Innovation and Commercialization: Importance, Comparison, and Frugal Innovation

This document explores the concept of innovation and commercialization in organizations. It discusses the importance of innovation, compares it with invention, and examines how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. The document also covers the 4Ps of innovation and the use of the innovation funnel. Additionally, it delves into the development of frugal innovation and its significance. Suitable for students studying innovation and commercialization in various courses.

Innovation and
commercialization

Contents
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................3
P1 describe Innovation and examine its importance with respect to the organisation and also compare
it with invention......................................................................................................................................3
P2 elucidates how organizational vision, leadership, cultural and team work can figure the innovation
and commercialisation............................................................................................................................5
P3 4Ps of innovation and use of innovation funnel.................................................................................6
M2 analyse and apply the innovation Funnel in an organisational context.............................................7
P4 Development of Frugal Innovation.....................................................................................................8
M3 evaluates the role of frugal innovation in an organisation context...................................................9
P5 importance of commercial funnel and the process of new product development.............................9
P6 innovation business case for Organisational including several sources of funds.............................11
M4 build a detailed innovation business case which include how to measure its overall effectiveness
...............................................................................................................................................................12
P7/ M5 Evaluate the different tools that company can use to develop retain and protect knowledge
and intellectual property.......................................................................................................................13
D2 critically evaluate the nature of innovation and context in which it is developed and how the
company can overcome with the challenges.........................................................................................13
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

Introduction
Innovation is the idea which can be read from the introduction of new products and
services for improvement in the existing goods which are provided by the entrepreneurs in order
to satisfy the needs and wants of their target customers. It helps the company to grow their
business or expand at the global level. Every organisation is aware about the cut throat
competition which is present in the market so it is required by them to innovate their ideas in
different manner which helps the companies to attract their targeted audience in an effective
manner (Ariffin, 2019). Commercialization is a process which can be used by the organisation in
order to bring their goods and services before of their targeted customers as this can be possible
while adopting an effective marketing strategy of promoting the goods and services into the
competitive Marketplace. The company can raise their sales while developing creative products
into the competitive market. This report is based upon the big belly which is the most popular
organisation who used to provide recycling solutions at the public places. In the current situation
the company has invented a new idea with respect to eco friendly dustbin. The company used to
design and manufacture the dust winds as their main objective is to reduce the fossil fuel
consumption. The report discussed the difference between innovation and invention. Importance
of innovation with respect to big belly and the report is also focused on vision leadership and
cultural shape with context to Innovation and commercialization. There are several steps of NDP
which can be used by the company in order to improve the operations. Struggle innovation also
explains the report as it helps the organisation in order to reduce their cost of goods which
resulted in lower cost of production and it will be easy for the organisation to achieve more
profitability from the competitive market.
Main Body
P1 describe Innovation and examine its importance with respect to the
organisation and also compare it with invention
Innovation refers to something which is completely new into the competitive market as it
also includes adding some features and characteristics into the existing goods and services which
are offered by the companies. Every organisation uses innovation in their product so that they
can easily satisfy the requirements of their targeted customers in a better manner (Barjak and

