Innovation and Commercialization: Understanding, Types, and Importance

This report explores the concept of innovation and commercialization in organizations, focusing on Samsung. It discusses the importance of innovation, different types of innovation, and how vision, culture, leadership, and teamwork shape innovation and commercialization. The report also delves into the concept of frugal innovation and its application in Samsung.

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
1 Understanding of the Innovation.........................................................................................3
2 Evaluation of how organization vision, culture, leadership and teamwork helps in shaping
commercialization and innovation. .......................................................................................5
3 Different types of the innovation ........................................................................................7
P 3. 4Ps of the innovation.......................................................................................................8
P 4. Understanding of the frugal innovation..........................................................................8
P 5 Developing new product and funnel of innovation..........................................................9
PART 2..........................................................................................................................................10
P 7 Different tools used by Samsung drinks for protecting the intellectual property rights
..............................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation means making amendments in existing products and services, procedures,
strategies and techniques that can help to maximize the profit of the organization. This also
means to bring some innovative products in the market which are not being provided by the other
company. Commercialization means to formal licensing of the product. This report is based on
the Samsung company which started its business with manufacturing of innovative electronic
technology. Due to its innovative formula it rises with sales. This report will give the
understanding of the innovation and differentiate it from the invention. Importance of the
innovation to the organisation also going to be explain with this report. Furthermore, types of the
innovation will be included. 4 P of the innovation will be explained and how this will support the
management of innovation of Samsung company is also included. Lastly using of the frugal
innovation in the Samsung company to innovate and launch the new product will be analyzed.
Further, it has analysed the tools used for protecting the intellectual property rights.
Samsung company is considered to be one of the most innovating and inspiring company
which in turn focuses on creating future through development of innovative technology. It
mainly deals in smartphones, T.V, wearable devices, digital appliances, memory, network
systems, etc.
PART A
1 Understanding of the Innovation
Innovation: Innovation can be referred as to make improvement and introducing or
implementing the concepts which earlier were not in existence and techniques in the business.
That can help to any business to increase and raise its profit share in the market (Hohenberg and
Homburg, 2019). It refers to the sequence that include the varied tasks to uncover the different
ways to perform the task and to produce the goods and services in the organization. This highly
affects success and failure of the any business. It is observed that now a day more and more
firms are focusing on innovating their business operations. This is because innovation of
business idea lead to decline in the business cost. All these things ultimately lead to increase in
the business profit. Large size firms heavily make investment in their research and development
projects so that in future time period firm can fulfil demand of customers in different manner.
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This reflect that there is huge significance of innovation for the firms and their customers. By
carrying out innovation projects firms launch product in the market with new features. All these
assist the business firms a lot in expanding their business at rapid rate.
This innovation has the vital importance in the success of any business. As this creates
the higher opportunities for any business and also helps to develop the new product or service by
keeping original concept of the product. Companies which are able to adapt the innovation as
according to the current market trend and consumer behaviour, they can easily find out the
opportunities in the market and can gain the competitive advantage.
Invention: However, invention refers to create, develop anything which never exist
before in the context of the products and services of the organization. This can be meant as the
product development process which, that resultant creates or develop the new product and
process. Invention achieves the completely new and unique function.
Difference between innovation and invention
Innovation Invention
 It is considered as the first step to make
improvement and to bring something
new in the existing product of the
Samsung (Kim and Park, 2018).
 This innovation refers to adding the
values on the existing products.
 This is based on the practical execution
of new ideas to produce the goods.
 This innovation requires the set of
marketing, strategical skills and
 Whereas invention gives the completely
different result by creating or
developing new product which is
different from existing product.
 This refers to creating the new product.
 Whereas this is based on the theory and
working on the original ideas.
 On the other hand, invention requires
only scientific skills to create something
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technical knowledge.
 Innovation is mainly associated with
the implementation of new idea for the
specific product.
 Examples of innovation includes
technological inventions which mainly
includes photovoltaic cells, geothermal
energy, etc.
new.
 Innovation is considered to adding
considerable value in the existing
product range.
 Examples of innovation is associated
with technical specifications and
improvement in quality like inclusion of
components, material, etc.
2 Evaluation of how organization vision, culture, leadership and teamwork helps in shaping
commercialization and innovation.
This innovation refers to the actualisation of the process and ideas in to the action in
order to bring improvement in the existing product and service of the Samsung. Innovation will
play the important role for the Samsung, as with the help of the innovation company can make
improvement in their existing range of Samsung products. This will help the Samsung to gain its
image and competitive advantage in the market again. Other benefits are:
Stand out with competitors: Innovation will assist the Samsung to give tough
competition to the competitors in the market, even this gives the opportunities to gain the market
more than their competitors (Audretsch and Link, 2018). If Samsung company bring the new
techniques and skills in their company in the direction to innovate in their range of Samsung
electronic products. This condition will help Samsung to gain more profit in the market and helps
to stand out with their competitors.
Attract the best talent: Another importance of the innovation is that, it helps the Samsung
to motivate talented people to do job at the workplace. As this will not only help to stand out
with competitors but also helps to attract the best and skilled talent in the company. Even
talented and skilled people also want to work with the innovative organization which can give
them opportunities to showcase their talent. In this way innovation will help to attract talent in
the company who can bring innovative ideas along with them and will help to produce
innovative range of Samsung electronic products.
