Innovation and Commercialisation

This report explores the importance of innovation and commercialisation in organizations. It discusses the definition of innovation and its significance compared to invention. It also examines how organizational vision, leadership, culture, and teamwork can shape innovation and commercialisation. The report further explains the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. Additionally, it explores the concept of frugal innovation and provides examples of its application in an organizational context.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION......................................................................................................................4
MAIN BODY.............................................................................................................................4
TASK1.......................................................................................................................................4
P1 Explain innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................4
P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.........................................................................................5
M1 Analyse different sources of innovation, and how organisations can foster and develop
an environment and culture of innovation.............................................................................6
TASK2.......................................................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.....................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context............................................................................................................9
M2 Analyse and apply the innovation funnel in an organisational context.........................10
M3 Appraise the role of frugal innovation in an organisational context.............................10
D1 Critically Analyse how innovation is developed embedded and measured in an
organisational context..........................................................................................................10
TASK3.....................................................................................................................................11
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation................................11
P6 Build an Innovation Business Case for an organisation, including ways to access
funding.................................................................................................................................12
M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve...............13
TASK4.....................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................13
M5 Present supported evidence-based evaluation of these different tools in the context of
the wider business environment...........................................................................................14
D2 Critically Evaluate the nature of innovation and the context in which it is developed,
providing evidence-based judgements on how organisations can overcome challenges to
develop successful innovations............................................................................................14
CONCLUSION........................................................................................................................14

REFERENCES.........................................................................................................................15
Books and journals...............................................................................................................15

INTRODUCTION
Innovation can be defined as a function of business which is related to developing or
improving product or service in order to increase the satisfaction level of customer within the
market (Ahmadi and O'Cass, 2016). This report is based on case study of F-drones. It is
organisation which is performing in transaction drones to enable aerial deliveries to ship and
offshore platforms. Organisation is providing innovative product which combines a unique
design which will have a combination of heavy payload and long-range capacity which will
help organisation twin competing with competitors. The co-founder of organisation is
Nicholas YAG and YASHVARDHAN Reddy. Current study is based on innovation where
the report includes explanation about innovation and importance in organisation. This will
also include vision leadership culture 4ps of innovation, discussion about frugal innovation
application of innovation funnel. Importance of commercial funnel and its application will
also be discussed. Along with this, different sources of funding and different tools that
organisations can use to develop intellectual property and knowledge will also be discussed.
MAIN BODY
TASK1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation: - Innovation can be defined as a term which is used to introduce a new
product or carrying out a combination of new and existing product which is related to
attracting the customer by improvising the product or services in order to satisfy the needs
and requirements within the market.
Importance of innovation
Creativity development: Innovation is directly linked to increasing the creativity
within an organisation. This can be seen from the example F-drones, here are organisation is
achieving and leading to creativity because of using innovative ideas which also bring
number of new innovative ideas with the firm analysing the market and implementing the
product within the market (Amponsah and Adams, 2017).

Continuous improvement: One of major importance of innovation within the
organisation is that it helps in continuous improvement within the products and services. In
context of this, F-drones make continuous improvements in re packaging and branding of
their product where it can attract customers by effective advertisements of new and
innovative product.
Respond to competitors and trends: Innovation always create trend with the
industry because it helps in detecting the customers by use of new and innovative idea. This
can be seen from the example of f thrones, education is using high capacity drones which can
deliver and transfer goods and services from one place to another for ships. This directly
attributed the competitors in the market and helps the organisation in making its separate
image by starting and trend of drone.
Invention: Invention can be defined as unique or noble device method composition or
a process which is related to engineering a new product within the market by the use of new
and different technology and process.
Importance of invention
Help in production of new goods and services: Invention is directly related to
producing something new which is completely different from the existing product and never
seen before. It is directly related to invent new and completely different systems which are
helpful in attracting customers and satisfying their requirements.
Acquiring a new source of raw: Invention is necessary to acquire the new source of
raw material and use the sources for or increasing their productivity and their utilisation in
the current environment (Azarmi, 2016).
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Role of organisation vision in innovation and commercialization
Vision of F-drones is to build aviation grade drones that would set high safety and
reliability standards where organisation is aiming to be the leader of heavy payload drones
logistic across industry. This vision of organisation support toward the growth and innovation
in organisation where organisation can easily develop and design its goals and objectives
related to Innovation and will use innovative ideas to achieve its objectives and vision.

