Innovation and Commercialisation Report

This report examines the concepts of innovation and commercialization, using Apple as a case study. It analyzes the importance of innovation in organizations, the role of vision, culture, leadership, and teamwork in shaping innovation, and the application of the 4Ps of innovation and the innovation funnel. The report also discusses frugal innovation, the commercial funnel, new product development, and building an innovation business case. Finally, it explores tools for protecting intellectual property, including patents, trademarks, copyrights, and industrial design rights.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Innovation concept, importance of innovation in organisation and comparison between
innovation and invention.............................................................................................................1
P2 Organisational vision, culture, leadership and team work role in shaping the innovation
and commercialisation................................................................................................................3
LO2..................................................................................................................................................5
P3 4Ps of innovation and use of innovation Funnel....................................................................5
P4 Developments in Frugal innovations.....................................................................................6
LO3..................................................................................................................................................7
P5 Importance of commercial funnel and application of new product development .................7
P6 Build innovation business case and way to access the funding ............................................9
LO4................................................................................................................................................12
P7 Tools to use of protect knowledge of intellectual property. ...............................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation simply means creating a new idea, new thoughts , creative imagination etc,
but innovations are usually viewed as an application for achieving a better solutions which help
in meeting the new requirements of technologies and existing marketing needs. It is a initiative
to drive a greater and different value of resources, processes by generating new ideas and
convert them in to useful products. It is the way of uncovering the new ideas and ways for doing
different activities in a better way(Anderson and et.al., 2014). In this report Apple is taken as an
company, which deals in mobile accessories, mobile phones, ipads, and also deals in electronics
and software all over the world. This report discusses about the invention and innovation and
their differences, importance of innovation to an organisation. This report also discusses about
the 4Ps of innovation. This report sheds light on the approaches that an innovation manager takes
during the process of innovation and also the steps taken by the innovation manager for driving a
new and innovative product.
LO1
P1 Innovation concept, importance of innovation in organisation and comparison between
innovation and invention in Apple.
Innovation is the activity of an organisation and people within the organisation in order to
change themselves and the environment. It involves the dominant ways for introducing the new
ways of thinking and behaviours and increasing of new business standards. For calling an
innovation, an idea must be economical, should satisfy a need, and should have a positive impact
on the customers. Its the process of deliberate application gained information, gained values
from the resources, imaginations, and the initiatives for driving the new activities and also the
process through which ideas are generated and to convert that idea in the useful products and
services of an organisation(Christensen,Bartman and van Bever., 2016). For a business an
innovation refers when a company applies a new idea in order to satisfy the customers need, and
meet the expectations of customers at a large. Innovation is beneficial for Iphone because if the
Apple”s business is not innovative it will decrease the competitive advantage of the company,
lack of innovation also results in the loosing of staff and decrease in the employee engagement.
Invention, it is something creating new. Invention is the act of creating something new
which is never been created or used before. It is the new technical or a scientific idea which is
embodied for creating something new to the world. Invention may be an improvement on
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product or a new process of creating a result or an object. Invention is the occurrence of an idea
of new process, new product etc. Innovation versus invention
Basis of difference Innovation Invention
Meaning Innovation is defined as the
process of improvement and
making significant changes in
the existing product(Pisano.,
2015).
Invention on the other hand is
defined as the process of
creating a product or a service
for the first time in the world.
Concept Real concept of innovation is
that improvement or
significant contribution
towards the product, process of
service is referred as an
innovation.
Invention is simply the
creation of new product or a
service for the first time in the
world.
Significance Innovation requires the a huge
set of strategic skills,
marketing skills, and technical
skills. In innovation there is no
need of discovery, or creating
of new product or service.
It is the way of coming up with
the new ideas and the way that
ideas work in reality.
Inventions require a broad set
of skills and approach with the
thought process of science.
Need It is all about the continuous
need for the improvement of
an organisation through proper
research and also its practical
implementations of the
innovative ideas (Varadarajan.,
2015).
