Innovation and Commercialisation - Sample Assignmet

INNOVATION AND COMMERCIALISATION DRIVE
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Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................3
LO1 Explain the context for innovation and determine the difference between invention and
innovation........................................................................................................................................3
P1 Explain innovation and determine its importance to organizations in comparison with
invention.......................................................................................................................................3
P2 Explain how organizational vision, leadership, culture, and teamwork can shape innovation
and commercialization.................................................................................................................4
M1 Analyse different sources of innovation, and how organizations can foster and develop an
environment and culture of innovation........................................................................................6
LO2 Explain the different types of innovation................................................................................8
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................8
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organizational context................................................................................................................11
Part 2..............................................................................................................................................12
LO3 Discuss the process required to commercialize innovation...................................................12
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialization of innovation.....................................12
P6 Build an Innovation Business Case for an organization, including ways to access funding 13
LO4 Evaluate the range of methods for protecting ideas and understand their advantages and
disadvantages.................................................................................................................................13
P7 Evaluate the different tools that organizations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................13
M5 Present supported the evidence-based evaluation of these different tools in the context of
the wider business environment.................................................................................................14
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Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16
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Introduction
Innovation is an effective approach to balancing consumers' expectations and preferences with
technical competencies such that they might bridge the holes in information regarding product,
design, advertising, and many other processes. Innovation is an ongoing process. Organizations
often expect improving business expansion. By analyzing the new demand condition, advertisers
change their goods and want to be able to meet the latest marketing requirements. The goods and
services characteristics even upgrade the operation. For all proposals about product
improvement, a business's innovation manager plays a significant part. The innovation manager
is accountable for the commercialization of the new goods in addition to this. Commercialization
means the introduction/launching into the market of new or upgraded goods. Such that
consumers can quickly get and buy the latest offering. The commercialization depends on the
ability of companies like KFC in the plan such that they can grow and secure the development
which secures the marketing's propitiatory advantages along as well. The guidelines would
indeed be given such that KFC could take advantage of competition for new and high-end goods
which will rule the demand for their uniqueness.
Part 1
LO1 Explain the meaning of innovation and establish the contrast between
invention and innovation
Explain innovation in relation to invention and assess its relevance for organisations
Innovation simply means doing things in a new way that never done before. It will help to save
time and resources and give the comparative edge of rising and adapting the business in the
industry by introducing creativity into the company (Ghahramani, 2016). Generally, creativity
refers to modifying procedures or producing processes, goods, and concepts that are more
efficient. In its purest meaning, "invention can be defined for the very first time as that of the
production of a commodity or the implementation of a process. "Innovation," on the other side,
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happens when a current good, process or service is changed or rendered a substantial
contribution by another.
But on the other hand, inventions can be copyrighted as it helps the inventor with protections for
intellectual property rights and therefore marks them as a real innovation. That could be a
modern product development phase or it could be an upgrade to a product or even a new product.
Invention means "required to bring a product or implementation of a method for the first period."
Thomas Edison had been an inventor. Innovation occurs when someone "enhances on or makes a
major contribution" to something that has been invented. As an innovator, Steve Jobs was.
For any company, innovation is crucial, and it is necessary to stand apart from its rivals. When
the business innovates a new product, customers become aware of it, and then at the same
moment, an organization can gain an advantage over its industry rivals and attempt to match its
brand, position, vision by innovating the goods within a month or even a year. A company would
have a larger market share by competition and would be capable of making more profits because
of its new innovation on the product. If more and more consumers are drawn to the brand,
creativity would also pay tribute to the KFC brand image.
Yet Innovation alone doesn't satisfy. Too many, organizations rely on technologies instead of the
issue of the consumer. However, in order to fully turn a brilliant idea into such a world-changing
breakthrough, other considerations should be taken into consideration.
So it should be seen that innovation and invention, since they are two distinct terms, is not quite
the same thing. In the development stage, all of these practices needing considerable capital
expenditure. In comparison, the invention is that when something new or unique is introduced to
the world, whereas innovation is all about discovering an efficient way to use, manufacture, or
sell something.
Importance of Innovation (in comparison to invention)
 The first application of the product or method principle.
 A broad range of marketing, technological and strategic skills are required for innovation.