Leadership in shaping Innovation and commercialization
Leadership can be defined as an act of a leader which is related to leading the people
in the direction of goals and objectives of the firm. In context of F drones, leader within the
organisation are using approaches which are related to leading the employees by the use of
transformational leadership and democratic leadership (Beaudry, Héroux-Vaillancourt and
Rietsch, 2016). These tiles are helpful in achieving the objectives by increasing the
participation of employees in innovation and commercialization of products where they can
suggest innovative ideas to improvise the products and services of the organisation.
Transformational leadership help in adopting changes within the management system and
increasing the participation of different individuals where they will change the existing rules
according to the new and innovative projects.
Teamwork in shaping Innovation and commercialization
Teamwork is a best essence of organisation which enables organisations to implement
innovative ideas in appropriate way. In context of F-drones, it can be seen that managers are
using appropriate strategies which are helpful in creating a team working spirit within the
firm. Help in increasing the participation of individuals and bringing new and innovative
ideas to perform various tasks. Teamwork is helpful in increasing the knowledge and
empowering the employees within the organisation as they can work according to the
performance level of different individual and manage the work in a coordinator way which
enable them to achieve better results. This will boost their productivity and profitability as
well as they can work in an appropriate manner.
Culture
Culture also plays an important role in addition to Innovation and commercialization
within the firm. This is because, culture healthy organisation increasing the commitment of
employees toward innovation. In context of F-drones, organisation is using number of
functions which are helpful in increasing the motivation and adoption of changes. Maintain
the working culture and improve the chances of innovation in firm (Boretti, 2020).
M1 Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation
There are 7 types of sources according to Peter F. Drucker which are impactful in
attaining innovation within the organisation. These are discussed below:

 Unexpected: It includes that kind of innovation which is related to surprise and not
expected by the management within the organisation.
 Incongruities: Under this type of innovation all those customer reviews feedbacks
and complaints are included to invade the product and appropriate way.
 Process needs: This is a major source of innovation where firm to be more focus on
task rather than situation. Under this, sources of a positive for innovation come true
looking closely at the process of organisation.
 Industrial market structure change: Changes within the industry and market
structure also raise the need of innovation and actors and factor for bringing
innovation in organisation.
 Demographic: Demographic situation of the area also affect the organisation and act
as a change maker which bring innovation.
 Changes in perception: Changes in perception of customer also act as a way to
proceed to the world and bring innovation.
 New knowledge: This is also act as a system which brings innovation within the
organisation way technologies scientific breakthroughs are the main reason behind
bringing innovation
It can be analysed that left rule is operating in an appropriate system where company can use
appropriate Innovation and can use to develop the environment according to the requirement
which helped it in improving its functioning.
TASK2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
4p's of innovation

Figure 1 4p’s of innovation
Paradigm innovation: This kind of innovation can be defined as an shifting of an
underlining metal model through a change. It includes complete series of change which is
bringing by a single brand for example launching of I-phone or changes bring by henry ford
in their car models. It is a chain of innovation which continues with continuous changes
(Dincer, 2017).
Process innovation: It includes focuses around the changes in operational processes
that is related to internal environment of company. This will directly impact on the efficiency
and profitability of business as there are a number of tools which has to be used in relation to
bring innovation like flow process chart and various others.
Position innovation: It can be defined as that kind of innovation which is about
reposting taking a product or services offered in new market with some new changes.
Position innovation is useful for f drones where organisation can easily position its product as
well as improve their profitability by working for a particular system.
Product innovation: Product innovation is a most common thought where
organisation follow innovation in fact of their products where it try to change the products or
improve them to serve our customers with better satisfaction level (Kergroach, Meissner and
Vonortas, 2018). Product innovation is also important under f thrones where organisation can
utilise the products according to the requirement as well as bring effectiveness within the
products which help in attracting customer and retaining the customer within the market
where it the organisation is trading

