Innovation and Commercialisation

This report explores the concepts of innovation and commercialisation and their importance in organizations. It discusses the differences between innovation and invention and the significance of innovation in satisfying customer needs and gaining a competitive advantage. The report also examines how organizational vision, leadership, culture, and teamwork can shape innovation and commercialisation. Additionally, it explains the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. The developments in frugal innovation and its application in an organizational context are also discussed.

Innovation
and
Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................5
TASK 2............................................................................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.....................................10
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................12
TASK 4..........................................................................................................................................14
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Innovation is referred a procedures of creating new ideas and developing it in such a way so
that it should be innovative as well as commercialisation effective for organisation. Whereas
commercialisation is define as the method of developing new products or services into a
commerce which formed product availability into competitive market area (Ellwood and Horner,
2020). For this report the undertaken company is London essence which is established in year
1896 and it develops luxurious drinks from the purest flowers across in which not any artificial
ingredients are added. This report covers some topics such as innovation and their significance,
comparison among innovation and invention. Moreover, leadership, culture, organisational
vision and team work may shape innovation and commercialisation, 4P’s of innovation,
developments into frugal innovation, importance of commercial funnel and new product
development application are also described. Apart from this, innovation business case and
various tools which firm may utilise to formed, retain and protect intellectual property are
discussed in this report.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
London Essence is a firm that is established in year 1896 and it facilitates sodas, cocktails,
tonics, essence drinks that are of various flavours into the packages of bottle. This has been
determining that respective company developed a knowledge in creating attractive essences for
prominent perfume house. So, decided to perform innovation into their drinks through adding
different essence such as Avocado beer that will be available at shops.
Innovation is considered as a way of forming, observing and executing ideas as well as
thoughts within product manufacturing or service offerings that develops and build value (Latif
and et. al.,2019). Into current competitive atmosphere, it has been determined that the Innovation
has become the main attention of interest for various large and small firms.
Invention
Invention is considered as the procedures of creating something unique or new that is
helpful in accomplishing the desires if individuals living into society. Also, this have been
analysed that it is a method of among all engineering and produce formation process. It may be
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formation of products, machine and others that aids in accomplishing the overall society
requirements effectively and efficiently.
Difference between innovation and invention
There are differences between innovation as well as invention which are discussed below:
Innovation Invention
Innovation is referred as the methods of
transforming a development into final goods
or services that outcomes into values
development based on which clients pay to
firm.
Invention is considered as effectual creative
ideas that may be pretend able through entity
or individuals. This have been said that the
characteristics of invented ideas required to
be creative as well as should be workable that
may find before performing into public.
In respect to innovation process, this has been
said that marketing knowledge,
This is the process that required proficiency,
financial assistance and understanding.
Example: iphone, LED TV etc. Example: telephone, invention and others.
Importance of innovation
Innovation is very much essential at workplace as it assists in providing boundary in
market identification in simple way. With the assistance of this, they may facilitate standard
quality products to clients as well as also useful to maintain appropriate relation for forming
market place that drives towards high growth (Marx and Hsu, 2020) . Moreover, innovation in
product can create an edge in respect of its growth. Even a small scale for may develop through
leaps and bounds if they are advancing its products based upon the consumers requirements. This
creates more opportunities instead of invention as innovation is more cost and time effective
ways than invention. In invention total new product are developed and in innovation something
things new in its exiting one. In context of London Essence, innovation is important for
increasing enterprises that is primary development sources. Also, it is vital for entity to do
innovation that help in creating innovative goods based targeted people. Thus, importance of
innovation in regards of respective organisation is discussed below:
 Satisfying desires of clients: Currently, various people like to try something new into their
life as they fade up from taking as usual things all the time so they like to have something
new and refreshing in their life. So, London essence focused on fulfilling customer’s
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desires through innovation by introducing Avocado beer. It assists to maximise its
profitability.
