Importance of Innovation and Commercialisation in Magmatic Trunki

This report discusses the importance of innovation and commercialisation in Magmatic Trunki, a brand of carry-on luggage for children. It compares innovation with invention and examines how it can be integrated within leadership and culture. The report also explores the 4P's of innovation, frugal innovation, and the commercial funnel. It highlights the application of new product development process for the commercialisation of innovation and methods to protect intellectual property.

INNOVATION
AND
COMMERCIALISA-
TION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Importance of innovation and compared it with invention as well as examine how it can be
integrated within leadership and culture at Magmatic...........................................................1
TASK 2............................................................................................................................................3
Explain the 4P's of innovation and use of innovation funnel.................................................3
Development in the frugal innovation and how it can be used by the organisation...............4
TASK 3............................................................................................................................................5
Importance of commercial funnel and application of new product development process for
commercialisation of innovation............................................................................................5
Innovation business case........................................................................................................6
TASK 4............................................................................................................................................8
Methods to protect ideas and intellectual property along with advantages and disadvantages.
................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
To make a business growth market trends and analysis is very essential to takes place
changes in an effective and efficient manner. Innovation and commercialisation will facilitates
the growth and development of an organization as well as helps in taking competitive
advantages. This report is based on the Magmatic Trunki, it is a brand of carry-on hand luggage
for children which is designed by the Rob Law. Product of this company becomes well-known
after featuring on the UK television series Dragons Den in 2006. Now owner takes initiate to
launch the Jurni a ride-on suitcase for kids. Under this report discussion about the concepts of
innovation, invention, comparison between both, funnel innovation, frugal innovation, 4p's of
innovations, commercial funnel, new product development as well as methods to protect the
intellectual property.
TASK 1
Importance of innovation and compared it with invention as well as examine how it can be
integrated within leadership and culture at Magmatic.
Innovation refers to the alteration in their existing products and services and creates new
concepts and methods in an effective as well as efficient way. Trunki inventor rolls out new
design of suitcase which is Jurni, it is being released by Law's Bristol based company Magmatic
as a biggest innovation of original Trunki. Recently many changes takes place in the market a
company needs to introduce innovative concept to build long term relations (Aarikka-Stenroos
and Sandberg, 2012).
Importance of innovation
It is essential to make policies and strategies to accomplish the objectives and goals of a
company in an effective manner. Rob Law innovation helps in solving the copycat problem by
introducing Jurni a ride-on suitcase for kids. This will helps in increasing the profits as well as
productivity and a company able to compete with their competitors such as PMS' Hong Kong-
made kiddee case. Also, it enhance the employees knowledge and skills for taking competitive
advantages by using their capabilities and competencies.
Difference between innovation and invention:
Basis Innovation Invention
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Definition It refers to the improvement in the
existing products and services to create
a new device or concept effectively.
It defines as a creation of new
products or process in the market for
the first time.
Concept Practical implementation of new idea is
done and it requires strategic, marketing
and technical skills.
Through the scientific skills idea is
originated and working in theoretical
application.
Importance of innovation in comparison to invention:
With the help of innovation the Magmatic Trunki can gain competitive advantage by
offering better products. Also they can quickly respond to the needs of the customers by
innovating their products. Whereas with invention the company can resolves various issues by
providing such a product that is prepared for the first time such as suitcases of Magmatic Trunki.
Role of vision, leadership culture and teamwork in innovation:
Innovation consists of different sources which help in implementing changes in an
effective and efficient manner. This will happen because of the customer’s demand, variations in
market conditions as well as rivals strategies (Bogers and West, 2012). Rob Law is responsible
for choosing the right kind of policies and makes effective plans after targeting the best source
options.
For effective innovation Trunki shapes its vision, culture, teamwork goals as well as
leadership skills within the environment of company. Vision: The Company have been creating children's luggage for nearly ten years and
become one of the best known family travel brands. This is a fundamental driving force
that can encourage innovation and commercialisation towards the commitments of
relatedness pursuance of sustainable growth and success. Leadership: It is essential for promoting the awareness of innovation within company.