If there is no invention there is
no innovation, innovation is
the cause effect of the
invention. With the invention
as company can grow its over
all standards in the competitive
world which is required by
Iphone.
Skills It requires high skills of
marketing, strategic as well as
Inventions requires the high
level of scientific skills in
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the analytical skills. order to make the innovations
happen.
Occurrence It occurs in the organisation
when the need is felt in order
to fulfil that need about the
existing product or a service.
It occurs when an organisation
asks product engineers for
developing a product new to
the world.
Activities Innovation effects the entire
organisation.
Inventions is limited to
research and development.
Significance of innovation:
Innovations are considered as an important part for the organisation in the present world
in order to stay competitive in market. Innovations can lead a business towards success. By
applying the smart and innovative strategies and ideas, an organisation can achieve its objectives
easily. By fostering innovations and creativity within an organisation can help in achieving the
success in a business. An innovation can be embedded in the leadership and organisation by
making the leaders and organisation understand the role of innovation and its importance for an
organisation. Innovation helps an organisation in survival in the different types of market faced
by the product.
P2 Organisational vision, culture, leadership and team work role in shaping the innovation and
commercialisation.
Organisation vision means what an organisation wants to achieve and where it want be in
future. So this vision of an organisation helps in shaping the innovation and commercialisation
because in this competitive world an organisation can not achieve its vision without any
innovations. If an organisation keeps on following the old ideas this will make an organisation
extinct in future so it is important for an organisation to go for innovation and commercialisation.
iPhone's vision is to create the magic with the help of technology so everyone in the world can
use the amazing and modern innovations of Iphone. This vision statement of Iphone will
definitely lead it to the innovation and commercialisation for the company. As this mission
cannot be achieved by the organisation without making any innovation in the business in order to
stay competitive with the help of its technological up gradations and innovations. The
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innovation will attract the customers for the product Iphone as the people always want to try
something new and advance, so in order increase the commercialisation Apple's vision of
technological innovations plays an important role.
Leadership plays an important role in shaping of innovations and commercialisation
within the company. Iphone has adopted the Democratic leadership style. Democratic leadership
style is a type of a leadership stye in which the leaders of an of an organisation makes
employees to aprticipatye in the decision making. It is the various leadership approach which
will lead to innovations and commercialisation in the organisation(Witell and et.al., 2016). It is
the leader who sets a vision, helps in creating organisational culture, enhances team building
within the organisation, so the leadership skills of a leader help sin the commercialisation and the
innovations with in the organisation as the followers are influenced by them. A leader to bring an
innovation and commercialisation has to motivate its employees for the innovation, a leader has
establish the communication with its followers, a leader has to get the employees engaged for
any challenges faced during the innovations. A leader has to establish the transparency with its
employees about the reason of innovation and commercialisation which will set the mind of
employees towards innovation that will take place within the organisation. A leader has to apply
various leadership style for shaping the innovations for the products. The most import job of a
leader is that first a leader should motivate the employees about the benefits of innovations i.e.
how these innovations will prove beneficial for an organisation and for the employees too and
this will help to shape the innovation within organisation.
Apple's organisational culture is the main reason for the success of an organisation
across the world. Its organisation culture which maintains and accepts various beliefs, values
and behaviours of an employees within the organisation. So culture of an organisation helps
Apple in the shaping innovation and commercialisation with in the organisation.
the innovation and commercialisation can be achieved only with the help of team work
within the organisation. A team works in collaboration with each other for bringing the
innovations within the organisation and work hard for it(Hoholm and Håkansson., 2014). when
there is a team work with in organisation the performance of employees increases and the team
members keep on supporting each other and facing the challenges during innovations, this will
help an organisation in increasing the innovating levels and commercialisation of an
organisation.
