Innovation and New Product Development

This assignment delves into the crucial aspects of innovation and new product development. It examines the role of opinion leaders in diffusion, the impact of financial innovation on consumers (specifically in the mortgage market), and marketing capabilities for sustainable innovation. The focus expands to frugal innovation in emerging markets and the practical challenges of industrial process scale-up. Intellectual property rights and their global political economy are also considered, highlighting the importance of understanding consumer cocreation in new product development. The assignment encourages a comprehensive analysis of these factors, drawing upon various academic sources and real-world examples.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its importance to employees of Exponential-e..............................................1
P2 Exponential-e vision, leadership, culture and teamwork in shaping innovation...................3
TASK 2............................................................................................................................................4
P3 4P's of innovation and the use of innovation funnel in shaping idea's .................................4
P4 Explaining the process of developing frugal innovation in Exponential-e............................5
TASK 3............................................................................................................................................7
P5 Importance of the commercial funnel and the application of NPD.......................................7
P6 Innovation building case for Exponential Ltd including the ways fund can be accessed......8
TASK 4..........................................................................................................................................10
P7 Different tools for developing, retaining and protecting intellectual property....................10
CONCLUSION..............................................................................................................................10
REFERNCES.................................................................................................................................12

INTRODUCTION
Innovation has become a pillar in modern business scenario which assist business houses
in gaining more market share. It is an activity that is used by today's millennials who are
considered to play a lead role in doing something different. Basically, innovation refers to
creating higher value from different idea's that are generated a time period. It can not be done
easily, it requires a proper roadmap, a strategy, environment and complete focus on developing
value from something that has never been applied in real-time (Lee and et. al., 2010). It allows
small as well as large companies in redefining something that was in existence but never applied
in same way. This activity assist them in reducing cost and making process more effective.
This report is based on Exponential-e which has headquarters in east London. They are
providing their services in connectivity, cloud, unified comms, cyber security services, IT
solutions, etc. At present, company is serving more than 2800 customers. It was established in
2001 and since then organisation has used innovative ways to gain market share. It is the first
company to build VPLS Network or the Bandwidth management (Exponential-e Ltd, 2017). In
this report different issues will be stated that are faced by company and innovative ways it uses
to sort them out.
TASK 1
P1 Innovation and its importance to employees of Exponential-e
Innovation is stated to be a tool that is used by company top management to ensure that
they are able to develop something that is new and more useful for customers. This is a method
which is used by Exponential-e to differentiate itself from market forces (Snow and et. al., 2011).
It allowed them in improving their product quality and enhance their profitability. There are
different types of activities that are required within an organisation for boosting innovation, such
as, more opportunities, resources, positive environment and leadership.
People employed by company usually get confused between invention and innovation
which is normal thing as both terms are kind of related to one another (Dodgson, Gann and
Phillips, 2013). But they are different and refers to specified activity and situation. The
difference between these two are described below:
Basis Innovation Invention
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Definition It is stated to be an activity that has to
be conducted for practically applying an
idea that has never been used before. It
also means creating higher value by
adding something to the existing
product.
This is a process where a person has
generated an idea, screened it and
developed it. It is known to change
the course of action.
What it is It is known to be an activity which is
conducted for improving an existing
product or applying a theory which has
never been used in a useful way.
In this activity something new is
developed and made functional that
will help in solving an issue or add to
technological advancement.
Required skills Person needs to have leadership,
creative and better knowledge of the
stream he belongs to.
An individual needs to have
scientific approach and research
skills.
Exponential-e is serving in the field of telecommunication which is a highly saturated yet
attractive market place. There are many companies in the field who pose a threat and can only be
dealt with a proper innovative approach (Von Schomberg, 2013). Also, the number of new
entrants in the sector is very high which have impact on organisation capabilities. At present,
Exponential-e can learn from Apple Inc that has proven to be an innovative market player. It
changed the way I-pod and mobile phones use to be. With innovation is was able to capture more
than 75% Walkman market share and is still earning though the marketing is narrowing down.
This small change in the size and capability of device has turned company image in market.
Exponential-e can take a cue and keep on introducing innovative changes.
There are different advantages for the company and its employees because of innovation.
They are listed down below:
For Company:
 It assist in developing a good market image
 Boost satisfaction of consumers.
 Extracts more profits from sales. Reduces cost of production of product and services.
For Worker:
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 The level of critical thinking and skills is boosted.
 KSA (Knowledge, Skills and abilities) of person is enhanced which is good for career
growth.