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Meet the customer needs: As needs of the customers are constantly changing, in this
changing situation if Samsung will adapt the innovation process in their range of Samsung
electronic products then it will help the company to meet the needs of the customers (4 Reasons
Why You Need To Focus On Innovation, 2018). This situation will assist to elevate the demand
from people side in respect to the products. Ultimately, this will lead to rise in the firm
profitability.
Grow in leaps and bound: Innovation will assist Samsung company to improve its
market share. Samsung company has innovative plan regarding its products then it will help
company to grow more and can make sustainability in the market within short period of time.
Culture: Organization culture is mainly associated with the aggregate values, norms,
attitude and belief of employees which in turn largely influence the innovation and
commercialization. Samsung pc. is very agile at meeting the goals and objectives of the
company. This in turn culture plays a huge role in shaping the procedure of innovation and
commercialization.
Leadership: This is considered to be an effective method which helps in attaining
specific goals and objectives of the company. Autocratic leadership is considered to be best for
Samsung company because it plays vital role in increasing innovation growth at fast rate in the
business. Effective leadership in organization tends to result in gaining new ideas from the
prospective employees in order to deliver efficient products to the customers.
Vision: The key vision of Samsung plc. is to effectively inspire the world by developing
innovative technology, design, products and services which helps in contributing to social
prosperity and is also very useful in creating better future. Innovation must have a purpose and
vision helps in creating an innovative view to attract certain customers. Vision of Samsung
company has major impact on the innovation and commercialization which leads to long term
operational efficiency and productivity.
Teamwork: Teamwork helps in gaining various insight of the innovation which in turn
leads to strategic decision making and delivering the best quality products. It also focuses on
delivering the particular task with high level of innovation and commercialization (Audretsch
and Link, 2018). This in turn helps in developing new ideas and deliver best services to
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customers. It helps in understanding viewpoints and ideas of various team members which in
turn leads to higher sustainable growth and innovation.
3 Different types of the innovation
There is different sort of innovations that can be done by the business firms. Some of
common types of innovation are given below.
Architectural Innovation: Architectural innovation is a simple type in which company
use the skills, techniques and knowledge which is being used by the company and with the help
of those skills and techniques company produce innovative products in different market. This
may help the Samsung company to use these existing skills to innovate the Samsung electronic
products and launch in different market (Berry and Berry, 2018). This will help to acquire the
new customers as well.
Disruptive innovation: This type of the innovation refers in which company use the new
techniques and skills to innovate the products and launch their products in current and existing
market. This type of the innovation can also apply by the Samsung company. As this technique is
time consuming but stealth in nature. This will give the sustainability to the Samsung by making
improvement in its existing range of Samsung electronic products.
Pros and cons
This technique of the innovation ha advantage is that it is stealth in nature so the
Samsung company do not have to change their techniques every time. Another positive point is,
this give the sustainability to the company. On the other hand, this is time-consuming process
and expensive to apply by the small organizations.
Incremental innovation: It is the approach of innovation which is commonly used by the
business firms. In this sort of innovation by making use of current technology base innovation is
done on the firm products in order to launch them in new market. Samsung may make use of the
incremental innovation and on large scale can bring new features in their products (Rajapathirana
and Hui, 2018). All these things will lead to increase in product sales in the market. In other
words, it can be said that demand of product in the market will increase.
Pros and cons
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This technique is less expensive, so the Samsung company will not have to bring
expensive resource to make innovation in their products. However, this technique only focus on
the small changes in the products.
Radical innovation: In this innovation technique, company use new technology to
innovate the products and launch it new market. Samsung can apply this technique as well by
applying new technique to innovate their products and launch it in new market.
P 3. 4Ps of the innovation
4Ps of the innovation is being referred a tool that can help the Samsung company to make
improvement in their range of the products by using the different ideas, this will help to analyse
the Samsung to which elements need to innovate. This tools consist 4 elements:
Paradigm: It indicate any entire planning process that is followed by the business firm to
develop a new idea or concept (Tidd and Bessant, 2018). Such kind of paradigm assist Samsung
in identifying their job in respect to facing challenges and threats in the business. All these
things assist business firm in preparing a plan and target to do innovation in such a way which
lead to increase in product sale.
Product: This is important element that actually need to innovate by the Samsung, this
refers to the goods and services which are offered by the company. So if Samsung make
innovation in its electronic products and accessories by providing new models, features, high
camera pixel, etc. then it will help to increase its sales as compared to previous year.
Process: This refers the process to deliver the products to the consumers (Godenhjelm
and Johanson, 2018). For this Samsung can increase its suppliers so that they can deliver their
products in short time to fulfil the gap of the demand. This will help to increase the sales of the
Samsung.
Position: This refers to the final or end position where the Samsung wants to reach. By
applying the innovative ideas in the products of the Samsung then company can reach out its
final position.
