Innovation and Commercialisation

This document discusses the concept of innovation and its importance to staff, different sources of innovation, and ways to foster a culture of innovation. It also explores the different types of innovation, such as product, process, place, and paradigm. Additionally, it covers the process required to commercialise innovation and methods for protecting ideas. The content is relevant to the subject of innovation and commercialisation in various industries.

Innovation and commercialisation

Table of Contents
LO1. Innovation and difference between invention and innovation...............................................3
P1 Innovation and its importance to staffs..................................................................................3
M1 Analyse different sources of innovation and way to foster a culture of innovation.............4
D1 Critically analyse how innovation is developed, embedded and measured...........................5
P2 Organisational vision, leadership, culture and teamwork......................................................5
LO2 Explain the different types of innovation................................................................................6
P3. 4Ps of innovation and explain the use of the innovation funnel............................................6
M2 Analyse and apply the innovation funnel..............................................................................7
P4. Developments in frugal innovation.......................................................................................8
M3 Evaluate the role of frugal innovation...................................................................................8
LO3 Process required to commercialise innovation........................................................................8
P5 Importance of the commercial funnel and the application of NPD........................................8
P6 Build an Innovation Business Case, including ways to access funding.................................9
M4 Detailed Innovation Business Case.....................................................................................10
D2 Critically evaluate the nature of innovation and the context in which it is developed........10
LO4 Methods for protecting ideas, their advantages and disadvantages.......................................11
P7 Tools to develop, retain and protect knowledge and intellectual property...........................11
M5 Supported evidence-based evaluation of these different tools............................................11
References......................................................................................................................................12

HR Solutions located at Northamptonshire, operate in a variety of industries and have a client list
that ranges from small care agencies to multinational technology firms. The HR team has
extensive knowledge and experience to meet ever changing customers’ demands. This particular
HR consultant firm has been selected to carry out the study.
LO1. Innovation and difference between invention and
innovation
P1 Innovation and its importance to staffs
Invention and innovation are entirely distinct aspects. Invention is the initiation of a new product
or service in the market while when a product is upgraded by adding certain features in it or
services are improvised to meet consumers’ demands, it is known as innovation (BESSANT &
TIDD, 2015). Marketers adopted innovation within an aim to improvise a product or a service
that already exist in the market or when the product or service has already been invented. In the
context of HR Solutions (MATTHEWS & BRUEGGEMANN, 2015). Example of Apple Inc.
can be taken while explaining about innovation because Steve Jobs has made significant
contribution to innovation in relation Apple Inc. The most remarkable innovation of Steve Jobs
is the launch of iPod of Apple (Wonglimpiyarat, 2012). There are about 1.4 million users of iPod
across the globe which has witnessed popularity since its launch. Apple’s iPod has been the
number one product on terms of generating profits and revenues and from the perspective of unit
sold. Not only its attractive look has facilitated it gaining tremendous popularity, but other
features such as storing capacity, sleek design, integrated with upgraded technology, availability
and mobility are some of the other key features that have made won hearts of millions
(Cusumano, 2010).
From the example of Apple it is evident that innovation is a strategic move that is adopted by
organizations in order to meet customers demand (Jun & Sung Park, n.d.). Upon understanding
the growing interest of people towards advancement of technology, Apple has launched iPod
targeting music lovers across the lovers. The innovation has been successful and the product has
become successful in winning a wide array of customer’s satisfaction (Heracleous & Papachroni,
2012). With product or service innovation business organizations are likely to be more efficient

