Innovation and Commercialisation.

Innovation
and
Commercialisation

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Difference between innovation and invention and importance of innovation to organisation.....3
P2: Contribution of organisational vision, leadership, culture, teamwork in innovation and
commercialisation..............................................................................................................................5
TASK 2.................................................................................................................................................6
P3: Analysis of 4P’s of innovation and application of innovation funnel in development of
innovative ideas.................................................................................................................................6
P4: Development of frugal innovation...............................................................................................7
TASK 3.................................................................................................................................................8
P5: Use of NPD for innovation and commercialisation and importance of commercial funnel.........8
P6: Development of innovation business case...................................................................................9
TASK 4...............................................................................................................................................10
P7: Evaluation of the tools which are used by the organisation to develop, retain or protect
knowledge and intellectual property rights......................................................................................10
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Innovation is a practice of improving something through adding extra value added
changes according to the needs and requirements of customers which help an organisation to
sustain in market for longer duration. Therefore, innovation should be adopted by every
organisation, position in competitive market. Innovation can be implemented by different
departments in an organisation such as production, marketing, operation and finance.
Rowlinson Knitwear, a UK small-sized clothing company which manufactures especially for
school and corporate people is selected for the purpose of preparing this report. The present
assignment report summarises the role of innovation in achieving success of company and
also its differentiation with the concept of invention (Antonelli, 2014). Contribution of
company’s vision, culture, leadership team in implementation of innovation and
commercialisation are also briefly discussed under this report. The project also covers the
benefits of commercial funnel as well as implementation of NPD.
TASK 1
P1: Difference between innovation and invention and importance of innovation to
organisation
Innovation refers to making new and innovative changes in existing products in order
to maximise value or product whereas invention refer to create something which are not yet
introduced in market. Therefore, innovation and invention both are different concept and
contribute maximum to an organisation to achieve competitive advantage in market.
Rowlinson Knitwear deals in providing school as well as corporate wear garments thus
should required making suitable changes in their clothing product in terms of pattern, design,
colour etc. on the basis of needs and requirements of customers.
Comparison between innovation and invention
Innovation Invention
Innovation refers to adding extra value to
existing product so as to maximise the
satisfaction level of customers.
It refers to something is newly introduced in
market in order to gain competitive
advantage by company.
Innovation can be done with a motive of
maximising the value of existing products.
Invention can be developed with new ideas
and concept which will bring beneficial
outcome to company in near future.
It can be used by every department of an
organisation.
It comes under the responsibility of R&D
team for the betterment of company.
Importance of Innovation to organisation
Innovation brings company into stronger position in competitive market and allows
them to compete with their rivals in an effective and efficient manner. The management of
Rowlinson Knitwear are liable to implement an effective strategies regarding adoption in
innovation in their department so as to reduce wastage and increases profitability (Baily and

Chakrabarti, 2011). The company can bring innovation in their features of products such as
changing pattern, design, colour etc. of clothing product which attracts more professionals.
For example, according to the needs and demands of customers, the production department
put certain changes in their existing clothing product in production process through
implementing an effective and advanced technology. Along with this, there are many other
benefit so innovation as well which are as follows:
Application of best method: As there are various departments in Rowlinson Knitwear
who works different business activities to achieve common organisational goals. Such
department includes production, marketing, finance and operation... Therefore in order to
provide quality products to the customers the company must require to communicate with
their customers about the extra value they attached with their product which makes them
different from their rivals. Innovation guaranteed success thus essentially required to be
adopted in different processes of business activities. For example, Developing new ideas to
market their product which attracts lots of customers, the management need to adopt
innovative methods such as giving advertisement on Social media, radio etc. where lots of
customers are active. Adopting such channel of marketing forcing customers to pay their
attention on company’s products at once.
Competitive advantage: Making improvement in existing product through building
new design, pattern, colour etc. as per the taste and preferences of customers will help
company in competing with their rivals in more effective and efficient manner. Adoption of
cost effective techniques in production process and build demanded changes in existing
clothing products help company in gaining competitive advantage in market and thus can
survive for longer period of time.
P2: Contribution of organisational vision, leadership, culture, teamwork in innovation
and commercialisation
Company’s vision, leadership, culture, team efforts gives maximum contribution in
implementation of innovation in business activities. The management of Rowlinson Knitwear
is liable to formulate a decision and plan regarding achieving company’s vision and
objectives and accordingly implement suitable techniques and tools which help them in
achieving within short period of time. The employees working in an organisation must be
aware about what company wants to achieve in future which brings motivation among them
to perform allotted task within given time frame (Camisón and Villar-López, 2014). In this,
Leaders play an important role in motivating workforce to focus on goals and objectives and
perform accordingly. Implementation of new technology in production and marketing process
will increase interest of customers to give their more efforts in making business more
successful. The manager and leader need to determine all such aspects first which forces
them to make critical thinking about adoption of innovation in business operations. Such
aspects include:
Vision: It refers to the target identified by management through forecasting in order to
achieve in future to achieve strong position in market and sustain for longer period of time.
As Rowlinson Knitwear is small-sized clothing company who wants to expand its business