Leadership helps in facilitating the opportunities to team members, helps in developing
supportive and constructive surroundings as well as motivate them by giving rewards. Culture: Favourable culture results in positive performance, it is related to the
willingness of an organization which is required to present the creative ideas and
thoughts of workforce and developing the innovative environment (Chun, 2015).
Magmatic Trunki provides several schemes for their employees to maintain effective
culture such as incentives, motivation, reward, training as well as resources.
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 Teamwork: It is an important element to initiate the innovative concepts because
interaction between team members could generate creative thoughts that can be
influenced the creativity level of an individuals.
TASK 2
Explain the 4P's of innovation and use of innovation funnel.
The owner of Magmatic Trunki, Rob Law planned the alterations and development of
new strategies, policies to innovate in existing products and process (4 P's of Innovation, 2018).
For this mainly 4p's are needs to determine that can be described below: Product innovation: It refers to the alterations in the existing products and services of
Trunki. This company innovate their products by introducing Jurni suitcase by targeting
young travellers and develop innovative features like pop-out pod and seat to rest on. Process innovation: Several processes are used for making products and services unique.
This kind of innovation takes place in the production and supplying procedure of an
organization which will helps in the cost and time reduction by facilitating effective
services. Position innovation: This is related to the means of product related to the customers and
target market instead of functions and structure. This emphasised on the re-positioning its
products in eyes of their potential users as well as re-organise business activities and
functions to attain the organizational goals. Paradigm innovation: This is related to the alteration in existing plans for designing
business policies ion an appropriate manner. It shows the path of operational activities
and ensure the corrective action in future.
Use of innovation funnel:
This is a technique which is used by the Rob Law to identify the innovating plan as a
whole which includes area, policies etc. At a initial stage of innovation several alternatives
comes in mind of owner as well as ideas and opinions. In the funnel all thoughts puts into the
funnel and it compared with other determinants (Cui and Wu, 2016). Through this alternative
return scoured because of resources availability and its uses so, a company needs to consider all
options and choose best factor. With the help of innovation funnel company comes with the
option of Jurni, a ride-on suitcase for kids. It will enable Magmatic Trunki to determine the ideas
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that can serve the needs of the children and for various ideas will be collected and their screening
will be done. The feasible out of all will be considered and will be taken to the developmental
stage by the company where they will collect some feedbacks from the customer before
launching it so that necessary changes can be made. This will enable the Magmatic Trunki in
providing better and satisfactory products to the customers.
Development in the frugal innovation and how it can be used by the organisation
It means to come with new approaches that are less expensive and impacts on the
business policies. The company has to come with the product innovation that is less costly and
more effective. This innovation is based on the company’s products by introducing Jurni suitcase
and target young travellers as well as develops innovative features like pop-out pod and seat to
rest on. This will helps in effective utilization of resources and long term future growth. This
alteration has to taken in order to satisfying the demands of customers and society (Cunningham
and Porter, 2011). It is necessary to identify market situations and then come up with innovative
idea which is efficient and easily available as well as helps in increasing the profits and market
shares.
Developments in frugal innovation: For reducing the complexity with the process of
production it is important for the companies to determine their processes and can focus upon
eliminating various non essential activities. For understanding the development process of frugal
innovation has to be followed which includes:
Find opportunity in adversity: This is related transforming problems into opportunity such as
Magmatic Trunki identify the increasing consciousness of the customer for health of the children
they plan to launch bed sheets from organic fabric.
Do more with less: With this better utilisation of the resources is focussed and Magmatic Trunki
with their limited resources keep on introducing various innovation such as backpacks, water
bottles, lunch boxes etc.
Think and act flexibly: With this the focus must be on the fact that rigid strategies are not used
by the organisation as they have to keep on changing their strategies as per the needs of the
customers.
Keep it simple: Magmatic Trunki focuses upon simple process with the help of which they can
easily introduce their new products with the existing one.
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Include the margin: This suggest that the customers must be made part of the innovation and
the improvement as with the help of this they can offer products are per their needs and wants.
