Innovation and Commercialisation: Analysis, Impact, and Frugal Innovation

This report explores the concepts of innovation and commercialisation, analyzing the impact of internal activities on innovation, and discussing the use of innovation funnel and frugal innovation. It also examines different sources of innovation and the importance of protecting intellectual property. The case study focuses on F-drone, an innovative company based in Singapore.

INNOVATION AND
COMMERCIALISATION
DRIVE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1- Innovation and Invention......................................................................................................3
M1: Analysis of different sources of innovation.........................................................................5
P2- Impact of company's internal activities on innovation and commercialisation....................5
LO2..................................................................................................................................................6
P3- 4p's of innovation and use of innovation funnel ..................................................................6
M2- Analysis and application of innovation funnel....................................................................7
P4- Developments in frugal innovation ......................................................................................7
M3-Role of frugal innovation-....................................................................................................8
LO3..................................................................................................................................................9
P5- Importance of commercial funnel and new product development .......................................9
P6- Business case and ways to access funding .........................................................................10
M4-Sources of funding .............................................................................................................11
LO4................................................................................................................................................11
P7- Different tools to protect Intellectual property....................................................................11
M5- Different tools in wider organisational context ................................................................12
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation refers to the process of carrying out new things and combinations that refers
to introducing new production methods, new goods, opening of new market ,the conquest of
new supply sources or can be carrying out new organisation in new industry. It is more effective
and something more origina , as a consequences, brand-new thing that breaks into the society or
market place. Commercialisation refers to the process of getting a new production method or
product into the emerging market and making it available in the same . It refers to the term that
often enotes entry into mass market. F- drone is innovative company based out of Singapore
building first transition drone to which enables offshore platforms and aerial deliveries where it
is building high grade aviation drones that would set reliability standards and high safety .
Present report will assess to context of innovation and determine points of difference between
innovtion & invention, explain different innovations types , processes required to innovation that
is commercialise, and will evaluate various methods to protect ideas and understand there
disadvantages and advantages.
MAIN BODY
LO1
P1- Innovation and Invention
Innovation-
Innovation is the process by which new products or methods are introduced in a pre-
existing product due to which its working capabilities can be increased. This is used by
organizations like F-drone by which it is able to improve the quality and working process of its

products according to its requirements (Aydin, 2018). Organizations like F-drone implement
innovation in its products because through this it can provide customization options to is
customers as per their requirements which will increase their engagement in organizational
activities.
Invention-
Invention is the process of creating something new such that the developed product is
able to fulfil the organizational requirements. Through this innovation organizations like F-drone
gets a competitive edge in the market because they are providing products which rare and at the
same time capable of fulfilling requirements. Due to this company can implement pricing as per
its requirements like premium pricing in which products are priced high such that high profit
margin can be achieved.
Importance of innovation in organization in comparison with invention-
Innovation is the process of creating something new from the scratch such that developed
product is able to fulfil customer requirements. While innovation is the process of using of good
quality of an existing product and adding some new feature in it such that its working can be
customized as per the requirements.
Innovation Invention
Additional features are added in pre-existing
products such that its working can be increased
as per requirements.
Completely new product is developed on the
basis of requirements due to which every
process has to be done from scratch including
product design.
Specific new features are added due to which
product development time is comparatively.
Product is developed from the scratch due to
which it is comparatively time-consuming
process.
Low expenditures can be seen in this because
company only has to pay for additional
features and not for complete product.
High price can be seen in this stage because
every thing has to be done from scratch
including product design and requirement
analysis.
High customer engagement because customers
are already aware of products working
The developed product is completely new for
company and for customers due to which they

