(pdf) Innovation and Commercialisation: Samsung

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Innovation and invention ..................................................................................................1
P2 Organizational vision, leadership, teamwork and culture shape commercialization and
innovation...............................................................................................................................2
M1...........................................................................................................................................3
LO 2.................................................................................................................................................3
P3 4 Ps of innovation and innovation funnel .........................................................................3
P4 Developments in frugal innovation...................................................................................6
M2...........................................................................................................................................7
M3...........................................................................................................................................7
LO 3.................................................................................................................................................7
P5 Importance of commercial funnel and application of NPD for innovation and
commercialisation...................................................................................................................7
P6 Building innovation business case for Samsung...............................................................9
M4.........................................................................................................................................10
D1.........................................................................................................................................10
LO 4...............................................................................................................................................10
P7 Tools to develop, protect and retain knowledge and intellectual property.....................10
M5.........................................................................................................................................11
D2.........................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation and commercialization is very taught by distinguished practising innovators.
Innovation concept is based on developing products in different way which is better than others
that drives business in new ways. By innovating new things or services organization develop
business more that will be commercially drives them towards increase profit and good return of
investments. The present report is based on Samsung multinational conglomerate organization,
that comprises various affiliated businesses mostly in Korea, Samsung is Korean based
company(Brunswicker and Van de Vrande, 2014). In this study explain about difference between
innovation and invention and determine importance of innovation as compare to invention.
Moreover, it also clarifies how organizational vision, culture, leadership and teamwork develop
commercialisation and innovation. This report justify 4Ps of creation and apply innovation
funnel in the organization. Furthermore, this study measure role of frugal innovation in
development of services and products of company.
LO 1
P1 Innovation and invention
Innovation concept is based on translating an invention or idea into existing services and
products that creates value and for which clients will pay (Qian and Haynes, 2014). It was not
just delineated by implementing and introducing new methods and ideas, it defined as a
procedure that includes many activities and functions to uncover new ways to do somethings
different. For example, Samsung make innovation in their products that attract customers
towards their business.
Invention Innovation
 Invention defined as creation of
products or introduce something for
first time.
 Invention creates new products.
 Invention take longer time period.
 It creates product completely in new
ways that build organization image in
business world.
 On the other hand, innovation occurs
when Samsung improves or make a
some contribution to an existing,
process, services or products.
 Innovation creates goods and services
of organization that sells.
 Innovation is not much difficult in term
of invention.

 It requires technical skills to bring new
thoughts and idea (Mollick and Robb,
2016).
 It is born form idea the discoverer gets
or image to produce goods.
 Innovation is worked in existing goods
which make it attractive that garb the
attention of customers.
 It needed marketing skills as well as
technical to improvise somethings.
Importance of innovation in comparison to invention-
Samsung is a South Korean multinational conglomerate in Seoul, which is founded in
1938 by Lee Byung-chul. Organization wants to offer their best services and goods to customers
that make them conformable and proper satisfaction. They consistently make innovation in their
facilities that build their reputation higher than others in marketplace. Innovation is much
important as compare to invention because it helps to produce existing products in different and
unique ways that attract customers towards Samsung. By applying this program in business
company create dynamic products adjusting in existing goods or service. Implement new ideas
and thoughts firm create things in term of success that impact on profitability and productivity.
Invention just create things but innovation Change goods in dynamic and unique ways that drives
consumers towards their business.
Innovation is very essential as compare to invention, because invention concept is based
on manufacture new products or services and innovation means adding new things or feature
within existing goods which has been offered by organization to satisfy their customers the most.
P2 Organizational vision, leadership, teamwork and culture shape commercialization and
innovation
Samsung is one of the leading multinational conglomerate organization in Seoul in which
they are producing its products more special through high quality services, home products. They
offer their better service for customers and avail all the things in its stores. Organization is build
on core values of value, trust and innovation that raise their position in business world better than
others. Company vision is to be standard against others by supply their best services, thus for that
they give their all efforts in producing products in attractive way (Fraj, Matute and Melero,
2015). They make innovative product that grab the attention of potential customers as well as
others which is beneficial for business growth and success. By creating new ideas and thoughts

