Innovation and commercialisation - unicorn grocery Assignment

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INNOVATION AND
COMMERCIALISATION

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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Explain innovation and determine it's importance to organisations in comparation with
invention.................................................................................................................................4
P2.Explain how organisational vision, leadership and teamwork can shape innovation and
commercialization .................................................................................................................6
TASK 2............................................................................................................................................7
P3.Explain the 4P s of innovation and explain the use of innovation funnel to examine and
shape innovative ideas............................................................................................................7
P4.Explain development in frugal innovation and provide examples of how it used in
organisational context.............................................................................................................8
TASK 3 ...........................................................................................................................................9
P5.Explain the importance of commercial funnel and the application of New Product
Development processing for Commercialization of innovation.............................................9
P6.Build an innovation business case for an organisation, including ways to access funding. 10
TASK 4..........................................................................................................................................12
P7.Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................16

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INTRODUCTION
Innovation refers to the modification in existing goods and service which is purchased by
the customers. Commercialisation is the procedure of launching new product and services in the
marketplace with the motive of financial gain. It includes production, marketing, distribution,
sales and customer support in order to gain commercial success of that product. Every small and
medium enterprise use innovative ideas for the purpose of business growth. This report is based
on unicorn grocery. (Abdul Razak, Murray and Roberts, 2014). This company offers various
grocery products such as household, body care, processed food and drinks through their stores.
This given report will discuss about importance of innovation in small and medium enterprises
and its comparison with the invention. In addition to this, it will discuss the role of organisational
vision, leadership and culture in innovation.
TASK 1
P1. Explain innovation and determine it's importance to organisations in comparation with
invention
Unicorn grocery is a small and medium enterprise which comes under cooperative
grocery store and managed by its owner. Major offering of this store includes various grocery
products such as household goods, body care, daily based grocery items at equivalent prices
compared to supermarkets. Main objective of the Unicorn is to capture maximum number of
customer with its innovative offering to achieve higher profitability. Unicorn offers organic food
products in its store to target health conscious customers and increase their number of customers.
Innovation is the process through in which ideas are converted into the valuable product
as per the requirement of the market place and customers. It is the continuous improvement of
the existing product (Balmer, Bulpin and Molyneux-Hodgson, 2016). It is the responsibility of
the manager to analyse external environment to identify the inefficiency of market and use it as
the opportunity by finding out its solution and launch new product in the market to improve for
their business operation. In context the unicorn, as being SME it is operated by its owner who
analyse the outer scenario and requirement of customers and understood that they are health
conscious. Unicorns founder took this situations as the opportunity by introducing organic
products in its store and grab health conscious customers attention.

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Importance of innovation
 Innovation is helpful for the organisation as it understands the external environment as
well as the requirement of the customer to which helps in development of product and
services .
 It involves experiment and creativeness in the existing products and services that can be
modified to increase the customer satisfaction.
 It connects company with the available opportunities in the market and also develops the
organisation so capitalise upon the chances so that better outcomes are availed.
(Birkeland, 2012).
 Innovation is done through modifying existing products and services by evaluating
external environment and knowing the actual needs and requirement of the customers. Its
important in an organisation as it is required for the organisational growth and helps in
competing existing competitors.
 It increases organisational brand value and reputation in the market place and also in
consumer's perspective. Innovation is always appreciated by the customer as it provides
them quality and valuable products with high satisfaction level.
Difference between innovation and invention
Basis Innovation Invention
Definition It refers to the modification in
existing products and services
in order to improve offering of
the organisation.
It refers to creation of the
product or service for the first
time as per the requirement of
the customer's.
Skills required Innovation requires strategic
skills, technical as well as
marketing skills to understand
the requirement of the external
environment (Chun, Chung
and Bang, 2015).
Invention involves scientific
skills of the inventor, which
understands personal thoughts
of the customers and make
new product according to
them.
Role Innovation is spread over In this, only research and