procedure and only has to learn about new
features.
have to understand the process of utilizing
product from scratch.
Low profit margin can be achieved in this
because lack of rarity.
High profit margin can be achieved in this
because product is having high rarity.
M1: Analysis of different sources of innovation
Following are the different sources which motivate for implementing innovation.
Unexpected
Organization has to evaluate other market sectors through which it can increase its
engagement and other sector, which will enable it to increase its market share.
Incongruity
In this type of innovation organization evaluate its current position and compare it with
the expected position, through this company can develop working strategy for achieving its goals
(Day, 2019).
P2- Impact of company's internal activities on innovation and commercialisation
Organizational vision plays a important role in deciding the future position of the
organization because through this vision company is able to showcase the future position which
company has to achieve in order to become successful. Thus in case of F-drones company
provide the requirement in term achieving its business objectives, this requirement will motivate
organization to improve its performance such that it is able to attract wide range of customers.
Therefore in order to achieve this company has to provide new and trendy products through
which customers can be attracted towards the organization through proper commercialization
(Tahir. and et.al).Organization like F-drone have to make sure that they are able to motivate their
employee's in such a way that they are motivated for learning new skills which will provide
company a high level of competitive edge which make a positive impact on company's
performance.
Organizational leadership is responsible for motivating employee such that they are able
to collaborate their efforts in achieving their goals and in order to achieve this leadership
behaviour plays an important role. Leadership behaviour is the type of leadership style which is
used by leaders to communicate with employees by which their working can be increased.
Through this leadership style leaders tend to increase employee's engagement in organizational
activities due to which their creativity is also increased.Innovation is something which is

deeloped in such a way that it is able to improve the working capabilities of the existing product
and thus leadership has to motivate employees in such a way that they are able to implement
effectively on ground level.
Organizational teams are developed by organization like F-drone in order to improve
their goals achieving capabilities this is important because through this they are able to solve
organizational problem (Grafström and Lindman, 2017). Therefore effective teamwork also
plays a important role in deciding the level of innovation which has to be implemented into a
product such that their working can be improved. Since organizational teams are made in order
to solve a issue or to develop a product required to improve the working capabilities of
organization. Thus through this effective team work organizational teams can effectively
implement the type of innovation which is required by product in order to become successful in
market.In organizational teams each team member is having a speciality of its own and by
effective communication and group discussion on the requirements teams will be able to
implement innovation such that the final product is improved.
Thus it can be evaluated that innovation in product is not dependent only on one factor
but instead it is dependent on more than one factors. In which company's vision will motivate it
to improvise its working such that it is able to achieve a better performance in front of its
customer's. For which it will improvise its working strategies such that employee's creativity and
goal achieving capabilities can be increased, this will result in improvement in company's
performance (Powell, 2017). Therefore it can be analysed that vision will motivate F-drone to
improve its performance and the organizational culture, leadership style and other factors will
empower employees to implement these changes on the ground level.
LO2
P3- Use of innovation funnel & 4p's of innovation
Innovation four P's are
Product - It is the first and foremost thing that comes in mind when it is being refered about
innovation and conveys the alteration in things such as services and products of F- drones which
it offers for sale. It is the most common thought of innovation category as when something is
being talk about it relates with the product. It encompasses development and innovation of
new goods and services which can be found commonly,for example Amazon echo range is

a successful example of innovation that is product based that has changed the way many
people interact with services that are digital in nature
Process- it refers to the changes in way the things are delivered and created. Process innovation
is being focused around changes in operational processes and is often internal to the
company. It can greatly impact profitability and efficiency of business where there are
number of tools and frameworks to assess and stimulate this type of innovation flow
process chart and various others where good examples of it is redeveloping ways where
business handles the support to improve its customer service.
Position- it is the change in terms in which services and goods are introduced or in in other
words where the end of the offering such as products and services lies and lays down what is the
story being told about it (Fernandes, Brandão, 2016). it is the innovation in regards with the
repositioning which takes services and products into a new market where a recent good
example would be AirBnB, originallly positioned around conference before moving into the
general traveller and holiday industry.
Pradagim- it is change in underlying models related to intellectual which frames what the F-
drone does or as an alternative how the company frames what it wants to do. It refers to the
innovation which refers to shifting of an underlying mental model via change, where the
common example is Henry Ford and motor cars, a recent example to this launch of iPhones
and subsequent growth of smartphone markets which states huge impact on how people
consume various information and interact with the brands
Use of innovation funnel
This is funnel which is used to describe the steps that takes place in developing a product
or a process. Its main purpose is to meet with market needs by creating and manufacturing
product and process. It includes steps such as
 Innovation which refers on big mouth of funnel where the company gets to increase its
knowledge base and information. This stage aims is to collect as many ideas, view as
possible, as the more the idea company has, larger number of products and services it
can make , it requires clear perspective of organisational goals . A prior and planned
strategy on how to gather various things and information from and its quality and
realiabilty is very important. It can be by mean of gathering information by doping

