Innovation and Commercialisation

INNOVATION AND
COMMERCIALISATION
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................5
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation. ...................................10
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................11
P7 Different tool to retain intellectual property for longer period............................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Companies in order to gain competitive advantage in market and posses a motive for long
term survival brings innovation in their firms which is a need of the hour. Innovation refers to a
generation of new ideas or concepts which makes things different or unique then existing. It can
be in any form such as in service or manufacturing industry in case like new innovation in
producing products, new ways in supply management or can be anything (Albert, 2019). The
term commercialisation refers to a procedure of establishment of products new vision or new
method in production process with a motive to enhance company's sales in market. In the present
report the concept of innovation and commercialisation will be discussed in respect of F-Drones
company who provides transition drones to ships along with a combination of advance
technology inbuilt in its products. The firm provides its services in a form of Marine Deliveries.
The report discusses about few concepts related to innovation and its importance, comparison
with the concept of invention. F-Drone's vision, leadership and culture along with 4Ps of frugal
innovation. The report also comprises of development of new product in a business innovation.
TASK
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Definition of Innovation:
The term innovation refers to a development or creation of new ideas or ways of
operations indulged in production process or products that are being offered to customers in
market. The reason to bring innovation is that it brings greater efficiency with better technologies
which reduces company's time and cost involved in production or supply of product. Innovation
allows companies to bring more efficiency and effectiveness in their products which helps them
to have competitive advantage in market over rivals (Anning-Dorson, 2018).
Definition of Invention:
The term invention defines a birth of new concept or emergence of any new idea that has
not any existence before. It can be any form say in technology, process, any equipment, or any
from of creativity. It generally means a discovery of something new that can be utilised for the
betterment of society as well as livelihood of people.
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Importance of Innovation:
Innovation helps companies to achieve their organisational goal with greater competence
to compete in today's competitive market. This brings application of advance technologies in
operation which takes company to experience growth and success. With the changing
environment organisations are very much required to inbuilt innovation in their firms. The
importance or relevance of innovation fro companies are mentioned below:
 Increases Development: Innovation enhances company's existing skills and
competencies which helps them to have effectiveness in their process. This sets a
benchmark for positive results along with expecting development in near future
(de Vasconcelos and et.al., 2018).
 Achieve Competitive advantage: In today's competitive world it is very
necessary for companies to bring innovations in their offerings so that they can
achieve competitive advantage. Companies can only compete with its rivalries
only through innovation.
With the help of innovation F-Drone brings new technological advancement in its
offerings which makes it a profitable business compared to rivalries in market.
 Increases customer satisfaction: As in today's market customer's are king and
every companies produces their product by keeping customers satisfaction in
mind. Through innovation companies are helpful in providing satisfaction to their
customer who ultimately leads company to success and gain more profits through
its sales (Demirkan, 2018).
 Market Share: F-drone through innovation in its offerings is able to achieve
more market share in industry. As customer always likes those products which are
innovative in nature and is backed by advance technologies. Continuous
innovation in products increases companies brand image in market which
ultimately gives more share in market to firm (Elstub and Escobar, 2019).
Comparison between Innovation and Invention:
Basis of Comparison Innovation Invention
Meaning & definition It refers to the generation of It means occurrence of new
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new idea which is to be
indulged in either product or
on its process.
plans for company's products
or process which was not in
existence.
Concept Innovation includes a practical
application of new idea
generated.
Invention includes original
ideas which are applied in
theories.
Skills requirement The concept requires certain
skills such as marketing,
strategic and most important
technical skill.
The concept of invention
requires some scientific skills
in order to apply this in
theories.
Occurrence It occurs when companies
analyses need for a change or
market demands some thing
new in products.
Invention takes birth when a
scientist thinks for a new idea
or concept and applies it.
Research Innovation requires a lot of
market research to bring new
in existing product.
Invention requires limited
research.
Reason The main reason behind
innovation is to develop
company's current offerings or
to add some more value to
product or service.
The main reason behind
invention is to add or
formulate new product.
Competition It gives a competitive
advantage to firms.
This gives rise to competition.
Example Use of Artificial Intelligence
in manufacturing process.
Emergence of concept
Artificial Intelligence.
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P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
The innovation and commercialization concept are differentiated form each other. As
innovation is taken into consideration for greater improvement in product and commercialisation
comprise of a strategic procedure which invents products and services for general marketing.
This helps companies to raise production, distribution, customer satisfaction and marketing sales
which are enhanced to reinforce companies products and services (Fukuda, 2020). The two terms
that is commercialization and innovation performs a very important role in business growth in
international market. The contribution of organisational vision, leadership, culture and teamwork
in shaping of innovation and commercialisation is mentioned below:
Vision:
The company is focused towards its objectives which are set for long term in nature. F-
Drone considers its functions in respect of statement of vision which was formulated at the time
of establishment of organisation and operations. The vision is one which depicts company's core
agenda. The company F-Drone is concerned towards providing drones with continuous
innovation which can lift and fly with heavy load for a motive to accomplish aerial transportation
of goods at large scale.
Leadership:
Leadership can be defined as a process of adopting some style into behaviour of a leader
that can help organisation to encourage and motivate firms employees so that they can work with
more enhanced competencies (Helfat and Raubitschek, 2018). There are various types of
leadership style such as Autocratic leadership style, Democratic and Laissez Faire.
In F-Drone company Democratic style of leadership is applied as this brings more and
more suggestions form employees who are the actual doers. This helps company to bring
continuous innovation in their products. This encourages company's employees in having more
and more participation by sharing their opinions in bring new innovation to the firm. Democratic
style of leadership in F-Drone develops team work and co-ordination that gives ideas for
innovation that a company can involve in its process or product.
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