Innovation and Commercialization

This document discusses the importance of innovation in comparison with invention and how vision, culture, teamwork, and leadership shape innovation. It also explores the 4Ps of innovation and the use of the innovation funnel. Additionally, it discusses the development of frugal innovation and its application in an organization. Lastly, it highlights the significance of the commercial funnel and the application of new product development for innovation.

INNOVATION AND
COMMERCIALIZATION

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Innovation and its importance in comparison with invention.............................................................3
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation...........................5
TASK 2.......................................................................................................................................................6
P3 4Ps of innovation and use of innovation funnel..................................................................................6
P4 Development of frugal innovation and its use in an organization.......................................................7
TASK 3.......................................................................................................................................................8
P5 Significance of commercial funnel and application of new products development for innovation.....8
P6 Innovation business case for an enterprise..........................................................................................9
TASK 4.....................................................................................................................................................10
P7 Tools used to develop, retain and protect knowledge and intellectual property................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
The process of developing a new or fresh idea that can add value to the existing or latest
products is not an easy task. Therefore, commodities that are manufactured be reliable, cost
effective and must satisfy the needs and demands of customers (Anderson, Potočnik. and Zhou,
2014). Thus, innovation is a deliberate effort of an individual in context with imagination,
collecting information so that quality products can be delivered to consumers. Mr. John Watches
is a small company that runs its business in United Kingdom and it is growing rapidly and
sustaining a better position in market area. The report throws light on some of the points that are
mentioned in this assignment like innovation and its importance to organization in comparison
with invention. Use of organizational vision, leadership, culture and teamwork for shaping
innovation and commercialization has been mentioned. Apart from this, 4Ps of innovation with
the use of innovation funnel has been explained in this report. Development of frugal innovation
with the help of example is included in this assignment and lastly, various tools and technologies
for developing and retain the intellectual property are involved.
TASK 1
P1 Innovation and its importance in comparison with invention
Innovation is a process that is used in order to add value into their products so that they can
fulfill all the needs and demands of customers in an effective manner. Innovation helps an
organization in obtaining a better position in the market area by applying different strategies and
plans that can satisfy consumers. Therefore, Mr. John Watches has added numerous features in
their products and for this the concepts that have been applied are given below:
Raise efficiency level of company: This is an essential part of the innovation as it shows the
state of company. It enables an organization in providing excellent services and facilities at a
reasonable price. This makes the product more reliable and cost effective, other than this it saves
time as well. Therefore, it enhances overall productivity and enhances the brand image of the
product Boons, Lüdeke-Freund, 2013).
Sustain effective communication process: While implementing any innovative concept it is
important that a proper communication is maintained amongst employees and superiors. This
will help seniors to guide their workers in an effective manner. Through a proper communication
company can reduces the chances of misunderstandings which can act as a barrier in the whole
process of innovation.
Helps in effective utilization of resources: For having a best quality product it is essential
that company make an optimum use of all the resources that are available to them. It will help
company in making the product more reliable for customers. Thus, for making their product
unique Mr. John Watches are using various assets that can assist them in giving better outcomes
(Brynjolfsson and McAfee, 2012).

Give profit to business organization: Innovative and new products always help the
organisation in attracting maximum number of customers towards their organisation. Therefore,
by launching new products or re-launching the existing products by making some alterations
always aid the organisation in having competitive advancement (Cross, 2011). By providing
appropriate services and facilities to customers Mr. John Watches is earning maximum benefits
and as a result an increase in its growth rate can be seen.
Therefore, innovation and invention both differ from each other in some context and these
are mentioned below so that it can be understood in an effective manner:
Basis Innovation Invention
Meaning Innovation is a thought that is
used to make the product more
reliable and are used for
adding value in their existing
products. Thus, for this
company make certain changes
are required for an effective
growth.
Invention happens abruptly
and it occurs for the first time.
All the activities performed
under this are not been
attempted.
Concept Concept of implementing this
approach is to add more value
to the commodity so that it can
increase the sales and
profitability.
Inventions are done for a better
cause so that citizens can enjoy
the services and facilities.
Therefore, in this a new
product is manufactured.
Required skills For developing a new
innovative product it is not that
a person must be properly
skilled, just need some of the
required skills and knowledge
and information that will be
helpful in innovating fresh
commodity.
For invention it is necessary
that an individual must have
proper knowledge about the
background. Other than this, a
person must be very sound in
scientific knowledge.
Activities For getting an effective result As mentioned in the above