Follow your heart: This step of the process suggests that the management must focus upon
introducing changes as per the customers requirement. Magmatic Trunki passionately focuses
upon the requirement of the improvement in their offerings for their customers.
TASK 3
Importance of commercial funnel and application of new product development process for
commercialisation of innovation.
Magmatic Trunki has various activities at their workplace which has to be performed
after analysing the market conditions. This is necessary to bring strategic changes in their
existing objectives and goals.
Commercial funnel defines as an important technique that helps in achieving the targets
of a company in an appropriate and effective manner as properly utilisation of all resources. This
will helps in determining the success and failure of innovation funnel process (Eesley, Hsu and
Roberts, 2014). Through commercial funnel, all determinants of markets needs to be analysed
with the help of which alteration takes place in an effective and efficient way.
Importance of Commercial funnel:
With the help of this the company can offer better products to the customers that will give
them competitive advantage over others. The commercial funnel enables the firms to introduce
new products that will lead to variety of products to the customers. It can make their customers
loyal as they get a large number of products from the same organisation of the similar nature.
New product development has been introduced in the market for the purpose of
introducing the innovative and new product with high standards and quality. NPD is essential to
used for the Magmatic Trunki while a company launching creative products that will assists to
analyse the market conditions and customers. Through this strategy a company is able to offer
that product which is demanded in the market this will enables them to achieve the high success
and growth in business (Herath, Cranfield and Henson, 2010). This includes some phases to
launch products in an appropriate manner that can be described below:
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 Idea generation: It is the first step of planning and essential to create idea and converts
into actions in a proper and effective way. Rob Law deals with several activities by
initiating a ride-on case suitcase for adults called the Jurni. Idea evaluation: After initiating ideas, a company needs to evaluate them to know that
what should be needed to achieve targets and objectives. At this stage identify the
resources requirements and analyse the best option that is compatible to compete. Concept development: After idea screening plan should be prepare through which the
company is able to perform all activities in an effective manner. This helps in facilitating
framework of functions to launch a new product (Huizingh, 2011). Strategies development: Strategies plays an important role in implementing the changes
because it depends on the market situations. This will assists in formulating unique
policies for taking a competitive advantages and promoting brand image in the market. Examine business situations: After strategies preparation business conditions needs to
be identified such as financial status of a company. This step helps in implementing
alterations in an effective and less expensive manner. Item improvement: To avoid the unlike reviews and possibilities there must be
provisions of customized products. If there is requirements to improve in the quality,
design or shape of the Jurni product of Magmatic Trunki.
 Test advertising: In case of negative outcomes improvements, last stage is to
commercialisation of products after testing it among small group of people.
Innovation business case
Business case: Business case is a document that describes the reasons for undertaking any
project or activity by the organisation. With the help of this better decisions are taken by the
organisation so that they can achieve the intended objectives. Magmatic Trunki need to bring
innovation in their product so that they can ensure their survival along with loyal customer base.
Business case includes the following:
 Executive summary: In this plan, product that the company is planning to launch is
described, along with their target market and various other strategies such as promotional
strategies, sources of funding etc. Apart from this the opportunities for the innovation are
discussed as well as the possibilities of the growth is considered.
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 Background: Trunki came into existence in the year 2006 and became popular after
featuring the products on UK television series Dragons' Den. It is a plan with the help of
which the launch of a new innovative product that is bed sheets for the children with
various characters that is used on their suitcase. Such products will be made of organic
fabric that is good for of the children.
 Need that the innovation will satisfy: with the help of this innovation the company aims
to provide better and comfortable sleeping for the children with better quality of the
fabric used in their bed sheets.
 Opportunity for the innovation: This offers the opportunity to the company for
expanding their business because the concern has been increasing for better health of the
children and due to this the parents will prefers such goods for their children.
 Competitive edge: The company can easily take competitive edge over others as they
have their products already available in the market due to which their brand image is
better. With the help of this they can easily make their products available for the
customers and by making them understand the importance of their products.
