Innovation and Commercialization

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