Innovation and Commercialization

This report explores the concepts of innovation and commercialization in organizations, focusing on Softwire Company in the UK. It discusses the importance of innovation compared to invention, the role of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. It also covers the 4 P's of innovation, frugal innovation, commercial funnel, and new product development. Additionally, it provides insights on building an innovation business case and accessing funding for innovation projects.

INNOVATION AND
COMMERCIALIZATION

Illustration Index
Illustration 1: Innovation Mix- 4 P's of Innovation Process............................................................7
Illustration 2: Frugal Innovation......................................................................................................8
Illustration 3: Commercial Funnel.................................................................................................10
Illustration 4: New Product Development (NPD)..........................................................................12
Illustration 5: Business Case..........................................................................................................14

INTRODUCTION
In today’s competitive world, it is very important for the organization to continuously
innovate both their products and processes delivered to their customers in order to stay in
market. Innovation is an idea which can help to develop or implement an invention in their goods
and services which will increase their value and customers in the target sector. It can be used as a
tool for their growth and development. Being innovative in business will help the organization to
adapt changes which are currently existing in their target market.
This report will focus on the innovation and commercialization concepts of Softwire
Company which is operating in UK. It will also discuss about various topics, such as innovation
and commercialization, its importance in the organization, 4 P's of innovation and use of
innovation funnel to understand and shape innovative ideas for company. It will also explain
frugal innovation and importance of New Product Development (NPD) processing for the
commercialization of innovation in Softwire Company. It will also evaluate the tools which can
be beneficial for organization to develop and protect knowledge and intellectual property.
LO 1
P1. Innovation and its importance to organizations in comparison to invention
Innovation is a process which is used to bring new ideas by changing or modifying the
existing products of the organization. For any business, implementing new and innovative ideas
can help them in creating unique products and services for their customers or help in improving
their existing services in the market. It can be used as a tool which promotes the growth and
success of business. Innovation can be concluded as changing business model of company and
adapting new changes in environment to deliver good products and services to their clients. An
effective innovation should be a part of the business strategy in the organization. It can help to
enhance the likelihood of business succeeding (Chun and et.al., 2015).
Whereas, invention is a process which is used to create or develop a new process for first
time in organization. Invention is a type of process which is used to bring something fresh in the
industry, while innovation may be new to industry or an organization, but it may not be new to
industry. Invention is a type of practical approach. On the other hand, innovation is a modern
idea which can be applied to the present situation of organization. Invention helps to bring
innovation in company and ensures its growth in the industry. Softwire is a software company
which delivers services related to software engineering, digital design solutions, etc. brands

which is operating in UK. It is based in London and are led by co-founders Pete Kenny, Phil
Marsden and Dan Shavick. It was established in the year 2000 and today, it has grown to
approximately 130 employees currently working in it. Softwire’s main aim is to create the best
possible environment to produce better software services and deliver unmatched customer
satisfaction for them. Innovation for the organization plays an important role for their overall
increase in the sales and productivity. Organization has high demand of the product so they have
to make changes in their existing services for their betterment (Berry and Berry, 2018).
P2. Organizational vision, leadership, culture and teamwork shape innovation and
commercialization
Commercialization is a process which is used to produce a new product or service by the
organization in market for their customers. This process can be divided into various phases like
from the initial introduction of service through its mass production and adoption. As a strategy,
commercialization requires developing a marketing plan, determining the way that service will
be supplied in the market and evaluate their barriers to its success.
Having a clear vision is very important for organization to become successful in the
business. A clear and focused vision as well as leadership is very important in cultivating
innovation in company. It is crucial for Softwire to work effectively and deliver the best services
to their customers. It will also help them to set an objective or goal for them to achieve in the
future which can increase their sales and production in market. A good leadership quality
manages to control the work culture in organization and makes sure that every employee is doing
work effectively and correctly. It will also help to increase the efficiency of Softwire among their
customers. A smart leader will help to define the kind of innovation required for firm that can
help to drive their growth and help them to meet the strategic objectives for company. It will set
a performance matrix and target for innovation for the employees to achieve their targeted
objectives. Working under a good leadership will enhance their team work to be more
progressive (Christensen, Raynor and McDonald, 2016).
Teamwork can turn the ideas into products and services. It is very important for company
to provide a positive work culture for their employees to make them engaged in their work. This
will result in better production of their services. A good and effective team can help company to
increase their commercialization in the market.