 Identifying and exploiting more opportunities.
These are the benefits that are there for an company and its people if they integrate
innovation in their core business process.
P2 Exponential-e vision, leadership, culture and teamwork in shaping innovation
In today's dynamic environment, it is very vital for companies to ensure that they are able
to boost innovation in their process. Basically all the top managers understand that it is an
activity which will allow them in achieving all their targets in minimum resources while
extracting maximum profits (Porter-O'Grady and Malloch, 2010). At present, in Exponential-e
there is huge requirement of developing an strategy and a policy that will aid in enhancing
capabilities of individual working for company.
To ensure that innovation is used in doing each and every task, it is very important for
organisation to integrate it in their core business process. The complete process of integration
and adaptation has to be stated to employees so that they are prepared to undertake required
responsibility. Also, they need to be supervised by managers, so that they are not get misguided
and are able to achieve their goals (Brettel and Cleven, 2011). For doing this company has to
formulate its vision, mission, culture, leadership which will inspire people to undertake
innovation. Ways in which these factors shape the activity are stated below: Vision: It is a term which states about a position where an organisation wants to see itself
in future. For Exponential-e it is a very difficult to gain the market title of being biggest
communication solution provider. They have to keep on innovating and integrating it in
their business process. The vision assist in stating about a position where company can
reach if they use all factors in a innovative way (Vanhaverbeke, 2013). The statement of
company states that, “It wants to be a market leader while satisfying its consumers to
their fullest”. It aims to deliver better solutions to its users and ensure that they are happy. Mission: This is a statement which clarifies the ways in which company will achieve its
vision. Basically, it acts as a source of inspiration for people to work effectively. Leadership: It is a very vital for every activity to take place within a set period of time. It
is a skill that is there in managers which allows them in boosting as well as controlling
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his sub-ordinates in a effective manner. It motivates people to initiate things that will
improve current process and products. Culture: Exponential-e is very concerned for the environment that exist within
organisation and it applies new policies to maintain the peace and calmness. Basically,
there different changes such as, flexible working hours and overtime that are given to
people. It motivates them to work more effectively.
 Teamwork: It is the most common method that is used for motivating people to innovate.
Basically, the concept of team building and working boost idea sharing, co-ordination
and co-operation between people, and various departments (Jeang and Liang, 2012). All
the efforts are directed in same direction by members of team that allows them in
achieving goals more efficiently. In Apple, its founder Late Mr Steve Jobs always
believed that teams are the way a company can reduce resource consumption and boost
innovation that is why he used this concept on all the projects.
Exponential-e is a well established organisation that aims to gain more market share by
the end of 2020. It has to integrate innovation in its core process as to ensure it is used by every
one and in every activity.
TASK 2
P3 4P's of innovation and the use of innovation funnel in shaping idea's
Innovation is an activity which is used by companies to address problems in a more
efficient and effective manner (Van Eck, Jager and Leeflang, 2011). The aim of managers
remains to reduce resource consumption and boost output. For this they use innovation funnel
which states about the process that can be used within company to enhance creativity, and use of
methods that would provide better results. Many researchers have tried to find the exact elements
that are required to boost innovation within company. The best concept that was realised was the
funnel. Basically, it is a tool which is used by managers within organisation to turn a imaginative
things into a realistic item. It assist company in developing a strategy that can be used to attract
consumers and direct employees to follow a path which will lead to success. There are 4P's of
innovation which have to be followed by company. It is stated below: Product: This is the very first and last thing that is there before and after innovation has
taken place. It is the very offering that is made by company to its customers. An
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organisation formulates plans to develop a product as per the need of the market. If they
are able to develop something that is better than the need than it is considered to be
innovation. Exponential-e serves its customers in a very defined manner due to which it
has 96% of approval rate in market. But it still has to grow further and for that it can
adopt adopt the same system that was followed by Apple, Inc. Producing better products
which differentiates themselves in market for gaining competitive edge. Process: There are different types of activities and task that keep on going on. Also, there
is a certain cost that is related to these programs (Gerardi, Rosen and Willen, 2010).
Innovation needs to be integrated so that expenditure can be lowered. Though it will
make it a lengthy process but it will allow the manager in ensuring better results. Apple
Inc and Virgin group are the example who integrated innovation in each activity to derive
out better results. Positioning: Exponential-e Ltd positions its product very innovatively in the mind of
consumers. It uses strategy of differentiation and lower price to attract users. Also, media
is used as a very effective tool.