operations to achieve huge profitability therefore their main vision is to increases in the size
and capacity of business. This can be possible only when they make changes in their products
according to the needs and preferences of customers (Cimoli, 2013).
Culture: The growth and success of very organisation is based on the workforce who
contributes their valuable efforts in achieving desired goals and objectives of an organisation.
Thus, having differences among between them due to having different cultures will make
huge impact on the performance of company. Differences in cultures rises communication
gaps du to which the enhances of misunderstanding among between them is more. Therefore,
the managers and leaders are more responsible to eliminate such cultural differences through
creating communication channels though which the employees and managers can easily
communicate with each other’s without facing any interruptions.
Leadership: An individual becomes good leaders when they have proper knowledge
of using innovation to motivate worker to perform well. For example, implementing
advanced technologies in working process enhances the interest and working behaviour of
employees to focus on target and perform in an optimum manner. The leaders should
required to give more freedom to their employees to perform in their way which increases the
changes of generating new ideas and methods by employees while completion of allotted
business activities (Crossan and Apaydin, 2010).
Team work: Motivating employees to perform with their co-workers always brings
maximum result to company. As working with different skilled and knowledgeable
employees provides an opportunity to employee to learn something new from their co-
workers and get enough support from them while performing particular business activities.
This will increases the knowledge and skills of employees and motivate them to work in
different areas so as to get promotional chances in an organisation. Working with others also
increases the chances of generating new ideas and methods of completion of task which help
them in achieving team goals within short period of time.
TASK 2
P3: Analysis of 4P’s of innovation and application of innovation funnel in development
of innovative ideas
4P’s of Innovation:
Process Innovation: It refers to an innovation which is required to be implemented in
different process of performing business activities. For this, the management of Rowlinson
Knitwear are liable to frost prepare an effective budget for particular business activity and
accordingly execute and perform with the help of utilising available resources in an optimum
manner. It will help in reducing wastage and achieve huge profitability by company. For
example, implementing new ideas of promotion clothing products the marketing manager of
Rowlinson Knitwear should focused on using social medial tool through which they can
successfully market their product and inform their loyal customers about the quality, price
and unique attribute of products (Edquist, 2010).

Product innovation: It means the modification done in the features of existing
product with a motive of increasing value of product so as to maximise the level of
satisfaction of customers. It can be done with the help of taking support from R&D team who
providing them sufficient information about the changes required in product through
conducting research on customer’s taste and preferences. It helps company in retaining loyal
customers as well as attracting new customers towards purchasing company’s product.
Position innovation: It means the changes in relation to the interest and perception of
customers during purchasing company’s product. It is the responsibility of management of
Rowlinson Knitwear to analyse the thoughts and views of their customers in relation to their
quality of their product and whether they are satisfied with the product after using product.
The company also made changes in order to attain strong image in market so as to recognise
by customers easily through seeing their logo, symbol and quality (Filippetti, 2011).
Paradigm innovation: It involves the changes in the business structure in order to
create good atmosphere at workplace which help in increasing motivation and confidence
level of employees towards performing their allotted task. It can be done with the help of
management who need to create platform where the manager and employees both can
communicate with each other and discuss about future plans and policies.
Innovation funnel:
It refers to the changes or modification done in the characteristics of products so as to
maximise their value and satisfaction level of customers after knowing what changes the
customer required in company’s product. It can be done by the management through
following three steps:
Wide of mouth: In this process, the management should focus on creating new ideas
and techniques through which they can implement innovative changes in their product and
working structure with the purpose of increasing the satisfaction level of customers as well as
employees which brings beneficial result to them in near future. It can be done with the help
of management who need to first analyse their rivals strategy, requirements of employees at
workplace, demands of customers etc.
Selection of idea: In this process, the management focused on choosing one best and
profitable idea among different options after evaluating the possibilities of getting possible
outcomes in near future. It will require to have good skills and knowledge of manager to
select one option among various (Gray, 2011).
Implementation of ideas: In this last process, the managers of Rowlinson Knitwear
decide to adopt changes practically on the existing products after executing plans for
successfully implementation. While adopting changes, the management should take
customer’s needs and requirements on first priority so that they can keep their customers with
them for longer period of time.

