Innovation and Commercialisation: Importance, 4Ps, Frugal Innovation, Commercial Funnel

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Explain innovation and determine importance to organisation in comparison with invention............3
P2 Explain How organisation vision, Leadership, culture and teamwork can shape innovation and
commercialisation....................................................................................................................................5
LO2.............................................................................................................................................................6
P3 Explain 4Ps of innovation and explain use of innovation funnel to examine and shape innovative
ideas........................................................................................................................................................6
P4 Explain developments in frugal innovation and provide example......................................................8
LO3.............................................................................................................................................................9
P5 Explain importance of commercial funnel and application of new product development processing
for commercialisation of innovation........................................................................................................9
P6 Build an innovation business case for organisation including ways to access funding.....................10
LO4...........................................................................................................................................................12
P7 Evaluate different tools the organisations can use to develop, retain and protect knowledge and
intellectual property...............................................................................................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Innovation and Commercialisation refers to a unique term that shows the process of
innovation with the aim of creating the business enterprise in a feasible model and that will
surrounds in the ecosystem of the organisation. In today’s modern and trending market
consumers are very much aware about their health and welfare for this business can focus on
introducing new products as per market demand so that they can beat the competition and earn s
a high amount of profits. This report is based on the Tesco which is the largest superstore in UK
where they sales varieties of products like foods, beverages, clothing, kids wear, furniture etc.
but as per the changing demand of the customers they can focus on innovating their food and
beverage products so that they can stay in the market and earns a high profits. It includes the
innovation, invention with their comparison and it also involves the various sources of
innovation and methods that is needed to commercialize and in this frugal innovation can also
useful with the NPD funnel. Further includes the business case and shows various types of
intellectual property rights that help in protect the goods from coping and creeping(Datta,
Mukherjee and Jessup, 2015).
LO1
P1 Explain innovation and determine importance to organisation in comparison with invention
Innovation and invention – Innovation refers to the new and creative ideas or thoughts
in the form of various methods, processes and devises. It is very useful for an organisation to
improve their application of products and services to offers the best goods to the customers as
per the demand of the market. On the other basis invention is the process of inventing something
that a firm is innovating. It shows the whole product development process that is helpful in
creating the object for sustaining in the market. In case of Tesco, innovation helps in creating the
new ideas for the market development and invention is the process of implement those ideas by
putting it into the product development process. Without both the concept company cannot
sustain in the market and cannot attracts the large base of customers(Bashmakov and et. al.,
2015).
Difference between innovation and invention

Basis Innovation Invention
Skills Innovation needs varieties of
skills such as marketing,
finance so that a person can
think to fulfill the demands
and earning the profits.
Invention requires the
scientific and engineering skill
that helps in developing the
products as per the creative
idea.
Activities Innovation is the broad term
that spread in the whole
organisation so that every
employee participate in think
creative and give unique ideas.
Invention is the restricted
process that is stay between
the research h and
development process.
Examples The best example of
innovation is if every
employees of Tesco to
improve their food and
beverage sector as per the
market demand. In this they
transform junk food to plant
organic food.
The best example of invention
when a production department
work for producing plant
organic food rather than junk
food to attracts the customers.
Importance of innovation and invention to organisation
 Gaining competitive advantage – The major importance of innovation and invention is
that it helps in gaining and attaining the rival firms in the market so that competitors feel
pressures to build the profits and survival growth. in case of Tesco company constantly
focus on thinking new idea and implement to it by satisfying the needs of customers so
that they can beat their competitors and maint5ains their high image in marketplace.
 Meeting needs of customers – It is an importance of innovation and invention because it
helps the organization to sustain in the market place by satisfying the needs and desires of
the customers. In Tesco, top level manager can innovate their food and beverage products
as per the demand of customers that helps in maximizing profits and beat the competition
in the industry(Hrdy, 2015).