 Paradigm: This is a point where each and every program or task is compiled together. A
company needs to analyse everything before they launch or float the product in market.
Paradigm basically allow an organisation in using innovative approach to conduct final
process.
Exponential-e Ltd has to ensure that every aspect of product offered in market caters to
the requirements of consumers.
P4 Explaining the process of developing frugal innovation in Exponential-e
A company has to prepare a process that assist it in achieving its long term goals in a
effective manner. The managers need to use innovative approach while developing any plan and
policy to reduce cost that is currently incurred by organisation (Mariadoss, Tansuhaj and Mouri,
2011). For this, they can introduce the concept of Frugal innovation. It is a method which is used
by organisation to minimise expenditure and wastage of resources while enhancing efficiency
and effectiveness. This allows company in attaining targets that are not easily achievable. There
are various Gap's that are present in existing capabilities of company that can be rectified and
improved. With the removal of variances from organisation process, it will be able to improve its
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profitability and productivity at once. There is a well defined activities that can be done by
managers:
 The top management has to ensure that every change that is being introduced is stated to
all middle level managers so that they can guide their sub-ordinates as per the standards
and task.
 There is requirement of conducting need assessment as to determine which area's need
more investment and resources.
 Also, top management has to appoint an individual who is capable enough to check
whether the task are being done as per requirements.
As mentioned in case study, Apple INC and Virgin group both built a team which had a
task of managing innovation within organisation. The companies are known to use minimum
resources against the need and extract outcome that is far greater than expectation (Zeschky,
Widenmayer and Gassmann, 2011). Cited organisations used frugal innovation as a method to
identify variances and make the process more efficient.
There are different type of cost that is related to the activities and they have to minimised
in order to gain more profits (Zeschky, Winterhalter and Gassmann, 2014). Apple Inc sell its
products from its own brand stores and do not rely on intermediaries. This allow them in getting
better feedback and delivering higher quality of service.
As described above, there are numerous advantages of Frugal innovation for a company.
They are mentioned below:
 Determination of opportunities by the management as to set a path that will assist in
achieving success.
 Identifying major issues which are there due to existence of variances in standards and
existing capabilities.
 Allocating resources as to enhance stability for process and assist them in attaining goals.
 Making new plans for introducing changes more effectively.
 Implementing required changes and updated version of plans.
 Following up and controlling activities.
This process has to be used by Exponential-e Ltd for ensuring that variances are
constantly removed from the system and better application of strategy is established.
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TASK 3
P5 Importance of the commercial funnel and the application of NPD
Till this date, there have been many researches that analysed environment for identifying
problems and reducing its impact on organisation. The managers have to ensure that each task is
completed in a specified manner so that each goals is achieved. The concept of commercial
funnel is used by them to influence potential customers into actual consumers (Harmsen, 2013).
On the other hand, the process of new product development is known to aid company in
developing a new and improved version of product.
The managers in organisation have to use commercial funnel for influencing the
consumers and other forces in more effective way so that the sales of company can be increased.
It is very important and its benefits are listed below: Enhancing sales activity: The selling department is assisted as the customer is more
influenced by marketing of products and it takes less time to convince them to buy
organisation products. Aids in reaching large number of customers: The company is able to reach more
consumers due to boost in level of influence. It allows organisation in recovering cost
that was involved in the process.
 Higher revenue is generated: A higher level of revenue is generated due to improvement
in the sales. Company is able to garner more profits due to increase difference between
expenditure and income.
This funnel was used by Apple Inc, to streamlining its marketing and other related
process. This allowed company in attracting more consumers. Basically, this reduce the level of
risk that was involved with each and every activity and organisation was able to make a different
segment in market which was loyal to its products (Hoyer and et. al., 2010). At present,
Exponential-e Ltd has to diversify its services by introducing more products and services in the
field of telecommunication. They are only delivering their expertise to business houses which
can be expanded to household or institutes. Also, management has to keep on analysing
variances that exist in the systems. This will allow them in reducing wastage and boosting
innovation. They need to develop new products for catering to the needs of households and any
new consumer. There is complete process of New product Development that can be followed:
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Illustration 1: New Product Development.
(Source: New Product Development, 2017)
As stated in the graphical reflection, the process of NPD allows managers in carefully
determining various aspects that can impact the product and its market feasibility as well as
survivability. It has to be approached by mangers in a innovative manner so that variances can be
removed (May, 2013). Exponential-e is venturing into new fields and it needs new products to
offer to its customers. For this they have to use this process as to develop a viable and successful
product type. Also, they can use the 7P's of marketing which will allow them in controlling
factors and make sufficient adjustments easily.