research, competitor analysis, existing connections. It can also come to F- drone by
understanding market and travelling to regions where potential customers comes from
various insights & experiences (Yun, 2017).
 The second step refers to narroe down the segement of funnel where the thought being
generated by F- drone in first step goes on screening. It includes the process to match
ideas with goals in order to see whether they are related with each other or not. It assess
to carry out classification of risk and returns to decide on which opinions and views need
to be implemented. It is stage where F- drone need to trial its services and products with
its potential customer. It refers to the resources being allocated with with most attracting
and promising opportunities.
M2- Analysis and application of funnel of innovation
This last relates to narrow segment of a funnel where organization ensures that opinions
selected present on organization desired objectives which were being analysed by the
organisation when it begun. The new products and services are then released in market in this
stage. This concept is similar is simple to follow that is why many companies specialising in
various industries uses it. However this does not explains what is takes to create new products
and services in marketplace. It disregards creativity as new opinions are pruned in beginning
before they are being proved, This is the model that prefers harmless ides over the creative ideas
(Abramova, 2019).
P4- Frugal innovation
Frugal innovation is the term that respond to the limitation in resource and urges ,
whether institutional or material , financial and turn this confinement into practical solutions and
ideas that are innovative. For a company to really welfare from frugal innovation, it need to
stress good quality solutions that are affordable and accessible with design intelligent at service
and product level, new structure of product and service development and design. Investing and
implementing modern technologies over traditional modes to deliver low-level cost solutions,
original business models to make solution more approachable for example products and services
of f- drone (Weyrauch, Herstatt, 2017). It is important as it is about delivering more value to
large number of target audience at low costs. It is termed as frugal as company needs to adopt to
strategies of low cost and simplicity without sacrificing quality of the experiences of user. It can

also be termed as frugal application which is the process of reduction the cost of goods and
production and its complexities. It generally refers to innovation of removing non necessary
characteristic from a product and service of F- drone to sell it in developed countries . This kind
of innovation has advantges in speed, passion, being cost effective, a lack of bureaucracy and
potential new markets. Frugal innovation is a whole new approach and mindset to innovation,
where company in emerging economies are teaching those in established economies how to
solve problems and identify opportunities when resources are highly constrainted . It is sometime
referred as inclusive innovation, reverse invention and constrained- based innovation describes a
different types of innovation in which technolgical products in F- drone are customised at low
cost and price high volumes in and for emerging markets. These are the innovation which are not
confined to technical discovery but includes product innovation and incremental process
(Hossain, 2018).
M3-Role of frugal innovation-
Frugal innovation can help in creating age of opportunities where customer today
demand value, quality and sense of purpose from company and which can be found with the
helps of frugal innovation in many emerfing economies. It refer to the low cost, good enough
services and products of F- drone that are often initially designed aand developed from emerging
cutomers market. In simple words it can be understood as emerging markets firms such as F-
drone are well known for there capabilities to develop innovation tht are frugal that offers high
customer value or superior customer value with low cost (Leliveld, Knorringa, 2018). Frugal
innovation is more than a strategy where company dont seek to wow consumers with
techniqually products that are sophisticted but instead lead to strive to create good solutions that
are quality driven and that deliver greatest value to its potential customer at the lowest and
cheapest cost. It has three different crieteria such as cost reduction that is substaintial, optimised
level of performances and company concentration on its core functionality which helps in getting
competitive edge over its competitors and winning in the marketplace by acquiring large number
of customer base which helps in boosting up sales of company.
LO3
P5- Importance of commercial funnel and development of new product
A commercial or sales funnel is tool in marketing through which companies qualify,
find and trade its products and services to its customers. It helps in breaking down customer