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LO2
P3 4Ps of innovation and use of innovation Funnel
4Ps of innovation was developed by John Bessant and Joe Tidd. It consists of
Paradigm,Product, position and process. These 4Ps of innovation can prove beneficial for the
organisation. These can be explained as:
1) Paradigm Innovations: It relates to the how to frame and what to do. It is the most important
P among the 4Ps of innovations because it is based on the models that shapes the organisation or
a business what it is all about. It describes the entire reason for the innovating process why the
innovation is implemented within the organisation and how to implement the innovation.
2) Position Innovations: This includes the innovations regarding the repositioning of the
product or a process in the market. Positioning innovations includes making the changes in the
existing product or a service so that it can be re-positioned in the market to change the perception
of the customer regarding the existing products.
3) Process Innovations: A company focuses on the innovation process and the how a product is
delivered or created. For example Apple focuses on 7S plus and Apple focuses on the complete
production process of 7S. It leads to the innovation in the entire process of product from its
manufacturing to its delivery.
4) Product Innovations: Product innovations simply means the process of innovating a product
or a service of a company. this kind of innovation is done for making change in the product
which is offered to the end users for satisfying them in a batter way. Apple can make innovations
in the existing Iphone products to gain the customers attraction for the existing product
line(Birkinshaw, Hamel and Mol., 2014). It includes presenting a existing product in the new
form.
Innovation Funnel:
Innovation Funnel is the concept of conceptualization the ideas into reality. This boosts
the innovation level of an organisation. Its is the aim of any organisation to convert the idea into
reality which can done with the help of innovation funnel. Innovation funnel makes number of
ideas to enter but it later narrows and allows only meaningful ideas to come into reality. Through
this funnel a company can take up various ideas for innovations but implements only those
which are of meaningful to an organisation and this process helps a company in shaping an
innovations. If a company have a funnel which doinvention definition businesses not get narrow,
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it will result in the wastage of money, resources and time on the innovations. Innovation funnel
takes the number of strategies, number of ideas, suggestions etc from various departments of an
organisation but after that best ideas and suggestions gets will be chosen and organisation
frames a best innovative strategy for shaping the innovation within the organisation which will
best for the organisation. An organisation should have the funnel which is broad at the front to
capture a range of potential ideas or projects but gets narrower at the back in order to select the
few and best ideas for the innovations. This is the best way of shaping the innovations within the
organisation.
P4 Developments in Frugal innovations
Frugal innovations is the process by which a costs of goods and the complexities of the
productions are reduced. Normally this involves the reduction of non-essential features and parts
within the product. For developing a frugal innovation Apple should take necessary steps in
Iphone:
Identification of Frugal innovations: This is a basic step for frugal innovations i.e.
identification of the need of innovations which can be done by
 establishing a proper research for need of frugal innovation.
 Examine the identified need for the purpose of frugal innovation.
 After examination an organisation should document the needs and its characteristics.
Deduction of problems: After identification of the frugal innovation Apple should perform
following
 determination of the current feature and services problems of the model
 description of the problems regarding the development of frugal innovations
 documentation of different ideas and innovations for decreasing the problems faced
during frugal innovations.
Deduction of patterns: it includes
 A company need to frame a description about the solutions to the problems of frugal
innovations like the kind of marketing tools or the business strategies to be applied for
developing frugal innovations
 The solutions abstracted should be transferable pattens i.e. it should be transferred to the
various departments of an organisation
 A transferable patterns should be documented in the pattern catalogues.
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Deduction of pattern systems: This system includes
 a company should analyse the relationship between the frugal innovations, problem areas
and the pattern
 After setting a relations a company should implement the frugal innovations for a
particular product.