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whole organisation. Each
employee can give their
suggestion to modify the
product.
development department
involves in the whole
procedure of invention.
P2.Explain how organisational vision, leadership and teamwork can shape innovation and
commercialization
Innovation and commercialisation is essential part of every organisation which is
influenced by many factors such as: vision, culture, teamwork and leadership methods of the
organisation. Vision should be clear and describe the future picture of the organisation. Clear
vision helps the employees in achieving their preset goal. Culture of the organisation describes
the current values, beliefs and assumption of employees as well as organisation (Collet, Hine and
du Plessis, 2015). It is the responsibility of the founder and management to identify vision and
mission of the organisation which influences the innovative practices of the company. All these
factors influences innovation and commercialisation which are evaluated as below:
Vision: Vision of the organisation describe about the assumption of future reflection of
themselves. In context to the Unicorn grocery, this company was established with motive of
social change by that type of shop or store from where they wanted to buy goods for themselves.
In addition to this, their motive is to offer tasty food at affordable prices. Vision of an
organisation has direct impact on the innovative activities and encourages employees to fulfil
consumers demand in effective manner.
Leadership: Leadership refers to the action or ability to lead group of people. It plays
essential role in organisation by leading innovative approaches with the motive of providing
better product and services to the consumers to maximise their satisfaction level. In context to
Unicorn, its founder believes that effective leadership skill is essential to influence employees
for implementing their innovative ideas in order to introduce new products and services for
increasing customer satisfaction in better way. Leadership includes formulation of policies and
procedure which impacts innovative operations in organisation to achieve their business goal and
expand its profit generating ratio (Dincer, 2017).

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Teamwork: Teamwork refers to collaborative work of group or team in order to achieve
their common goals and objectives. It is the responsibility of the manager to built effective team
by collaborating employees with different skills and specialities who works together to
accomplish organisational goal and objectives. Unicorn adapts leadership to provide effective
guidelines to its staff and also gives them liberty to give their innovative suggestions and which
helps the organisation in improving its products and services.
Culture: Culture refers to the social behaviour of the person or society. Culture of
organisation refers to the social environment, beliefs, values of employees at work place.
Manager of this organisation have to create ideal business culture through incorporating people
from different cultural backgrounds which manifests innovative practices in an organisation
resulting in improved products and services.
TASK 2
P3.Explain the 4P s of innovation and explain the use of innovation funnel to examine and shape
innovative ideas
4P's of innovation refers to tool that supports in investigation of effective innovation
within organisation (Edison, Bin Ali and Torkar, 2013). Model of 4P's is given by John Bessant
that supports in categorization of innovation in several terms. Elements under which
classification of innovation is given are evaluated as below:
Product innovation: This term refers to modifying existing product or launching new
product at market place with the motive of providing alternative to customers and attract them
towards their offering. Unicorn is a grocery store which offers tasty food products, households
and body care products in its stores. Manager of Unicorn understood external market and
introduced organic products for its customer. This innovation has attracted health conscious
customer towards their store.
Process innovation: Process innovation refers to the way through which products and
services are delivered to its consumers. Process is termed as the essential segment that can be
modified by using innovative method through which services are provided to the customer.
In this organisation employees are free to work in their working pattern and can also create
suitable working environment as per their comfortable level.

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Position innovation: Position innovation refers to repositioning perception of
organisation in customers point of view in order to capture more number of customers.
Positioning is related to the products and services offered by organisation and are innovated to
maximise their financial results (Greenaway and Rudd, 2014). In context to Unicorn, this
organisation used to offer tasty food products. But with changing market scenario, they have
targeted health conscious customers and offered them organic food products which results in
added number of customers of other segment also. Therefore the position of this brand have been
reformed and now perceived as a health conscious organisation.
Paradigm innovation: This innovation is related to the mental model that is associated
with the business. It is the complete change in the buying and eating habit of the customer.
Unicorn have changed the mindset of customers and make it possible for them to buy their daily
required grocery under one roof with lots of options in food item like organic for satisfying
customers need.
Concept of innovation funnel: This concept involves various steps used in developing ,
processing and finalising the product (Hang Do and et. al., 2014). At the initial phase ideas are
generated in massive form further it is refined with the motive of grabbing only positive ideas
and at last ideas which beneficial for the organisation in monetary terms are selected.
Uses of innovation funnel: Business people uses this tactic to make creative and unique
products by using advanced technologies and processes. The assessment of potential ideas helps
a business in availing the most practicable approach of achieving its determined goals. This help
company to deliver innovative items to attract large number of people and meet needs of market.
P4.Explain development in frugal innovation and provide examples of how it used in
organisational context
Concept of frugal innovation refers to the process through which organisation minimises
its complexity of cost reduction and maximising its production. This concept also concentrates
on optimum utilisation of the resources such as finance, human resource and material. It is
believed that products and services manufactured under this concept have consumed less
resources and are more satisfactory towards costumers. It is the most common concept used by
maximum of the organisation in order to fulfil social obligation towards customers and effective