Heimsch, 2020). The companies also use innovations while delivering their products as it also
helps them to attract the targeted audience so that it will be easy for the organisation to enhance
their sales. There are several techniques which can be useful in organisations with respect to
innovation. The big many use eco-friendly dustbins in public places as their innovative idea and
the importance of innovation is also beneficial for the chosen organisation so that they can
survive for a longer period of time in the competitive market.
Importance of innovation
 Higher satisfaction of customers: the company uses innovation with respect to their
existing product and all the new products so that it will be easy for them to satisfy the
requirements of their targeted customers in an effective manner (Blackman, 2018). The
basic requirements which are fulfilled by the chosen organisation is to provide the
dustbin studio targeted audience but in this innovative product the company used to
provide eco-friendly dustbins switches that can be used by the customers at public places
as well as at their homes. This is beneficial for the organisation in order to get loyalty
from their customers as this is used in order to develop a positive brand image of the
organisation.
 The company can gain competitive advantages: as the main objective behind this
innovation is to provide better services to their customers so that it will be easy for
organisations to defeat the competitors in the competitive market. More innovative and
creative the product which is developed by the company helps the firm to capture a trust
of huge customers (Choi and Zo, 2019). The innovative eco-friendly dustbins help the
organisation to give a tough competition to the competitors and also used in order to
increase the market share of the organisation.
Invention: refers to when an organisation has made a physical appearance of their idea for the
first time into the competitive market. This can be developed by the companies so that they can
resolve the problems and issues faced by the customers. The big belly also uses different ideas of
invention so that they can satisfy the requirements of their targeted audience in an effective
manner. As in the present scenario the level of globalisation is also rising so with the context this
organisation is also concerned to invent their goods and services in such a manner so that they
can clean the city in a more appropriate manner (D’Angelo and Baroncelli, 2020). The

innovative idea is also beneficial for the companies so that they can easily gain the competitive
advantage from the market and defeat the competitors as their invention helps them to manage
the waste into an effective manner which is also contributing in order to develop a clean and
more beautiful city.
The difference between innovation and invention is discussed below:
Meaning
Invention refers when income please coming up for the first time with that Idea which is
totally new into the competitive market in order to satisfy the requirements of their targeted
customers whereas on the other hand the innovation refers to a kind of an additional changes
with respect to the existing products and services which are offered by the organisation.
Skills required
Invention the organisation is required at technical skills so that they can invent their new
product and services into the competitive market whereas invention is required at marketing
technical and strategic skills so that the organisation can innovate a new product while
determining the present requirements of their targeted customers.
P2 elucidates how organizational vision, leadership, cultural and team work
can figure the innovation and commercialisation
Innovation and commercialization play a significant role in every business organisation
as it is used in order to achieve their ultimate goals in an effective manner. It is important for
every organisation to have proper research and development activities so that they can easily
innovate their new products and services into a competitive market. Big belly is also using
several tactics in order to develop innovative products into the marketplace (Doloreux and
Shearmur, 2018). The vision, culture and teamwork helps the organisation so that they can share
their Innovation and commercialization in order to defeat the competitors in the market.
 Vision statement: The Chosen organisation is providing an eco friendly dustbin in public
as well as private places. The main vision of the organisation behind developing the
innovative project is to keep the nation neat and clean while managing the waste at public
and private places. In order to attain the vision statement the company has developed an
innovative idea into the competitive market.

 Culture: it includes leaves and assumptions which must be taken by the workforce of the
organisation as it helps them to determine the behavior and accomplish their goals.
Culture plays a significant role in the chosen organisation as it is used while developing
innovative products and services so that the company can understand the communication
leadership, ownership teamwork and many more aspects in an effective manner
(Gancarczyk, Najda-Janoszka and Gancarczyk, 2020).
 Leadership: that is an organisation is using democratic leadership that is an organisation
is using democratic leadership style while managing their business across the world. This
helps the organisation to motivate their workforce as this leadership style allows the
workforce to give their views while making any decision. This helps the organisation to
gain many ideas and from such full of Ideas it is easy for them to determine the best idea
so that the company can easily gain productivity from the efforts of their employees.
 Teamwork: the company uses several groups with respect to their skills and knowledge
possessed by their workforce. This is placed integral and communicated among the
employees which resulted in the maximization of quality of the assigned tasks. The
Chosen organisation is also providing proper training to their employees so that they can
easily achieve the set goals and objectives.
P3 4Ps of innovation and use of innovation funnel
It is important for every organisation in order to innovate their goods and services then
they are required to go under the four P's process which is discussed below:
 Product: it is discussed about the new activities in which the organisation are required to
innovate the new products and services so that they can satisfy the desires of their
targeted customers into an effective manner (Guerrero and Urbano, 2020). The Chosen
organisation loses their innovative ideas so that they can provide such products and
services which can be used by the customers in order to keep the city neat and clean.
 Position: this method is considered as the Marketplace which focuses on two factors with
respect to the goods and services on which the customers are interested in order to obtain
it. When the company is providing less features then it will be more challenging for them
to enhance their sales so that organisation views to develop their products in a more
attractive manner.