A company should develop a frugal innovations as there are the new technology
platforms which are capable for reducing the costs of innovations which will provide a company
new opportunities for the new innovations. The markets are developing at the fast rate and
emerging economies are demand also increases for the frugal innovations. For developing a
frugal innovations Apple should get social in order to keep on engaging and attracting the
customers through various sources like social media and post their adds on the social media to
gain the attention of the customers at a large. Apple should go for the various marketing
strategies for improving the customers base for innovated products. For the frugal innovations a
company should provide the necessary resources for its implementation. Developing a frugal
innovations will help the company to boost the profit margins of the product as the production
cost decrease with it. It will bring the profits to the organisation as it reduce the necessary
features from the products of Iphones and customers gets attracted towards the new products
because of its price. Frugal innovation will prove beneficial for the company in entering the new
markets which helps in attracting the new customers from these markets and company will
generate profits from these frugal innovations.
P5 Importance of commercial funnel and application of new product development
Commercial funnel is also known as the sales funnel which is a sales process from the
initial contact to the final sale. It is the process which leads the customers while making a
purchasing decision.
Commercial funnel is important for Apple because of the following reasons:
a) It helps a company in picking up proper marketing strategy, often companies are faced with
marketing strategies which are of no use for the customers and does not have effect on the
customers but the commercial funnel helps in picking the marketing strategies that yields the
maximum results for company. So this is the reason that commercial funnel is important.
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b) Commercial funnel helps the product developers to know how to relate that particular product
to the customers. Once a product is understood by the customer it easily increase the sales of the
product and it will help in meeting the needs of the customers in the better ways.
c) Commercial funnel helps in generating more sales for the company, as it helps in picking the
best marketing strategy and also company now knows how to relate the product to its customers
as a result of it commercial funnel will keep on driving more potential customers for the
company. If commercial funnel is been used by the company in the best ways it will help in
increasing the sales for the long run.
d) commercial funnel in growing the business across the world . By increasing the sales of a
product, there will be increase in the feedback from the customers and the employees and
company formulates a type of strategies that can be used for increasing the sale of a product.
e) Commercial funnel helps a company in gaining the competitive edge over it rivals as it give
rise to the great ideas within the business which helps in gaining the competitive edge over its
competitors.
New product development process:
New product development (NPD) is the complete process of bringing the new product to
the marketplace. The stages of NPD for 7S Plus will be
1) Idea generation: It is the first step in the new product development process, i.e. generation of
new idea for product generation(Varadarajan., 2017). These ideas can come from the various
sources like market research, suggestions, feedbacks, employees suggestions, studying new
product competitors.
2) Idea screening: This is process of studying the quality of the idea generated, which is done by
ideas committee of Apple, before selecting and rejecting any idea a committee answers following
questions like, what is the need of introducing the new product, what are plants and machineries
required, can the marketing network sell the product.
3) Concept testing: At this stage of concept testing, a company finds out did the customer
understood the product, does a customer needs a new product, customer will accept the
product or not.
4) Product development: At this stage company decides to introduce the new product developed
to the market and necessary steps are taken for distribution and production of new product.
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5) Test marketing: In this stage the product is introduced at small scale in a small market in order
to check the result of the new product.
6) Commercialisation: If the product passed in test marketing then the company plans to
introduce the new product at a very large scale. Company goes for the large investments for
increasing the sale of the new product.
A company for the commercialisation of the new product have to make huge investments
in order to increase the sale volume. A company has to go for the various marketing strategies
like advertising the new product to mass media. A company introduces the new product to large
audience of the country or even for the entire world.
P6 Build innovation business case and way to access the funding
Innovation business case:
Innovation business case includes executive summary, aims and objectives of business,
segmentation, target and positioning, SWOT analysis, 7p's of marketing mix, sales forecasting
and way of accessing funding for developing new product in the existing market due to
enhancing demand(Linder and Williander, 2017).
Executive Summary
Business case has covered that aims and objective of company to achieve success. It has also
covered segmentation, target and positioning, SWOT analysis of firm for developing new
product. It has also covered 7p's of marketing mix and sales forecasting for new product
development. It has covered different way to access of funding for developing the new product.
Aims and Objectives
Aim:
“To introduce new product(Apple Iphone 7S Plus) in existing market due to increase
demand”
Objectives:
 To introduce new product and services of Iphone
 To increase sales and profits of business.
