Innovation and Commercialisation

This assignment explores the concepts of innovation and commercialisation in the context of Aldi, a discount supermarket chain. It discusses the difference between invention and innovation, analyzes the sources of innovation, explores the link between innovativeness and leadership, organisational culture, and teamwork, explains the 4Ps of innovation, and appraises the value of innovation funnel and frugal innovation. The assignment emphasizes the importance of innovation for the growth and success of a company.

Innovation and
Commercialisation

Table of Contents
INTRODCUTION...........................................................................................................................1
TASK 2............................................................................................................................................1
(a) Explain the difference between invention and innovations...................................................1
(b) Analyse source of innovation as a core process....................................................................2
(c) Discuss link between innovativeness of the company and its leadership, organisational
culture and teamwork..................................................................................................................3
(d) Explain the 4Ps of innovation in reference to company........................................................4
(e) Appraise the value of innovation funnel and frugal innovation............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................7

INTRODCUTION
Innovation indicates to a creative and new ideas or imagination in an activity form. It
consists changes in current products and services of an organisation with the purpose of
maximising success and growth of the company in form of profit and productivity. It also
concentrates on the customers satisfaction after determining the existing and upcoming trends.
Whereas commercialisation states to introduction and lunching a new commodity in the market
that are able to get attention of number of individual and in this, it covers the steps relating to
manufacturing to distribution activity of a good providing in the current and existing market
(Altaf, e Hassan and Batool, 2019). This assignment is based on Aldi which is discount
supermarket chain and operates its business approx 20 nations with the help of its 10,000 stores.
The company is want to make innovation by implementing “Drone technology” in its home
delivery service. The assignment will cover information about 4Ps of innovation and use of
innovation funnel to shape innovation idea. Further will explain about development of frugal
innovation and its utilisation in context of company.
TASK 2
(a) Explain the difference between invention and innovations
The difference among innovation and invention is defined as under on the basis of
comparison form:
Differentiate between invention and innovation
Particulars Innovation Invention
Concept It mention as the activity of
developing and make contribution
in improving existing product and
services as per the needs and
demands of market. Basically, it
means that creation of something
that can be able to launch,
introduce and sell in the market.
It refers to the generation of
thoughts and ideas which are used
in a business in form of
manufacturing goods and services
very first time. Generally, it
indicates to that items and
commodities that are unique and
manufacture first time by a firm
(Huang, Farrukh and Shi, 2018).
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Activities It is a process that is executed at
all extent and all over the business
company.
It is a procedure that is executed
by research and development
function of the organisation.
Examples Aldi effectively process
innovation like minimise the
problem of missing of goods from
nearby stores etc. with the help of
this innovation, the company will
reach products in the hand of
target audiences.
Product shape and design,
working prototypes. Aldi invent a
solid working business concept
that vis supported to safety and
security of goods
(MIRGHAFOORI, MOROVATI
and ZAHEDI, 2018).
(b) Analyse source of innovation as a core process
There are different sources of innovation that are effective to perform and implement a
innovation in existing business. The description of these innovation sources as per Peter F
Druker is mentioned as under:
Unexpected- In a company, innovation can take place unexpectedly and can happen by
chance to improve the service and product of the firm. In Aldi, the Drone Technology is
unexpectedly in term of improving sales and retaining customer base by offering home delivery
with the implementation of it.
Incongruities- When the requirement is in-congruent with the supply then innovation
might be occur. In Aldi, as the demand of home delivery is grew, the respective company make
creation in form of Drone Delivery to fulfil this increasing demand.
Market structure- A current market can also offer a chance to make innovation. For
example, in current ear number of companies offer home delivery service to offer their goods to
their consumers. So by determining market, Aldi also make innovation in context of it context of
it by offering home Delivery service through Drone.
Necessity- It is another factor that is responsible to form innovation in an organisation. In
present time people are prefer online shopping due to lack of time so they have the need of home
deliver (Özilgen, 2019). So that they did not go to outside to collect their products form a nearby
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store. For the fulfilment of this need, the firm decided to make innovation by adopting Drone
technology.
Demographics- Living standard of individual can also be a source of innovation. For
example, in UK most of the population is working so they do have not time to go to market with
the motive of shopping. So they prefer online shopping from that company which provide home
delivery (Schot and Steinmueller, 2018). So this demographic factor encourage Aldi to make
innovation regarding home delivery services.