 Process: the internal procedure of the big belly with context to selling their products and
improving them so that they can easily compete with the competitors in the existing
market. This helps the organisation to generate higher profits while providing their
innovative products to the targeted customers.
 Paradigm: the model of paradigm used by the companies so that they can find the
different ways in order to manage their task so that the company can easily achieve their
ultimate goals.
Innovation Funnel: it is the method which can be used by the companies as it helps them to
process and steps in order to introduce the new products and services and to the competitive
market. This funnel helps the organisation to adopt long-term profits as in this the companies use
to innovate their goods and services with effective planning. There are several stages of
innovation funnel which is discussed below:
 Idea generation: at the first stage the organisations are required to research and develop
with respect to the idea of there innovation of products and services which are
propounded by a proper monitoring of the current issues and Threads present in the
market.
 Concept of investigation: it is the process of Investigation as there are several steps taken
by the company in order to achieve their ultimate goals (Hagl and Duane, 2020). In this
stage the organisation used to identify the future customers and resources which can be
used by them in order to achieve their targets.
 Feasibility of study: in this stage the company's used to evaluate the idea so that they can
analyse the profits which can be generated by the company and their expenses and their
expenses which can be incurred during the innovation.
 Development stage: in this stage the company uses to launch their product and services in
a considerable manner.
 Post release phase: before launching their product the companies take feedback from their
customers so that they can further improve their products.
M2 analyse and apply the innovation Funnel in an organisational context
From the above discussion with respect to the innovation funnel it can be said that
innovation funnel has five stages which can be used by the company in order to launch their
innovative product in the market. At the first stage the big belly company has to research and

develop their idea which is introduced by them further they are required to analyse with respect
to their investigation of concept and test that with the help of identification of future customers
and resources which are available in order to complete the innovative product (Hetu, 2018).
However, once the company has investigated with the resources and techniques then it is
necessary for them to evaluate their ideas and determine that how much profits can be earned by
the organisation and for that more they can launch their product into the competitive market and
after that the big belly is required to take feedback from their customers so that they can further
improve their products while satisfying the needs and wants of the targeted customers.
P4 Development of Frugal Innovation
This innovations refers to a process which can be used by the organisation in order to
demolish the complex during the process of production of their goods and services into the
competitive market. The main aim of this type of innovation is to analyse the effectiveness of the
product so that they can reduce the wastage from the forces of production (Lin and et. al., 2018).
The frugal innovation process is mentioned below:
 Find the opportunities in adversity: it is important for every organisation to determine the
opportunities which are present in the competitive market so that they can easily prevent
the problems in order to improve their performance. The big belly is also used to
manufacture the dustbin so that they can help in order to keep the surrounding neat and
clean and for the same the company is using their innovative idea with respect to
developing an eco-friendly dustbin.
 Useless and perform more: it is the factor which can be used by the big belly in order to
identify the resources which are present in the competitive market so that they can
develop their innovative products into the competitive market (Moktar and Velu, 2018).
It is also used in order to analyse the demands of their targeted customers so that it will
be easy for the organisation to get higher efficiency with respect to their operations.
 Think and act flexibly: it is important for the big belly to determine the strike and
inflexible thinking so that they can examine the changes which are acquired by them as it
is useful for them while satisfying the desires of their targeted customers.
 Use simple methods: it is very important for the big belly to use simple methods of their
working and operation so that it is easy for them to complete their task within your

