Service Innovation in Manufacturing: Case Studies and Theoretical Frameworks

This assignment focuses on the concept of service innovation within manufacturing industries. It requires students to critically evaluate key academic papers such as Ettlie & Rosenthal's 'Service Innovation in Manufacturing' (2012) and Gambardella & McGahan's 'Business-Model Innovation' (2010), among others. Students will also explore related topics like open innovation, technology commercialization, and the distinction between invention and innovation.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and its importance with comparison to invention too..........................................3
P2 Organizational leadership, vision, mission and teamwork help in innovation......................5
TASK 2............................................................................................................................................6
P3 4P's of innovation and innovation funnel...............................................................................6
P4 Development in innovation frugal.........................................................................................7
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and application of NPD...................................................9
P6 Innovation business case using access of funding...............................................................11
TASK 4..........................................................................................................................................12
P7 Different tool use to develop, retain, protect knowledge and intellectual property.............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In this competitive world, the small companies are bringing innovation in their product
and services so that they can earn competitive advantage in market which can convert them to
earn higher profitability too. Moreover, making innovation is dependent on customer desires and
earning high profit with growth and development in great manner (Aarikka-Stenroos and
Sandberg, 2012). Organization is such who play with the mindset power of people and change
their preferences just by attracting with their commodities in proper way. Although, firm also
bring many other working criteria which help entity to retain their customers for long. The report
is based on 299 Lighting Ltd which work with B2B and B2C and provide commercial lighting
and design light to many offices and ultimate consumers. The company was found in around
1998 and working in great way. Assignment is that which will include like innovation in 299
lighting although role of 4P's to achieve goals and objective by bringing innovation in product
and services. Apart from all such, various roles of ideas and try to make goodwill of company in
various ways in right context too.
TASK 1
P1 Innovation and its importance with comparison to invention too.
Innovation:- Innovation is that which help to improve the product and services in better
manner and thus it is such which convert company to attain its goals and objectives in great way.
“ A innovation is defined as having new idea, device or method and even providing new ideas
and viewed as relieving solutions that help to meet up the requirement of different criteria too”.
Innovation is such that help in improving working criteria and does help organization to bring
various product and services according to customer desires and demand.
Even though innovation does make company to have an development and growth of firm
which ultimately lead to success of enterprise and to earn higher profitability. Therefore, through
creativity and innovation it is be like which satisfy customer needs and wants by attracting
millions of people (Bogers and West, 2010). Moreover, innovation is such concept which needs
to be there in business environment and modernised universe as well. Every kind of firm bring
innovation and various thing which help them to attain its target and make them to get stable in
market too.
There are some importance of innovation in organisation and they are as:

 Innovation is that which help in getting maximum revenues in market.
 Innovation do help in improving the product and services of company in with comparison
too competitors.
 Entity is such which use strategy and decision in great manner, and they are also like that
attract the maximum number of customers towards them only.
 Innovation and creativity is such which do help 299 lighting Ltd in attaining its goals and
objectives.
Innovation is quite different from the invention. Invention is like having technical idea which
means to have an shape with accomplishment (Ettlie and Rosenthal, 2012). Although invention
is such which is proven with the workable in higher manner.
A better comparison in between invention and innovation are as follows:
INNOVATION INVENTION
This is such which do look for modification
with alteration of product and it is being
already exist in market and thus they have to
fulfil the demand in better manner.
Invention is that which does have an
presentation part with product without
commercial centre and also bring a fresh
product in market as well.
Modification is such which help in attaining
the alteration with customers in huge way and
it convert them to earn higher profit too.
Normally, producing any design with product
and it does lead to emergence of product in
market, it is such which is being done when
whole world is making aware of various thin
and it also lead to invention in proper way.
Moreover, it is be like that 299 lighting Ltd is that which look forward to which does help
in developing the ideas and it also help in improving the existing product and services in
effective way and thus they do help in satisfying customer needs and wants as well.
Although both the scenario is considered as the most important aspect for the
organisation and this thing help in earning higher income as well which help in satisfying
demand in better manner with preferences too (Bogers and West, 2012). This is being considered
as having a proper goodwill of company to have a great running of their business and it is for the
longer period as well.

