Importance of Innovation and Commercialization

The provided report emphasizes the importance of innovation and commercialization for the growth of a business organization. It explains how innovation can lead to new product development, improved efficiency, and increased revenue. The report also discusses different tools such as patents, copyrights, and trademarks that can be used to protect intellectual property rights. These tools are essential for any business looking to innovate and succeed in the market.

INNOVATION
AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of innovation on employees...........................................................................1
P2 Organisation role for shaping innovation and commercialisation....................................2
TASK 2............................................................................................................................................3
P3 4 P's of innovation and uses of innovation funnel.............................................................3
P4 Developing frugal innovation............................................................................................4
TASK 3............................................................................................................................................5
P5 New Product Development application and significance of commercial funnel..............5
P6 Build an innovation business case study...........................................................................6
TASK 4............................................................................................................................................6
P7 Evaluation of various tools and techniques for protection of intellectual property rights 6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is a process in which organisation make effective changes in their products so
that they will attract the customers in a large level (van Hemert, Nijkamp and Masurel, 2013). It
includes alteration which is related to the product's design, packaging, price, production strategy
etc. On the other hand, commercialisation include implementing the products by using
innovative techniques in a market. The present report presents the advanced and commercialised
strategies which are used by the Apple company. It explains initiate and its importance which are
useful for the Apple's company employees. It also describes the organisational vision, leadership,
culture and teamwork for shaping the innovation and commercialisation. In second phase, it
explains the 4 P's of innovation which are used for innovation funnel.
Third phase of the report describes the importance of commercial funnel and application
of New Product Development process. Furthermore, with the help of business case study it
presents the ways of funding. At last by evaluating the tools for developing, retaining and
protecting knowledge are also presented in the report.
TASK 1
P1 Importance of innovation on employees
Innovation is a creative idea by which organisation will develop new products with fresh
design, quality etc. in the market. Creativity is a type of skills by which individual will take
effective action to improve the quality of the products. It is diversified into two parts: Invention
and Innovation (Therrien, Doloreux and Chamberlin, 2011). Invention is a procedure in which
producer produce a new product in market for the first time. Innovation includes making changes
in the existing products. By using both invention and innovation process, it will help the
arrangement to achieve their desire goals.
Apple is a multinational company which develop computer software and providing online
services. They render iPhone (smartphone), iPod, iPad, tablets, media player, watches, TV etc. It
is a world largest information technology company which supply online services like iTunes
stores etc. On the other hand, cited organisation is the second largest manufacturer of mobile
phones (Wong, 2011). Apple company is the best example of innovation because it has produced
various kind of advanced techniques for development of products or services. In 2001, institution
launched iPod which is a media player and it stored 100 songs. After that, it makes lots of
innovative changes like MP3 player, iPod etc. Tate manager needs t Apple organisation to
1

develop more new changes and innovation in their products so that company achieve their goals
more effectively (Somaya, Teece and Wakeman, 2011). Changes can be made by alterations in
culture, environment of a cited firm. As per the scenario, it has developed new iPod which create
demand in the market. Tate manger want new changes so that company always try to motivate
their employees and create new skills in them. On the other hand, Tate firm uses large scale of
innovative products or services and give the opportunity to their employees by which they will
adopt new techniques and equipment in their business operations. Thus, by the use of innovation
activity and new techniques it will help to improve efficiency of the Tate company so that they
can achieve their desire goals well.
P2 Organisation role for shaping innovation and commercialisation
Innovation and commercialisation plays an important role for an organisation. By using
these methods firm can achieve their desire goals and also increase their profitability. In order to
this, creation and commercialisation make great impact in customer's taste and preferences
(Schoonmaker and Carayannis, 2010.). Thus, Tate company need to make effective coordination
between employers and employees so that they will adopt the innovative techniques
appropriately. They need to focus on their vision, leadership styles, teamwork and culture. By
using the vision, firm will decide what they want in future, so that as per the pre-plan they will
make effective action for accomplishing their goals. For example: Apple has launched MP3
player so that cited firm need to focus on their vision and make effective changes in their
working plan for developing a new MP3 player.
Leadership also make great impact in organisational activity. It is an ability by which
individual make effective control, monitor and encourage other staff members in an organisation.
Effectual leadership style help to improve the performance level of an employees. For example:
Apple has developed wide range of iPod and media players. In order to this, company make
effective planning and make some innovative changes so that they will attract the customers. In
order to this, effective leadership is necessary so that company will achieve their target and
perform in an effective manner (McCoy, Badinelli, Theodore Koebel, 2010).
Team work in an organisation denotes the impressive coordination between employers
and employees. It includes proper understanding and appropriate use of communication. In order
to this, all the team member need to complete their task by using group's skills, knowledge,
ability. This is very useful techniques for adopting innovative strategies for developing the
2