in engaging its staffs to generate innovative and creative thinking that not only help them build a
work environment of engagement and active participation but staffs are positively motivated
when their innovative and creative thinking are acknowledged and promoted in an organization.
Staffs in recent times prefer working with organisations that allow them with challenging and
innovative tasks where they can integrate their skill and competence rather than involving in
repetitive and boring jobs (Holsapple, 2013). Hence, innovation allows staffs work against
challenges and in a more innovative work environment.
M1 Analyse different sources of innovation and way to foster a culture
of innovation
A number of sources contribute to the innovation of products and services. Business
organizations plan for product and service innovation in order to meet unexpected demand of
their customers. Every organizations in this global competitive market has been striving to
achieve competitive advantage by meeting their customers’ needs and developing products upon
the needs their needs. With an aim to meet ever-changing consumers demand companies have
been developing innovative products and services continuously (Bloom, et al., 2014). To have
successful organizational change management it must have available staffs and other required
sources for the innovation. Any changes in the system or process of a business organization
realise the need of innovation within the organizational procedures and operation. For instance if
an organization needs to meet organizational service development it need integrating ICT.
Innovation in the organization procedures and operation is adopted to develop more effective
product and services.
Not only are the demands of the customers changing continuously but market also has been
witnessing continuous change where organizations are needed to implement innovation to meet
those market changes (Arvanitis, et al., 2013). Knowledge upgradation is another source of
innovation which enforces business organization to adopt innovative process and systems so that
they can improve their productivity and performance in meeting global customers, for example
Kiosk machines are used in MacDonald’s, Greece making consumers order placing procedure
easy and less time consuming. Innovation in business organization are supported due to the
change sin demography such as person age, education and background support innovation in the
market.

A culture of innovation can be fostered when collaboration and creative thinking is rewarded and
encouraged. With effective leadership styles, organizational leaders are likely to develop a
culture of creative environment where employees are allowed to generate creative and innovative
ideas that are likely to facilitate organizations achieved improved performance and productivity.
Effective team development help organization generate innovation and creativity therefore team
development is the major role that organization must focus on in order to build an innovative
work culture.
D1 Critically analyse how innovation is developed, embedded and
measured
In an organization, need for the innovation is communicated will all the stakeholders so that they
are aware of the purpose of the innovation and how the innovation would benefit the
organization as well as the stakeholders. With the participation of all the stakeholders within a
business organization, innovation is developed. In order to take in the innovation process, staffs
are encouraged and motivated so that they be the significant part of the process. A number of
barriers to innovation prevails in organizational context those must be addressed so that a
successful development, of innovation can be ensured. Followed by communicating the
potential effectiveness, innovation is embedded within a business organization (Cassia, et al.,
2012). Nevertheless identifying barriers to organizational innovation becomes difficult when
employees are reluctant to share their feelings and opinion about the innovation. In order to
evaluate the effectiveness of innovation, a comparative study can be integrated which includes
both the previous performance in the organizational as well as the present performance of the
firm after the innovation is integrated. Through the adoption of evaluation methodology of
innovation process, not only the gap between organizational performance and effectiveness of
innovation are recognised but this shows further scope to innovation to ensure organizational
better.
P2 Organisational vision, leadership, culture and teamwork
Business organization provide better offers to its staffs and consumers. Staffs are considered as
the most valuable asset to a business organization for example Virgin group that has prioritised
staffs above all and believes organizational success are significantly contributed by their
workforce. The company shares its profit equally with its stakeholders and achieving sustainable

profit is the main objective of the company (Cusumano, 2010). Effective leadership style of the
organization enables foster positive motivation within the organization. With right leadership
skills leaders of Virgin group ensures staffs participation in generating innovation and creativity
and further encourages them by acknowledging those innovative and creative ideas. Team
working of Virgin group facilitates the company achieve its goals and business performance.
Team work as recommended in a wide range of studies develop team members working ability
as well as the staffs also are likely to be more creative when they work in teams. Therefore,
employees’ innovative ideas and creativity can be fostered through team working. Virgin group
has formal culture that is believed to enhance business performance through employee
commitment.
To win this ever growing competition, Virgin group has always made innovation and
commercialization strategies and polices such as business model innovation in Virgin groups.
Organizational vision, leadership, culture and teamwork support virgin group’s innovation and
commercialization strategies and policies (Naidoo, 2010).
LO2 Explain the different types of innovation
P3. 4Ps of innovation and explain the use of the innovation funnel
Innovations are of four types, product, process, place and paradigm. Product innovation is
referred to the process of changing features colour and shape of any products. Apple conducts
product innovation by launching iPod. Position depends on customer’s perception about a
product and the actual quality of product. Apple’s brand image and its promotions has made its
products create the position as the perception of the customers plays more significant role than
its actual quality (Wonglimpiyarat, 2012). In order to make products or services cheaper
innovation of process is integrated. Employees are included in the decision making process for
process innovation and instance of Virgin group can be taken. Paradigm is the type of innovation
where the company integrates innovative technological development within their existing
products for example, iPad, iPod are some of the technological innovation done by Apple.