LO 2
P3. The 4 P's of innovation and the importance of innovation funnel method
4 P's is a model which helps to understand the innovation process and can help
organization to improve and bring innovation to their business. By implementing this innovation
mix in the organization, it will help Softwire to enhance their services in each respective area of
their business. It will help to evaluate the place, company needs a change or improvement in
their system and the areas where they can implement innovation (Drucker, 2014). 4 P's of
innovation mix includes Product, Position, Process and Paradigm, which are explained as below:
Product Innovation Process Innovation
In this process, Softwire redesigns its existing
services in the market to increase its
importance for their clients. It will also help
them to bring changes in their services which
they are providing to customers. Implementing
this process will help company to bring
innovative changes in their system which can
help them to attract more customers.
This is the process which is used to evaluate
whole process in which their services are being
delivered to their customers in market. It will
help Softwire to improve their processing
system in management as it will provide them
opportunities to deliver services in the best
way possible.
Position Innovation Paradigm Innovation
This process can be defined as a change in the
perception of their customers by bringing
innovation in their existing services or process
in specific manner in order to increase the
brand name in market.
In this innovation method, Softwire will bring
a change in their whole process or services
which are being operated in the system which
they think require a change. Introducing a
completely new service in the target sector will
help them to increase their popularity among
customers. This will also ensure that they are
getting good revenue at the end through this
innovation (Duncan and Elkan, 2015).

 Importance of Frugal Innovation in Softwire : Many companies now-a-days
implement the frugal innovation funnel into their system to evaluate their new product
development (NPD) process in the organization. The basic idea behind this model is to
identify the best ideas and then shape that idea into action. This can be a great tool for the
organization to bring change.
P4 Frugal innovation development and it's used in Softwire Company
Frugal Innovation : It is a process which helps businesses to react to their limitations in
resources and convert these into an innovative ideas and practical solutions for the organization.
The main aim of this process is to develop an entirely a new products and services that is
according to markets’ special needs and requirements. This process can decrease the complexity
and cost of goods and its production in the market. A successful frugal innovations not only
works in the low cost, but it also helps to out perform the alternative, and can be made available
Illustration 1: Innovation Mix- 4 P's of Innovation Process
Source : (The 4Ps of innovation space, 2016)

at a large scale (Winterhalter and et.al., 2014). There are various advantages of frugal innovation
to emphasize on the good quality solutions that can be accessible and affordably made with,
 It helps in designing thinking of the product or service level in the company,
 It also helps to develop new ways to produce product with better design,
 Frugal Innovation helps to develop new and modern technologies which can help to
deliver low cost solution,
 It can create innovative business models to make solutions accessible, etc
Importance of frugal innovation in Softwire company : In United Kingdom, software
industry is the most emerging and innovating industry. Consumers wants the companies to offer
them services which has quality and value as well as have a sense of purpose and social mission.
Organization must therefore figure out on how they can do better with less rather than do more
with less. Softwire company should also implement frugal innovation into their system to
improve their services delivered to their customers in the market (Finch, 2016).
LO 3
P5 Importance of Commercial funnel and New Product Development (NPD)
Commercial funnel also known as sales funnel is a complete method which refers to the
process of buying a service of the company by the customers which helps the companies lead
through. There are basically 4 factors in commercial funnel, which is described below,
Illustration 2: Frugal Innovation
Source : (Frugal Innovation for Sustainable Growth and Development,2017)

Awareness
This is the top most stage in the commercial funnel process.
This stage brings in a lot of people in its realm. This stage
includes the feedback's coming from their customers for the
organization. In this step, clients starts to analyze the coming
issues in the company, and starts to find a solution to that
issue. Softwire can use various methods to aware their
customers about their services, such as, social media,
marketing offline, campaigning, and through other
promotional events.
Interest
This process helps the organization to understand their
customers more in terms of their needs and preferences from
their services. In this stage, production of services is
increased in the company. This is generally happens when
the customer starts to communicate with the organization and
request them for some more information and ask queries
related to their services provided to them. This helps the
organization to increase interest about their organization and
its products (Schaper and et.al., 2014).
Decision
This is the most crucial step in the commercial funnel. When
the customers gets all the related information about the
organization and its services, they start to make decisions
which can be beneficial for the organization as well. Decision
can include sales offers provided to their customers, new
products to be introduced in the market, etc. All this is done
by doing an effective marketing of their services.
Action
This is the last step in the commercial funnel where the
customer finally decides whether to buy company's services
or not. This can affect the organization a lot in terms of sales
production.