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 Apple's iPhone is among the most specific evidence of creativity. It has redesigned an
ordinary cell phone and has improved the latest product and technologies to make it far
more convenient and technical innovative for the people that use it.
 Innovation does not involve a new invention or new product, but it may add significant
benefit to the current product.
Factors like customer, PESTEL, competition and globalization force for innovation in the
following ways:
 Customers preference are changing day-by-day, thus in order to provide them better
products than before, innovation is must important for an organization.
 PESTEL relates to the external environment of an organization, they are indirectly effect
the organization and thus the organization need to do innovation as per all those factors
include in the PESTEL to remain competitive in its industry.
 Competition means the rival of the organization. Innovation is much more important in
case of competition as every company try to innovate some more products and make
changes on their existing product to remain competitive in the market and survive in the
market.
 Globalization force is the force from imports and international products on the local
organization. Innovation is very important in case of globalization as people are more
curious for better product with cheap price which they get from foreign industries, thus
local organization need to innovate their products to satisfy those customers.
Illustrate how innovation and commercialization can be influenced by company's
objectives, leadership, community and teamwork
The main obstacle for most companies is executing the strategies, as individuals are still the
biggest challenge with any transition and change (Li et al.2019). Try educating employees to be
more innovative, improving their talents and faith in creative thinking, while focusing on actual
problems and possibilities, such that they educate about innovation when new ideas support the
business.
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The primary aim of innovation is to think of the latest concept. An invention aims to upgrade this
technology and to interpret such new ideas. The primary aim of these innovations and inventions
is the commercialization of products and services.
Commercializing is the mechanism by which both innovation and invention, advertising, and
consumer engagement are aggregated. Different aspects influence the method of innovation and
commercialization for the selling of a product in the industry and there is little distinction in
terms of KFCs in the marketing process.
Organizational culture includes all aspects of an organization’s future values and objectives. The
main aim of KFCs is to offer its customer the highest food service. For this, fresh concepts and
ideas about the present product or new product should be innovative, instead, invent the design
and eventually sell the product on the market. That would be a way to introduce new products to
reach the market. Thus, a company's vision seems to have a significant effect on the process of
innovation and invention.
Leadership is the way a business is structured according to its corporate aims and objectives and
then being a company's performance and established standards and behavior. There are various
aspects of the strategy of leadership, autocratic, democratic and participative, and laisses-faire.
For the company, KFC adopts an autocratic leadership model so the leaders of the company are
efficient and proactive in gaining qualities, so KFC will be effective with this leadership method.
Organizational culture combines the values, attitudes, and norms of the employees. Culture can
be influenced by the ideals and attitudes of nations. The organizational culture selected, however,
could be true for one nation and invalid for the other. Thus, cultural differences have such an
effect on the mechanism of innovation as well as the commercialization of the goods and
services. In order to accomplish its aims and targets, KFC is aggressive and flexible, so that
community could help influence the innovation and commercialization process.
In solving problems and completing a complex mission as per the strategy, the team is a complex
term. In order to innovate and promote the brand, KFC has separate teams to execute multiple
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tasks. If these teams operate by delivering new innovations as well as better services to
consumers in line with company goals, the KFC will quickly and efficiently accomplish its
objectives. Teamwork also tends to develop corporate innovation and business strategy.
Study of various innovation channels as well as how companies should encourage and grow
an innovation culture and climate
Innovation in the modern age has been the company's marketing term. Several new firms have
proven that the path to the top will be innovation. All have shown it, including Amazon, Twitter
or Google. The concepts of innovation as well as improvement are sometimes used
interchangeably by individuals.
The seven innovation streams of Peter F Drucker give us a deliberate way to look for prospects
and also minimize risks. Risks of something that actually existed, or can quickly be introduced
with very little effort, will be the first four indicators of innovation (Lim et al.2017). They
provide us with data that makes them credible indications of great potential for creativity. The
last three invention outlets are not as straight-cut as the first four; they thus face a greater chance
of failure, but greater benefits are expected.