products. For example: Cited firm need to make effective team bonding and appropriate flow of
information in each department so that employees can performance effectively (Makri and
Scandura, 2010).
Culture includes various kind of religions and their beliefs, values. There are different
kind persons with different culture who are working together in an organisation. By use of
culture effectively Tate organisation can bring innovation and commercialisation in their
production activity. They also face in the society which have their different cultures, thought,
beliefs and customs. To deal with a different culture it is essential for the organisation to have
complete knowledge of customer's need and demand. In order to this, company will develop the
products and achieve their profit by using an effective manner. Hence, by giving value and
equality of various cultural people and manufacturing of goods as per the demand of assorted
civilization society help the company to achieve their goals and objectives (Kutvonen, 2011).
TASK 2
P3 4 P's of innovation and uses of innovation funnel
Innovation is an essential tool for every organisation to stay in the competitive market for
a long time. 4 P's of innovation include product, process, position and paradigm, by which
company make effective changes in their production activities.
Product: Every business need to develop product which have some specific quality and
speciality. It is a type of strategy in which existing products were changed as per their style,
design, quality and price basis. For this reason, Tate company adopt innovative strategies to
make improvement in the product's quality, size, packaging etc. It helps the institution to give
competition in a market which already have with their substitute products (Joshi, Chi, Datta and
Han, 2010).
Process: Innovation also depends on the process by which products or services are
created and provide in a market. To make creation in the process, company need to change the
methods and procedure which are essential for the development of products. By changing the
process, it will help to make improvement in the product's quality and help to minimize the cost.
Position: It include re-positioning of products or services by relaunching them. It
includes all those activity in which products are established in the new place by having new
quality. In order to this, Tate company set up their existing products as per the seasonal basis or
in the way of art gallery to their visitors. It is also essential for the firm to allocate the products in
3

a right place at a right time. Hence, position of a products is essential for the company's growth.
(Jagoda, Lonseth, Lonseth, 2011).
Paradigm: It include choosing all those methods which change the mindset of the people.
In which organisation need to develop a new model which help to change the perception of the
customers (Huizingh, 2011).
Innovation funnel is a way of collecting, analysing and implementing the new ideas as
per the environment or people. It helps to develop an innovative process by which company can
achieve goals by focusing on the customer's need. There are three steps which are adopted in the
innovation funnel. In the first step, organisation will collect the large number of information. In
second step, it includes taking all the ideas so that they will be refine and analysis effectively. At
last third step include implementation of the collected information for making changes in the
production activity. Hence, innovation tunnel helps to reshape the organisation's vision and
objectives.
P4 Developing frugal innovation
Frugal innovation helps in minimizing the cost and create innovative ideas for
development of products and services. It helps the Virgin media who have limited resources but
by using frugal innovation strategies company will achieve their desire goals. By providing high
value and quality of products, firm will re-invest in their existing products. The main aim of this
strategies is to redesign the product which carry out some value for the customers. In order to
this, establishment reduces its marketing cost and develop frugal innovation which help them to
analysis the customer's capability to take certain price of the product. It also helps to analysing
the demand and perception of the customers. All these processes help to achieve the customer's
loyalty and built a value chain in the art gallery by using the limited resources in their operations.
It also identifies the need of visitors into museum (Fitzgerald, Anderson and Kula, 2010).
Company use frugal innovation techniques for making publicity of their products like
books, frames and designs. Due to having limited resources company does not make heavy spend
ion the marketing process. In order to this, firm uses internet and social networking sites so that
they will attract the large number of customers towards them. They also provide discount and
many more attracting offers and booking tickets via internet, which is less time-consuming
process. In this way, by providing convenience while making transaction through online or
4

