Innovation and Commercialization: A Comprehensive Guide for Organizations

Innovation and Commercialization
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Table of Contents
Introduction............................................................................................................................................ 3
LO 1....................................................................................................................................................... 4
P1: Explain innovation and determine its importance to organization in comparison with invention..4
P 2: Explain how organizational vision, leadership, culture and teamwork can shape innovation and
commercialization.............................................................................................................................. 5
LO 2....................................................................................................................................................... 7
P 3: Explain the 4P’s of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.......................................................................................................................7
P 4: Explain developments in frugal innovation and provide examples of how it is used in an
organizational context........................................................................................................................ 9
LO 3..................................................................................................................................................... 11
P5. Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation...............................................11
Figure 6: Value Creation Funnel.......................................................................................................11
P6. Build an innovation business case for an organisation, including ways to access funding........13
LO4...................................................................................................................................................... 14
P7. Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge
and intellectual property................................................................................................................... 14
Conclusion........................................................................................................................................... 15
Reference list....................................................................................................................................... 16
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Introduction
The assignment focuses on the gaining understanding on the importance of innovation and
commercialisation in all the organisations producing products and services, in order to achieve
success in the market. Innovations as well as commercialisation are the elements needed by every
firm in the market to maintain their product’s demand and keep sales in check at all times till the
product is being produce is an important element needed. An in depth analysis and description will
be looked into while studying the notion of innovation and commercialisation. There importance to the
organisations producing products and services commercially, along with the features and significance
of them in the market will be highlighted and discussed upon. This assignment contains a given case
study which includes questions and situations that need solutions based on the learning outcomes
mentioned. A critical analysis of all the types and functions of innovation as well the importance of
commercialisation will be covered in this assignment.
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LO 1
P1: Explain innovation and determine its importance to organization in comparison with
invention.
Every business is set up on some vision, principle and targets. Each passing day, the market is
becoming more and more competitive. The vital points in which the business should be shaped are
invention and innovation. Without these two, the business in an organization becomes stagnant
(McKinley et al., 2014). Business expansion is another criterion in which organization should focus
upon to increase the profit margin. Organizations nowadays belong to different sectors such as
technology, research, services and goods production and many more. The vital aspects what the
organization needs to focus up on, is the demand of the consumers. All the services and goods
manufactured by a company should meet the requirements of the customers. An organization first
starts with few principles and rules (Lane, 2016). However, as business expands there is a need for
invention and innovation. Innovation is the backbone of every organizational setup. Every passing
day, new business concepts are getting exploited in many organizations around the world. Innovation
and invention are very different concepts. Making new changes in the invention is known as
innovation. Innovations are done to increase sales and adapt to the concept of commercialization. Mr.
Green owns the company named ‘Healthy Drinks’. The company has entered into the 3 rd year and is
witnessing decrease in their sales. Healthy Drinks manufactures drinks which are water based. Mr.
Green’s organization should manufacture smoothies as it is in present demand. The innovation
should include the incorporation of various flavours in the juices.
Innovation Invention
Innovation are changes that are made to
the existing inventions
Inventions are new ideas and concept with
which an organization initiates
Innovations are incorporated in the middle
of business proceedings
Inventions are decided up on at the
beginning
Innovations are tried and tested and have
a realistic value
Inventions are not verified
Figure 1: Differences between Innovation and Invention
(Source: Shubik, 2016)
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