As per Peter F Drucker, there were seven sources of innovation.
a) The Unexpected
b) Incongruities
c) Process Change
d) Industry and Market Structures
e) Demographics
f) Changes in Perception
g) New Knowledge
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● The Unexpected
We become conditioned to rule them out anytime the unforeseen occurs to us. It is a trait
that is experienced. Even so, if we were to examine The Unexpected, we could see an
opportunity to innovate. Both surprising successes and unexpected defeats do not remain
unseen and must not be dismissed as opportunities for improvement.
● Incongruities
Innovation would be created whenever the need is incompatible with availability. It's an
indication that there might be a situation of incongruity and instead of questioning if there
is a different way to perform a certain function, they act in a way that has been the status
quo. People could innovate inside an effort to overcome the current incongruities.
● Process Change
The innovation origin is more task-oriented instead of situation-oriented. After carefully
analyzing the company's procedures and specifically recognizing the weak points and
directions in which they could be strengthened, now arrives at the root of the potential for
innovation (Osoro et al.2017). Understanding what the missing points are, the
departments would be able to develop more successful and creative strategies following a
thorough review of the company's capability.
● Industry and Market Structures
Industry and business systems can remain stagnant for years, but many sectors were
changed almost immediately by the development of technology. A transition in the
business or sector opens up enough opportunities for creativity. Leaders ought to keep a
closer eye on such developments and regard them not as risks, but rather as possibilities.
● Demographics
Companies are influenced by changing demographics in one direction or the other. These
developments have an effect on the markets because they assess the demand for goods,
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the consumers of such goods, and the volumes purchased. The demographic trends in
age, health, employment, influence the path the company operates and, if it tries to
correctly recognize the potential, will open a new knowledge base for the company.
● Changes in Perception
There have been major shifts in the way people behave around the globe over the years.
Over time, perception shifts and also, now, due to the presence of technologies and also
the power of social networks, that transition happens more now than ever. Individuals
will change their view of certain things, brands, or businesses overnight (Rasmussen et al.
2017). Changes in thought open that door for companies to reinvent and build
revolutionary products and services that align with the current point of view of the client.
● New Knowledge
A root of innovation may also be new information. If it is micro-technology,
biotechnology, or perhaps even artificial intelligence, the root of innovation is new
information in any region. However, new insights might be applied in any field of the
market, from knowing more about clients through analytics to managing the supply chain
to finding the right staff.
LO2 Explain the various types of innovation
Illustrate the 4 Ps of innovation and clarify the use of the funnel of innovation to analyse
and form fresh ideas
Innovation manages with the concept of developing innovative concepts and thought by a
company, "fresh product and services." The 4Ps of innovation is the combination of innovation
employed by the organization, created by John Bessant and Joe Tidd. 4P's are as follows:
● Paradigm:
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This is a planned method by which a company is faced with the changes in bringing
creative ideas and dreaming and the method of how the company does all the work by
meeting new obstacles and risks in terms of doing every job.
The change can be drastic, though not all changes have always been good. This involves
improvements to the business strategy, including the change from print to web channels
for the published goods.
● Product:
This is the key item sold to the consumer, if it is capable of contributing value to the
business, this would be useful to the company. The forms to develop the brand are
referred to as 'incremental change'. Secondly, a commodity is entirely distinct from
design. It is regarded as 'radical change' as well.
● Process:
It is the means by which the consumer is supplied with a commodity. This doesn't just
require the product or service's planning procedures (Scott et al.2020). All phases, like
supply, workflow, recruiting, and preparation, are included.
Process is something that can be done in the company to optimize systems because they
are easier, more effective, or cheaper. It would be any new innovations that are added to
the current systems that contribute to higher profitability. That also involves introducing
new systems to apply to or substitute, the present ones.
● Position:
The position is connected to our own interpretation. It is a psychological term, as well as
promotion is only one of the organizational mechanisms that influence this innovation
component.
Innovation Funnel
An organization's goal is to manufacture goods of this nature which can fulfill the demands and
expectations of targeted consumers. They would earn value from their consumers by pleasing
them in return. It is an organization’s benefit. By emphasizing the same method through certain
important processes, the funnel process is formed. The investigation, development as well as
shipping of goods are involved in the full process. In order to produce and transport the
goods/services, a goods manufacturing business should use these three phases. Similarly, to
update their current product ranges, KFCs are also required using these three measures.