 Obtaining competitive advantage: Innovation is helpful in acquiring competitive
advantage by offerings goods or services based upon requirements of people (Megersa,
2020). London Essence may gain competitive advantage through the comparability of
product from marketplace. As it come up with new essence of drinks named as Avocado
flavour beer to obtain competitive advantage in market.
Sources of innovation:
The respective organisation use PESTEL analyses which are as follows:
 Political: As the UK government has some guidelines upon the beverages, and various
drinks. This needs that respective organisation has to be meet the standards facilitated
through EU. So, that they do not has to face any kind of issues from their government
side into product development.
 Economical: The economic condition in UK may affect upon sales of respective firm
because of its prices.
 Social: This factor that affect on respective firm includes modifying customer
preferences, that helped them to become successful because of their natural ingredients.
 Technological: It involves social media links to Respective organisation to their
customers. It assists them to get connected with them in context of considering
feedbacks, reviews and many more.
 Environmental: This factor is essential because of London essence natural ingredients
and its commitment towards sustainability.
 Legal: respective firm follow the legal framework of UK along woth health and safety,
taxation, food safety and other.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
There are many aspects that assist in facilitating high returns and accomplishment of team
work, culture, leadership and vision. All these required in firm in order to achieve goals for its
business development which are described underneath:
 Vision: This has been determined that organisational vision statement is considered as the
most primary driving forces that can enhance innovation and commercialisation effectually.
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This is having been said that through having a vision it become simple for members of team
to do its task for accomplishing it appropriately (Min, Kim And Vonortas, 2020). Currently,
In respect of London Essence, this have been analysed that the vision of firm is” to facilitate
fresh as well as healthy drinks to its clients as they do not include any types of flavoured
sugar.
 Leadership: It is defined as the procedures of guiding and leading individuals, team and
entity for attaining the desired goals. The leaders working in London Essence usages
participative leadership style to develop decisions for their group for making creative
products. This assists respective company to develop products in creative manner. With
assistance of this, profitability as well as sales may be increased by leaders to attracting
various consumers. Moreover it will be also efficient in leading them for developing new
products for company in effectual way.
 Teamwork: This have been determined that there is possibility of interacting with members
that foster innovative ideas and also outcomes into influences person’s creativity level. Also,
it can be stated that sometimes ideas are produced through person instead of its members. In
respect of London Essence, this has been determined that overall innovation procedures are
performed through team members that drive towards innovation successfully. Moreover, in
team all staff are interdependent upon one another sp this is crucial to work in best way so
that respective organisation can attain objectives.
 Culture: This is determined that both innovation and commercialisation will effectually be
increased if firm want to motivate its employees for showing its ideas into improvement of
creative situation. At recent context, the management team of London Essence has to
develop affirmative work culture that aids them to opt innovation and commercialisation
effectively. Moreover, they can also develops diversified culture through recruiting
proficient and experienced individuals from various areas.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
This has been identified that there 4P’s of innovation which is a tools applied through huge
entity that helps them in identifying innovation techniques and also helpful in brining standard
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quality development within organisation. So, London Essence can utilised all these P’s for its
innovation. All 4P’s are discussed below:
Product: It is considered as foremost component of innovation in which innovation is
develops into their existent product which is already used by audiences. A new product are
launched can be formed towards existing goods(Onken and et. al., 2019). It supports London
Essence to introduce its new product through analysing changes into people conceptions before
new product launch.
Process: This includes several steps like plan, hire, train and supply and others. Ideas on
how to enhance many steps can be thought of which will leads towards increasing firm’s profit.
This will aids London Essence for getting appropriate machinery and produce efectuve quality
goods to people.
Position: This is define to where products is targeted at recent period at market segment.
Innovation into position may be conducted and product may be introduced in market segment
where respective product would be think before. So, it will aids London Essence to maximise
profitability.
Paradigm: It is anything that forces an appropriate disruptive change in market area.
Also, this is all about how creative ideas are used in differentiate manner for forming business.
The changes may either negatively and optimistically. Changes could be like creating innovation
in business model and others. It will aids London Essence to manage sustainable level by
continuous changes in its goods for satisfying individuals.
