Understanding Innovation and Its Impact

This assignment delves into the multifaceted concept of innovation. It examines various types of innovation, including product, process, and business model innovations, highlighting their significance in driving growth and competitiveness. The assignment also explores practical examples of innovation across diverse industries and analyzes the benefits it brings to organizations and society as a whole.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1. Innovation and its significance in comparison with invention ........................................3
P2. Shape of commercialisation and innovation through different factors............................4
TASK 3............................................................................................................................................6
P3 Explain the 4P's of innovation and innovation funnel .....................................................6
P4 What is frugal innovation .................................................................................................8
TASK 3............................................................................................................................................9
P5 Commercial funnel and New Product Development (NPD) processing...........................9
P6 Innovation Business Case and ways to access funding...................................................11
TASK 4..........................................................................................................................................12
P7 What is intellectual property ..........................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
“Innovation is all about putting a new idea or approach into action”. It is generally
defined as commercially successful exploitation of ideas. Innovation is an invention or idea
which creates value into products and services for which customers pay a specific amount. At the
time of innovation managers need to ensure that their products are able to satisfy the needs and
wants of customers. Innovation encompasses deliberate application of imagination, initiative and
information in order to deliver divergent values from resources (Crumpton, 2012). PERISCOPIX
is the chosen organisation in this present report which is a marketing agency specialized in data
based marketing solutions. Its annual turnover is $585 million. The present assignment involves
significance of innovation in the business organisation which is related with mission, vision and
culture of firm. There will also be discussion on 4P's of innovation that are used in innovation
funnel. At last, the report will explain various tools and techniques which can be used in order to
develop, protect and retain the intellectual property of company.
TASK 1
P1. Innovation and its significance in comparison with invention
The word innovation is used inconsistently in business literature. It can also be defined as
the successful implementation of new concepts and knowledge into new processes, products and
services which deliver customer value in the market place. Along with this, organisational
innovation refers to changes in business practices in order to achieve goals and objectives of
company. Business organisation needs to implement strategies and policies that encourage
innovation. It starts with top management for developing policies and empowering staff to
regulate the plan (De Massis, Frattini and Lichtenthaler, 2013). For example- APPLE, the
multinational technology company uses 70-20-10 rule. It spends 70% of their resources and time
on their business, 20% on related thoughts and ideas as well as 10% on unrelated new business.
So, as PERISCOPIX apllying the same strategy in order to gain highest market share over the
world.
Invention is a unique method which is totally different from innovation. The invention
process involves re-engineering and the new product development process. It can be a
transformation upon a product or machinery for creating an objective or a result. Some
inventions can be patented which legally protects the rights of intellectual property of company

or the inverter. An may be inventions lead to an innovation because not all of there are
economically feasible.
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Different between innovation and invention
INNOVATION INVENTION
It can be occurred when someone improvise
and gives a significant contribution for an
existing product or service.
It relates with the creation or development of a
new product or introduction of processes for
the very first time.
It requires scientific skills, knowledge and
techniques.
It is a set of marketing, technical and strategic
skills and competencies as well.
Innovation occurs when a new idea is
developed by a person and it is concerned with
a single product or process.
Innovation occurs when a need is felt for a
product or improvement in existing offerings.
It can be concerned with the combination of
different products and services.
Importance of innovation: -
 Innovation is an essential part of every business organisation. It has a role in the
development and coordination of the market is inalienable. Along with this, innovation is
applicable for all areas and departments of the company in order to develop a new
product and find out the ways of doing works or tasks and methods of management etc
(Keupp and et. al., 2012).
 The core process of innovation begins with the introduction plan of an idea and in future,
it will become a function for company so that it is different from creativity. Innovation
has too indispensable role in the growth, survival and success of firm.
 Innovation is helpful for a business organisation in creating competitive advantage. In
this dynamic world, it is necessary for the managers to develop their existing methods
and techniques of production. In PERSCOPIX, innovation is beneficial in order to
demonstrate a true competitive advantage.
P2. Shape of commercialisation and innovation through different factors
Innovation and commercialisation both are responsible for the growth and success of
firm. The process of innovation is considered with up gradation of existing products but
commercialisation is helpful in selling those products. In PERISCOPIX, there are many changes
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which take place in its operations and practices. Along with this, it is also helpful in
accomplishing the goals and objectives of company from competitive market. Below mentioned
some factors contribute in innovation and commercialisation which are stated as follows: -
(Source: Factors are considered in innovation process, 2017)
 Vision – Managers need to have a clear vision and mission of their company. It helps
them to achieve goals and objectives in an effective manner. If the firm has pre-
determined vision and mission as their managers can easily manage their working
activities accordingly. With reference to this, owners also influence their staff members
to produce high quality products and services. For example – main vision of
PERISCOPIX is to become the largest data based company in UK market. So, it has to
develop its products and techniques with an aim of gaining large market share.
 Leadership – It is related with controlling, directing, encouraging, motivating and
managing people in the business organisation in order to achieve aim and objectives.
Along with this, innovation and commercialisation both requires a determined leader who
is able to maintain the activities and tasks of employees (Drucker, 2014). Leadership is
helpful in guiding employees by providing them various tools to improve their
performance and participation. A good leader is liable to persuade employees to
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Illustration 1: Why innovation is helpful