P6 Innovation building case for Exponential Ltd including the ways fund can be accessed
For every business enterprise it is very important to build cases or reports which will state
about ways in which they want their future activities to take place. Basically, this is a type of task
which assist company in attracting investors and tapping onto funds which can be used for
growth (Blakeney, 2012). A effective plan will allow organisation in accessing funds that were
not available for them in past. Moreover, this would allow them in improving their future
prospective in a very effective manner. Exponential-e Ltd is a medium sized company and
requires more investment and resources for future growth.
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 Understanding objectives of company: The managers need to understand what has to be
achieved by company for ensuring that every plan is based on the needs and wants of
organisation. This will allow the management in building those capabilities which it
needs in future.
 Collecting information: The concerned parties will collect data from different sources of
information as to analyse and prepare a report (Gerardi, Rosen and Willen, 2010). This
will assist in understanding the trends in market and allow managers in formulating case
based on forecast (facts and figures).
 Analysis: The drafted report will be presented in front of management as to get it
rectified and ensure that all issues are sorted out. Also, it will allow managers in
understanding what factors are more important than the stated ones. Presenting the outcome: The results of analysis of draft will rectify any variance that was
there. It will allow manager in ensuring that the final reports is based on the exact facts
and figures so that the outcome can be presented in front of shareholders, banks, business
angles and capital firms.
APPLICATION
Application of building case will allow company in improving an existing system and
making it more effective. It has a process that will be followed:
 Identification of product: The product that has to be improved is existing LAN services.
They have a limitation to provide services to a specified area. The proposed plan is to
make them Virtual Private LAN services (VPLS).
 Reason behind innovation: Traditional LAN services are limited to a certain area due to
issues in laying off LAN cables to substantial area. While VPLS will enable company in
connecting geographically diverse locations without any issues.
 Benefit to company: This will bring in more business as telecom and IT companies need
a system which provides them more coverage at a lower cost. It will enhance profitability
as well as productivity of company.
 Ways in which it will be carried out: There are certain ways in which this innovation can
be made reality. It will be following a process which will establish a structured path in
front of employees which will assist them in completing project in a set period of time.
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 Resource requirement: There are certain resources which are required by company for
managing and carrying out operations together. The first thing needed is Funds,
manpower, Research and development, planning, and expert guidance.
 Time Frame for conducting innovation: There has to be a set time period given to whole
process. In this case company has allotted 6 months for formulation and 3 months for
testing.
 Funding for innovation: There are various sources which have been stated by the
company. The primary method of getting funding is by the shareholders as well as banks.
But business angels will be approached too.
 Measuring success: In next 10 years, this VPLS system has to reach approximately 11
cities in total while covering local rural area.
Apple INC in its initial days and even now builds a case which is presented in front of all
stakeholders for raising more investment. Basically, for Exponential-e Ltd four type of investors
are available. They will provide company required finances or resources for some interest. They
are as follows:
 Business angels: They are the individuals who have a lot of finances in their hand. They
invest in ventures that are interesting and will give higher returns. Basically, people like
Warren buffet are considered to be an business angel (Mariadoss, Tansuhaj and Mouri,
2011). They provide investment in return of some stake in business which gives them
power to interfere in decision making.
 Venture capital firms: These are the companies which provide investment and other
assistance to organisations. It gives them all the financial or non monetary support in
return of stake in business.
 Government: They run different program that seek to support and fund SME enterprise in
United Kingdom.
 Banks: They are the oldest entities that provide investment in return of interest.
TASK 4
P7 Different tools for developing, retaining and protecting intellectual property
The intellectual property rights are the ones which assist companies like Exponential-e
Ltd in protecting their innovation and inventions. Basically, it is a law which stop other parties
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from using organisation secrets. It secures company and its products from any duplication or
wrong use. Basically, the user has to obtain rights from organisation and ensure that they do not
use it other than the purpose (Van Eck, Jager and Leeflang, 2011). Apple Inc uses these to
protects itself against any issue that it may face due to technology duplication or process use. For
example the company has obtained different patents and trademarks which protects its work,
technology, process and other aspects of business from ill use or duplication. Recently, it also
won a case against Samsung for using its retina display.
There are different types of protection that is required by Exponential-e Ltd. It is telecom
company which has developed new and different technologies to deliver better and higher value
to customers. Basically getting rights will allow company in charging loyalty in exchange of
using the process that gave organisation completive advantage. The tools are stated below:
There are some which will be Automatically obtained:
 Copyright: They are the one which can be obtained in a duration of 4 months on every
recorded item.
