Innovation and Commercialisation

Innovation and commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Explain innovation and its importance as compared to invention..........................................4
P2 How organization vision, leadership and teamwork influence innovation and
commercialization........................................................................................................................6
P3 Describe 4 Ps of innovation...................................................................................................8
P4- Frugal innovation ...............................................................................................................10
Benefits of frugal innovation ....................................................................................................11
PART B..........................................................................................................................................11
P5 Explain the significance of commercial funnel and application of new product development
processing for commercialization of innovation. ......................................................................11
P6 Discuss about how to build an innovation business case for “Adidas” which including
access funding. ..........................................................................................................................14
P7- Tools to protect and retain knowledge................................................................................17
Conclusion.....................................................................................................................................18
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INTRODUCTION
In such a complex business environment it is necessary for an organization to sustain in
market for long term. This is because it will allow them in their growth and development.
Besides that, it is analysed that with technological advancement there are many new product and
service developed. It has enabled in fulfilling needs of people and allowing business to grow and
expand. With this there is rise in competition among them (Wardle, Baum. and Fisher, 2019).
Also, it has led to doing various innovation by business in terms of products, process, service,
Model, concept etc. Through this they are able to survive and compete in market. Moreover,
innovation has become a source for organization to grow and develop. This is because it provide
vast opportunity to grow. When innovation is done it helps in gaining competitive advantage in
market.
However, in recent times innovation is hot topic for business. It is because with help of it new
concept and model are emerging. It has brought a change in way of doing business. Alongside it,
this is useful source for business to grow and gain competitive advantage. Innovation not only
provide new product or service but also gives new idea or way of doing business and fulfilling
needs of people. Furthermore, many businesses are highly focusing on innovation so that they
are able to compete. Apart from it, innovation is way through which rapid growth can be attained
in quick time. It helps in generating high revenue. In present times innovation has helped in
generating value of product. It is supporting in designing new process, method etc of operations.
There are many companies who are not able to sustain because they are not doing innovation. It
has led to decline in their growth. Moreover, they are not able to find out innovative ideas of
expansion.
The assignment will describe about importance of innovation and invention to organization
how they both differs from one another. Besides that, it will be explained about how vision,
culture, leadership shape along with sources of innovation. In addition, it will be discussed about
4 P's of innovation and innovation funnel. Also, pros and cons of funnel will be mentioned into
report. Alongside, concept of frugal innovation will be explained and its benefits to Adidas is
described. Furthermore, the process of commercialising innovation and new product
development will be discussed as well. In that a business case of company will be developed. At
last it will be discussed about how to protect innovation with help of various techniques with its
advantages and disadvantages.
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Adidas is a German company having its headquarter in Herzogenaurach, Germany, it was
founded in July 1924. The company is famous for its sports related products and manufacturer
shoes, clothing and other accessories. The company is largest manufacturer of sports products in
Europe and second at global level. It operates all over the world. There are 57016 employee
working in it and revenue generated by company on 2018 was 21.315 billion Euros.
P1 Explain innovation and its importance as compared to invention
Innovation can be defined as the procedure of enforcing new information and idea in
making new process for the products or services. It means that new facts and data are used to
modify something. Innovation gives organization an upper hand over their competitors; they can
simply gain advantage by creating something unique and different (Wardle, Baum. and Fisher,
2019). Innovation allows companies to gain competitive advantage by developing unique goods
to fulfil needs of customers. Also, it is necessary for organisation to cope up with new market
and technological trends. With help of it, they are able to do things in completely new way.
Customers needs and desires change every day and only through innovation any business can
achieve it. It is also necessary for businesses to meet new market trends by keeping themselves
technologically upgraded. With the help of innovation, organization can do things in new and
efficient ways
(Ganjeh, Khani,. and Tabriz, 2020).
On the other hand invention is defined as something totally new in the world that doesn’t
exist previously. Invention means discovery of a new product, process or service etc. It is
something that has never been before.
Both the words innovation and invention are different terms and it is described below:-
Basis Innovation Invention
Meaning Innovation is recognized as
carrying out of information or
concepts to produce new
product, product or service. It
means modifying something
that already exists.
Invention is explained as
something totally new that
could be any product,
serviceor some other concept
that doesn’t exist before.
Concept Innovation is a practical It is something that needs to
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thought where one needs to
apply the ideas and concepts to
the existing thing.
be understood first
theoretically. This concept has
theoretical nature.
Skills This concept requires that a
person should have distinctive,
strategic and unique skills.
Therefore, it only requires
that a person should have
strong theoretical skills
Activities The concept of innovation is
simply applied to all the parts
or areas of business to make it
different from competitors.
Invention is restricted to
Research and Development
function of the organisation.
Concerned with It is correlated through
producing something unique
and newprocess for the
existing product and services.
It is associated with bringing
something completely new
that doesn’t exist.
Refer to Innovation means adding some
value to a thing that exists.
In invention something new to
brought to the world (Wardle,
Baum. and Fisher, 2019).
Many times both the terms are misunderstood to be same but they are two different terms
and completely different meaning. Innovation is meant to be adding some value in an existing
product and on the other hand Invention meant is creating a new product altogether. Innovation
is useful in different areas of business but invention is not (Ganjeh, Khani,. and Tabriz, 2020).
Innovation is an important factor for businesses as it helps in growth and expansion in
different areas. Along with it, there are many other ways of it which is explained below:-
Building long term growth- By innovation businesses create a new platform for their long term
growth and success. It helps in building strong future by finding customer wants and desire, this
enhances company’s productivity. When an organization is working for something new, bring
change or innovation it means they are looking for long vision. Future is build when the base in
solid. Businesses can sustain for long term in the market by producing new continuously. When
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there is continuous innovation done it results in building in long term growth. This allows in
gaining competitive advantage as well.
Providing high tech and advance Tool- As Innovation means change in process or creating
something new, so it refers to the new modern tool for businesses. Existing processes are
redesigned with using new tools. This requires more effective and efficient workforce, by
providing proper training the organization can achieve their goals. In this way employees will get
something new to learn, gain knowledge. Innovation brings in new and advance tools which is
used by staff. They use those tool to work in creative way. It leads to increasing efficiency in
production and gaining skills and knowledge of employees.
High Quality Goods- It is one of the major advantages of Innovation that provides high quality
products and services. As something new or can say something has improved in the quality of
the product (Ganjeh, Khani,. and Tabriz, 2020). Redesigning the old process allows removing
deviations from system and fastening the working process. Firms Productivity is enhanced and
with it employee performance is also improved that leads to higher efficiency. Unique products
tend to attract more customers, as they are offered something that they actually desire. In this
way value is added to the product and customers are retained.
Therefore, Innovation provides organisation a platform form growth and sustainability. It
helps the businesses in getting an upper hand and gain competitive advantage.
P2 How organization vision, leadership and teamwork influence innovation and
commercialization
Innovation can be highly influences from various aspects that are culture, teamwork vision etc.
Here, they are interlinked with each other and any change on one highly effect on another. Thus
it is necessary for company to maintain all of them so that innovation is implemented. It can be
useful in giving shape to innovation as well. Thus, they are explained as below
Vision- this is main factor which shape innovation. A vision is built on long term plan. It reflect
what an organization want to become (Ganjeh, Khani,. and Tabriz, 2020). When vision support
innovation then it is easy to implement it. Besides that, it provide a framework of how value will
be generated through innovation in organization. Alongside, vision helps in setting of goals and
info on basis of which innovation is based. Thus, in this way vision shape innovation.
Culture- the culture reflect organization value and ethics. These provide a direction for company
to implement innovation. When there is positive culture within company it automatically support
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