Source: (Drucker, 2014)
Innovation funnel is used in order to manage process and product innovation in business
organizations. Aim of the first stage is to collect as many ideas as possible as more the ideas a
company has it is able to develop more products. Competitors, research, university connections,
existing partners, or institutes are the sources of ideas (DRUCKER, 2006). Ideas that are
developed in the first stage go for screening in the second stage that involves matching the
objectives with the ideas. This stage further assess risks of selecting an idea and resources are
allocated to the most effective idea. Company in the third stage release the service or the product
in the market.
M2 Analyse and apply the innovation funnel
Organization select the most appropriate idea from the collected ideas so that it can provide
optimum development opportunity to the most potential idea from the pool of ideas that has been
emerged from a variety of sources. The most potential idea is processes designed and
implemented to develop an innovative product and service must match with the organizational

objective. Innovation funnel plays effective role form idea generation to innovation to product or
service.
P4. Developments in frugal innovation
Frugal innovation is referred to the process of developing range of complex products and
services within a specific business market. Cost and price of a product can be diminished with
the support of frugal innovation. Unwanted technological and process integration can be reduced
in products with its application. Examples of frugal innovation are iPad and iPod with iOs from
Apple. Frugal innovation has enabled the company develop product that meet customers demand
with the intertwining of services and products (Heracleous & Papachroni, 2012). IPad or iPhone
with iOs, from Apple has met customers’ basic and augmented need.
M3 Evaluate the role of frugal innovation
Apple Inc. has engaged its staffs in innovation and commercialization of the new services at
affordable prices, which enables the company to develop special pricing features and better
market conceptualization. The customers in the recent time have been looking for products
especially in the telecommunication industry, based on societal and behavioural changes that
they have been experiencing. Customers have been looking updated features with innovative and
stylish look in their gadgets. Apple Inc. engages itself into extensive research so that the
company gains understanding about the current trend and customers demand. Present business
scenario demonstrates that Apple Inc. must ensure better understanding of people’s needs and
demands and develop products aligned with customers’ needs. Frugal innovation aims at
developing products and services within the reach of billions emerging middle-class customers
(Booysen & Van Zyl, 2012). Customers are expecting more technologically improved gadgets at
better prices that has been adopted by Apple by innovating iPod, which is available at very
pocket friendly prices thus accessible to different group of people within the society and it
integrated most updated technology as well. Hence, iPod meets both objectives of adopting
frugal innovation.

LO3 Process required to commercialise innovation
P5 Importance of the commercial funnel and the application of NPD
Four key objectives of integrating commercial funnel are ideas, opportunities, product and
technologies. With the support of the specific funnel, new product or service requirements of the
customers can be identified in the recent market scenario. A business organization is able to
evaluate the potential product and service developmental opportunities within a specific time
frame with the use of commercial funnel (Onetti, et al., 2012). Organizational staffs also are
allowed to take part in the commercial funnel in order to generate ideas that not only benefit the
business firm but also the employees as taking in decision making and innovation process
promotes their positive motivation. Current competition in the market also are evaluated by
organizations with the aid of commercial funnel so that those business opportunities can be
commercialised with innovative services and products. The employees are communicated about
the targeted milestones and financial objectives that need to be achieved by the company within
the stipulated time (VALIKANGAS & GIBBERT, 2015). Within the process of
commercialisation, employees sharing information while keeping away conflict from the
workplace while developing new product. In order to commercialise the innovation of service or
product business organization processes new product development to make the procedure of
innovation and commercialisation a successful cycle. With the NPD processing a business
organization is able to launch the innovative ideas for commercialization and identify the
effectiveness of NPD through assessment.
P6 Build an Innovation Business Case, including ways to access funding
HR Solutions needs to improve business process by including its stakeholders particularly a
company’s customers and employees so it facilitates the firm achieving competitive advantage.
Including employees, clients and customers, will lead to effective decision-making process
(Svendsen, 2014). Organization that has been aiming to improve its services and products so that
it can achieve customer’s satisfaction as well as business objective and thereby gain competitive
advantage by providing excellent services or improved product features (Durcikova & Jennex,
2013). Different creativity tools will be implemented to start the process of innovation. Then HR
Solutions will move to the cost benefit analysis, analysing opportunity needs, evaluating
stakeholder’s interest and identify uncertainties. The next step is to make an assessment of