travel from awareness of products to the stage of purchasing products and services of company.
It is a chronological approach process of attracting consumers to companies services and product
and trying them to convince to buy the same. This funnels constitues efforts of the company by
its sales and marketing department where it generates awareness section which ensures audience
in the funnel that company exist which is not particulary shown as focused interest. It includes
interest section where potential customer know about the business and they are interested to
know more about the same, where they are not convinced to the point that they would likely to
purchase company products and services. It helps in understanding decision section which helps
in getting customer insights if they are interested in buying competitors products and services . It
finally include to get to know actions on the part of its customers where role of company is to
bring its customer's into action of purchasing goods and services (Harmsen, 2019).
This is important as it helps in knowing how to relate with its potential customers where
by it helps in getting vaulable insights about customer and helps in delivering products and
services accordingly with the requirements of customer wants and needs that in turn helps the
company in increasing its profitability. It also helps company in a way to provide strategic
direction which gives rise to various innovative ideas as a result increases efficiency and
effectivess of company operations (Brogaard, 2017). This helps in assessing ways where
company needs to improve upon to avoid future contingencies and helps in assessing its own
strength which can be utilised in proper direction and by which the company is being benefited
in way to be at position where it is hard for its competitors to match up with the same.
Development of new product - It is the absolute process of bringing a new good to market
wherin its central aspect is design in products, along with different business consideration. It is
described majorly as transformation of opportunity in marketplace which is terms of new
products which are being available for sales. It refers to the product being developed by an
organisation which serves as means for generation of income (Cooper, 2019). It is the procedure
of bringing new product in the market which is due to changes in customer preferences,
increased competition and advances in technology or by the means of capitailising in new
opporrtunity which helps the company to survive and match up with its business dynamics
whereby its business prosper by understanding what its market needs, making smart product
improvement and deveuse of innovation funnel loping new products by F- drone that meets up
and exceed with the customer expectation. It refer to products which are never made and sold but

have been taken by the customers or to the market by other competitors and by various other
means (Gutierrez-Gutierrez, Barrales-Molina, Kaynak, 2018).
P6- Business case and ways to access funding
It includes-
Product description – F-drone is building first transition drone to enable aerial deliveries to ships
and offshore platforms where it unique design will have a combinations of heavy payload and
long range capabilities that would put other existing delivery drone to shame . Drone can still
take off vertically, fly like fixed wing aircraft and land on moving target. It will needs and wants
of its customers at low cost and help in deriving there satisfaction level.
SWOT
Strength of drone that are developed by the company is its unique features such as long battery
life, attractive design for its customers, wider view coverage, built which is strong enough and
not subject to any wear or tear, which leads to serving and matching with various expectation of
its customers to buy the products.
Weakness of this products is it not user friendly as it features are so complex to operate where in
individulas who are using it first time will find it hard to operate and requires skills of being tech
savy in its functioning
Opportunities – this products opporrtunity lies in industry such as e commerce where by this
drones will helps in deliveries of products by consumer with no time and will lead company to
reduce its efforts in terms time and saving cost by not employing majority of staff who used top
deliver products.
Threats – threat for this could be its competitors who can come up anyday with new technology
in its products that will leads to hindering growth for F- drone.
Marketing mix
Product- the product developed by the company is highly attractive in terms of its design which
serves meeting with needs and wants of its target customers
Place- It will be available in selected areas or regions as in initial stage company want to test
whether this are being successful in areas where it is targeting and in future can decide on how to
expand in different regions across the globe (Wu, Li, 2018.).
Price- Price for this in initial stage will be kept at low and affordable for its target customer in
order to capture huge customer base which will helps in generating and boosting up of sales.

