Innovation and Commercialization: A Comprehensive Analysis

This assignment delves into the critical aspects of innovation and commercialization within the corporate world. It explores the distinction between invention and innovation, highlighting the impact of leadership, vision, teamwork, and organizational culture on these processes. The 4Ps of innovation and the use of the innovation funnel are examined to understand how innovative ideas are shaped and evaluated. The assignment also investigates the importance of the commercial funnel and the new product development process for successful commercialization. Furthermore, it discusses the significance of intellectual property protection and explores various tools like trademarks, copyrights, patents, and trade secrets. The case study of 'Mr Green's healthy juice' is used to illustrate these concepts and provide practical insights into overcoming business challenges.

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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LO1
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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It is imperative for a company to focus on all the above-mentioned factors in order to
achieve desired results. As mentioned in the case study, Health juice should also focus on
the vision, leadership, culture and teamwork to achieve better results (Chesbrough, et al.
2014).
Different sources of innovation and development of culture and innovation in Mr Green’s
healthy juice
There are various sources of innovation which encourage a company for innovation. The key
sources of innovation are:
 The unexpected – As the name indicates this kind of innovation can come with an
unexpected success or failure.
 Incongruities - Incongruities is also important to source which can be responsible for
the innovation.
 Process need- The ineffective process of an organization can affect the performance
of the organization.
 Industry and market structure- The changes in business or market structure can also
make a company adopt the innovation.
 Demographics- The changes occur in demographic factors such as age, income,
education etc.
 Change in meaning, mood and perception- The changes in the perception of the
people encourage a company for innovation
 New knowledge- New knowledge is not just about technology it's about finding a
better way to improve the organizational activities.
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Figure2: Sources of innovation
[Source: Darroch and Miles, 2010]
All these factors can be responsible for bringing the innovation in an organization. Mr
Green’s healthy juice can develop and foster culture and environment of innovation by
developing strategies by considering different factors. It should consider competition as one
of the major factors and should develop the strategies accordingly.
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P3 EXPLANATION OF 4P’S OF INNOVATION AND USE OF INNOVATION
FUNNEL TO EXAMINE AND SHAPE INNOVATIVE IDEA
Innovation mix or 4Ps of innovation model was developed by John Bessant and Joe Tidd. It is
an effective tool that enables a company to identify what is innovation process and how
they can be improved. It helps a company in finding the way in which it can innovate for the
improvement of product, process, position and paradigm (Darroch and Miles, 2010).
Paradigm- paradigm concerns with the changes (sometimes may be radical) in the way of
doing business. Paradigm includes the possible and required changes in the business model
like changing products from offline to the online platform.
Product – It is important for a company to deliver a product which can meet all expectations
of an organization. It is important for a company to implement the required and important
change in the products in order to make them more appealing to the customers.
Process – This element concerns with all the different process of an organization. It includes
different process like supplying, workflow, training and hiring of employees.
Position- The position of a company matters a lot in innovation. It concerns with how
customers or employees see a company or how can be the image of a company can be
improved (Darroch and Miles, 2010).
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Figure3: 4p of innovation
[Source: Wordpress, 2018]
Mr Green’s healthy juice can consider all these factors in order to innovate its products or
services to meet the expectations of the customers.
INNOVATION FUNNEL
Innovation funnel is an important tool which allows a company to enable ideas to be
evaluated for feasibility through a process of gates, filters and rules. The main objective of
innovation funnel is to generate a large volume of the important and relevant data.
Innovation funnel includes different steps which can be adapted to develop an effective
process or product. In the first step the collection of the different ideas in done for the
development of an innovative product (Autio, et al. 2014).The collected or generated ideas
goes through screening. Screening is the process of filtering the different ideas to get the
best idea which can meet the objectives. The final stage of the innovation funnel includes
the launch of the idea in the form of a product or service in the market. In first step ideas
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are generated, in the second step it becomes a rough concept and then it converted into
detailed concept and last it is launched in the market.
Figure4: Innovation funnel
[Source: Bing, 2018]
Innovation funnel is a crucial tool which can be utilized by an organization to generate the
effective innovative ideas which can be converted into the products to meet the need and
expectation of the company. The funnel concept is simple to adopt and that's why it is
becoming one of the most widely used tools for innovation and commercialisation. It is also
beneficial for generating safe ideas that means it helps in avoiding risky ideas (Teece, 2010).