In context of F-drones, organisation can use paradigm innovation in relation to
supporting its functioning and improving the concept of innovation in firm.
Innovation funnel: Innovation funnel can be defined as a mechanism which is related to
enabling a constant stream of ideas that can be used for viability. This is a tool which is
helpful for the organisation to innovate and manage process of innovation.
Figure 2 Innovation Funnel
Focus on wide mouth of funnel: This act as a first step within innovation funnel
where the organisation increased its knowledge and information base. Under this it is a stage
to collect as many as ideas possible in order to manage Innovation and identify these system
to produce an innovative product.
The narrow segment of funnel: This is the second stage in the innovation process
where the idea of the company which are generated in the first tape or go through a screening.
The screening process involved matching the ideas with the goals of the organisation and
choosing an appropriate function (Mattila, 2017).
The narrow segment of funnel: This is the last stage to accompany ensure that the
idea selected will be deliver on the company's objectives and will help you learn anticipating
from the beginning to the end. This is helpful in improving new products and services that
releasing the market at the current stage.

It can be evaluated from the above mentioned information that innovation funnel is an
useful function for organisation which involved number of stages which start from Idea
generation, criteria formulation, testing and identification and impact of external environment
on the functioning of an innovative idea. This is useful for organisation to bring appropriate
system and perform their activities in an appropriate way to achieve the objective.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation: Frugal innovation of frugal engineering can be defined as a
process which is related to reducing the complexity and the cost of goods and services which
are produced under a proper process. it usually reflect the thing which is related to removing
the non-essential feature from the goods making them useful and selling in developing
countries. In context of f drones, organisation can also use the concept of rural innovation in
order to achieve its objectives in the market where it is trading. Frugal innovation is helpful
to the firm in managing the profit margins and improving its productivity in developing
countries.
For instance, if drone is using a high capacity drones which are helpful in transporting
goods from one place to another in relation to cargo ships. Under this, organisation can use to
develop its drones to meet the objectives of cargo ships transporting heavy goods and
services in order to reduce the burden. It can also use to invade these products in supplying
food items and other things staff working in these ships (Mattila, Yrjölä and Lehtimäki,
2019).
M2 Analyse and apply the innovation funnel in an organisational context
In context of F-drones, it can use innovation funnel to achieve its objectives related to
innovation. At the beginning of this system it has to focus on wider mouth where organisation
can identify different plan in relation to developing its drones. After that, it can use the
narrow segment of funnel where it has to create an innovative passes by choosing a particular
method which is suitable for developing the drones. Along with this, organisation has to
ensure a selected idea where it can perform effectively by improving the products and
services.
M3 Appraise the role of frugal innovation in an organisational context
Frugal innovation is important part of the organisation as it helps in achieving the
goals and objectives in the current period. It can be evaluated that if drone can use frugal

innovation which will help in achieving a better profitability. This is also helpful to the form
in increasing its business in developing countries by reducing the cost and providing
innovative product to eliminate the market competition.
D1 Critically Analyse how innovation is developed embedded and measured in an
organisational context.
Innovation act as an essential part of the organisation where in development of
innovation organisation can use four p's of innovation which are paradigm innovation,
process innovation, position Innovation and product innovation. Organisation can also use
innovation funnel which is helpful in developing and measuring innovation in the firm. In
last, it can conclude that organisation has to use frugal Innovation as a main source of
innovation to achieve better profitability and increase its production in the current system.
TASK3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation
Commercial funnel: Commercial funnel is a marketing term for a journey potential
customer who is related to the process of sales and purchase of goods and services. It
includes the steps of sales funnel which are usually known as top middle and bottom of the
funnel (Naughton, and Foss, 2019).
Importance of commercial funnel
It helps in making a marketing strategy: Using a commercial funnel is helpful to
the organisation in identifying appropriate marketing strategy which can be followed to
market the products and services of the firm in the current market situation.
Help in creating customer: Commercial funnel is useful in creating a new customer
base their organisation can select appropriate action and use it in order to achieve the
objectives. This is helpful in improving the functions in achieving the goals and objectives in
a timely way.
Provide ways to improve business Innovation: Accommodation funnel is also
useful in improving the business model where it helps in managing success of different