 Design right: These are the rights which are given for some design or logo.
There are some rights that have to be Manually attained:
 Trade mark: This is the most important mark which has to be obtained by company. It
can be gained on design, symbol, name, word (Porter-O'Grady and Malloch, 2010).
Basically these are the things which will allow organisation in differentiating itself from
other market players.
 Patents: Any invention such as Bandwidth management and VPLS tools will be patents
which will give company exclusive right to use and own them for a period of time.
The company has chosen patent and copyright as a primary tools to protect its products
and innovations from getting copied. Though there are certain cost for getting a patent but it is
the most effective method that stops any tempering from the innovation or product of company.
The copyright is for content and every recorded item. It assist in protecting against any misuse of
information.
CONCLUSION
Innovation is very important and essential in present scenario. The reason behind SME's
failing is that they lack innovation and strategic approach. Basically every organisation has to
use various methods and tools to ensure that they are able to integrate and enhance activities that
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will boost innovation. In the case of Exponential-e Ltd, the company will have to introduce
frugal as well as commercial funnel to ensure that it is able to reduce cost while enhancing its
market image. It also needs to secure its innovation and inventions by using intellectual rights.
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REFERNCES
Books and Journals
Lee, S., and et. al., 2010. Open innovation in SMEs—An intermediated network
model. Research policy. 39(2). pp.290-300.
Snow, C. C., and et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product Innovation
Management. 28(1). pp.3-16.
Dodgson, M., Gann, D. M. and Phillips, N. eds., 2013. The Oxford handbook of innovation
management. OUP Oxford.
Von Schomberg, R., 2013. A vision of responsible innovation.
Porter-O'Grady, T. and Malloch, K. eds., 2010. Innovation leadership: Creating the landscape of
healthcare. Jones & Bartlett Learning.
Brettel, M. and Cleven, N. J., 2011. Innovation culture, collaboration with external partners and
NPD performance. Creativity and Innovation Management. 20(4). pp.253-272.
Vanhaverbeke, W., 2013. Rethinking open innovation beyond the innovation funnel. Technology
Innovation Management Review. 3(4). p.6.
Jeang, A. and Liang, F., 2012. An innovation funnel process for set-based conceptual design via
DOE exploration, DEA selection and computer simulation. International Journal of Production
Research. 50(23). pp.6792-6810.
Van Eck, P. S., Jager, W. and Leeflang, P. S., 2011. Opinion leaders' role in innovation
diffusion: A simulation study. Journal of Product Innovation Management. 28(2). pp.187-203.
Gerardi, K. S., Rosen, H. S. and Willen, P. S., 2010. The impact of deregulation and financial
innovation on consumers: The case of the mortgage market. The Journal of Finance. 65(1).
pp.333-360.
Mariadoss, B. J., Tansuhaj, P. S. and Mouri, N., 2011. Marketing capabilities and innovation-
based strategies for environmental sustainability: An exploratory investigation of B2B
firms. Industrial Marketing Management. 40(8). pp.1305-1318.
Zeschky, M., Widenmayer, B. and Gassmann, O., 2011. Frugal innovation in emerging
markets. Research-Technology Management. 54(4). pp.38-45.
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Zeschky, M. B., Winterhalter, S. and Gassmann, O., 2014. From cost to frugal and reverse
innovation: Mapping the field and implications for global competitiveness. Research-Technology
Management. 57(4). pp.20-27.
Harmsen, J., 2013. Industrial Process Scale-up: A practical innovation guide from idea to
commercial implementation. Elsevier.
Hoyer, W.D., and et. al., 2010. Consumer cocreation in new product development. Journal of
service research. 13(3). pp.283-296.
May, C., 2013. The global political economy of intellectual property rights: The new
enclosures? (Vol. 3). Routledge.
Blakeney, M., 2012. Intellectual property rights. The Wiley-Blackwell Encyclopedia of
Globalization.
ONLINE
Innovation and commercialization. 2017. [Online]. Available Through:
<http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-
insights/innovation-and-commercialization-2010-mckinsey-global-survey-results> .
[Accesses On 27th September 2017].
New Product Development. 2017. [Online]. Available
through:<http://www.learnmarketing.net/npd.htm>. [Accessed on 27th September
2017].
Exponential-e Ltd, 2017. [Online]. Available through:<http://www.exponential-e.com/about-us>.
[Accessed on 27th September 2017].
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