recognise and accept the future position of company as they can perform their duties in
an efficient manner. Leaders of Apple and Virgin Group are capable to examine the
performance management and alignment of performance as well. It will help companies
to improve the quality of product. So, PERISCOPIX also has to do the same in order to
achieve goals and objectives of company.
 Teamwork – It is an important aspect for every business organisation for completing
tasks and projects. In a single team, there is a team leader who is capable to guide all
members to reach at company's expectations. In large organisations, a single person is not
able to take responsibilities. So, managers align team leader who can guide other
employees or manage work in their department. Team members give new and innovative
thoughts or ideas. Innovation and commercialisation; both are based upon the teamwork.
Apple and Virgin Group have the best team leaders and this is the reason that both are
leading companies across the world.
 Culture – Culture also put a huge impact on innovation and commercialisation. It is
related with attitude, religion, morale, values, norms and beliefs of people in the business
organisation with that it is operated. PERISCOPIX is the data based company as it needs
to develop new strategies and policies regularly. This will help in it to compete with
diversities; organisational culture might be effected firm's repurtation and its goodwill as
well in the competitive market.
TASK 3
P3 Explain the 4P's of innovation and innovation funnel
4P's of innovation are stated as below: -
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(Source: 4Ps of innovation, 2017) Product – The innovation process starts with product innovation. A company needs to
modify its product which is already operated by it. The process of development starts
with a broad range of inputs and gradually refines or select from among them. The
product of the company should be able to attract more customers and achieve target
market of Process – Innovation mix is also focuses on the process by which products and services
are delivered. It justifies the every company uses a process for innovating its products
and it is chosen after ascertainment of other processes. There are many issues which are
come between the process innovation so as managers needs to improve the process of
product innovation, it should be cheaper, quicker and more efficient. It is able to
increased profitability of the company (Keupp and et. al., 2012). Position – The third P of innovation includes re-positioning the perception of an
established process or product in a particular context. In PERISCOPIX position based
innovation consists to changes in how specific product or process is perceived
symbolically and how they can be used. Along with this, innovation positioning is the
process of placing the idea into the mind of all stakeholders so as approval for it can be
obtained.
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Illustration 2 : Innovation mix

 Paradigm – It is consist with the creation of new idea of dealing products of the
company. For example – if PERISCOPIX is operating through retail stores and then its
switches to an online store. Apple and Virgin groups are dealing with online stores as
well as retail stores over the world. So as if cited company adopt the idea as it can easily
access to large number to customers.
Innovation funnel is used in order to represent the steps which will take place at the time
of developing a product or process. Along with this, the purpose of innovation is to generate
products which are capable to meet market needs and demands in an economic or
manufacturable form. At the first stage of innovation funnel organisation extend its knowledge
and information; its main goal is to gather as many ideas as possible (Perks and Roberts, 2013).
Apple and Virgin group has various ideas and view points by which they are created numerous
products and services for their customers. The second step of the funnel is consists with the
narrowing segment. It involves matching the ideas with the goals and objectives of the company
whether they are related or not. In the last stage of the funnel, the company ensure that the
selected ideas deliver on the company's objectives that were expected when the firm was begun.
P4 What is frugal innovation
“Frugal innovation respond to limitations in resources, they can be- financial,
institutional, material or institutional and using various methods to turn these constraints into an
advantage”.
(Source: What is frugal innovation, 2017)
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Illustration 3 : Frugal innovation

