Innovation and Commercialization in Organizations

The assignment provides a comprehensive overview of innovation and commercialization in organizations. It highlights the importance of vision, leadership, team work, and culture in bringing innovation and commercialization within firms. The concept of innovation funnels is used to assess ideas and conceptualize products, while frugal innovation is utilized to minimize cost and complexity. The document also references various studies and journals that support these concepts.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Difference between invention and innovation and importance of innovation in comparison
to invention, to organisations such as Amazon Go.....................................................................1
P2 How organisational vision, leadership, culture and teamwork can develop innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................3
P3 4Ps of innovation and analysis and application of innovation funnel to Amazon Go...........3
P4 Critical evaluation of role of frugal innovation in development of Amazon Go...................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Innovation is characterized as a process of translating an invention or idea into product
and service that creates some value for customers or which they pay. Commercialization refers to
the subset of broader innovation process which is driven by profit motives and market (Aarikka-
Stenroos and Sandberg, 2012). This assignment is based on case study of Amazon Go in which
firm wants to open checkout-free grocery stores where consumer can pick up their groceries and
walk out without having to queue up and pay at checkout. This report covers significance of
innovation and difference between innovation and invention. 4P's of innovation, innovation
funnel and role of frugal innovation in development of Amazon Go is also discussed in this
project.
TASK 1
P1 Difference between invention and innovation and importance of innovation in comparison to
invention, to organisations such as Amazon Go
Innovation: It is defined as the process of converting an idea into good or service that
provides some value to customers for which they pay. In businesses, innovation occurs when
ideas are implemented by firm to further satisfy expectations and needs of customers.
Invention: It refers to the process of creating something such as technique, method,
device, product etc. which is unique and completely new that has never been seen before (Eesley,
Hsu and Roberts, 2014).
Difference between innovation and invention
Basis for comparison Invention Innovation
Meaning Invention occurs when a
unique product is introduced in
market which has never been
seen before.
Innovation occurs when a new
or innovative feature is added
to existing product of
company.
Concerned with It is generally concerned with
single good or process.
It is concerned with
combination of distinct goods
and processes.
Example Amazon creates humble Amazon Go is a new outlet in
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announcement that can be seen
above board of Bezos
playbook: Amazon Go. This is
a new kind of store in which
checkout-free system is
installed. Therefore, it is
considered as an invention
part.
which no checkout is required.
In this, firm bring innovation
in their process by creating
“Just Walk Out” Shopping
experience for customers.
Significance of innovation in comparison to invention:
Maximise profitability: For attaining high sales and profit ratios in market, Amazon Go
needs to have large customer base. By introducing innovation within organisation, firm can be
able to do so. Innovative services of Amazon like free checkout system helps company in
attracting large group of customers as it saves their time. This kind of innovation assists firm in
maximizing its profitability in an effective way (Ge and et. al., 2017).
Attract large group of customers: In order to increase the customer base, innovation is
more crucial and effective process for Amazon Go as compared to invention. By bringing
innovation in product and services, company is able to administer high quality innovative
products to its customers. This enables firm to attract large number of clients which ultimately
increase its profit ratios.
P2 How organisational vision, leadership, culture and teamwork can develop innovation and
commercialisation
Organisational leadership, vision, teamwork and culture plays crucial role in developing
innovation and commercialization within company. All such aspects play crucial role in
effectively bringing innovation and commercialization within Amazon. These are defined below:
Vision: It is an aspirational statement of what firm would like to attain in its long term
future (Hausman and Johnston, 2014). It states organisational objectives which are intended to
guide internal decision making of firm. Amazon's vision is to provide checkout-free services to
customers in order to make their shopping experience excellent by using high end technology
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like sensors that track customer's activity. Effective vision of organisation helps employees to
work creatively and innovatively towards attaining objectives.
Leadership: It refers to the ability of leading people, group or organisation. Leaders play
crucial role in providing direction to manpower for their future course of action. Application of
appropriate leadership style by leader of Amazon helps in performing tasks effectively and
completing it on time. Good leadership and effective decision of leader helps in bringing
innovation and commercialization within Amazon.
Culture: Culture of an organisation must be strong as it helps in motivating and
encouraging employees to work towards attainment of its goals (Ke and et. al., 2016). All the
individuals working within company has their different culture, beliefs and values. Amazon
needs to eliminate these differences by developing clear flow of communication between
employees. It assists in encouraging workforce to freely exchange their ideas and views which
improves their creative thinking ability and helps in bringing innovation and commercialization
within firm.
Teamwork: Collective efforts of all team members helps in effectively attaining goals
and objectives of company. Amazon encourage its employees to work in team which assists in
bringing innovation and commercialization within company. Formation of different types of
teams helps in performing tasks more effectively which results in long term sustainability of
Amazon in market (Thore, 2012).