Samsung production department do some innovation in existing goods that make it better or
different in term of success.
Innovation increase market share of Samsung and then helps to increase its profit margin
more and more rather than before. Democratic leadership is one of the best leadership that has
been chosen for Samsung company based on the concept of innovation in business.
Leadership also help in developing innovation and commercialization in business.
Organization leader motivate workers towards achieving their goals and objectives that is very
important for firm growth. They have all the skills that is essential for this process, by motivating
and supporting they develop employees moral. Leaders also have creative and innovative
visionaries who also have big ideas that is very important for motivating others in workplace. By
having skills and knowledge they will encourage staff and drives their thoughts towards
innovation in existing products (Slater, Mohr and Sengupta, 2014). It will develop business more
and more than others and raise profit margin. Leadership is technique or philosophy that
combines in various leadership styles to impact workers to produce creative products, ideas and
services that drives business towards success and growth.
Samsung need to create good culture at workplace that employees comfortable in
organization. Leaders and managers help firm to make positive environment or culture that adopt
others or new peoples easily. Leaders of firm create innovative culture that work effectively, by
having this culture in organization leader cultivate in order to nurture unorthodox thinking.
Group or team of company adopt this culture in their work performance and try to make some
innovation. It will also develop commercialization because creation directly influence on
business financial budgets and profit margin.
Leader and manager both increase the level of employees interest that helps them during
innovation in existing products. Effective team is build on the bases of good skills and
knowledge of work. Strong team work perfectly and develop attractive products that increase
profitability and productivity. Samsung team acts according to organizational objectives and
goals by providing new thoughts and ideas and best services to consumers that able to gain its
other common goals easily in efficient manner. Team work help to develop the whole process of
company such as innovation and commercialization. It will increase the standard level of
business that raise its position in market place better than others. Team work of company fosters
innovation and creativity, blends organization towards complementary strengths. Effective team

performance in better and consistently focus on creating products or services that grab the
attention of others.
Samsung businesses objective is to serve its best services across all over the world, their
mission is to manufacture the better products to gain consumer trust and company vision is to
innovate consistently based on identify customers needs and requirement in products.
M1
Market structure and industry change need innovation, government regulations get
changed according to the needs in which Samsung also make some changes in their business.
Market structure is modified on the bases of government rules that change the whole function
and activities. Thus, for that organization need to develop innovative culture and environment in
work areas where they guide leaders who to motivate and support employees. Motivation drives
workers towards doing some innovation that create healthy environmental culture.
LO 2
P3 4 Ps of innovation and innovation funnel
4 P's model is one of the best tool that enables organization to discover what innovation
procedures will improve and bring to their business (Soltis and Soltis, 2016). This process is
based on product, position, paradigm and process that helps Samsung to understand their
position in marketplace and how they will improve their product, position etc. by innovate in
business. This tool support company to explore possible enhancements in every and each areas
of its business.
 Paradigm: It reflects the ways how do organization frame strategies and what they do for
it. Samsung using innovation technique to improve the ways which they do business,
through this process they will increase probability and productivity. They rapidly make
changes in products or services to attract people towards them, but all these changes are
not always positive that directly impact on profit margin. For example, organization need
to make effective plans and strategies or innovate somethings in business that leverage its
profit more than others. These changes are based on customers demands and requirement
for beating competitive.

 Product: Samsung offer various types of products to consumers such as home
appliances, range of mobile phones like Galaxy A9 Pro, M20 etc. that build their
reputation in marketplace. Thus, to improve their position organization need to make
some innovation in their existing product and services. By implement new techniques or
methods of innovations they will produce appealing and better goods than other available
product. They need to offer their best services to customers within provide radical and
completely different product.
 Process: Process includes all the preparation steps, supplying, hiring employees, work
flow and training. Samsung make innovation in their existent products that create
different and unique goods which is very beneficial for business. To make changes in
their business production they have to think about all the basic steps that is necessary of
organization. They offer best services by creating effective workforce that are based on
hiring skills employees. Good and effective workers or team enhanced business to
increase profit more than others. Deliver quality product also impact on probability that
maximize firm financial budgets.
 Position: Thus, after making innovation in existing goods and services Samsung raise
their position in market better than another. But on the other hand position refers to where
firm target the offering. To build up the level company have to set their target market and
work according to it. Company opened up new market segments targeting individuals
based on gender and age. They need to make some plans or do marketing for their
products that easily communicate them with consumers. Marketing is one of the best way
Illustration 1: 4 P's Innovation model
(Source: 4 P's of Innovation, 2017)