Frugal innovation is the process of decreasing the complications and cost of goods from
production. It is mostly originated in the context of appearing markets. The core concept of
frugal innovation is to develop new products and services which are capable to fit in these
markets. In addition, the frugal innovation find out new and innovative business models,
redesign products and reconfigure value chain in order to serve products to customers. Along
with this, frugal innovation includes either tapping or overcoming from resource constraints for
creating more inclusive markets. It can be also provides specific solution at the time of new
product development.
The core concept of frugal innovation is related with lower cost of products and services
by minimising the use of resources which are used in development and production process.
Modification is illustrate in frugal innovation; it means managers needs to do study before
entering into new market and assess what is required in this market as per the demand and
prediction (Candelin-Palmqvist, Sandberg and Mylly, 2012). Apple and Virgin group both are
deals in various nations and they are simultaneously develop their products in order to get
customers from target market. For example – in US Apple is launched featured phones as people
are more health conscious, likewise prices also impact on customers' perception; Virgin group
might be provided mobiles at various prices in different countries that implies frugal innovation.
TASK 3
P5 Commercial funnel and New Product Development (NPD) processing
The core concept of commercial frugal is used for making appropriate decisions for sales
of the products and services. In other words, it refers to chose the best channel in order to
distribute products and services at marketplace. Commercial frugal also involves to make
product available at the right time and at the right place etc. The main aim of commercial frugal
is to maximise sales and earning profits of the PERISCOPIX with the help of funnel sale of
product that occurs in a company. Basically commercial funnel is also helpful in reaching
customers in best way so as it provide effective ideas to managers. With this, they can easily
communicate with their potential users and recognise their needs and wants. Identifies the bst
channel for distribution can be adopted by which sales are increased. By conducting market
research managers can easily know the best methods so as they can access to target customers in
least time which bring effectiveness for the company.
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The process of new product development
Below mentioned the stages which are used in the process of new product development, such are
as follow: -
(Source: Process of new product development, 2017)
 Product idea brainstorming – it is the most essential step which is culpable to generate
an idea or innovation for the product. This can be done through to take feedbacks from
employees who deals with customers regularly for product ideas. It relates to understand
the needs and wants of customers (De Massis, Frattini and Lichtenthaler, 2013). Apple
and Virgin group are created online surveys and take reviews from them as how they can
develop ideas for new product development. Evaluation of ideas and thoughts – After that, managers needs to make a list of products
ideas and evaluate them. These ideas are shared by decision makers, i.e. management
team of the company. Managers discuss the pros and cons of each single idea and chose
the best one which is based upon generating revenues for the cited organisation. Market evaluation and analysis- After identifying best idea, market evaluation can be
done. It consists to ask on email, phones or messages that which idea is more valuable.
Whittle the list to just one or two product ideas. Apart from this, marketing analysis
referred to determine the competition which is exists for similar products. This is
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Illustration 4: New product development