Changing perception- Innovation are formed and made by the companies in term of
changing insight towards things. Now these days perception of people are change due to
numerous shopping option. But people like online shopping highly which empower Aldi to make
Drone delivery innovation so that form can offer services as per changing perception of its target
audiences of home delivery.
New knowledge- It is an another source of innovation like when there are number of
technologies available in the market then company adopt them to get knowledge and fulfil its
customers needs. In Aldi, the management also get knowledge about Drone technology and
make innovation by implementing to fulfil the need of its consumers.
(c) Discuss link between innovativeness of the company and its leadership, organisational culture
and teamwork
Leadership, teamwork and organisational culture all are help in shaping innovation. The
description of all these elements in form of affiliation of them with innovativeness are define as
below:
Vision- The vision of Aldi is to form a highly skilled employees team who are passionate
regarding their work and committed to the success of the individual who live in the society and
different needs. So fulfil the need of home delivery the company form a vision to make
innovation in its delivery service to adopt drone technology. So that they can provide home
delivery service to its consumers and retain them till long term duration.
Culture- It refers to the organisational culture in term of healthy and friendly where
employees can perform their work in proper way (Shaw, and Hess, 2018). In Aldi, the
management adopt flexible and diverse culture in which workers from different regions, skills,
education and technological experience are come together and help in generating new ideas or
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thoughts. This will help in making new innovation in respective company it form of providing
idea of home delivery service by drone technology to consumer.
Leadership- It indicates to the activity of leading and directing people of company to
execute a specific task and work. In Aldi, the leadership of the firm affect the profit and
productivity in the marketplace. In context of it, leader of the respective company assists in
empowering employees and their followers by making innovation with the help of innovative
ideas that encourage them to work with high possibility in accomplishing the task with out facing
any issue (Stojcic, Hashi and Orlic, 2018). It will assist in gaining profits or revenue and long
term sustainability of a business sector in the market.
Teamwork- It refers to the work which is performed with the aggregation of employees
to attain a common goal of a task and project. In Aldi, to fulfil the need of home delivery, the
company make innovation that is performed by collaboration of skilled and knowledgable
professionals so that they can help in shaping innovation in effective manner. Teamwork
empower employees because due to working team they make development in their skills and
competencies which help in doing their innovative work in effective manner as well help
increasing profit and revenue of the firm.
(d) Explain the 4Ps of innovation in reference to company
Innovation mix of 4Ps that assist the firm in gaining more profit and growth while
minimising the rivalry in market. The description of them in context of Aldi is defined as under:
Person- It is affiliated with a person who is a businessperson or an employee. In it, an
individual utilise their competencies, skills and empowerment to produce commodity. In
reference to it, Aldi appoint new talent in the firm who make their contribution in making
innovation of home delivery service by Drone technology.
Precess- It mention to an activity and strategy that complete with the finalisation of the
project. With it, the manager of Aldi frame a plan to make improvement in its distribution
process so that the products can be each to customer on time or in actual form. It also assist in
execution of workforce by effervesce process and planning so that they can make their proper
contribution in innovation of respective firm.
Product- It refer to the changes and innovation in a product and service offering. In Aldi,
it states to alteration and innovation in the technology that is used by the company in its product
delivery service (Szutowski, 2019). Drone technology will help the company in retaining its
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consumer by offering them home delivery service so that they can fulfil their need of online
shopping.
Press- It mention to an activity that represents an environment in which people lives and
operate their functions. Aldi make innovation in its delivery service with the help of using Drone
technology so that they can provide home delivery service to its potential clients in appropriate
manner.
Innovation Funnel- It indicates to a mechanism that enables a thought form conception to
reality by converging to a particular product and service that is able to fulfil market demand
(Thakur and et. al., 2018). The stages of innovation funnel are define as below:
Investigation- It consider as an intrinsic phase in which Aldi gathers information that
needed to make modifications and improve distribution of products as per need of customers.
Market investigation- It is next phase, in which project is segregate in to different
segments of market. In Aldi, in this step, the company can sort and frame plans so that
organisation can change and develop their delivery service.
Delivering product- It is the last phase, in which the administrator of Aldi make
determination towards delivering of products. With the assistance of segmenting the market they
will offer and delivers good by using Drone technology to that customer who prefer online
shopping.
