources and energy required to deliver the food items at
customers’ doorstep. With inclination towards ongoing technological
advancements, the firm now aims at increasing its efficiency.
RESEARCH
The company is emphasizing on gaining knowledge of customer’s
preferences from food deliver companies and the method is purely
introduce as per customers’ demands and market needs.
FUNDING
To require funding for implementing this concept into actualization,
the firm is seeking support from bank loans, stakeholders, investors
and financial institutions.
BENEFITS
From this innovation, the firm expects a substantial increase in its
customer base and profitability. In addition to this, Deliveroo expects
a competitive edge and an impressive market share in UK.
CONCLUSION
Thus, it is concluded by this project that innovation and commercialization are essential
for firms to increase its profit share in the market and expand its customer base. Improvisation in
products and services must be a very significant practice by organizations to sustain in the
market. An organization’s vision, mission, culture, leadership and teamwork are the biggest
contributors to innovation and commercialization. 4Ps of Innovation can help the organization in
developing new products and improving the existing ones in accordance to customers’ demands.
Lastly, innovation funnel and frugal innovation can be a major factor towards improvisation of a
firm’s products and services and increase in its profitability
REFERENCES
Books and Journals
Ahn, J.M., Minshall, T. and Mortara, L., 2015. Open innovation: a new classification and its
impact on firm performance in innovative SMEs.
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Chun, D., Chung, Y. and Bang, S., 2015. Impact of firm size and industry type on R&D
efficiency throughout innovation and commercialisation stages: evidence from Korean
manufacturing firms. Technology Analysis & Strategic Management. 27(8). pp.895-909.
Collet, C., Hine, D. and du Plessis, K., 2015. Employability skills: perspectives from a
knowledge-intensive industry. Education+ Training. 57(5). pp.532-559.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Greenaway, D. and Rudd, C.D. eds., 2014. The Business Growth Benefits of Higher Education.
Palgrave Macmillan.
Hang Do, T., and et. al., 2014. Predicting anticipated rent from innovation commercialisation in
SMEs. European Journal of Innovation Management. 17(2). pp.183-208.
Hemphill, T.A., 2014. Patent assertion entities: do they impede innovation and technology
commercialisation?. Technology Analysis & Strategic Management. 26(7). pp.717-731.
Ismail, N., Nor, M.J.M. and Sidek, S., 2015. A framework for a successful research products
commercialisation: a case of Malaysian academic researchers. Procedia-Social and
Behavioral Sciences. 195. pp.283-292.
Mazzarol, T., and et. al., 2014. Perceptions of innovation climate and the influence of others: A
Multi-country study of SMEs. International Journal of Innovation Management. 18(01).
p.1450009.
Miller, K., and et. al., 2016. Knowledge transfer in university quadruple helix ecosystems: an
absorptive capacity perspective. R&D Management. 46(2). pp.383-399.
Sengoku, S., 2015. Innovation and commercialisation of induced pluripotent stem cells. Stem
cells in regenerative medicine: Science, regulation and business strategies, pp.423-446.
Online
4Ps- Exploring the Innovative Space. 2015. [Online] Available through<
https://egyptinnovate.com/en/innovation-tool/4ps-exploring-innovation-space >./
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