TASK 2
P3 4Ps of innovation and analysis and application of innovation funnel to Amazon Go
4P's of innovation includes product, process, people and press which are invented to
narrow the investigation on particular area of company. These are defined below:
Product innovation: This is the process of making existing products of firm more better.
In this, innovation takes place by adding a new feature into available product for making it more
unique and attractive. Amazon mainly emphasize on constantly bringing innovation by making
adding new features in its products.
Process innovation: This innovation helps company in making alterations in its delivery
process. Amazon made changes in its delivery process by open up its checkout-free grocery
stores which saves time of customers as they do not require to stand in queues for paying bills.
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Press innovation: It involves the surroundings where people work and perform
operations in order to develop new product. It covers culture, practices and resources of
company. Amazon can develop healthy surroundings within firm so that, employees feel happy
and encourage to work in more effective manner towards attaining goals of organisation.
People innovation: People play crucial role in growth and success of organisation. They
use their knowledge and skills that helps them in developing innovative products. Amazon
motivate their employees to utilize their skills and knowledge in appropriate way so that, they
enable to deal with customers in more effective manner (Walsh, 2012).
Use of Innovation funnel:
Innovation funnel is the tool that is utilized by companies in order to assess ideas and
conceptualize product. The purpose of any process or product development project is to convert
an idea from concept into reality via converging to a particular product that helps in meeting
needs of market.
P4 Critical evaluation of role of frugal innovation in development of Amazon Go
Frugal innovation:- According to this methodology, Frugal plays vital role for
international company and enterpriser that how will they invest uniquely in order to beat external
completion. This practice helps in merging various market segments of a company. Move over it
describes merits and drawbacks of Frugal innovation and aids to transfer the concept of life by
comparing present situation with standard conditions. Henceforth, this activity act as guidance
for production sector as how to produce cheaper and quicker in order to satisfy consumer needs
and wants. In respect to chosen company Amazon Go, has opportunity to control production
process as to provide good quality products at lower rate to overcome consumer demands in
short period of time. Thus, this innovation program helps company to attain revenues with
maximum sales (Yin, Shi and Yan, 2014).
Present reports covers case study of Amazon Go. The main motive of a company is to
reduce customer burden by offer them checkout-free shopping experience and acquiring
maximum ratio is market share. This methods influence company to lower the cost and maximise
the profits. Amazon Go aids to develop with new tactics and software which helps firms to
generate more profits and render quick services to consumer. For fast and more development,
manager needs to take care are as follows:-
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Reduction of production cost:- In this process primary objective is to decreasing the
cost production in very initial level. It guides organisation to reduce the wastage of resources
through proper usage of goods in accurate manner.
Developing innovative feature:- To beat external environment, organisation allow
innovative thoughts and ideas for launching new feature in existing products. Therefore, these
practices help firms to face challenges and built strong competition for other companies (Yin,
Shi and Yan, 2014).
Application of advanced technology:- This techniques mainly take place with dynamic
environment through adopting various advanced application in organisation. It helps a company
to get ensured before implementing a plan effectively. Thus, it develops higher level of Amazon
Go.
CONCLUSION
As per the above mentioned report, it has been concluded that innovation refers to the
process in which concepts are translated into products that creates some value for customers.
Vision, leadership, team work and culture of organisation helps in bringing innovation and
commercialization within firm. Innovation funnel is used by company to assess idea and
conceptualize product. The concept of frugal innovation is utilized to minimise cost and
complexity of product and its production.
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REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
commercialization through networks. Journal of Business Research. 65(2). pp.198-206.
Eesley, C. E., Hsu, D. H. and Roberts, E. B., 2014. The contingent effects of top management
teams on venture performance: Aligning founding team composition with innovation
strategy and commercialization environment. Strategic Management Journal. 35(12).
pp.1798-1817.
Ge, J. and et. al., 2017. Oxygenated CdS Buffer Layers Enabling High Open‐Circuit Voltages in
Earth‐Abundant Cu2BaSnS4 Thin‐Film Solar Cells. Advanced Energy Materials. 7(6).
p.1601803.
Hausman, A. and Johnston, W. J., 2014. The role of innovation in driving the economy: Lessons
from the global financial crisis. Journal of Business Research. 67(1). pp.2720-2726.
Ke, W. and et. al., 2016. Employing lead thiocyanate additive to reduce the hysteresis and boost
the fill factor of planar perovskite solar cells. Advanced materials. 28(26). pp.5214-
5221.
Thore, S. A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Yin, W. J., Shi, T. and Yan, Y., 2014. Unique properties of halide perovskites as possible origins
of the superior solar cell performance. Advanced Materials. 26(27). pp.4653-4658.
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