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Funnel Innovation (Source: www.ifm.eng.cam.ac.uk)
● Investigation: Before entering an industry with a new product, a company needs to
examine rivals with almost the same goods or multiple varieties in the same market. In
order to consider its key rivals and their offerings on the marketplace, KFC still needs to
perform analysis. The report would include the competitors' current success and their
consumer reaction to the products.
● Development: The company's next move is to manufacture the commodity according to
consumer demand after evaluating the market situation (Stojčić et al.2018). According to
the demand of the targeted market, product specifications as well as design must be
created. KFC will sustain the product development process with the help of a
development strategy as well as an innovation funnel.
● Shipping Products: The next move after designing the product requirements and design
method is to concentrate on the product shipment process. Shipment relates to the
transformation period from the location where it was made to the location where it was
intended to go. KFC can also concentrate on the shipment process, including the
transportation network, transport power, planning of alternatives for other shipping
systems, etc. It protects the organization from causing unwanted product loss.
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Illustrate the development in frugal innovation and include explanations of how it is
applied in a business context
As a method, frugal innovation explores new business opportunities, recreates supply chains as
well as redesigns goods in a flexible and affordable way to support consumers who face drastic
limits of accessibility. In order to build more inclusionary markets, it includes either embracing
or tapping existing gaps as well as resource limitations.
Frugal Innovation is necessary because of the following points:
● Lacklustre: Lackluste development and the depletion of debt-reduction funds in
developing economies would raise demand for frugal goods and services and methods for
frugal innovation.
● Environmental constraints: The need for even more frugal development and usage
models would be enhanced by environmental restrictions around climate, electricity,
water, and other resources.
● New technology: The cost of certain types of innovation is substantially reduced by
emerging media systems, generating vast new possibilities for frugal innovators.
● Caring: Caring for quickly aging populations would entail entirely new health as well as
social care methods, such as a radical rethink of market models as well as value chains
that are visible in some effective frugal innovation cases.
● Fast-Growing Markets: Fast-growing industries are where the need for frugal goods
and services is strong in developed and emerging markets.
Example
Samsung manufactures various mobile phones for its Indian and Pakistani consumers. This is a
method of frugal innovation because their desires, demands as well as options differentiate the
customers of such countries (ZAHEDI et al.2018). Since Pakistan's customers are advanced as
well as educated about the current developments, Samsung is releasing phones with new and
complicated features, and these consumers are indeed ready to pay more compared to India's
customers.
In the context of India, relative to Pakistan's clients, the consumers are worse. So frugal
innovation, by making goods with fewer complicated functions as well as readily accessible to
that same Indian market's use rules and guidance, is better for doing business. Frugal innovation
is therefore allowing Samsung to penetrate India's huge industry.
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Part 2
LO3 Discuss the mechanism necessary to commercialise innovation
Explain the value of the commercial funnel and the implementation of manufacturing for
the commercialization of products through New Product Development (NPD)
A sales funnel would be another term for a commercial funnel. The commercial funnel reveals
the consumer's path toward another service or product purchasing. The commercial funnel has
five steps:
● Awareness
● Opinion
● Consideration
● Preference
● Purchase
It is the role of commercial funnels to creatively reflect the customer's path, while representing
their selling process, beginning from knowledge to action (Ranjdoust and Bakhtyari, 2018). The
important aspect of the commercial funnel is the knowledge of the consumers and the detailed
recognition of their issues. Through the use of the email strategy and social media campaigns,
they would be further active in seeking relevant solutions to these issues. In addition, attempts
are being made to raise the interests of consumers to maintain that profits grow even with a
decline in consumer prospects. This has contributed to a main contributor to the innovation and
commercialization process, thus maintaining a sustainable market edge.
The multimedia channels are being extended to include a successful method of marketing and
distribution. It has made it easier to access financing and services, essentially commercializing
the whole operation. Some of NPD's significant phases also include sharing of ideas, the testing
of ideas, and many more, that further assist to successfully establish hypotheses and marketing
campaigns. In addition, the products are thoroughly evaluated by the staff before being released
on the market with the production of the commodity and a successful organization review. The
company would be able to push goods into the market mostly with the introduction of the New
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Product Development (NPD) and commercialization funnel, thus creating the Innovation
development plan.