that helps customers to see firm services or products. By hiring new candidates or
employee's in business Samsung make things better in way that increase profit margin.
Innovation funnel-
Aim of any process or products development tasks is to take an idea form construct to
reality by convergence to specific goods that meet a market requirement in manufacturer and
economical form (van den Ende, Frederiksen and Prencipe, 2015). The whole development or
innovation process bring up with broad range of inputs and selects and gradually refines form
among them. In other words innovation funnel is based on overall procedure of development that
directly impact on business growth. It provides a graphic structure for thinking regarding
screening and generation of alternative improvement options and combining a set of these into
goods concept. For example, Samsung aim is to become leading organization in technology
market by supplying good quality products and services. They produce range of Galaxy mobile's
in which company include different features that drives customers towards them. But now they
want to make some innovation in their goods that build its standards level more and more.
Thus, to make changes in existing products Samsung need to create effective plans or
strategies and implement in their business that helps to gain positive results. To become leading
brand in the world organization has to modify some features in their Galaxy ranges and offers
completely different products. Firstly firm need to set target markets that helps during make
changes or innovation in existing products. Thus, after setting this organization understand their
needs and demands and production department do creativity and include additional features in
Galaxy mobile range. After that process marketing department make some effective plans and
Illustration 2: Innovation funnel
(Source: Innovation Funnel, 2018)

strategies for promoting new products in market that attract people towards them. The whole
process need effective workforce who help in the whole process and make business stronger than
others in marketplace. Organization must expand its knowledge access and base to information
in order to maximize amount of new products and new process ideas. By generating their ideas
company need more resources for that procedure that is one of the best opportunity to expand
business. Thus, all their efforts drives them towards success and growth, Samsung achieve their
goals and objectives in better ways that increase their profit margin.
P4 Developments in frugal innovation
Frugal innovation process is based on reducing complexity and cost of products and its
production. Basically it refers to removing unessential features from a lasting product such as
phone or car, in order to trade it in developing countries. For example, Samsung electronics is
successfully taking benefit of Frugal innovation in emerging markets. Organization is the top
smartphone seller in there first quarter of the year with a 26 percent of market share by
appointing frugal innovation process in business. Their low budgets phone strategy gain
popularity more than another. They offer their best smartphone ranges in all segments effectively
that suit every customers. By reduce unessential things Samsung J series keep the top position in
marketplace that continues to witness healthy requirement form Indian and other customers.
Company understand their clients demand and bring out some necessary innovation that help
enhance customers more over than now. Organization said J7 came to town through Samsung's
frugal innovation but include the phone also evolve. Company are equipped with some features
accessible only in Samsung's flagship phones such as mobile payment system and camera as well
as premium design. This smartphone is powered by non removable crafted ad batteries with
metal uni body that create it stylish.
For example, Mobile banking is one of the best frugal innovation that serve services to
customers provided by financial institution and banks that permit clients to conduct financial
transactions easily via mobile phone.
M2
Samsung apply innovation funnel in their business that helps them to generate new ideas
and select one of the best among it that increase their profit margin. This process take longer
time but give positive results which is very beneficial for company. Set target market and

segment products according to it is one of the best idea that helps to produce new products or
make innovation in it.
M3
Frugal innovation reduce unessential features in products and make it better in ways that
attract customers. Samsung follow frugal innovation in their business and produce low costs'
product that increase their popularity in marketplace higher than competitors.
LO 3
P5 Importance of commercial funnel and application of NPD for innovation and
commercialisation
Commercial funnel refers to purchasing process that organizations lead consumers
through when buying products. It divided into various steps which differ depending on specific
sales model. This model visualize consumers journey form initial awareness all the ways through
conversion. It provides effective frame work to Samsung in which they analyze their business
position and identify improvement areas that is required for gain goals and objectives. Having
sales funnel organization operate their business effectively without any difficulty. They bring
potential consumer as well as other people towards their services and products that increase
probability and productivity.