 Size and growth possibilities: The launch of the products will facilitate the Magmatic
Trunki in increasing their market share by 10% as people are becoming more conscious
for the health. Due to this the possibility for the growth in more with the company.
 Target market: The target market of the Magmatic Trunki is same as they have for their
suitcases. For instance they have been targeting the parents who are concerned for the
children. Also they target the children who have been using their products as with the
similar cartoon character they can easily be attracted and convinced for the products.
 Strategy: The strategy that they have been focusing upon will be economic pricing
strategy as well as various promotional strategy that can help them in creating awareness
among the customers. They will be advertising their products through television, radio,
print media etc.
 Funding: Various funding options that will be taken into consideration will include bank
loan. For financing this plan the Magmatic Trunki will take medium term loan from the
bank as the interest rate from the bank loan is low in comparison to other borrowing cost
from other sources.
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TASK 4
Methods to protect ideas and intellectual property along with advantages and disadvantages.
There are various tools and methods available in the markets that are used to protect the
rights of their intellectual property and innovative ideas. Intellectual property right is used for
innovated property in order to safe them by coping by others without approval of owner's. There
are several instruments that can be described below: Patent: It is a exclusive right which are granted by the government to an inventor for a
fixed time duration. Patent provides legal rights to exclude others from the marketplace.
It is beneficial because government facilitates monopoly protection to the owner of patent
for up-to the statutory life (Hoque, Chishty and Halloway, 2011). Although, it is
expensive in nature to acquire and describe the technology to the patent offices as well as
attorney. Trademark: It provides explicit protection for logos, brands, slogans and other similar
things which represents most valuable types of intellectual property in the market. No
statuary limitations for the life of trademark is the biggest advantage of trademark as well
as it is inexpensive in nature. Along with this it can possess remarkable volatility
magnitude in the marketplace and popular trademark are at risk of genericide that
happens when public begins to associate a brand with common products of same utility.
Both methods are essential for the Magmatic Trunki for reducing the possibilities of
imitability by their competitors such as PMS' Hong Kong-made kiddee case. After analysing the
concepts, advantages and disadvantages of both methods, patent is more suitable option to
protect the Magmatic Trunki rights of intellectual property and idea of Jurni. This is granted by
the government for a fixed time period so it is more appropriate for changing market scenario.
CONCLUSION
It has been concluded from the above report that innovation and inventions are two
different concepts that are needed in rapidly changing market scenario. So the innovative and
creative changes needed to be implemented in operational activity of an organisation. The 4p's of
innovation is also needed to plan and develop the alterations for increasing the productivity as
well as profitability. Innovation funnel refers to that all ideas puts into that and compared with
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other elements as well as frugal innovation motive is to launch new concepts with less expensive
strategy. Patent and trade mark are used to protect the ideas and intellectual property.
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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.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1).pp.61-75.
Chun, D. and et. al., 2015. Labor union effects on innovation and commercialization
productivity: An integrated propensity score matching and two-stage data envelopment
analysis. Sustainability. 7(5).pp.5120-5138.
Cui, A. S. and Wu, F., 2016. Utilizing customer knowledge in innovation: antecedents and
impact of customer involvement on new product performance. Journal of the academy
of marketing science. 44(4). pp.516-538.
Cunningham, S. W. and Porter, A. L., 2011, July. Bibliometric discovery of innovation and
commercialization pathways in nanotechnology. In Technology Management in the
Energy Smart World (PICMET), 2011 Proceedings of PICMET'11: (pp. 1-11). IEEE.
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.
Herath, D., Cranfield, J. and Henson, S., 2010. Understanding the financing of innovation and
commercialization: the case of the Canadian functional food and nutraceutical sector.
Applied Economics. 42(21).pp.2667-2682.
Hoque, M., Chishty, M. and Halloway, R., 2011. Commercialization and changes in capital
structure in microfinance institutions: An innovation or wrong turn?. Managerial
finance. 37(5).pp.414-425.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1).pp.2-9.
Online
4 P's of Innovation. 2018. [Online]. Available Through: <https://appliedinnovation.com.au/blog-
post/general/the-big-p-in-our-4p-innovation-process>.
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