 Importance of Commercial Funnel : There is a great importance of this funnel in the
organization as it helps to use multiple marketing channels to attract customers to buy
their services. It also helps to analyze the effectiveness of Softwire's marketing
campaigns and strategies.
Commercialization of Innovation :
For the commercialization of innovation in the company, New Product Development
(NPD) and commercial funnel is used to drive new products to market. This has to be achieved
by the Softwire company due the rapid change in the trends and in consumer preferences. The
most important reason this NPD process is the increasing competition in the market and
advances in technology for new opportunity. This process is not limited to their existing services
in the business but introduce new services as well in the market. New Product Development
process can be achieved by following steps,
 Bringing services which the organization has never made or sold before but have been
taken by their competitors.
Illustration 3: Commercial Funnel
Source : (What is a conversion funnel, 2016)

 Product innovations created and brought to the market for the first time as it will be a
unique service which is provided by them only in the market. It can be a completely new
products, or they can modify their existing products.
There is a huge advantage of NPD process for the doing innovation in the services provided by
the organization, such as,
1. New value for customers : It is the reason why NPD is important to provide new value
for the customers. This will give them a reason to buy their products and services.
2. Improved society : This will help them to improve their products as well. Because as the
society's thinking is changing, the preferences is also affected, which brings innovation
into process (Shibin and et.al., 2018).
3. Continued existence of the company : For any company to become successful in their
target market, new products and services are the backbone. Without these factors they
cannot work properly. This will give a negative impact on their customers. So, its very
important for the organization to continuously bring change into their products and
services.
Illustration 4: New Product Development (NPD)
Source : (8 Steps of New Product Development, 2018)

P6 Building an Innovation Business Case for an organisation, including ways to access funding
The Business Case is a type of document that helps to take decision related to the
organization to start a new project. An effective business plan should contain all the required
information necessary for the business for decision making process. These business plans help
the organization to understand about the factors like, what, why, how, when, where, and how
much, etc.
There are various steps which has to be follow by the company very carefully, such as,
 Executive summary : This is the initial step in the business plan for the organization. It
includes all the information related to the company which will be helpful in making an
effective plan.
 The problem statement : This method helps to identify the present issue existing in the
company and has to be addressed by them.
 Analysis of the situation : In this step, they provide details of the problem which is
identified by them and analyzed thoroughly to get the solution. (Business case, 2018).
 Options : In this section, company will identify all the available options to solve the issue
effectively.
 Cost-benefit analysis : This section will help to evaluate the costs and benefits for each
option which includes the solution of the issues.
 Project proposal : This section helps the company to give all the respective information
about the solution. It will also provide details of project's scope and its possible results
and helps to estimate required resources.
Funding Sources for the Organization : Softwire company can opt for various
resources available in the environment. There are 2 ways to fund in the business,
1. Self Investment : This is the easiest way to invest in the business. In this method the
owner of the organization invest its own saving into the business.
2. Bank Loans : Softwire's can also choose for bank loans to accomplish their objective
mentioned in the business plan (Winterhalter and et.al., 2017).

LO 4
P7 Evaluating the different tools to protect knowledge and intellectual property of Organization
Intellectual Property (IP) is a process which is used to protect the ideas and creation of
the person. Intellectual property rights or IPR is a type of right which is used to give IP owner
an authority to decide whether they want their idea to be shared with someone or not. There are
different types of Intellectual property which can be used by the organization, such as,
1. Trademarks : Trademark sign is used to distinguish or differentiate the goods and
services of the enterprises with each other. This helps to build their own unique identity
in the industry. It is a very old tradition in which they put their signature or mark on their
service.
2. Copyrights : Copyrights is a legal term or aspect which is used to protect the original
work of the owner for the organization. It helps to describe their right on the work or
Illustra
tion 5: Business Case
Source : (How to Build a Business Case for Project Management,
2018)

activity which they have done personally. Different types of works which is included in
this are, books or reports, music, paintings or art, sculpture and films, to computer
programs, databases, advertisements, etc (Intellectual Property Protection, 2018).
3. Patents : A patent provides the owner to have property rights on their innovation, which
allows them to exclude others from making, selling, or using the invention. It gives the
right to the owner to decide whether the invention can be used by others or not. If he
grants the permission he will make the technical information to displayed publicly on the
document. So there no mis use of the invention by the user. Basically there are three
types of patents available in the market, i.e., utility, design and plant.
4. Design rights : These are those rights which the owner of that particular design owns. No
other person can use that design for its personal use (What is Intellectual Property?,
2015).
CONCLUSION
From the above report it can be understood that implementing innovation in the services
and their commercialization plays a very important role for the increase in their growth in the
market. Innovation helps Softwire company to bring innovative and unique changes in their
existing services which can help them to attract more customers and build a strong community.
By analyzing the importance of frugal innovation, commercial funnel and new product
development process helps the organization to provide the best service to their clients in the
target market. This report also helps in understanding the importance and advantages of an
effective business plan for the organization which can be used to plan strategies. Different types
of intellectual property, for example, copyrights, trademarks, etc. are useful for the Softwire to
protect their services and it also discusses about different tools which the company can use to
develop and protect their intellectual property.

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