Innovation funnel can be applied Mr Green’s healthy drinks to enhance its sales. The
company can generate different ideas which such as developing different products such as
smoothie, drink, juice etc. company can screen these ideas and can get a more accurate
idea. After screening the different ideas company can generate the most effective
innovative idea. Mr Green's healthy drinks can focus on the different innovative products
such as the combination of juice with ice creams such as banana ice cream or dry fruit juice.
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P4 DEVELOPMENT IN FRUGAL INNOVATION AND EXAMPLE OF ITS USE IN
ORGANISATIONAL CONTEXT
Frugal innovation refers to the process of minimizing the complexity and cost of the
products and services and its production. There are different factors which can be adopted
by an organization to deliver the quality products in a cost-effective manner. It helps in
delivering better quality products by minimizing the utilization of the resources (Basu, et al.
2014).
It includes the removal of the different non-essential features from the products and
services. It helps in lowering down the cost of a product or service.
There are different factors or steps which can be considered by an organization for the
development of frugal innovation. The steps of development of frugal innovation include:
Developing idea - It is important for an organization to develop effective ideas for the
frugal innovation. A company should consider all the different factors to generate the ideas.
Consumer prerequisites- Success of a product and service depends on the extent to which it
meets the expectation of the customers. The product should not only be cost effective but it
should also ensure that it does not compromise with the quality of a product.
Idea selection - A company should the best suitable idea which can meet the need and
demand of the customers. The idea can be selected on the different basis such as cost-
effectiveness, quality, utilization of the resources etc. A company prefer the ideas which can
meet the expectations of the customers in a cost-effective manner.
Identification of the potential barrier – There may be different barriers which can influence
the development of the frugal innovation, therefore, it is crucial for a company to develop
effective strategies to avoid and overcome the different barrier such as poor
communication, unavailability of resources, ineffective planning etc.
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Implementation- The effectiveness of frugal innovation depends on its successful
implementation, therefore, it is imperative for a company to develop effective strategies for
implementing innovation successfully (Knorringa, et al. 2016).
frugal innovation can play an important role in Mr Green's healthy drinks. It can help a
company in delivering better quality products by minimizing the utilization of the resources.
It can also help Mr Green Mr Green’s healthy juice in removing different non-essential
features from the products and services. It helps in lowering down the cost of a product or
service. Mr Green's healthy drinks can lower down its cost by decreasing number of the
employees. For example, it can decrease the number of people who serve customers by
starting self-service. It can also focus on the operations management to reduce its cost. It
can also focus on the development of the effective strategies for overcoming different
barriers.
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LO3
P5 IMPORTANCE OF COMMERCIAL FUNNEL AND APPLICATION OF NEW
PRODUCT DEVELOPMENT PROCESSING FOR COMMERCIALIZATION OF
INNOVATION
The commercial funnel is one of the most effective ways for the development and
implantation of an innovative product or process. Commercial funnel is a tool which helps in
developing innovative ideas and to implement them successfully. It is also helpful in
developing the safe ideas or concepts which can meet the expectations of the customers
(van, et al. 2013).
New product development process refers to a process of conversion of the new idea into a
product. It includes various factors associated with the ideas generation to the launching of
product. Main stages of new product development include idea generation, idea evaluation,
development of the concept, strategic analysis, product development and testing
commercialisation and product launch (Zott and Amit, 2010).
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Figure4: New product development
[Source: Zott and Amit, 2010]
Idea generation- It is considered as the initial stage for the development of a new product.
In this step, an organization develops ideas through different methods like brainstorming.
Idea evaluation- After generation of numerous ideas, it is evaluated by a company on the
basis of different factors. In this several ideas are filtered through different screen in order
to remove the ineffective ideas.
Developing and testing the concept- In this step, an organization convert its ideas into a
concept. Technical feasibility, market potential and product design are considered in this
step.
Strategic analysis – A company conduct the strategic analysis to ensure that business idea is
suitable for business strategic plan.
Product development and testing – In this step a company create a prototype product or
pilot service. It includes testing of the prototype to understand the potential of the original
product to become a successful product.
Market testing- Market testing helps a company in modifying the products or services
according to need and demand of the customers. It also involves deciding the best timing
and an effective process for piloting the products (Hoyer, et al. 2010).
Commercialisation -Commercialisation is an important process of introducing a new
product or service into 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.
In this step a company to finalise the marketing plan which can be effective in enhancing the
sales of the products.
Launch of product- It is final step of new product development process in which a company
makes its products available for the customers (Hoyer, et al. 2010).