operations and using these operations in a continuous way so that firm can improve its
strategy and manage the feedbacks of different departments (Özilgen, 2019).
Application of new product development process
 Idea generation: Under this type of this process this reflects the generation of idea in
relation to innovation within the product and service.
 Idea screening: This type of this process involves screening of idea which are
generated in the previous step in order to identify appropriate functional idea.
 Concept development and testing: This stage involves a product idea for the
possible product where the product concept and detailed version of the idea in relation
to meaningful customers will be analysed (Polzin, von Flotow and Klerkx, 2016).
 Making strategy development: Under this strategy has to be developed in relation to
execution of the idea where the description of target market plant value proposition
sales and Etc. are discussed.
 Business analysis: Under the stage current environment of the business will be
scanned in order to implement the product within the market.
 Product development: It is a 6th stage on the dis process wear a new product will be
developed according to the market situation and business analysis of industry to
implement it within the market.
 Test marketing: Under this stage, products tested within the market by the use of
sample distribution and identifying the competitors and many other tools and
techniques which are used to test the market.
 Commercialization: This is the last stage where after performing the test marketing
the given product will be commercialized within the market by giving a brief
introduction of a new product in the market and managing its function.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
In context of F-drones, organisation is using innovation in relation to its business for
performing its operation within the market where it is operating. The mission vision and
objectives of the organisation are mentioned below:
Mission: To build the world first transition drone to enable Arial deliveries to ship and
offshore platforms.

Vision: To provide heavy payload and long range capacity drones in relation to existing
delivery drones.
Objectives: To be the leader of heavy payload drones logistic across industry in 5 year.
Market research: appropriate market research is conducted under the system where
drone can easily corporate it functions and achieve the business objectives in an appropriate
way so that form can achieve its function and manage profitability in an appropriate way.
Financial analysis: original analysis can be defined as a system which is used by all
financial requirements within the project will stop at is evaluated that this system
organisation required and equator amount of finance.
Target market: the major target market of organisation is related to the technological
sakta where the demand of heavy-duty drones increasing continuously as well as help in
providing solutions to the logistic problems.
In relation to this business objectives missions admission organisation require
appropriate funding to perform its functions. Some of these funding methods which can be
used organisation are discussed below:
Bootstrapping: It is effective system which can be used by the organisation to start it
business where organisation can use to invest its own saving of family friends and their
contribution. It is the cheapest method of self-funding which provide number of advantages
to the organisation (Ramljak, 2020).
Crowd funding: Crowd funding can also be used by F-drones in which company has
to build popularity in local. Your organisation can use this method to achieve its goals and
objectives attracting individuals in large number to invest in the organisation.
Venture capital: Venture capital is also a method which can be used by the
organisation in relation to attracting the investment. In this concept, organisation can use to
issue equity shares which are helpful and attractive method to attract investors for the
investment in organisation.

M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve.
In context of innovation case of f drones, organisation is going to increase the payload
of drones so that it can use them in transportation system of cargo ships. Under this business
case organisation has to use innovative ideas to using appropriate techniques for increasing,
testing and improving its functioning. Here, organization’s to use effective steps which can
lead to management of resources identification of appropriate fund by using appropriate
funding technique.
TASK4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
Intellectual property: Intellectual property can be categorised as a property that
include different intangible assets and creations of human intelligence. In context of business
case, intellectual property can be defined as area which is known as function to improve its
ability.
Tools to save intellectual property rights
Copyright: A copyright can be defined as a function which gives the creator of
organisational work exclusive right to use it for a limited time. Copyright can be used to wide
range of creativity intellectual property artistic form and work where different individual
cannot cover the idea and information of the producer of new and innovative product
(Rietsch, Beaudry and Héroux-Vaillancourt, 2016).
Strength: The major strength of copyright is that it help the organisation in saving its
interest by providing security to the products and services offered by Organisation in context
of innovation by helping them to retain it.
Disadvantage: The major disadvantage of copyright is that there for fixed period
where organisation is the treatment cost in order to renew it.
Patent: It is also form of tool which is used to save intellectual property rights of an
individual. A patent is a form of write gained by a government to an inventor for its