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for the organisation in terms of better production with less wastage. Initially this concept was
started from healthcare and transportation sector and is used by service sector too.
Frugal innovation is commonly used by small medium enterprises as it does not give
preference research and development department which consumes lots of time. This concept
carry out innovative activities with minimum consumption of resources. Unicorn is the grocery
store which provides daily used grocery products to its customer in the vast range (Hemphill,
2014). Manager of this store concentrates on utilising manpower of the store in effective manner
in order to maximise their profit ratio. For example, by taking customers feedback it is identified
by the manager that customers are complaining that big size of food products is wasting their
money as well as food. To avoid this situation manager used the frugal innovation by
introduction organic food products in small packets. These packet are beneficial for the
customers as they can buy it in less amount of money as well as it avoids the problem of
wastage. On the other hand its beneficial for the company as it increases it sales and attracted
more number of customers.
Frugal innovation helps the organisation in developing their goodwill by provided value
added products to its customers and also supports in business growth. Another example of frugal
innovation can be seen in the Apple IPOD. At the initial phase people were using Walkman for
listening music which was a lengthy procedure of pressing button, inserting cassette and so on.
Steve Jobs have introduced IPOD which owns approx similar functions entertainment. As it is
small in size, easy to carry and operate which have placed decreased demand of Walkman. And
increased demand of Apple IPOD among customers.
TASK 3
P5.Explain the importance of commercial funnel and the application of New Product
Development processing for Commercialization of innovation
Commercial funnel concentrates on the buying process of the customer's for product and
services of the company. It emphasize on launching innovative products and services for large
customers with the motive business growth in terms of profitability. Procedure of
commercialising is divided into various segments by introducing new products and offering to

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the customer. These categorised segments includes various activities such as production,
delivery, marketing and after sales services which is tuff for the organisation to maintain the
success at market place (MacGillivray and et. al., 2014). To launch a product successfully in the
market its important for the organisation to make successful business plan which ensures that all
the activities will be performed properly in the organisation. Sales funnel emphasize on customer
that they are well aware about he product and services or not which will influence the repeated
sales activity of the consumer.
New product development for an organisation is the thoughtful process which is carried
out for long run. Organisation experiences various market situation in which product life cycle is
becoming very short. As being small and medium enterprise, Unicorn have to follow various
steps for NPD are evaluated as below:
Idea generation: In this stage, ideas generated can be in any form such as numerous for
the new product development (Maritz and Donovan, 2015). Ideas are generated from internal
sources, market research, SWOT analysis, customers etc.
Idea screening: This step emphasize on screening these ideas by refining and finding
feasible ideas by analysing the company's strength , weakness, customers needs and ongoing
trends.
Concept testing: In this step, its important to test the concept with existing clientele so
that could become more convenient to know about the feasibility of the product.
Business analytical: This steps involves the assessment so that organisation can find out
that whether the identified idea has positive or negative outcome over the business.
Commercialise: This step is followed after knowing that the innovation is profitable for
the organisation it must be launched commercially at market market place.
Product development: In this step, responses of existing customer supports in knowing
the shortcoming outcome of product which helps in identifying the requirement of modification
in the existing services.
P6.Build an innovation business case for an organisation, including ways to access funding.
It has been analysed that developing a business case which is related to innovation can be
considered as some that plays a crucial role when it comes to hit targets. On the other hand, it
can also be said that Unicorn grocery if deliver innovative products like organic products to