Innovation funnel
It is considered as a process that states a constant stream of ideas that may be recognised
for its viability. Sometimes, this is known as Funnel management procedure which helps entity
and individuals to innovate something in effectual way (Ramljak, 2020). Therefore, for
managing the new product development London ESSENCE utilised innovation funnel which are
discussed below:
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(Source: Innovation Funnel, 2019)
 Investigation: In this stage, London Essence management will accumulate information
that is required for developing essence for Avocado beer so that it will form as per needs.
 Market investigation: At this stage, firm will ascertain its segment for that it required to
introduce new products. By this, it can be helpful in more effectual for determining
specified objectives.
 Delivering products: It is considered as the last step where respective organisation
management will form decision associated for delivering of goods to clients in
appropriate way. Herein, they have to be clear regarding what it required to formed as
well as how to deliver within competitive market.
Benefits and drawbacks of innovation funnel
This has been said that all aspects have its advantage and disadvantage likewise innovation
funnel also have its own pros and cons. So, one of its effective benefit is that it help to obtain
opportunities which is available in market and maintain competitiveness with its competitors
company (Ratten, 2019). On other hand its main drawbacks is that it’s process is time taking and
incurs more cost to firm, this impact whole revenue pessimistically.
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P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is considered as a process of obviating and minimising the cost,
problems and difficulties effectively and efficiently. Basically, it is the method of obviating
unwanted elements among durable goods such as care, phone etc. in order to sell it into
developing country. Moreover, this is designing of new product from various areas will enhance
cost and while selling the product distribution cost also get enhanced (Sanders, 2020). For
example: As London Essence is launching new product that is refreshing Avocado beer into
market so frugal innovation adoption s helpful for them as it assists them to focus upon standard
quality product that are affordable. Also, this minimises additional cost that impact whole
revenue of firm in pessimistic way. Some examples are Tata Nano, Mittocool, GE’s Vscan and
others.
 Tata Nano: It is known as compact city cars which was produced as well as
marketed through Indian automaker. It is inexpensive rear- engine hatchback
planned to appeal towards recent riders of motor cycle as well as scooters.
 Mittocool: This is considered as one of the most earthen cookware firm, it
facilitates earthen cookware online for utilise into kitchen.
 GE’s Vscan: It is the technology or innovative ultra sound machine that is designed
as well as delivered particularly to facilitate an intuitive, simple to use device from
primary health care services.
Apart from this, there are some steps which show that how it is used into organisation:
Hatch aback order to attain results in desire manner. For instance, London Essence
manager has to conduct marketing research so that it can able to understand the market needs.
Screening new ideas: In this step, London Essence have to develop effectual product
planning based on the potential clients needs.
Testing: It is important to test the product which is going to be launched means innovative
product so that London Essence can get affirmative outcomes whether product is appropriate or
not.
Review market place: At the end stage, London Essence have to review that its new product
is fulfilling the client’s needs or not.
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TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation
Commercial funnel is regarded as a cycle that is opted through firm for launching new
product in competitive marketplace. Also, this is defined as procedures that drive audiences to
buy products. In context of London Essence, it provide healthy drinks with natural ingredients
and now it plan to introduce new product that is Avocado Beer which prevent people from
ageing problem. So, while performing this they can gain various benefits some of them are
discussed below:
 Helpful in producing more sales: As through executing commercial funnel plan, London
essence management can able to grab the attention of more people towards refreshing
Avocado Beer which is healthy for them (Scott and et. al., 2020). So, this directly or
indirectly enhances sales.
 Helpful in improving way for business growth: By commercial funnel can develop its
business as they acknowledge people about its product effectively. So, respective
organisation opt commercial funnel to increase its business and profitability as well.
Apart from this, London Essence opt process of new product development for its new
product that is Avocado beer. All steps are discussed below:
Idea Generation: In this, London Essence will produce ideas in order to launch new product such
as Avocado Beer.
Screening: In this, London Essence perform screening process that it want to opt for
introducing new product. So, its management will take continuous suggestion from
stakeholder,clients and others.