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P6 BUILDING AN INNOVATION CASE FOR AN ORGANIZATION INCLUDING
WAYS TO ACCESS FUNDING
There are different resources which are needed for the effective Innovation. It requires
different resources such as financial resources, machinery, human resources and other such
resources. Financial resources are the most important resources which are needed by an
organization to promote the innovation (Autio, et al. 2014).
Health juice needs significant amount to fund it innovation. There are various financial
sources which can fund the innovation of a company like Mr Green’s healthy juice. The key
sources which can be considered by Mr Green’s healthy juice to collect the fund are
government grant, loans, personal fund etc. As the Mr Green’s healthy juice has achieved
significant profit, therefore, it might have enough funds for innovation. The company can
also collect the fund from bank or government. There are numerous merits and demerits of
these sources, therefore, it is important for Mr Green’s healthy juice to consider them to
fund its innovation (Esslinger, 2011).
The business case can be developed for Mr Green’s healthy drinks. Business case can help in
identifying different reasons for innovation and making effective strategies for Mr Green’s
healthy drinks. The reason behind adopting the innovation for Mr Green’s healthy drinks is
the decrease in the sales of the company. There are different factors which should be
considered by Mr Green’s healthy drinks to make effective decisions. The company can
deliver different innovative products such as combination of juice, ice-cream and dry fruits.
It can also focus on making its product more delicious and healthy. products which can The
overall efficiency of business case can be measured by using different techniques such as
test, iterate and improve (Feller, et al. 2011).
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LO4
P7 EVALUATION OF DIFFERENT TOOLS THAT MR GREEN CAN UTILIZE TO
DEVELOP, RETAIN AND PROTECT INTELLECTUAL PROPERTY
It is crucial for an organization to focus on the development, retention and protection of the
knowledge and Intellectual property. Intellectual property refers to intangible creation of
mind. It is important for an organisation to retain or protect their property as it can be
copied by the rival companies which can lead to significant loss (da Silva Lopes, et al. 2010).
There are different tools which can be used by used by a company to protect its knowledge
and intellectual property. These tools are trademarks, copyrights, patents and trade secret.
Patent- Patent is an effective tool to protect the inventions and modifications or
improvement in existing inventions. It allows patent holder to exclude others from selling,
marketing or using the invention. There are three types of patents which includes utility,
design and plant.
Trademark- A trademark is a phrase, symbol, word or design that differentiate the source
of products or service of a company from its competitors. It is helpful in protecting the
goodwill in business. Mr Green’s healthy juice can adopt this tool to protect its symbol and
logo.
Copyright- It is tools which protect the original work of authorship. It protects the works
such as literary work, dramatic work, graphics, sculptural, graphical work etc. It allows
copyright holders to sue an infringer statuary damage.
Trade secret- it includes practice, pattern, design, compilation and information. It helps
company in gaining competitive advantage.
There are different advantages and disadvantages of the all the above-mentioned tools
which should be considered by an organization in order to develop, retain and protect the
intellectual property. The patent is an effective tool to protect the intelligence property still
there are few limitations such as it requires significant time and money. Trademark also
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effective in protecting phrase, symbol, word or design that differentiate the source of
products or service of a company from its competitors. The key demerits of the trademark
are that it requires renewal charges. Copyright protects the protect the works such as
literary work, dramatic work, graphics, sculptural, graphical work etc. One of the main
drawbacks of copyright is that it does not protect fact or concept. Trade secret also does
not protect the patent or trade secret by any other company. Health Juice should consider
all the positive and negative aspects of all these tools in order to protect its intellectual
property in an effective manner (Drahos, 2016).
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CONCLUSION
Innovation and commercialisation play an important role in success of a company,
therefore, a company should emphasis on all the factors associated with it. Invention and
innovation both are two different concepts which are important for the company. Invention
is creation of brand new product whereas innovation is act of making changes to the
existing product or service by applying new idea. There are different factors which shape the
innovation and commercialisation; these factors are vision, leadership, culture and
teamwork. Innovation mix or 4p of innovation is an effective tool that enables a company to
identify what is innovation process and how they can be improved. Frugal innovation refers
to process of minimizing the complexity and cost of the products and services and its
production. Commercial funnel is one of the most effective ways for the development and
implantation of an innovative product or process. There are different tools which can be
used by used by a company to protect its knowledge and intellectual property. These tools
are trademarks, copyrights, patents and trade secret. It may be concluded that a company
should consider all these factors to achieve sustainable development.
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