Innovation and Commercialization: A Comprehensive Analysis

INNOVATION AND
COMMERCIALIZATION
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INTRODUCTION
In modern scenario, Innovation and commercial are the crucial elements which should be
considered to make significant growth in corporate world. Innovation is process of
converting a new idea into valuable product or service for an organization that can meet the
expectation of the customers. It plays an important role in the success of an organization.
Commercial is an important process of introducing a new product or service into market
(Abdul Razak, et al. 2014). This assignment is an attempt to understand the different
features of Innovation and commercialization in corporate world. It demonstrates the
difference innovation and invention as well impact of leadership, vision, teamwork and
culture on innovation and commercialization. 4P’s of innovation and use of innovation
funnel to inspect the shape of innovative ideas is also explained. The process required to
commercial innovation is also elaborated in this work. It further covers the tools that can be
used to develop, protect and retain the knowledge and intellectual property.
The case study of ‘Mr Green’s healthy juice’ is adapted in this work to understand the
concept of innovation and commercialization. Mr Daniel Green founded Health Juice
Company which achieved significant growth in its initial two years. As the company entered
in the third year it faced the significant decrease in sale. This work is an attempt to
understand the ways which can be adopted to resolve this business problem.
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P1 INNOVATION AND ITS IMPORTANCE TO ORGANIZATIONS IN
COMPARISON WITH INVENTION
Innovation refers to a process of translating a new idea into a product or service that crate
values or for which customers pay An innovative idea must be replicable at an economic
cost and must meet a particular need or demand of the customers. Innovation involves the
application of imagination, information and initiative in order to make a valuable product
(Kline and Rosenberg, 2010).
The invention is another important element which should be considered by an organization
as it plays an important role in the corporate world. The invention may be defined as the
creation of product or device for the first time. Invention and innovation both are two
different concepts which are important for the company. Invention is the creation of brand
new product whereas innovation is an act of making changes to the existing product or
service by applying new idea (Young and Harper, 2016).
Invention- Invention is a new idea for a good or service which has never done before. It is
the development of new product. It requires scientific skills and it is concerned with a single
product or process. It is limited to R&D department only.
Innovation - Innovation is a process of converting a new idea into valuable product or
service for an organization that can meet the expectation of the customers. It is adding
value to existing product or process. It requires set of technical, marketing and strategic
skills. It concerns with the combination of the different products and services. It is not
limited just to R&D, it spread across the company.
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Figure1: Difference between invention and innovation
[Source: Young and Harper, 2016)
Both invention and Innovation are crucial for the progress of an organization. A company
invent the new products which can meet the need and demand of the customers.
Innovation is a crucial process which concerns with the improvement of the existing product
or service in order to meet expectations of the customers. It helps an organization in
delivering the desired product or service to customers in a cost-effective manner. It helps a
company in responding effectively to different changes which can influence the business
operations. It helps in meeting the changing needs and demand of the customers as well as
in making pace with the emerging market trends. It is imperative for an organization to
focus on the invention as well as innovation to achieve a significant and sustainable growth
(Abdul Razak, et al. 2014).
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P2 ORGANIZATIONAL VISION, LEADERSHIP, CULTURE AND TEAMWORK
SHAPE INNOVATION AND COMMERCIALISATION
Commercialisation is an important process of introducing a new product or service into the
market. It is imperative for an organization to focus on the commercialisation so that
product can be accessed by the customers in an efficient manner. There are different factors
which shape the innovation and commercialisation. There are different factors which shape
the innovation and commercialisation; these factors are vision, leadership, culture and
teamwork (Loya and Rawani, 2016).
Vision- the vision of an organization reflects significantly on the innovation and
commercialisation. A company develops a vision and operate its business accordingly. As
mentioned in the case study, the vision of Mr Green’s healthy juice is to provide to deliver
the quality juice to customers.
Leadership- Leadership possesses a significant impact on the innovation and
commercialization. It is the responsibility of a leader to motivate its team members or
employees to deliver their best performance in order to achieve better and desired results.
A leader can adopt different leadership styles such as participative leadership style
(Johnston and Marshall, 2016).
Culture – Organizational culture also shapes the innovation and commercialisation.
Organizational culture is underlying beliefs, values, assumptions and ways of communication
that contribute to unique social and psychological environment of a company. It is
important for an organization to develop a culture which promotes innovation and
commercialisation.
Teamwork- effective Innovation and commercialisation require teamwork of the different
department of an organization. It is important for employees to belong to different
educational, cultural or social background to work as a team to achieve the same objective.
Each and every employee need to perform their best in order to achieve the better result
from innovation and commercialisation.
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