Testing the concept: Herein, London Essence will perform evaluation with the help of
SWOT analysis for ascertaining its external and internal factor that exist into competitive market.
Business analytics: Herein, before introducing new product it perform analysis of overall
marketplace which help them to ascertain business growth opportunity.
Marketability test. At this step, London Essence perform test for accumulating accurate as
well as valuable information from market to get knowledge about clients reaction related to its
nw product.
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Product development: In this, London Essence perform market test for formulating new
product based upon consumers demand.
Commercialization: At this last stage, London Essence will opt various promotional
techniques so that it may perform effectual commercial process for attracting new people.
Thus, this helps London Essence to introduce its product effectively and grab the attention
of new customer. Also, it assists them to increase sales and profitability.
AIDAR COMMERCIAL FUNNEL:
Figure 1, AIDAR MODEL
(SOURCE: AIDAR MODEL)
 Awareness: It is the initial step in which firm wants that it brand get noticed through
customers and this means promotion. So, for their new product respective organisation can
use social media as it helps them to create awareness among customers.
 Interest: At this step, firm want that customers have interest in its products. So, respective
firm has to perform some kind of research which helps them to understand its preference in
which they get interested. It is determine that they are interested in trying something new
and refreshing so more number of people may be interested in its new product.
 Desire: At this, respective organisation can become more practices about product paring and
required to develop emotional connection among product brands and clients.
 Action: For new product, they can online shops, respective firm can ultimately be shopping
cart process where customer drives towards conversion.
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 Retention: In this, they create something new so that firm can able to retain their customers
for the longer period. In this, new product Avocado Beer will be helpful.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Business is regarded as document that is opted through organisation for developing new
product or offering new services effectively. Through formulating business administrator can
make appropriate decision that assist them to attain its specified objectives. In context of London
Essence company, it plan to introduce new product named as Avocado Beer for that it make
business that is described below:
Steps Description
Executive Summary For surviving into marketplace all firm required to opt
innovation and commercialisation. In context of London
Essence, it plan to introduce its new product that is Avocado
Beer as it is health friendly and consist only 20 calories into
100 ml quantity.
Objective Its main objective is to become best essence drink firm
across world.
Mission Its mission to introduce new and refreshing Avocado Beer
for gaining more profitability.
Source of innovation Its primary source of innovation is to has large number of
rivals and gain more revenue through accomplishing clients
needs.
Solution Through launching new product respective organisation try
to facilitate solution for society as it helps them to prevent
from the aging.
Target market Its target market is those people who want to prevent
themselves from aging.
Benefits By performing the innovation respective firm, society can get
new beer flavour that is Avocado. This is skin friendly and
prevents them from ageing.
Market development It can opt various strategies such as advertisement,
promotion and others as this help them in accomplishing
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desired objectives.
Monitoring and controlling It have to determine the gap among previous and present
sales that is after introducing new products. As this help
them to know that either sale get maximised or not.
Moreover, there are various sources of funding that London Essence can adopt for
performing its operations related to new product. So, some options are discussed below:
 Venture capital: This is mainly considered as private values financing that are five
through investment particularly for independent ventures. Moreover, this involves high
hazards as proprietors lose control upon operation as well as their offerings are
exchanged through them.
 Bank Loan: This is considered as more safe process of wellsprings of subsidizing. Bank
provide advances to business person and charge interest in respect of that. So, this is
more effective for respective company as it is secured source of funding.
Production schedule:
Figure 2, Production schedule
(Source: Production schedule. 2020)
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TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
An intellectual property right includes various legal rights that are planned with individual
reasons for providing assurance as well as security to manifestations of acumen. Like these rights
are provided to individuals over its psyche advancement. It is ordered into several sub sorts such
as trademark, copyrights and many more just for competitive innovation. All has their own
drawbacks and benefits which can be undertaken through London Essence are discussed below:
Copyrights: This particular right imply to those extraordinary right provided to creator of
innovative task to produce them again (Smith, 2020). This is the mostly for accommodated
restricted period. The main aim of this is to safeguard the first unique articulation associated with
ideas and creative work. Its benefits and drawbacks are :
 Benefit: This main benefit of this is that it protects innovative work from being duplicated
through another entity or person without any authorization. And if anyone tries to
duplicate the task so at that time legal attempt is performed through firm.