(e) Appraise the value of innovation funnel and frugal innovation
Frugal innovation
It indicates to an efficient method which is very beneficial for each company to
determining complexities and cost of production. It is important to manufacture a product at a
very low cost that can maximise the profit that support the workforce to develop the productivity
of the company in efficacious manner. In context of Aldi, they are needed to implement frugal
innovation funnel to minimise the issues and reduce extra cost that was invested by the
organisation in making innovation regarding delivery and distribution process of company. In
respective firm the company will use Drone technology regarding home delivery (Altaf, e
Hassan and Batool, 2019). It will help in improving the profitability and productivity of the
company. Because now these customer prefer online shopping, due to lack of time, from that
firms which offer home delivery services. It can help in creating positive impact on economic
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condition of the company because when company offer this service then it will retain large
customer base which help in developing productivity.
Finds opportunities in adversity- In this phase, Aldi can identify growth options in
marketplace to retain customer and maximise profit by innovating distribution services in form
of implementing new technologies as per consumers needs (Huang, Farrukh and Shi, 2018).
Use less perform more- In this step, Aldi thinks flexible manner to satisfy consumer
demand. In it, the management will perform their functions as per the society and customers
needs.
Think and act flexible- This phase mentions the flexible nature of workforce and in Aldi,
the administrator understand needs of society and consumers so the person work for fulfilling
their need by manufacturing product and service.
Use clear and simple method- In it, administrator of Aldi utilise those methods that are
effective to make innovation in context to fulfil customers requirements.
Includes margins for change- In this, the manager leave some margins so that in future
when requirement of change occurred then it can be perform by them as per consumers
expectations (MIRGHAFOORI, MOROVATI and ZAHEDI, 2018).
Follow your heart- It is the final phase, in it Aldi, taking the feedback of customer
regarding the innovation, which is made by it to fulfil customers need, that is able to provide
satisfaction or not.
CONCLUSION
This has been concluded from the above information that innovation and
commercialisation is essential for the growth and development of a company. By making
innovation in business in form of product and service, the organisation can sustain till long term
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duration in a particular business sector. By using different concept like innovation mix,
innovation funnel and frugal innovation, the management of the firm can get information about
the importance of innovation. Apart from it, the management of the company can also conduct
market analysis which helps in find out consumers and market needs. So that the administration
can make creation and innovation by considering their need or manufacture innovative products
that are able to fulfil their requirement. At the time of making any kind of innovation the form
also need to use intellectual property right so that innovation cannot be copied by others.
Innovation and creation are crucial for improving brand images, developing productivity and
increasing profit margins of the firm.
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REFERENCES
Books & Journals
Altaf, A., e Hassan, I. and Batool, S., 2019. The role of ORIC in the evolution of the triple helix
culture of innovation: The case of Pakistan. Technology in Society. 56. pp.157-166.
Huang, Z., Farrukh, C. and Shi, Y., 2018. Commercialisation journey in business ecosystem:
From academy to market. In Entrepreneurial, Innovative and Sustainable
Ecosystems (pp. 129-148). Springer, Cham.
MIRGHAFOORI, S.H., MOROVATI, S.A. and ZAHEDI, A.E., 2018. Designing an Integrated
Model for Developing the Innovation and Commercialization Level of Iran's
Knowledge-based Companies.
Özilgen, M., 2019. Role of innovation in commercialisation of bioenergy research. International
Journal of Research, Innovation and Commercialisation. 2(2). pp.77-90.
Schot, J. and Steinmueller, W.E., 2018. Three frames for innovation policy: R&D, systems of
innovation and transformative change. Research Policy. 47(9). pp.1554-1567.
Shaw, E. and Hess, C., 2018. Closing the gender gap in patenting, innovation, and
commercialization: Programs promoting equity and inclusion.
Stojcic, N., Hashi, I. and Orlic, E., 2018. Creativity, innovation effectiveness and productive
efficiency in the UK. European Journal of Innovation Management.
Szutowski, D., 2019. Innovation source, advancement stage and company stock returns. The
Service Industries Journal. 39(13-14). pp.925-942.
Thakur, P.C. And et. al., 2018. Innovation and Commercialization Strategies for Three-
Dimensional-Bioprinting Technology: a Lean Business Model Perspective. Journal of
Commercial Biotechnology. 24(1).
Online
SOURCES OF INNOVATION. 2020. [Online]. Available Through:
<https://notesmatic.com/2016/09/sources-of-innovation/>.
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