internet company can attract the customers by creating their own websites easily (Fischer and
Qaim, 2012).
TASK 3
P5 New Product Development application and significance of commercial funnel
New product development is a process in which producer have a mind set to create an
innovative product by using new techniques and methodology. The present scenario, Tate
organisation develop new products and commercialise them by using new innovative techniques
in a market. Commercial funnel plays an important role while developing new products into the
market. This process is useful for increasing the sales of the organisation. By using sales cycle is
helps the organisation for achieving long term stages of sales so that it can lead to sales funnel
towards the purchase. By using new product development, the manager of Tate company
introduces new product in a new market by making innovative changes in production activity
(Datta, Jessup and Reed, 2011). There are various kind of stages which are followed by the
manager of Tate organisation in new product developing process, these are:
 In the first stage of new product development process, manager get the ideas for
developing the new products. In this stage, Virgin media company try to get responses
and review from the employees and staff before launching the new products in a new
market.
 In the second stage, manger analysis or ensure the ideas which is related to the new
product development. It is known as ideas screening in which decided opinion will be
analysed by the manger whether it is suitable for the company or not.
 Third stage include concept testing of the new product by the manager. In this stage,
products are tested in a small area to check the validity of the profit.
 When the testing of a product is completed, manager of a company analysis the market.
In this stage, manager of an organisation analysis the market condition, competitor's
position and their pricing strategies. In order to this, firm can determine the actual
position by making comparison with others.
 In this stage, it will include the analysis of environment and identify the strength,
weakness of the company. Manager also determine that institution achieve profits in
future or not (Cooper, Seiford and Zhu, 2011).
5

 In the last stage, manager of Virgin media will develop the new products in a market and
determine the price as per the substitute available in the market. After deciding the price
company will launch the new product in a market.
Hence, by follow up all these stages company will achieve the objectives by developing a
new product in a new market.
P6 Build an innovation business case study
Virgin media system want to develop new products in a new market, in order to this,
manager of the company need funds from various sources. Thus, company get the funding from
personal savings, loan from bank, governmental securities, venture capital etc. Every business
need appropriate funds for successful operations, if business have no funds than firm is not
enable to make their business gross in a competitive market. Fundamentally, innovation means
introducing something new into business. Improving or replacing business processes to increase
efficiency and productivity, or to enable the business to extend the range or quality of existing
products and/or services (Aarikka-Stenroos and Sandberg, 2012). Virgin Group requires
innovating new mobile services and mobile phones in order to develop its Virgin Mobile branch.
This requires ample amount of funding and finance. By selling out some company's share,
company can generate few amounts of fund. For remaining amount, organisation can borrow
money from various financial institutions such as banks and other loan providers. In order to this,
Virgin media organisation focuses on various kind of sources for ensuring the availability of
funds. By using innovative techniques in their production activity and commercialise their
products, company focus on bank loan for funds. With the help of banking sectors company will
get large amount of funds for their successful business operations (Clark, 2010). As a CEO of
Virgin media companionship, I have to analysis and evaluate the different sources of funds
which is best for the organisation and it can be optimally utilize by the them. In new product
development process, company will get the fund from venture capital. According to me, it is best
option and appropriate source of finance for the company.
TASK 4
P7 Evaluation of various tools and techniques for protection of intellectual property rights
There are various kind of tools which are essential for the Virgin media company for
developing and protecting the knowledge of intellectual property. It is necessary for the
6