Promotion- For this company plans with various strategy with paid ads on various social media
platforms as company belives by this it can reach to wide and mass reach of customers
M4-Sources of funding
It could be by ways of retained earnings where by business saves part of its amount from
the profits being generated in order to support its future business operation. Company can alos
source its funds from debt capital where it borrows money from the market at certain interest to
support and encounter to its innovation (Weiss, 2020). Company can also source funds by doing
IPO whereby it sells its shares to the general public and try and raise money out of it
Risk
For company it is being uncertain that whether its products launch will be successful or not as it
is of uncertainity that whether it will be like by customers as it might not be able to satisy needs
and wants of its customer and may include the risk where it may loose market share as a result of
loosing trust of customer where they will be attracted by competitiors products and services.
LO4
P7- Different tools to protect property that is intellactual
Intellectual property is a collection of property that includes non-physical creations of the
human understanding. It is the creation of the mind, which can be innovation, artistic and
literally work, designs, symbols images, names and various others used in commerce or business
There are different tools by which company can defend its intellectual property&
knowledge somem of which are mentioned below- ]
Registered trade marks, copyrights and patents-
Copyrights is being defined as protection of tangible and intangible creative works. It is
the exclusive and assignable right that is legal in nature granted to the originator for fixed
number of time period , to perform, print , film, publish or record artistic, literally and various
other material. It refers to the legal right of the owner of intellectual property. In simple words it
could be understood as right to copy. It means the first creator of commodity and anyone who
gives authorisation to the individuals with the sole right to produce the work. It gives Divine of
original material the exclusive precise to further use and twin that material for given amount of
time period. It protects creators of original material in F- drone from unauthorised use or
duplication. For an primary work to be secure by the copyrights laws, it has to be in real form

(Mostert, 2020) . there are various advantages of having copyrights such as longer
statutory rights- the life of the creator in addition to 70 years , having numerous copyrights
will not create and any financial action for any place close to the statutory life of the
creator or further than that. It ensures that proprietor is being qualified for any damages
that are being genuine in nature and any extra benefits delighted in by taking into various
constitutional harms. The figuring of compensations can be less demanding for a copyright
prosecution as compared to that of patent case. Its disadvantages it simply secures the
statement ideas and not simply the ideas which is being covered under the patent.
Patent refers to allotment of property right by an sovereign person to an inventor. This
aid provides an exclusive right to the patented design, process or innovation for selected period
of time in exchange for a broad disclosure of the invention. This provides company to
continue developing innovative goods and services without the fear of infringements. In simple
words it can be understood as protection of intellectual property to help companies profitability.
It serves as bargaining rights for companies demonstrating there innovativness. A patent for
invention is a grant of property right to the inventor which are being given for new, useful and
non apparent invention for a period of twenty years from the date of submission application and
provide right to except others from exploiting invention during that period (Toma, Secundo,
Passiante, 2018.). These are very expensive to get, which lays down huge amount of cost to
obtain the same which also includes direct expenses for lawful administration of the same.
It offers rights that are predominant rights when its is being deliberately infringe. These
are simply the rights conceded by the government of the region to the creator of the
products of the innovator's appointee for a fixed term of period in return with the
declaration of an innovation. This act for the legal right to prohibits others from the
competitive market and to provide protecting new invention of the creators.
M5- Different tools in wider organisational context
Trademarks is referred as recognizable phrase , word, symbol and others that line a
specific good and legally differentiates it from all other production of its kind . It entirely
identifies a product as belongingness to a specific organization and helps in recognising
company relation of that brand (Ruse-Khan, 2020). it offers unequivocal insurance to various
logos, brands , tag lines and various other comparable things

CONCLUSION
From the above evaluation it can be concluded that F-drone has to put more efforts in invention
such that high profit can be achieved but also it has to integrate innovation as per customer
requirements which will assure goals achievement. With the proper implementation of marketing
mix company can change its working as per changing market trend which will enable
organization to implement creative innovating goal achieving ideas. Thus company has to
implement commercial funnel through which it can efficiently provide products as per customer
requirements.

REFERENCES
Books and Journals