Build an organisation's Innovation Business Case, providing strategies to obtain financing
Any of their criteria which can create an innovative business case may be enlisted to operate
efficiently within the company. Throughout this manner, the beings of the organization are able
to assess their success and have an indication of future duties as well. The company can include
its product development process, price policy, consumer awareness campaign, and industry
development as an innovative business case.
● Create a product offering, firstly. By incorporating more useful functionality in the next
stocks, this will change the products.
● The company should set a fair price for the intended consumers in order to gain massive
profits.
● A primary aspect is a marketing strategy. The company will create its own brand image
and still guide the group that deals with this company.
LO4 Consider the scope of ideas-protection approaches and recognise their
benefits and drawbacks
Review the numerous tools which can be used by organisations to create, preserve and
protect information and intellectual property
The key aim of innovation is to bring new goods or services to the market. Innovation is
important for business enterprises in order to stay successful in today's dynamic environment. If
the innovators are adequately qualified to meet consumer expectations, consumers will note that
the business is a marked and reliable one (Fechner and Shapanka, 2018). It is such a power that it
is very important to be involved in the field of industry. Thus, customer loyalty is a critical tool
for achieving market growth. Some resources that could be used to create, maintain, and secure
information and intellectual property are described below:
Knowledge creation and intellectual property: It is recognized that knowledge enhancement is
discussed within an entity through knowledge development. To succeed in the business and to
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survive. This is a requirement for the stable and smooth operation of every corporate
organisation.
Retention of knowledge and intellectual property: if it couldn't be adequately protected and
applied in situations of need, every concept or knowledge is worthless. Applying previous
experience can be a valuable method for survival in order to deal with ever-evolving economies.
Patents, for example, as implemented inside the workplace, allow the organization to remain
shielded from its creative offerings. The company's manager can design its offerings by means of
valid patents. The business creates a logo which will differentiate the corporation from others.
However, when developing a patent, a trademark, or copyright, a company is forced to employ
legal security to prevent its intellectual property. Similarly, scanning the records of patents and
trademarks is a decent start to evaluate the basic essence of the invention, the title as well as the
symbol which had either been registered or trademarked.
Support these different tools by presenting evidence-based evaluation in the context of the
wider business environment
There have been various techniques that can be used by different organizations to build
awareness and protect the rights of the organization and its goods. There are some tools for
saving goods, like;
● Patents
Patents shall be used for the purpose of securing the inventions and innovations which
have been made in the goods of the undertaking. In this situation, KFC will secure their
company's goods.
● Trademarks
Trademarks are intended to retain control over the logos, symbols as well as photos used
by brand owners to make their goods distinctive and an emblem of their organization so
that consumers can clearly recognize them. To secure the emblem of KFC's healthy
company, it could be used.
● Copyright
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Copyrights are used in literature, culture, and other musical creations for the purpose of
preserving the expression of ideas. In this scenario, KFC can prevent the ads that are
created for the organization from being copied.
Companies need to meet certain legal criteria and formalities when implementing any of these
listed programmes or resources. Companies may use the business's preferred trademark, patent as
well as copyright options while preserving these procedures and legal specifications.
Conclusion
From the above report, it can be concluded that there are different business tool criteria and
concepts for the growth of a profitable business. In a challenge that needs to be ignored in order
to grow a profitable organization, such obstacles are often clarified. The above role builds
awareness about the methods that can be taken by KFC in the development of organizational
processes. In the assignment, the 4p's of innovation were also clarified so that they could
recognize and operate on the business requirements. The innovation process has varied
significantly across the industry and the market segments as well.
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Reference List
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Ghahramani, F., 2016. University innovation and commercialization ecosystem: Promoting
pathways for women in STEM innovators. University of Pennsylvania.
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capability and firm performance relationships: the moderating role of supply chain influence.
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Osoro, O., Kirama, S. and Vermeulen, P., 2017. Factors affecting engagement and
commercialization of innovation activities of firms in Tanzania. Tanzania Economic Review,
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Ranjdoust, S. and Bakhtyari, S., 2018. Investigating the Factors Affecting the Process of
Commercialization and Innovation in Medical Sciences Research. Education Strategies in
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Stojčić, N., Hashi, I. and Orlić, E., 2018. Creativity, innovation effectiveness and productive
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