P4: Development of frugal innovation
Frugal innovation: It involves the actions taken regarding removing features from
products which are not attracted and influence interest and buying behaviour of customers.
The management of Rowlinson Knitwear need to first the identify that which features of their
product are not useful in bringing attention of their customers and accordingly make changes.
Sometimes, the colour or design etc. of professional wear products are not accepted by
corporations due to which customers may show less interest in purchasing tier product.
Therefore, the management need to take crucial action of removing unwanted features and
adding value added product so as to maximise the level of satisfaction of customers.
Removing unwanted features will help company in minimising the cost of production due to
which they can invest saving amount in building new features in product. For example,
Rowlinson Knitwear manufactures corporate wear garments implementing some designs in it
which are not allowed to wear such designed clothing product in corporations due to which
the customers refuse to buy such clothing product. This will make huge impact on the sales
figure of product as well (Gronum, Verreynne and Kastelle, 2012). Therefore, the
management need to remove such unwanted features in order to retain commitment of loyal
customers towards with the company. Implementation of frugal innovation brings beneficial
result to company which are defined as below:
Minimising production cost: As eliminating unwanted features such as design,
pattern, and buttons etc. from the clothing product will help company in minimising their cost
of production. For this, the management need to direct their production department not to add
unwanted resources in their product which restrict buyer’s behaviour and interest toward
purchasing their clothing product.
Development of new feature: It is not enough for company to remove unwanted
features from their clothing product as it is also required to add extra value to produce in
replacement of unwanted material in order to make product more valuable. Replacing wanted
features and adding value added feature will help company in increasing their sales figure of
product and generate huge revenues.
Application of new technologies: Adding value to product or removing unnecessary
required features from product required company to have advanced and updated technologies
through which the employees of different department can perform their actions regarding
improvement of products. It will help in maximising the efficiency level of employees and
motivate them to add feature in product which are more in demand.
TASK 3
P5: Use of NPD for innovation and commercialisation and importance of commercial
funnel
Commercial funnel: It refers to the changes in perception and interest of customers
while buying company’s products and services. It sin important for every organisation to first
identify what customers feels after using their product and find out whether they are satisfied

with the quality or features of products. Therefore, the management of Rowlinson Knitwear
need to conduct research on customer’s perception and on the basis of collecting information
the management need to find out effective methods to enhance interest and buying behaviour
of customers. Implementing extra value added product will easily attract large number of new
customers and retain loyal customers.
Importance of commercial funnel:
Rowlinson Knitwear can achieve profitable outcomes after application of commercial
funnel which are briefly described as below:
Improvement of quality: In order to change perception and buying behaviour of
customers, the company need to make regular changes in their products so as to exist in
market for longer period of time. Good quality products can easily attracts customers towards
purchasing company’s product therefore the management of Rowlinson Knitwear need to
focus on producing clothing product with optimum quality after adding some required
features which easily can grab an attention of maximum number of customers and changes
their purchasing decision as well.
Increases in profit: Providing good quality products not only help company in
changing perception of customers but also help in increasing profitability. If the purchasing
decision of customer are in favour of company’s product then it will directly make positive
impact on the sales figure and revenue of company (Dries and et.al., 2014).
Improvement in goodwill: Implementing value added features in the products in order
to maximise the interests and buying behaviour of customers, the company can easily attains
good image and reputation in market u to which they can able to attracts lots of customers.
New product development
It is the process in which an organisation introduce new product into market with new
design and features with the purpose of maximising the satisfaction level of customers and
increase market share of company. As Rowlinson Knitwear manufactures only school and
corporate wear garments due to which they attain limited market share. Therefore, in order to
attain huge customer strength the company must required to produce wide range of clothing
products for every group of people which help them in achieving huge profits as well. Thus,
to bring new product the company should required to follow below steps:
Generation of idea: At this first stage, the management of company need to develop
new and innovative idea reading launching new product into market in which customers’
satisfaction level should be taken on priority.
Screening of idea: In this, the manager needs to opt one best idea among various
options in order to sustain in market for longer period of time.