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 To increase customer satisfaction in existing market.
Segmentation, Target, Positioning of Apple Iphone 7S Plus:
Market segmentation is the procedure of dividing wide customers or business market,
generally comprising existent and possible customers into sub group of people. It is based on
variables such as behaviour, demographics, geography and psychographic characteristics.
Targeting is necessary to assess possible and commercial attractiveness of every segment. When
firm decides on which target consumers segment they want to go after which firm think that it is
profitable or not(Schaltegger and Wagner, 2017). Company has targeted age group that is 22-55,
high income individual in income segment and lifestyle they target is to modern, young, open to
change. In addition to that positioning of brand is marketing attempt that can be done by
promotion and advertisement. Apple is placed a luxury brand that carries high emotional relation
and loyalty between its consumers.
SWOT analysis of Apple Iphone 7S Plus:
Strength: Strong brand image and equity is the most important strength of Apple. It is also
called as reliable and smart brand that customers trust. Company has powerful presences of
across the world. It is done by effective maintain alinement among consumer demand and supply
and to serve varied market dynamic and demand forms in every of reportable segments. Increase
customer loyalty and high profit margin are also powerful strength. Apple has highly focused on
innovation in terms of innovative technology.
Weakness: Limited product portfolio and low compatibility with the other brand are weakness
of Apple. In addition to, premium image is related to improving experience and higher pressure
regarding to creation in design and quality of product.
Opportunity: Acquisition and launch of new product (Pratap, 2018). These are opportunities for
Apple. The product portfolio is limited as compared to its challengers. Company create chances
by investing in green technology(Pratap, 2018).
Threats: Economic fluctuation, lawful and regulative forces are threats of Apple. There are
several laws that can change from nation to nation. Company is also feeling increase pressure of
conformation.
7p's of marketing mix of Apple Iphone 7S Plus:
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Product: Apple designs, produce and sell technological instruments such as IPhones
smartphones, Ipad tablets portable personal computers and media players.
Price: Company apply various pricing strategies such as premium pricing, price skimming to
create high image of business.
Place: Firm use sales channel such as Apple stores, online stores, direct sale force and telecom
organization etc. for increasing sales.
Promotion: Apple promote their product by advertising, personal selling, sales promotion and
public relation.
Process: Company provide large importance to each features of the improvement and experience
of consumers(Janis and et.al., 2016).
Physical Evidence: During the years, Apple is created its own culture by apply invention and
technology.
People: Employee are more important for promoting the product and services of Apple. By
training, they have perfect knowledge of the product.
Sales Forecasting of Apple Iphone 7S Plus:
YEAR SALES(£)
2018 £500000
2019 £700000
2020 £600000
Access of funding:
Apple adopts different ways to access of funding such as Angle investors, bank loan,
venture capital for developing new product in the existing product. Company take loan form
bank for introduce the new product. They liable to pay back in instalments along with certain
percentage of interest(Linder and Williander, 2017). Venture capital is also way of funding for
rapidly growing of firms. Company also acquiring the funds form their friends and family for
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new product development. Crowdfunding also ways to access funds that increase money
relatively low cost and creative project. This funds helps in increasing sales and profitability of
business. With the helps of it, company easily promoting and advertising product and services in
the market.
LO4
P7 Tools to use of protect knowledge of intellectual property.
Intellectual property(IP):
IP is concept of property that involves non-physical conception of human mind. IP
includes two kinds of rights industrial property rights that are utilized for innovation. It includes
trademark, patents, industrial design and theories as well as copy rights that are utilized for
creator activity. The main aim of IP law is to promote innovation of high mixture of intellectual
products.
Patent: It is the essential part of intellectual property. Patent is kind of right granted by
authority to creator. It is providing owner to legal status to prohibit others from creating,
utilizing, selling, offering to sell and commercialism an innovation for limited time period.