the activities are split in
various departments who are
capable of performing their
task very well.
point for invention excellent
skilled person is required, as
the task is performed within
limited department because for
this it is required that
confidentiality is maintained.
P2. The way vision, culture, teamwork and leadership of enterprise shape innovation
Innovation is a wider concept to understand because it involves certain elements which
can have an impact on business operations whether internally or externally. Vision, leadership,
culture and teamwork always help a company in attaining their targets in specific time period.
Therefore, before introducing any product it is important that new strategies are formed that can
give effective results (De la Mothe and Paquet, 2012).
Leadership and innovation: For gaining a better position it is important that employees get
better guidance form leaders. Thus, leaders must give freedom to workers so that they can think
freely about the ideas through which they can achieve better results.
Organizational culture and innovation: Maintaining a perfect balance between various
cultures is crucial in order to have a healthy environment at work place. This will help the
employees in working and sharing a mutual understanding amongst each other.
Innovation and teamwork: Implementation of innovation will only be possible if a company
have an effective team who can perform the activity so as to achieve the targets and goals in
specific time period. For this, it is essential that a proper two conversation is done between
employees and superiors. In context with Mr. John Watches, company is using effective tools for
communicating with each other.
Vision and innovation: To set a future goal is important this will delineate the future targets
which company wants to achieve. This will enable them in increasing their level of productivity.
Therefore, vision of Mr. John Watches is to give better service and facilities to consumers so that
company can sustain their loyalty for a longer period of time.
Hence, all the factors that are mentioned above are considered by Mr. John Watches and as a
result they are growing day by day in forward direction. With this their brand image, market
value and shares are also increasing (Gennaioli, Shleifer and Vishny, 2012).

TASK 2
P3 4Ps of innovation and use of innovation funnel
4Ps of innovation model was formulated by two renowned personalities named John
Bessant and Joe Tidd, they developed this model in order to analyze the process of innovation
this help an organization or an individual to build a hypothesis and based on that they can make
alteration and positive changes so as to get maximum profits. Below all the 4 P’s are explained
so as to understand it in a better manner (Gunday, G. and et. al., 2011).
Product innovation: Under this, changes for making improvement are done so that better
services can be provided to end users. Therefore, to make an effective commodity it is necessary
that all the resources whether tangible or intangible must be utilized in a better manner so that
effective product can be made.
Process innovation: Making a new and innovative item is not so an easy as it has to go
through a process as recent time is rapidly changing and for company it is impossible to give
positive impact. Therefore, from first step of manufacturing till the last step is considered in this
like designing, technical resources, assembling the parts and many more in order to execute the
final product (Gunday, G. and et. al., 2011)
Positioning innovation: This is the third step in which a product is launched after making
some alterations so that it can be repositioned in the market area. Therefore, it refers to changes
in order to know how the products are perceived by the customers. Mr. John Watches is trying to
make some changes in their watches in context with looks and designing so that they can attract
more and more customers towards them.
Paradigm innovation: It is the last P and not an easy task to understand. Success every
innovative idea is not possible every time, it is important that some or the other modification is
doe in the product. This will enable the organization in seeking attention of maximum number of
customers towards their company (Jiménez-Jiménez, and Valle, R., 2011).
Use of innovation funnel in shaping Innovation
Innovation funnel constitute certain steps that help the organization in developing its
product through an appropriate process. Thus, the main aim of innovation funnel is to create a
commodity that can be according to the needs and want of consumers. Therefore, initial step of
innovation funnel, company tries to collect more and more information and knowledge which
they can determine for developing a quality product (Kleinknecht). This is done through various
mediums like competitors, researches, colleges, university etc., in the second step i.e. narrowing
segment information which was gathered are analyzed so that it can be evaluated whether they
are related or not. In the final step which is narrow segment, organization ensures that the
innovative thought is implemented and excellent quality products are delivered to customers.