Sales funnel pyramids are bad when taking about schemes, but upper down ones are great
when taking about generating business. Samsung make innovation in their existing products that
is very beneficial for them. They implement new techniques and create new plans that develop
new goods, but this process is much difficult in which organization need to aware its customers.
By adopting sales funnel company find out the best ways that developed their business more than
now. After awareness some of their customers show their interest in organization products and in
some of the clients buy goods and give profit to business. The most important part of this funnel
is that they help firm to retain their potential customers with them for longer time period, attract
other people towards them that increase their profit margin.
New product development process-
NPD is a procedure of taking services and products form conception to market, this
process is based on series of levels that new goods typically go through, beginning with
generation and concept of ideation and over out with the products that introduce into
marketplace. New product development process is based on 8 stages that directly impact on
commercialization of innovation.
Illustration 3: Commercial funnel
(Source: Sale funnel importance, 2017)

Stage, 1 Generating- Samsung generate new ideas for developing their business more
than others. They conduct market research for that and find out customers wants and needs that
help them during producing products or innovating in existing goods. They get suggestions form
their employees and customers that support in making decision.
Stage 2 Screening- Thus, after generating ideas organization idea committee studies their
ideas carefully, they think about all the changes and areas where it required (Hang Do and et.al.,
2014). Before rejecting and selecting any of their ideas committee thinks one some points which
is very important earlier make changes or creation. After screening ideas authority select the best
concept and test it under many processes that give full information about new products.
Stage 3, Business analytics- Next step is business analysis that is very essential in
developing new product. In this stage Samsung identify whether this innovation is commercially
profitability or not. They find out the cost of goods and reasons for demand for new things in
marketplace.
Stage 4, Product development- Thus, after getting all the knowledge organization
develop product and decide to innovate in existing goods that increase business probability and
productivity. They take all the essential steps to distribute and produce new product, they make
effective plans for it that provide benefits for their business.
Stage 5, Marketability tests- Most of the companies launch their products in
marketplace where they identify its effectiveness and determine customers experience after using
it.
Stage 6, Testing concept- Samsung manager test concept of new products' production
and get the ideas into detailed concept.
Stage 7, Commercialize- At this level Samsung new products' development have gone
mainstream, clients purchase goods the most.
Stage 8, Post launch review and perfect pricing- Thus, after all these efforts Samsung
introduce their new products on small scale in very small market. If it is successful introduced in
this market, then they take it on large scale where they generate more profits. Later on achieve
success in test marketing organization introduces it on large level and expand it into international
marketplace. In the last stage company review marketing performance that raise their profit
levels higher than another.

P6 Building innovation business case for Samsung
Within innovation making business case is the toughest aspects that need more
information about organization business activities and functions (Yun, Won and Park, 2016).
IBC of Samsung is based on six elements which purpose is to substantiate business like
convincing manner in which organization get reason for innovating products that meet with set
criteria. In first stage, company generate their new ideas and make some innovations or creation
in their existing products that increase profit more than others. Thus, for this organization
conduct market research and identify customers need, situations and friction that is very
important for them. Company set target market and group of customers on the base of their age
and genders. They are using marketing mix process which help to get the best results. After that
production section create innovation and produce new products which is quite different and
unique for the another. Making unique concepts firm achieve competitive advantages. It includes
some funding ways that help company in the whole process.
Samsung need resources in implementing new concepts in business, thus for that they
include some investors and shareholder in the same that helps them through investing money.
This will make them capable to develop new things in business and make them stronger to beat
competitive in marketplace. By taking loans from the banks they are able to produce new
products and develop organization productivity more and more.
Samsung company launch folding phone in marketplace in which they need money to
accomplish this task successful. With the help of taking bank loan organization get fund and
invest in the process of manufacturing products and marketing activities.
Folding phone is caring a lot of features in their structure that is quite different from
another phones. Folding phone screen size is 4.60 inches and rear camera have 16 megapixel
power that capture clear picture.
M4
Innovation business case includes techniques and methods to measure their overall
effectiveness in business. Organization conduct market research and then implement new ideas
or concept that generate its profit more than another. Making some innovation or creation in
products they improve their position and reputation in marketplace. Innovation process is based
on identify customers needs and demands which is very important for business growth and
success.