P 4. Understanding of the frugal innovation
Frugal innovation can be referred as the process in which company can make innovation
with the help of the resources of the country like political, economical, social etc. for example, in
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context of the Samsung , good economical condition of the UK country will help as it will charge
low interest and export import rate (Denning, 2018). This will help to suppliers to bring raw
material at lowest price. This it will help to increase the sales of the Samsung company.
Apart from this Samsung company can also adapt architectural innovation technique to
make innovation in their products by using the existing techniques, this will give the advantage
to gain new market and customers. This situation can help Samsung to increase its profit share.
Frugal innovation is an effective process which helps in reducing several complexities
and in turn is very useful in removing non- essential features in order to sell goods in various
developing countries. This is considered to be an important aspect which helps Samsung
company in designing improved products which are very essential for the future growth of the
market.
P 5 Developing new product and funnel of innovation
It is very important for the business firms to develop innovative product in the business
so as to remain ahead of competitors in the market. New product development commenced with
the generation of new business idea and preparing plan to implement it. These stages are:
11 In the first stage, Samsung company will come up with the new ideas like new models,
features, high camera pixel, etc. in order to make improvement in their product range.11 In second stage, all the ideas will be filtered in order to select the best idea that can give
strength to the company to increase its sales.11 In next stage, concept is being defined as according to the feasibility, market potential
and product design (Laitinen, 2019).11 It is the stage under which new innovative concept is analysed in proper manner in order
to ensure that it align to business strategy of the firm.11 In this stage new idea is being tested by creating the prototype weather this innovative
idea will work or not to gain the market again.11 In this stage newly, developed product is launched in the market and its demand is
analysed to estimate future performance of the product.
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11 In this stage price of the new model is being determined in order to set the business plan
of the Samsung.11 At the end new model is being launched in the market with detailed information like its
ingredients and its benefits for health etc.
In this innovation funnel may be employed by the firm in its business to develop and
launch new product in the market. It is the approach that will help relevant company to fulfil
needs and wants of the customers.
In respect to comply with the innovation funnel in the first stage fresh idea for innovation
of the business product will be developed and in relevant direction work will be commenced
(Denning, 2018). In the second stage business idea will be evaluated in proper manner in order to
determine whether it will be viable or loss making in future time period. After measurement of
the business idea viability finally it is implemented at ground level and time to time monitoring
is done by the managers to ensure that everything is going well.
PART 2
P 7 Different tools used by Samsung drinks for protecting the intellectual property rights
.
Samsung can protect knowledge and develop the intellectual property rights by using the
fundamentals tools & techniques which are as follows;
Patent: Patent is generally a property rights of the inventors. It is long-lasting for 20
years after filling the dates with applications. Samsung drinks holds the patent that has right for
preventing from selling, making, importing the technology and retailing. It creates opportunities
for the inventors for selling, licensing and trade to patent their new electronic product with
others. Patents apply for the protection of product and services
.
Trademark
: This term generally define as sign, design and expressing for identifying the products &
services of specific sources which is generally known as the trademark. Trademark also used for
captions, tag-lines and name of the business.
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Copyright: When inventing and creating some unique product at that time copyrights
helps in protecting the product that granted to the Samsung for reproducing the new innovative
technology.
From all the above discussion, the whole marked tool is beneficial for the Samsung because this
company is known for making innovation in drinks and it also helps the company for staying
protected from their unique and innovative services. The management of the Samsung is
expected for designing the products and make advanced technology through the legal patents.
The impact of the copyrights in Samsung drinks is to protecting their intellectual property from
the legal systems. Similarly, Samsung drinks search their trademarks and patents database for
making good start for determining the facts of invention, symbol, design and name which is
already patented by the company. These things help the Samsung for generating all the legal
awareness among other companies for working similar in the drink industry.
CONCLUSION
It is concluded that innovation have significant importance for the business firms. This is
because innovation create specific and separate image of the firm among people which
ultimately lead to increase in demand of the firm product in the market. Hence, time to time
business firm must analyse its business operations so that maximum profit can be gained in the
business. Firms like Samsung and Microsoft every year spend huge amount of innovation of the
products. This is the reason due to which firm successfully is competing with its rivals in the
market in today time period. Innovation can be referred as to make improvement and
introducing or implementing the new ideas and techniques in the business. This innovation has
the vital importance in the success of any business. As this creates the higher opportunities for
any business and also helps to develop the new product or service by keeping original concept of
the product. By summing up above report it has been concluded that, the Commercialization is a
process of transforming the knowledge, ideas & inventions for the greater wealth of individual
and business. Commercialization is generally a subset for the process of broader of innovation.
Innovation is a modern word that means creative thoughts, new ideas, imagination in the of
methods and device.
Culture, leadership and teamwork can shape the commercialization and innovation.
Further, it has been concluded that the 4 P's of innovation and use of the innovation funnel for
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shaping and examine the innovative ideas. It has been concluded that the development in frugal
innovations gives a way to the innovative products and it has been used in the context of
organization. It has been identified the different tools that organization use for development,
protect knowledge, retain and intellect property. This presentation has been concluded that the
importance of the commercial funnel and findings that used by the organisation. Further it has
concluded that the tools used for the development of organisation for protecting the intellectual
property rights.
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