successful title which it invented. This restricts other individual to make, use, sale and copy
the invention of individual in a legal way.
Strength: helpful to the organisation in saving the intellectual property rights by
gaining the right on those systems which are innervated by organisation.
Disadvantage:Major disadvantage of it is that therefore limited period and
Organisation is has to implement huge cost in order to achieve these objectives
Trade mark: A trademark is a recognisable sign symbol design and expression which
is distinguishes the products and services offered by the organisation for a particular trade in
a simple process. This helps the organisation making it different from the other competitors
in order to gain separate image within the market (Seclen and Barrutia, 2018).
Strength: provide separate identity to the organisation as it provide a logon facility
which can be used by the organisation to be present to bride within the market.
Disadvantage: this act as a disadvantage for the organisation as there are a number of
functions with wide and must be manage in order to achieve the objective which act
negatively or organisation.
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment
In context of present business situation of F-drones, it can be seen that the most
suitable source to save the intellectual property rights are copyright to the organisation
because it help the company in managing its products. Patent is also an effective intellectual
property right which has to be used by the organisation in order to take patent of its drones to
save their technology from being copied by its competitors.
D2 Critically Evaluate the nature of innovation and the context in which it is developed,
providing evidence-based judgements on how organisations can overcome challenges to
develop successful innovations
Innovation is wide in nature where organisation can use it in every concept to improve
its profitability and productivity by managing the successful events. Here, organisation can
focus on developing appropriate system so that it can improve its working culture and
innovation. Company can easily deal with different challenges which are faced while
developing innovative system and organisation. These are related to cultural differences,

changing attitudes of individuals, lack of training and development and many others. it is a
liability of a manager to manage these functions and achieve the objectives in appropriate and
Ireland.
CONCLUSION
It can be concluded from the above mentioned information that there are various
functions which is to be performed by the manager in order to achieve the objectives and gain
proper working strategy. Innovation is useful to maintain a business image within the market.
For this organisation can use 4 p's of innovation and various other functions to maintain
innovation. Frugal innovation is also essential in order to deal with developing economy
where company can use commercial funnel to improve his strategies.

REFERENCES
Books and journals
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Exploration and Exploitation for Commercialisation. International Journal of
Innovation Management, 21(03), p.1750027.
Azarmi, D., 2016. Factors affecting technology innovation and its commercialisation in firms.
Beaudry, C., Héroux-Vaillancourt, M. and Rietsch, C., 2016. Validation of a web mining
technique to measure innovation in high technology Canadian industries. In CARMA
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Analytics (pp. 1-25).
Boretti, A., 2020. COVID-19 effect on the research-innovation-commercialisation
phenomena. International Journal of Research, Innovation and
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Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation, 1(1),
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Kergroach, S., Meissner, D. and Vonortas, N.S., 2018. Technology transfer and
commercialisation by universities and PRIs: benchmarking OECD country policy
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Mattila, M., 2017. Coping with friction during technology commercialisation. IMP Journal.
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commercialisation: a business model perspective. International Journal of
Entrepreneurship and Innovation Management, 23(5), pp.479-495.

Naughton, B. and Foss, L., 2019. Responsible innovation and commercialisation in the
university context: a case study of an academic entrepreneur in digital healthcare.
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Özilgen, M., 2019. Role of innovation in commercialisation of bioenergy
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Commercialisation, 2(2), pp.77-90.
Polzin, F., von Flotow, P. and Klerkx, L., 2016. Addressing barriers to eco-innovation:
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Ramljak, D., 2020. University as an Engine Transforming Science into Innovation and
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