budget and specified period of time. This is also helpful in order to design with respect to
the demands of their customers and develop such strategies of promotions in order to
attract the customers so that they can avail their products.
 Include the margin: it is important for the chosen organisation to examine overrun
customer requirements so that they can analyse their needs and wants as it is beneficial
for the company as well as customers in order to satisfy it in an effective manner.
 Follow your heart: it is the last stage in which to be strongly passionate towards the work
so that it will be easy for the chosen organisation to manage their operations and help
them in order to capture more market shares.
M3/ D1 evaluates the role of frugal innovation in an organisation context
From the above discussion it is clear that struggle innovation plays an important role in
every organisation while developing their goods and services in order to satisfy the needs of their
clients. The big belly also uses this in order to implement their innovation so that they can
analyse the effective products and help in order to reduce the wastage from the process of
production (O’Gorman and Donnelly, 2019). It is important for every organisation to determine
the opportunities which are present in the market and then they can perform more towards their
Idea and think about it. It is important for the organisation to determine the simple methods
which can be used by them in order to develop their innovative product to the competitive
market.
P5 importance of commercial funnel and the process of new product
development
Commercial funnel
It is a funnel which can be used by the organisation in order to transform all their targeted
customers into their clients. As it is the process which can be used by the companies in order to
generate net income which helps them to acquire the new features of their products and services
so that it will be easy for them to attract the new customers towards the organisation. It is also
known as a sales funnel (Shams and et. al., 2018). With context to the big belly the managers of
the truth and Organisation used to analyse the cost and selling price of the new and innovative
products and services so that it will be easy for them to attract the new customers and which will
result in an increase of sales and profitability from the competitive market.

New product development
There are several steps taken by the organisation in order to develop new Products
Development Plan and for that there are several steps taken by the company which are discussed
below:
 Idea generation: it is the first stage where the ideas generated. It refers to a systematic
search of new ideas which is analysed by the company in order to developed there new
product and services and to the competitive market (Sharma and Kumar, 2019). The big
Belly organisation has developed an innovative idea as they are already engaged in order
to manufacture and sell dustbins so under an innovative idea the company has developed
an eco friendly dustbins.
 Idea screening: in the next step the idea of screaming which refers to nothing less than
filtering the idea so that the company can pick out the best idea so that the company can
analyse every Idea and determine out of them which one is beneficial for them. The
Chosen organisation has determined several ideas into used to produce the eco friendly
dustbin.
 Concept development and testing: in which stage the company used to develop there and
tested as the detailed version of new product idea is meaningful for the customers or not.
In this step the big belly used to take feedback from their customers so that they can
change their innovative products in order to satisfy them.
 Marketing strategy development: in this stage there are several marketing strategies
which can be used by the organisation in order to develop and test their product (Sharma,
2019). The big belly also decided a budget in order to promote their product into the
competitive market. This helps them to attract the targeted customers so that they can
enhance their sale.
 Business analysis: when the company has decided the marketing strategy then it is
important for them to evaluate the business attractiveness of the proposed new product.
The big belly has to review the sale cost and profits of the product so that it will be easy
for them to determine the prophets which are enjoyed by the organisation.
 Product development: when the organisation has passed from the business sir's then it is
important for them to develop of physical product so that they can ensure the product
idea can be turned into reality and workable in the competitive market or not (Živojinović