D1
Innovation is developed in Samsung when it is required in developing business more than
others. Organization generates new ideas and thought for making some innovations in their
existing products and services. This process impact on business growth and success and drives it
towards positive ways. Company consistently make some changes in their goods that retain
customers with them for longer time. Innovation is required when firm need to beat competitive
business environment that raise their position in marketplace.
LO 4
P7 Tools to develop, protect and retain knowledge and intellectual property
Intellectual property includes intangible creations of human intellect, it based on two
types of rights; first is, copyright and second, is industrial property rights like trademarks,
designations of origin, patents and industrial designs (Griffith, Miller and O'Connell, 2014).
Patents is a form of rights governed by the government to Samsung and their inventor in title, it
gives the owner all rights to exclude others from using, making, selling and importing ans
invention for small period in exchange for public disclosure of innovation. Organization resolve
their problems by innovate existing products in unique ways that build business stronger than
another. Copy rights provide organization exclusive rights to work that usually are based on
limited time. It does not cover information and ideas themselves only manner or form in which
they are expressed. Trademarks is one of the most important tools that helps customers to
recognized brands products in market. Samsung recognizes by clients through their different
design of product or sign which distinguishes goods or services of particular dealer from similar
services and products of other traders. Firm has to make unique trademarks for their goods that
make their image in business world. Trade secret is a practice, formula, design, instrument and
compilation of details which is generally known as reasonable ascertainable by which
organization obtain economic benefits over customers and competitors. It helps to develop or
retain intellectual property for longer time period and also to increase business probability and
productivity.
M5
Wider business environment for example Samsung implement all the tools of intellectual
property that make their image in market better than others. Organization creating new trade

marks that helps its customers for recognized their brands products. They follow patents rules
which give them all the rights of doing business according to legal process. All these efforts raise
their position in marketplace that will also increase their profitability and productivity in better
way.
D2
Innovation are characterized by established categories such as process, product,
marketing and organizational innovation. Nature of creation is based on creating existing
products in new ways that increase business profitability and productivity. Samsung generate
new ideas and concept of make some changes in Galaxy range that helps them to overcome
within competitive business environment successfully.
CONCLUSION
This presentation discussed about commercialization and innovation and their
importance in business. Leadership, teamwork, organizational vision helps to shape innovation
and commercialization effectively. This report presents 4 P's of innovation and innovation funnel
that support company for generating new ideas. It also discusses about different types of
intellectual property tools that helps to gain positive out comes. Furthermore, various funding
ways improve business position and reputation in marketplace.

REFERENCES
Books and Journals
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competitiveness in the hotel industry: The role of learning and innovation as
determinants of environmental success. Tourism Management. 46. pp.30-42.
Griffith, R., Miller, H. and O'Connell, M., 2014. Ownership of intellectual property and
corporate taxation. Journal of Public Economics. 112. pp.12-23.
Hang Do, T. and et.al., 2014. Predicting anticipated rent from innovation commercialisation in
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Mazzetto, F. and et.al., 2016. Olfactory attraction of Drosophila suzukii by symbiotic acetic acid
bacteria. Journal of pest science. 89(3). pp.783-792.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review. 58(2). pp.72-87.
Qian, H. and Haynes, K.E., 2014. Beyond innovation: the Small Business Innovation Research
program as entrepreneurship policy. The Journal of Technology Transfer. 39(4).
pp.524-543.
Slater, S.F., Mohr, J.J. and Sengupta, S., 2014. Radical product innovation capability: Literature
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Management. 31(3). pp.552-566.
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van den Ende, J., Frederiksen, L. and Prencipe, A., 2015. The front end of innovation:
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Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining criteria. Journal
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Yun, J., Won, D. and Park, K., 2016. Dynamics from open innovation to evolutionary
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