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customers than it will help them out in enhancing business at international level. Apart from this,
it is also being found that if company will collaborate with another companies of different
segments it will be beneficial for the Unicorn for business growth. In present context, a proper
business case is being developed beneath:
Executive Summary Unicorn grocery which is a cooperative store in England which was
found in the year of 1996. It sells different products and services like
fresh and dried food items and majorly targets women with age in
between 20 to 50 and develops various beauty products.
Need The present generation is more health conscious and wishes to avail
products in a more convenient manner. To fulfil their wishes and
expectations online application is needed by the company to grab more
number of customers and provide them quick and smooth services.
Through this, it can be said that Unicorn grocery can easily improve its
productivity and profitability.
Solution Developing a proper online application will help out this company to
enhance their profit ratios. It will also aid them in improvising customer
base (Miller and et. al., 2016). On the other hand, they can also make
modifications in their products and services as per the requirements.
Consumer Analysis Customer analysis is done to analyse the external market to identify
needs and preferences of the customer. Manager of Unicorn is taking
customer feedback for knowing their requirement. This helps in
knowing the increasing interest of customers in organic food products.
With this organisations has added organic products in its store to satisfy
their customers needs.
Creation and
Improvement
Moderate raise in sales of innovative products like organic ones has
influenced this organisation to bringing in changes right on time.
Acquisition of funds It can be said that organisation is enhancing their business and plans can
easily be executed with taking help of banks where they are allocating

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funds through which Unicorn grocery can easily hit their targets in
much effective and efficient manner.
Benefits availed With the help of using online application where company is rapidly
enhancing sales of goods like organic items. It helps the organisation in
enhancing their business satisfying more number of customers. It easier
for the manager to monitor and manage employees and also helps in
guiding them according to business requirement.
TASK 4
P7.Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
Intellectual property is termed as essential part of the organisation as it helps the business
in separating them from the competitors. Securing intellectual property supports the owner in
preventing unauthorised usage of licensed intellectual properties (Polzin, von Flotow and Klerkx,
2016). This enhances business in offering new products to its customers and it can be utilised by
the company in future with the motive of raising their financial funding from the banks. Major
tools used to preserve intellectual property are evaluated as below:
Trade Marks: This can be referred to a sign, design or logo can be taken of a product
through which product can easily cover uniqueness from other products in same field. This can
be seen on packages, label, vouchers and many other things. Through this, organisation can
easily make products differ from others.
Copyright: Copyright is considered as a legal right to the creator. This helps business
firms to stay original and keeps away the people who are willing to use the same name that a
company is having (Schröder, Baaken and Korff, 2012). Unicorn grocery knows it really very
well through which company can keep their name totally different from others. With the help of
this, firm can easily carry one kind of name where no one can copy it.

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Patent: Patents is referred to the rights provided to the inventor to use and sell their
creation. These right helps the owner to secure their intellectual property in order to avoid misuse
of their creation. Patents are categorised in three types such as plant, design and utility patents.
Trade secret: It is the best way use by organisation to protect their confidential
information and formulas of manufacturing department in order to remain differentiated from
their competitors. For example: Soft drink manufacturing companies do not share their soda
formula with any one as it is kept as secret by organisation. In relation to this, these kind of
business uses trade secret so that essential information can remain restricted to the company
only.
Right of publicity: It is considered as the type of intellectual property right which helps
in protecting misuse of individuals name or personal identity in terms of gaining monetary
benefit. This right is available for every one so that no one can use other persons identity without
permission.
CONCLUSION
It can be concluded from above report that innovation is the most essential concept use
by the organisation in order to achieve business growth. Innovation varies from organisation to
organisation. In small and medium enterprises its important for the companies to adapt various
different approaches that can be used to utilise limited resources. Innovation can be formulated
through various approaches like vision, leadership and creating innovative culture in the
organisation. In context to Unicorn, this company has analysed external market to know the
requirement of the customer. This organisation emphasize on providing organic food products to
its customers for health oriented customers.

REFERENCES
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