competition, outlining tactical strategies that will be adopted, implication and ability to execute
the innovative product or service. Lastly Business Case will be referred to again to develop a
format of the break down appropriately with the best available resources such as selling
propositions, and available resources to transform the case into effective commercial prospect
(TROTT, 2012). Ways of funding business innovation are grants for research and development,
stakeholders funds, investments from investors who will be interested in investing in the
company will further be obtained from investor’s those who have been supporting companies in
starting up innovative process. Crowd funding can be encourage from small investors.
M4 Detailed Innovation Business Case
Scientific need to be chosen by HR Solutions so that risk associated with the product
development and effectiveness of the same can be identified adequately. A pilot study can be
developed with the organization in order to find the effectiveness of the integration of product
development innovation. Hypothesis will be developed so that the effectiveness of innovation
can be tested, and eliminate those. Build-Measure-learn model would be the most appropriate
model to integrate in the organization so that the issues that are identified in the innovation
process in service and product development can be addressed (DRUCKER, 2006). With the
implementation of Build-Measure-learn model, is the most appropriate technique in
understanding and meeting demands of customers. The knowledge that will be gained through
the above mentioned model will facilitate the organization in improving product or services that
will be developed in future.
D2 Critically evaluate the nature of innovation and the context in which
it is developed
The chosen company, HR Solutions has integrated service innovation tool so that the company
can improve its service quality and thus meet customers’ demand. The human resource
consultancy firm has been operating in an extreme competitive market. To win competitive
advantage, the firm needs to develop innovative services (TROTT, 2012). In order to overcome
the challenges that the company might face in the way to service innovation can be addressed by
the following strategies:
HR Solutions must apply effective and fast data processing tools when the team is about to
generate innovative service improvisational plan or ideas. The company must adopt the best idea

from the pool of ideas that has enormous business opportunities as well as it links with the
business objectives (VALIKANGAS & GIBBERT, 2015). Company must manage and limit
legal risk by adopting different tools such as NDA agreement and work for hire agreement in this
manner the selected company would be able to protect and store intellectual property. The
organization must promote a culture that fosters innovation and creativity with the right
leadership and management style.
LO4 Methods for protecting ideas, their advantages and
disadvantages
P7 Tools to develop, retain and protect knowledge and intellectual
property
HR Solutions must follow work for hire agreement so that the knowledge and information can be
protected from theft. HR Solutions will be able to own all rights on its business plan or device
innovation designs that will be developed in the business organization. Staffs upon accepting the
job proposals will liable to abide by the agreement. Hired professionals will not be able to claim
their develop designs or any innovative product designs later as all the rights are owned by the
company. If HR Solutions plans to collaborate with external agencies in order to accomplish the
innovative business process, non-disclosure agreement also will be considered (Gallié & Legros,
2012). The agencies who are willing to work with HR Solutions are complied with the non-
disclosure policies and they are not allowed to disclose any kind of information associated with
business to other bodies. The organization also should integrate ICT so that the intellectual
property is easily accessible and protected from getting lost or misused, as only organizational
staffs will be allowed to access the business related information in ICT.
M5 Supported evidence-based evaluation of these different tools
NDA agreement and work for hire agreement play vital role in protecting information and
intellectual property. ICT is an effective tool for storing intellection property that can be used
with required data protection strategy such as password so that only relevant staffs to a specific
work can access those stored information (MATTHEWS & BRUEGGEMANN, 2015). However

with the growing concern of hackers, people with adverse intention can access confidential
information about the business. After the closure period of work for hire time span, employees
who leave the position of HR Solutions may disclose confidential business data and
information that they have acquired while working here to its competitors resulting in enormous
business loss.

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