organisation because it helps the employees to receive knowledge and increase the morale. There
are different types of tools which are essential for the organisation, these are as follows:
Training and development: It is a process in which employees are trained by the
employers so that they will perform in an effective manner. By giving proper training and
development to the staff members, it will help them to increase their performance level. Training
is a process which create new skills and ability in an employee. On the other hand, development
is a process which develop the skills which are already exist in the workers. In order to this, by
increasing the knowledge and intellectual property time to time training programme is essential
for the employees. By providing training and development by the Virgin media company, it will
motivate the employees so that they can work in an effective manner (Caniëls and van den
Bosch, 2011).
Continuous Learning: It is essential for every employee that they will learn each and
every activity which are new for them. In a learning process, it requires lots of skills to
understand the new things in a workplace. Fresh cognition or learning can be received by the co-
workers, seniors, mentors during the training and development programs. Hence, workers of
Virgin media company always try to learn new things from various channels. In order to this,
cited firm can reduce their risk by adopting effective learning skills (Buenstorf and Geissler,
2012).
Knowledge management strategies: As per these techniques, Virgin Media company try
to share, communicate each and every activity so that they will implement the strategy
effectively. This is related to the corporate strategies which helps the organisation to achieving
their goals and objectives. All these processes require good and sufficient knowledge of
employees so that they can implement each task effectively.
Leadership and management: It is essential for the organisation to make effective control
in all the managerial functions. Virgin Media company try to manage their all the functions like
planning, organising, controlling and monitoring effectively. Company also appoint leader who
make proper control and monitor the employees’ activity. Organisation first have to decide the
style of leadership to make appropriate operations. By using democratic leadership style,
institution try to improve the efficiency by listening the other's review. In this way, proper
leadership and management plays an important role for the success of the organisation (Bogers
and West, 2012).
7

Technologies: In a workplace, it is essential to provide effective technical knowledge to
the employees so that they can perform in a better manner. Right use of techniques will increase
the knowledge and intellectual property of workers. New techniques fulfil the need of Virgin
media company and its also help to create innovative plans so that employees can acquire the
new knowledge (Anokhin, Wincent and Frishammar, 2011).
Evaluation of different tools that organisation can use to develop, retain and protect intellectual
property rights are provided below: Patents: Patents are the intellectual property rights tools, that protects the new and
innovated product produces by the organisation in effective and efficient way. It gives a
right to stop other organisation from imitating, manufacturing and selling (Bogers and
West, 2012).
◦ Advantage of patent: It can provide important source of revenue to business.
◦ Disadvantage of patent: Patent a product requires huge cost to organisation.
Organisation has to pay the cost whether the product become successful or not. Copyrights: Copyright is the right which is provided to creator for original some
innovative work. These rights are based on equitable principles rooted in English
common law and attach automatically upon publication of the work.
◦ Advantage of copyright: Original creator can sue any person or organisation for using
his product for business or other profit making purposes (Caniëls and van den Bosch,
2011).
◦ Disadvantage: Copyright requires cost and evidence that the work is original and
unique. Trade Mark: A trademark is a mark representing the brand name, logo, label, symbol,
slogan, design or phrase of a company or organisation (Datta, Jessup and Reed, 2011).
◦ Advantage of Trade Mark: Trade Mark help to represent the organisation
interactively. For example, the trade mark of Apple Inc. is partly bitten apple.
◦ Disadvantage of Trade Mark: The owner will need to show proof of use at regular
intervals, the first submission is between 5-6 years after registration,
CONCLUSION
As per the above detailed report, it has been concluded that innovation and
commercialisation is an essential tool for the growth of the business organisation. It is an ability
8

to make changes in a product, it may be in the form of designs, packaging, price and quality etc.
On the other hand, commercialisation is a process to launch the product in a market. Hence, both
the innovation and commercialisation are inter-related with each other. The present report
explained the importance of innovative activity while making production of a products or
services. It also explained the various steps which are essential for the new development of the
products. By the use frugal innovation, it presented the importance for the Virgin media
company. At last, it also explained different tools which help to develop and retain the products
in an organisation (Aarikka-Stenroos and Sandberg, 2012).
9

REFERENCES
Books and Journals
10

11