 Drawback: The weakness of respective intellectual property right is, it is approved for
inhibited measures of period not for the long duration and also this is very much costly
right.
Patents: This is considered as the important intellectual property right as it provides
assurance to proprietor that obviate another people from using, selling and developing just
duplicate as bringing in respective innovation for longer duration (Vertès, 2020). This is
permitted to developer by this it may able to dispose the possibility which another individual
may use for this work.
 Benefit: The main benefit of respective right is that it prevent another company or
individuals from delivering and develop imitation of similar things without considering
authorisation from creator.
 Drawback: This is a tiresome method as it undertakes 3 to 4 years so as to produce a
patent.
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Trademarks: This is ascertained as the symbols, signs by which an individual may
determine particular firm products from another competitive option. It is a right that usually
distinguish from other one. It may be the logo, design, symbol and others that may not be copied
through another individual.
 Benefits: This will facilitates safety as well as security to goods or services and this also
enable that within marketplace clients can indentify particular products in simple manner
as well as effectually through ascertaining trademark.
 Drawbacks: It main drawbacks is that, it is referred as a weak mark as this may be copied
through another illegal firms that has affect upon firm’s name and reputation.
CONCLUSION
As per the above report, it has been concluded that for an organisation, it is crucial to
perform innovation and commercialisation as this help them to grab the attention of more
consumers, maximise profit and sales. Also, firm’s management required ascertaining their
vision, teamwork, vision and culture as it impacts process of innovation. Moreover, innovation
funnel help to obtain opportunities which is available in market and maintain competitiveness
with its competitors company
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REFERENCES
Books and Journals
Ellwood, P. and Horner, S., 2020. In search of lost time: the temporal construction of innovation
management. R&D Management, 50(3), pp.364-379
Latif, N. and et. al., 2019. Concept to Commercialization–fostering innovation through
university resource
Marx, M. and Hsu, D.H., 2020. Revisiting the Entrepreneurial Commercialization of Academic
Science: Evidence from “Twin” Discoveries.
Megersa, K., 2020. Innovation Value Chains in East and Southern Africa and the Key Gaps
Min, J.W., Kim, Y. And Vonortas, N.S., 2020. Public technology transfer, commercialization
and business growth. European Economic Review, p.103407
Onken, J. and et. al., 2019. Using database linkages to measure innovation, commercialization,
and survival of small businesses. Evaluation and program planning, 77, p.101710.
Ramljak, D., 2020. University as an Engine Transforming Science into Innovation and
Commercialisation
Ratten, V., 2019. Technology Commercialization. In Sports Technology and Innovation (pp. 51-
72). Palgrave Macmillan, Cham
Sanders, M.R., Kirby, J.N., Toumbourou, J.W., Carey, T.A. and Havighurst, S.S., 2020.
Innovation, research integrity, and change: A conflict of interest management framework
for program developers. Australian Psychologist, 55(2), pp.91-101
Scott, C. and et. al., 2020. What is Holding Back Alberta's Precision Health Innovation and
Commercialization EcoSystem. The School of Public Policy Publications, 13.
Smith, D., 2020. The Effects of Federal Research and Development Subsidies on Firm
Commercialization Behavior. Research Policy, 49(7), p.104003.
Vertès, A.A., 2020. Innovation S-Curves in Living Drugs Development and Their
Commercialisation. In Second Generation Cell and Gene-based Therapies (pp. 3-14).
Academic Press.
Online:
AIDAR MODEL. 2020. [Online]. Available through: <https://en.ryte.com/wiki/AIDA>
Production schedule. 2020. [Online]. Available through:
<http://people.brunel.ac.uk/~mastjjb/jeb/or/masprod.html>
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