Creation is solution to particular technological difficult. The process for aiding patents, need
placed on patentee(Bettig, 2018). Extent of sole rights change broadly among nations according
to national and global agreements. Still, given patent application must involve one or more rights
that determine the innovation. It means to create available for public review. In the simple terms,
patent refers to right granted to everyone who formulate something new, helpful and non-
obvious. Patent is very helpful for company in relation to that there is no intimate their product
and thefts by any firm of their design of product.
Trademarks: Trademark is identifiable sign, design that differentiate goods and services
of specific trader from same goods and services of other mercantilism. It is also known as service
marks. The businessman trademark can be single, business enterprise and any of legal firms. It is
cane be placed on package, label, voucher and on product itself. Trademarks are frequently
shown on building of company for sake of identify corporate. Trademarks recognizes brand
owner of specific product and services. It can be utilized by other under licence statement.
Trademarks is commonly named, word, phrase, logo etc. or sequence of these component. There
are also scope of non-denominational trademarks opening marks that do not fall into these
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regulation collection like based on colour and sound(Bettig, 2018). Trademark that are advised
assaultive are rarely rejected according to nation trademark legal document.
Copy Rights: It provides maker of an original work prohibitive legal status to it,
normally for small time period. Copyright utilizes broad scope of innovative, rational or aesthetic
activity. It does not covert opinion and data themselves, only the kind manner that expressed by
company. It is judicial rights existence in many nations that aids makers of primary work. It is
relevant to certain kinds of innovative activity. Copy right is rarely divided between many
authors, every of holds set of rights to utilize the activity and who are normally referred to as
right holder(Bently and Sherman, 2014). These legal status often involve re-manufacturing,
power over differential activity, public execution and moral right such as classification. It came
about with innovation of printing press and with broad acquisition. Its beginning in UK were
from reaction to printers monopolies at the starting of 18th century as a legal conception.
Copyright law enable goods of inventive mankind works such as acquisition and creator
production. The public legal document time period of copyright discontinue 50 to 100 years after
dies of maker depending on the legal power. Some nations need certain legal requirement to set
copyright, other acknowledge copyright in any completed work without formal enrollment. This
also helpful for business in terms of any company do not copy product of Apple.
Industrial Design Rights: It is also known as design rights and patent that assists the
visible design of aims that are not strictly useful. It comprises invention of shape, conformation
of forms or colour as well as accumulation of forms in three magnitude variety including artistic
value(Osoro, Kirama and Vermeulen, 2017). Three magnitude forms utilized to produce of
goods, industrial trade good and handcraft. The legislation of industrial design is providing in
UK that is Copyright of Design Act that enable other material design such as mental and ceramic
ware objects.
CONCLUSION
This report has summarised that innovation, its importance and difference from
invention. It can be concluded that vision, leadership, culture and team work form the innovation
and commercialization in the company. It can be discussed that 4p's of innovation such as
product, position, process and paradigm as well as utilise of innovation funnel for shaping
creative ideas. It can be analysed that utilise frugal innovation in organization. Furthermore,
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report has completed that importance of commercial funnel and application of processing of new
product development in organization. It can be concluded that innovation business case that
involves executive summary, segmentation, target, positioning, aims and objectives, swot
analysis, 7p's of marketing mix, sales forecasting, access of funding for developing new product
in existing market. It can be discussed that tools to use of protect knowledge of intellectual
property such as patent, trademarks, copy rights and industrial design rights in the organization.
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REFERENCES
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Pisano, G. P., 2015. You need an innovation strategy.Harvard Business Review. 93(June), 44–54
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Varadarajan, R., 2017. Innovating for sustainability: A framework for sustainable innovations
and a model of sustainable innovations orientation. Journal of the Academy of
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Witell, L and et.al., 2016. Defining service innovation: A review and synthesis. Journal of
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Online references
Pratap. A., 2018. SWOT Analysis of Apple. [ONLINE]. Available through. :
<https://www.cheshnotes.com/2018/07/apple-swot-analysis-2018/>.
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