pertained with market demand of the product, estimate all costs affiliated with the
product, like development cost or operational cost. Prototype and marketing – This stage involves the prototype of the market and then
share it with a handful of key partners and good customers. Ask them to try it or give
feedback. It will help to understand the reaction of customers or their comments after
using the product. Marketing testing - In this step, adjustments are made to the prototype; or create more
prototypes for market testing (Agnete Alsos, Ljunggren and Hytti, 2013). For example-
before launching any product over the world, Apple and Virgin group do a market testing
on small group of person to see the effectiveness of the product among customers.
 Prepare for launch – If market testing is successful the product will go for launch.
Monitor how many products will be produce and go to sell in market is based upon
market testing or the demand of the product among customers.
P6 Innovation Business Case and ways to access funding
Developing a innovation business case is the technique which will help to provide
essential information about stakeholders in the more transparent manner; it is a consistent
process for everyone. Business case is required in order to justify the risk of investing in
innovation, to convenience management to endorse the idea and to ensure logically thinking
through everything. Along with this, business case is useful in creating tools in order to start the
process but the need is to structure the project information on a comparable basis. It is helpful for
recognising the investment requires of the company, such as – design and development, project
management and marketing (Klewitz and Hansen, 2014). Apple and Virgin groups have various
business cases for their products, which are used by them at the time of new product
development. Every year Apple launches or innovates its current products whereas Virgin group
produces products as per the markets and rivals with an aim of increasing market share. So that
PERISCOPIX must do a proper market analysis as it can assess whether the market idea will be
worked or not. Below mentioned some business case activities which are included in the
innovation process of the company: -
Activities Research and
development
Resource Time
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 Creating and
regulating new
ideas
 Commercialisa
tion and
development of
production
It is essential for
PERISCOPIX to do
market research and
develop new ideas in
order to gain profits.
Cited company needs
to acquire resources
that are needed at the
time of resource
allocation in the
innovation process of
the product.
It will take appropriate
time in order to
perform activities and
tasks.
Ways by which company can generate funds, such are stated as follow: - Government – It provides assistance in terms of subsidies and loans Venture capital – It provides early stage funding, but take large share of the company-
often a controlling interest (Thongpapanl, 2012).
 Crowdfunding – They are primarily web-based projects and allows business
organisations as they can access to potential investors thorough various platforms.
Investment in the form of debt, equity or reward based.
TASK 4
P7 What is intellectual property
Intellectual property consists to creations of the mind, i.e. inventions, artistic and literary
work, design symbol, images and names which are used in business organisation. IP is protected
by laws and legislations, such as- patent, trademarks and copyright which forces companies to
earn financial benefit upon what they create or invent. Along with this, intellectual property' aims
to foster a business environment by this, creativity and innovation can be flourished. Brief
justification for this, is as follow: - A company needs to make strict strategies and policies. The government of UK has right
to protect the data of the companies under the Data protect act (Carlborg, Kindström and
Kowalkowski, 2014). Company will not be given any information about its employees
and customers by those people who can misuse them. Trade mark is consist with the symbol or a logo which represents the brand image of the
company. Whereas copy right is an ownership over the books, articles and music lyrics
etc.
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 Patent is used in order to protect a company as no one can be copied its products and
services.
CONCLUSION
Form the above mentioned file, it has been concluded that innovation is method to reach
out customers. It is a result of creating or developing new ideas for the new product and
invention. The document is described significance of innovation is business organisation and
difference among innovation and invention. There are four 4P's of innovation are also stated in
this report. There is verification of commercial funnel, frugal innovation and new product
development process. At last, the assignment consists with innovation business case, various
ways of funding and the rights of intellectual property.
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REFERENCES
Books and journals
Agnete Alsos, G., Ljunggren, E. and Hytti, U., 2013. Gender and innovation: state of the art and
a research agenda. International Journal of gender and Entrepreneurship. 5(3). pp.236-
256.
Candelin-Palmqvist, H., Sandberg, B. and Mylly, U. M., 2012. Intellectual property rights in
innovation management research: a review. Technovation. 32(9). pp.502-512.
Carlborg, P., Kindström, D. and Kowalkowski, C., 2014. The evolution of service innovation
research: a critical review and synthesis. The Service Industries Journal. 34(5). pp.373-
398.
Choi, D. G., and et. al., 2011. Research profiling for ‘standardization and innovation’.
Scientometrics. 88(1). pp.259-278.
Crumpton, M. A., 2012. Innovation and entrepreneurship. The Bottom Line. 25(3). pp.98-101.
De Massis, A., Frattini, F. and Lichtenthaler, U., 2013. Research on technological innovation in
family firms: Present debates and future directions. Family Business Review. 26(1).
pp.10-31.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Keupp, M. M., and et. al., 2012. The strategic management of innovation: A systematic review
and paths for future research. International Journal of Management Reviews. 14(4).
pp.367-390.
Klewitz, J. and Hansen, E. G., 2014. Sustainability-oriented innovation of SMEs: a systematic
review. Journal of Cleaner Production. 65. pp.57-75.
Perks, H. and Roberts, D., 2013. A review of longitudinal research in the product innovation
field, with discussion of utility and conduct of sequence analysis. Journal of Product
Innovation Management. 30(6). pp.1099-1111.
Randhawa, K., Wilden, R. and Hohberger, J., 2016. A bibliometric review of open innovation:
Setting a research agenda. Journal of Product Innovation Management. 33(6). pp.750-
772.
Sawyer, R. K., 2011. Explaining creativity: The science of human innovation. Oxford University
Press.
Stokes, D. E., 2011. Pasteur's quadrant: Basic science and technological innovation. Brookings
Institution Press.
Thongpapanl, N. T., 2012. The changing landscape of technology and innovation management:
An updated ranking of journals in the field. Technovation. 32(5). pp.257-271.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management. 31(4). pp.814-831.
Online
Enterprise and Innovation (GCSE), 2015. [Online]. Available through:
<https://www.tutor2u.net/business/reference/enterprise-and-innovation>. [Accessed on
25th July 2017].

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