and et. al., 2020). The research team of big belly is required to check the quality of new
innovative product so that they can determine the loopholes and overcome with it while
taking several steps.
 Test marketing: in this step the big belly is required to you decide the product working in
the market into an effective manner or not. The marketing programs are tested and the
realistic marketing settings for which the company has explain so much of their funds in
order to test their product into the market so that they can provide free samples to their
customers in order to attract them.
 Commercialization: the last step of new product development stage is is that the product
is ready for the commercialization. The big belly organisation has opened their store and
made available their eco-friendly testaments for the consumption for private and public
purpose. The company can also provide there products at the online or offline mode.
P6 innovation business case for Organisational including several sources of
funds
 Business case: these types of cases are connected with the company which are
demonstrating the reason for being a proper project and also explain all the functions
which are performed by them in order to achieve their objective (Stafford and et. al.,
2020). These types of cases are used by the organisation in order to develop better
decision making so that it will be easy for them to achieve their success. The big baby
organisation is also required to design a business case before innovating the products and
services into the competitive market. There are several steps taken by the organisation in
order to develop a business case which are discussed below:
 Executive summary: Innovation and commercialization help the big belly company to
survive into the competitive market as the organisation is promoting their eco-friendly
dustbin project. It is important for the organisation to accomplish their goals within a
specified period of time and also attract the investors which helps the company to raise
their funds.
 Vision: the big belly wants to keep the nation neat and clean by recycling the he waste
material into their eco friendly dustbin (Szutowski, 2018).
 Mission: the big belly is also wants to provide their eco friendly dustbin for the public
and private purpose.

 Opportunity in the market: Is the companies criminally providing their eco friendly
dustbins into the United Kingdom only but further it can expand their distribution of
innovative product into to European union territories.
 Competitive edges: the eco friendly dustbin helps the company in order to manage the
waste properly so that it will be easy for them to keep the surrounding clean and helps
them to came competitive advantage as there is no such competitors present in the market
who are providing same product.
 Size and growth possibilities: the size and scope of the eco friendly dustbin is huge as
because of the enhancement of global warming so it is the major issue faced by every
country (Tamásy, 2019).
 Targeted market: the company used to target the general public so that they can use eco
friendly dustbin in the public and private places which helps them to keep the
surrounding neat and clean.
 Strategy: big belly has adopted high low pricing strategy so that they can easily increase
the sale of their innovative product.
 Promotional strategy: there are digital marketing tool which can be used by the big belly
in order to promote their new innovative product into the market.
 Funds: big belly invited various investors so that they can invest their capitals in order to
develop eco friendly dustbin project which can be used by the organisation in order to
raise funds. The main objective behind development of innovative product is to keep the
nation neat and clean and the people can use their dustbin for the public as well as private
purpose (Trust, 2019). This dustbin helps the people to manage their waste materials
properly.
M4 build a detailed innovation business case which include how to measure
its overall effectiveness
From the above discussion of detailed innovation business case it is important for the
every organisation to determine there is steps in order to develop innovative product and services
into the competitive market (Vanstone, 2020). The innovative product helps the company to
achieve their ultimate goals into an effective manner and also used in order to have a sustainable
growth into the competitive market.

P7/ M5 Evaluate the different tools that company can use to develop retain
and protect knowledge and intellectual property
 Patent: it is the tool which can be used by the big belly in order to get a licence of
ownership about their idea of product and process so that the other companies cannot
copy it in order to take competitive advantage (Vidmar, 2020). It is the tune which helps
the organisation to prevent their ideas from the competitors.
 Trademark: it is the two with candy used by the big belly another to saver there design
signs and symbol switches used by it is the two with candy used by the big belly another
to saver there design, signs and symbol which is used by the company in order to
represent their product in the market (Wishart, 2018). In other words it can be also says
that the big many users this so that they can protect their identity and enhance their brand
image.
D2 critically evaluate the nature of innovation and context in which it is
developed and how the company can overcome with the challenges
As it is a natural phenomena of nature that every industry who is innovating there new
product in the competitive market have to face various challenges as every competitor is
believing in developing a entry barriers (Zarghami, Gunawan and Schultmann, 2020). It is very
necessary for every organisation to determine several strategies which can be used by them in
order to overcome with the threads which are present in the competitive market and also helpful
it is very necessary for every organisation to determine several strategies which can be used by
them in order to overcome with the threads which are present in the competitive market and also
helpful so that they can have a sustainable growth in the market.
Conclusion
From the above report it can be concluded that innovation is very important with respect
to development of the business. This helps the company to gain the competitive advantages as
this helps the company to satisfy the requirements of the customers into an effective manner. The
business plan also helps the companies to execute the innovative products and services into the
market.

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