Therefore, Mr. John Watches, have implemented all the steps of 4Ps of innovation and
innovation funnel as well so that they can sustain the loyalty of customers by giving them
superior quality products. Although it is simple to adopt but sometimes this may discourage
creative ideas because it required to be tested before implemented (Lundvall, and et. al., 2011).
P4 Development of frugal innovation and its use in an organization
Frugal innovation considers as an important activity in which company make new products and
services to its customers. Basically the main aim of this is to bring down the products cost and at
the same time maintain its quality in effective manner. This will aid in inviting as well as
attracting larger number of customers towards the company product and services (Manso, 2011).
Along with this, the main benefit of frugal innovation is to enhance their overall performance
level because it provides various opportunities to company to increase their market share. In
context of Mr. John Watches, they also offer their quality products to middle class customers
which may leads in attaining better success at market place. In this, company also cut down the
overall cost and maintain their products quality in appropriate manner. In this context, there are
some following principles which help in effectively understanding the concept of frugal
innovation are as follows:
Determine opportunity in adversity: It is one of the important principles of frugal innovation
in which researcher is responsible for investigate all the issues and problems. With the help of
this, they try to convert all the treats into opportunities in order to resolve issues effectively.
Do more with less: This type of principle is important for researcher to put their positive and
strong efforts in whole research. With the help of this they can easily find better solution in
appropriate way (Metcalfe and Miles, 2012).
Think and act flexible: Under this, it is important for problem solver to think flexible at the
time of finding solution of the problems which leads in attaining positive outcomes in most
effective manner.
Keep it simple and attractive: It is an effective method which used by manager as well as
problem solver in which they should be determining the simple and appropriate solution of the
problems. With the help of this company save time and cost as well. Along with this, it directly
contributes in enhancing the performance level of the company at market place.
Include the margin: It is more effective principle in which company focus on their
customers and their issues. This will help in attaining better results and at the same time also
helps in determining right and appropriate solution of the problems.
Follow your heart: Under this principle, manager as well as workers should be focus on their
work to attain positive outcomes (West and Bogers, 2014).

TASK 3
P5 Significance of commercial funnel and application of new products development for
innovation
Commercial funnel is a thought that is utilized by most of the organization with a reason
of identifying paths from which company can gain maximum profits in order to sustain in the
market for longer period of time. Therefore, for converting this into reality, firm make lot of
plans and strategies so as to apply them for attaining success. In this, commercial funnel plays a
crucial role and help the organization in choosing an idea that will give them in generating
revenues and profits (Anderson, Potočnik. and Zhou, 2014). Henceforth, the main of
implementing this concept is to increase the sales and profit for an organization. Some of the
steps are mentioned below so that it can be understood in a better way:
In the first step basically firm tries to identify the thoughts or ideas that they can
implement for gaining maximum profits. This involves some of the elements that are essential
for developing a product for example: conversion rate, deciding the cost process, proper
implementation of plan and strategies and many more. Therefore, Mr. John Watches is making
innovative and fresh ideas in order to implement them in their products for achieving maximum
benefits.
Process of new product development
Manufacturing a fresh product can be difficult process as it takes a long process and
undergoes certain steps that are mentioned below:
Idea generation: While making a commodity there is a possibility that many ideas come
up in the mind. Thus, it is the first step from where the thought of producing a unique product
generates. For this all the knowledge and information are gathered through which an innovative
commodity can be developed. Therefore, all the needs and wants of customers are considered in
this step (Boons, Lüdeke-Freund, 2013).
Idea Screening: A detailed analysis is done under this step so that a right plan for making
a perfect product can be implemented. Mr. John Watches for making new strategies they are
taking help of experts and experienced person who can guide them in giving best results that will
be very helpful for future proceedings and actions.
Concept development: Under this, thought that was generated are converted into the final
report so that it can be pen down on a paper. Further company can use it in order to make it into
reality. For this, organization uses various new tools and technologies by which they can
manufacture best quality products.
Development of strategies: To implement the idea into actuality firm makes lot of plans
and strategies for this, managers and superiors help them out in doing so. Thus, managers play an

important role in enhancing the image of company in front of customers (Brynjolfsson and
McAfee, 2012.
Examine business conditions: Before implementing any product it is necessary to
evaluate the market area so that organization can sustain in the market for a longer period of
time. As a result it will gradually enhance the sales and productivity along with this, an increase
in brand image of firm can be seen.
Product development: Under this stage all the resources that will be used are considered
and finalized in order to manufacture the product as per the needs and wants of customers so that
consumers can be satisfied.
Test Marketing: in order to check the dependability of the product it is important to
know the nature of the environment where the product will be sold.
Commercialization: It is the final step which is used so as to promote the commodity in
order to make it available to every person by providing the related information. For this, many
companies uses different strategies, tools and technologies so as to increase the sales of the at
huge level. Other than this, organization utilizes various medium like newspapers, social media,
online, internet and many more (Cross, 2011).
P6 Innovation business case for an enterprise
Innovation helps an organisation in increasing the performance level so that they can give
better services and facilities to consumers. In relation with Mr. John Watches, company is a
small business enterprise and manufacture products for all the sections of the society. This is
helping them in creating a strong customer’s base as a result increase in the sales and
productivity can be seen. Below business case of Mr. John Watches is mentioned for better
understanding:
Executive summary: Mr. John Watches is a small business firm and operate its business at
local areas. They are giving excellent services and it is providing them maximum advantages.
Objectives: The main objective of this company is to manufacture watches for the people of
every section so that they can afford it (De la Mothe and Paquet, 2012).
Solution: For sustaining a better position in the market organisation is making certain
changes in context with its looks and designing. Along with this they are manufacturing products
as per the needs and wants or customers.
Why products are innovative: As the firm has make some alterations and added new and
innovative features that is why it is innovative. Other than this, with respect to safety company
has added alarm features and for health conscious people also they have made some changes.