Defining concept: In this, transmitting of selected idea from management to
employees with the hope of getting adequate support from employees from different
departments.
Business analysis: In this step, the manager examines the effectiveness of decisions
regarding launching new product into market.
Product development: In this step, the management concentrates on developing
product through using advanced and updated technology in manufacturing process. Providing
quality products always ensures in getting success of such product in market.
Test marketing: At this step, the management need to take decision regarding
adoption of marketing tools through which they can grab an attention of large number of
customers towards new product.
Commercialisation: In the last step, The management reviewing all above steps and
accordingly take corrective actions and plans in order to make new product more successful
in market.
P6: Development of innovation business case
Executive summary: Rowlinson Knitwear, a UK small-sized company which deals in
manufacturing school as well as corporate wear garments thus has attained limited market
share. To expand business across worldwide, the company need to make proper plan and
strategies in order to sustain in new places for longer period. The main objective of company
to provide quality clothing products through adding some features which are not yet available
by their rivals (Brettel and Cleven, 2011).
Need: The management need to find out the demands and preferences of customers
which enhance their level of satisfaction.
Solution: This can be done through R&D team which is liable to conduct research
and bring out optimum solution to maximise the customer’s interest and buying behaviour.
Research on customers: The management of Rowlinson Knitwear need to conduct
research on customer’s perception and vies after using their product and accordingly take
further actions.
Designing and development of plan: The management with the help of their
employees can implement plans into actions in order to achieve best possible outcomes.
Investment requirements: Finance department is liable to fulfil funds requirements in
executing business operations without facing any discrepancies.

TASK 4
P7: Evaluation of the tools which are used by the organisation to develop, retain or
protect knowledge and intellectual property rights
There are various tools with the help of which Rowlinson Knitwear can protect their
intellectual properly rights. Such tools are:
Patent: It is an effective tool which company stop others to use their design, features
etc. For this, they need to fill an application form regarding registering such design with
name of company and submit it to the government.
Trade mark: It is also of an effective tool through which company can save their
symbol, work line or tag from others and allow them only after permission.
Copyright: It is such a tool which stops others to copy their product and using their
name in order to increase their sales and revenues. The company have full right to take legal
action amongst them if any actions have been found (New Product Development Stages,
2017).
CONCLUSION
It has been summarise from the above project report that the organisation having an
effective management who are capable to bring new and innovative ideas in order to
implement them into action can easily achieve growth and success of company in market for
longer period of time. In order to gain competitive advantage, the management need to focus
on 4P’s of innovation through which they can attain huge customer strength as well.

REFERENCES
Books and Journals
Antonelli, C., 2014. The economics of innovation, new technologies and structural change.
Routledge.
Baily, M. N. and Chakrabarti, A. K., 2011. Innovation and the productivity crisis. Brookings
Institution Press.
Brettel, M. and Cleven, N. J., 2011. Innovation culture, collaboration with external partners
and NPD performance. Creativity and Innovation Management. 20(4). pp.253-272.
Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business
research, 67(1), pp.2891-2902.
Cimoli, M., 2013. Developing Innovation Systems: Mexico in a global context. Routledge.
Crossan, M. M. and Apaydin, M., 2010. A multi‐dimensional framework of organizational
innovation: A systematic review of the literature. Journal of management studies.
47(6). pp.1154-1191.
Dries, L., and et.al., 2014. Keeping your secrets public? Open versus closed innovation
processes in the Hungarian wine sector. International Food and Agribusiness
Management Review. 17(1). pp.147-162.
Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of
Science, Technology, Innovation and Development. 2(3). pp.14-45.
Filippetti, A., 2011. Innovation modes and design as a source of innovation: a firm-level
analysis. European Journal of Innovation Management. 14(1). pp.5-26.
Gray, D. O., 2011. Cross-sector research collaboration in the USA: a national innovation
system perspective. Science and Public Policy. 38(2). pp.123-133.
Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and
medium‐sized enterprise innovation and firm performance. Journal of Small Business
Management, 50(2), pp.257-282.
Online
New Product Development Stages. 2017.[ONLINE]. Available through:
<http://productlifecyclestages.com/new-product-development-stages/>.