Customer’s research: Before launching the product it is important to set a target audience from
whom company can get maximum benefits. Therefore, to win the loyalty organisation is
producing goods as per their choices (Gawer, 2011).
Funding: Making changes on a regular basis is not an easy task as it requires a lot on money.
Thus, to manufacture the product firm is taking loans from banks as well as stakeholders who
can invest their money for achieving success.
Expected benefits: Company is planning to get maximum profits so that their performance
level can be increased. Attaining a better profitability is the biggest concern for Mr. John
Watches.
TASK 4
P7 Tools used to develop, retain and protect knowledge and intellectual property
Although Mr. John Watches is a reputed company in United Kingdom and deals in giving
services and facilities related watches. For optimizing a large market share they are making
innovative and new changes for manufacturing unique products. For example: they are making
alterations in their designs along with this, company is making watches for health freak who can
track their regular daily activities (Gennaioli, Shleifer and Vishny, 2012). It is important that
company know some of the basic laws and legislation in order to protect themselves from illegal
and fraud activities. Some of them are given below:
Trademark: This kind of element is used by any organization so that they can make their
product unique from other this will help them in making a separate image of themselves in front
of customers through this consumer can easily identify the brand. Under this, companies use
various signs and symbols to make the commodity or brand different from others. Thus, it can be
easily seen in gift vouchers, offer or discount coupons and many more.
Copyright: This is formulated by governmental bodies so as to safeguard the product and
provides power to the manufacturer. This enables them in sustaining the authenticity of the
commodity. The biggest drawback of this is that it only protects the thought but not the process
which will be used for further proceedings (Gunday, G. and et. al., 2011).
Patent: It is a collaboration of certain exclusive rights that are formulated by the
regulatory bodies. This is sustained only for the limited period of time and help the creator to
claim the orders that was helpful for the innovation that is done. Therefore, it assists an
organization to safeguards the product from being copied. This can last for only 20 years and
cannot be further exceeded.

CONCLUSION
From the above report it can be concluded that innovation and commercialization of the
product is very helpful in order to increase the sales and productivity of the company. For this,
organization uses various tools and technologies that are as per the new market scenario. Other
than this, to remain in the competition with rival companies they make strategies and plans
which enable them in giving tough fight to competitors. Innovation helps an organization to
make new changes in the product so that they can re-launch them and win loyalty of customers.

REFERENCES
Books and Journals
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
Management. 40(5). pp.1297-1333.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Brynjolfsson, E. and McAfee, A., 2012. Race against the machine: How the digital revolution is
accelerating innovation, driving productivity, and irreversibly transforming employment
and the economy. Brynjolfsson and McAfee.
Cross, J., 2011. Informal learning: Rediscovering the natural pathways that inspire innovation
and performance. John Wiley & Sons.
De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol. 14).
Springer Science & Business Media.
Gawer, A. ed., 2011. Platforms, markets and innovation. Edward Elgar Publishing.
Gennaioli, N., Shleifer, A. and Vishny, R., 2012. Neglected risks, financial innovation, and
financial fragility. Journal of Financial Economics. 104(3). pp.452-468.
Gunday, G. and et. al., 2011. Effects of innovation types on firm performance. International
Journal of production economics. 133(2). pp.662-676.
Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation, organizational learning, and
performance. Journal of business research. 64(4). pp.408-417.
Kleinknecht, A., 2016. Innovation patterns in crisis and prosperity: Schumpeter’s long cycle
reconsidered. Springer.
Lundvall, B. Å. And et. al., 2011. Handbook of innovation systems and developing countries:
building domestic capabilities in a global setting. Edward Elgar Publishing.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Metcalfe, J. S. and Miles, I. eds., 2012. Innovation systems in the service economy: measurement
and case study analysis (Vol. 18). Springer Science & Business Media.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management. 31(4). pp.814-831.