Example: Generally, innovation in electronic item is such which maximise the number of
customer in perfect way and such thing result into profit maximisation too.
P2 Organizational leadership, vision, mission and teamwork help in innovation.
The company 299 lighting Ltd is such firm which provide lighting facility to large
number of firms and to customers as well. It is required that firm should have an clear vision
which somewhere help in attaining goals and objectives in great way (Gambardella and
McGahan, 2010). Moreover, all the different part like vision, mission, leadership and teamwork
are those which does help in shaping innovation in product and services that help in attaining a
great success of business in right context too.
 Vision: Having clear objectives and aims of company help in motivating production
manager of the company which do overlook into the plan and produce better strategies
and decision that help in having a maximisation of profit as well and implementation is
also done even in better manner too. Vision do help in having a scope of different
working schemes in organization. Such concept is mainly taken in consideration as vision
is related to future prospect and even for longer period too. Innovation does help
company to earn for longer period, although introducing new lighting technique for
offices and homes attract millions of people. Vision should be clear to every employee of
company so that they can work in right direction and accomplishment of such thing can
be seen.
 Leadership: 299 Lighting Ltd firm is having great leaders and they do help in having
development and growth of company. Even though leaders are those who work hard and
make firm to attain its goals and objectives in great way. On the basis of actual fact and
figures the leaders do go with producing proper strategy and decision which help in
bringing new product in marketplace in better criteria (Godin, 2012). Leaders are those
who set such standard and environment in which employees make themselves to attain
their personal goals with the professional goals as well. When innovation is decided to be
there in product and services then the leaders manipulate the employees to accept
changes and work according to that only.
 Teamwork: Innovation is that which needs to be implemented in organization in right
context and thus every team member of company should work as one and this make firm
to attain its goals and objective in better manner as well. Sometimes employees have

those ideas which top executive cannot thought for, even in meetings employees should
also participate so that effective decision and strategy can be concluded. Although with
such scenario employees will work in great manner for the development of entity.
Moreover, in business it is seen that team work is better then having an individual
working as team work help to complete the work on time and even it can be done in right
context too. Team working also reduces the chances of conflict situation in firm as well.
Together working always result into proper completion of work and make entity to earn
higher profit as well.
 Mission and culture: Mission is such for which the organisation come in establishment
and work hard to attain their mission as well and thus business environment culture
should be in right format and it is required to have communication in between every
individual in firm which bring coordination in working (Huizingh, 2011). Positive
environment make people to have an better environment which convert employees to
perform in great way, which result in attaining goals and objectives in proper format.
TASK 2
P3 4P's of innovation and innovation funnel.
Innovation is that which can be bought in 299 lighting Ltd which help to improve the
working criteria of organisation and thus make them to attain their goals and objective.
Innovation is bringing new ideas and thought for over product and services which help in
attracting the large customer to increase the sales of their lighting.
The 4p's of innovation are as follows:
Product innovation: An task is such which cooperate and make different fitting with the
current situation and also merchandise various thing to look forward which have an assistance of
expansion and in number of clients in great manner. Organisation is having thought of providing
innovative items form which client work in great way. Although they have to make proper report
and thus framework with administrator which help them to differentiate in between customer
preferences and interest (Kim and et. al., 2011). Innovation, somewhere success to attain the
needs and objectives of company in great manner too, which does help them to improve and also
widen the involvement in different representatives in right contrast as well.

Process development: In innovation it has to make focus on the process in which
product and different thing are created and delivered. Moreover, it is required that the product
should have an positive impact on mind set of company and process of innovation is there on the
existing product which might be done with the use of various resources. Process innovation is
such which needed to be done by expert and skilled employees so that they can implement the
working scenario in better manner. Process is such aspect which needs to be done on time and
the work has to be completed on time too.
Position innovation: Position innovation is such which involve the re-positioning of
perception and somewhere are established with product and process in there specific context too.
Position based innovations is such which refers to the specific product or process which is
somewhere perceived in signal manner and how they are used in better way (Lindič and et. al.,
2011). In this innovation, it also include the signals of spread with humanitarian organisation.
Positioning has to be done in proper manner because this is such which changes the preference
level of customer in great way and thus help company to attain their goals and objectives in
perfect way.
Paradigm Innovation: This is such which leads to define or redefine the things with
dominant paradigms of organisation or entire sector. Although paradigm innovation is that which
is related to mental model of different thing which does help in shaping the organisation and
having all the business about.
These 4ps of innovation is used at the time of making innovation in company over
product and services with working criteria as well. Innovation should be there in environment of
business which help them to cope up with changes in outside market as well.
Along with the 4ps of innovation the innovation funnel is as:
Innovation funnel: An innovation funnel is such which also take place in development
of process and product. The purpose of innovation in such which help to create the processes
which product and also make market needs and the manufacturable or economic forms. In the
pioneer stages of various development, there are some the ideas which does go through the
refinery system in great manner too (Rafinejad, 2007). Although there are three steps in
innovation funnel and some of those are as:
 First step of funnel is wide mouth.
 Narrowing segment of funnel.

 Narrow segment of the funnel.
P4 Development in innovation frugal.
Frugal innovation is a way which help company to manufacture a high quality product
and services with limited resource availability. Even though various companies are there who are
looking forward to have cost conscious and with environmentally aware customers in better
manner as well. Frugal innovation is such which help in revolutionizing business and it is such
which do reshape the management thinking in right contrast too (Schoonmaker and Carayannis,
2010).
Even though the frugal innovation is somewhere more then having a strategy and thus it
is be like which denote the frame of mind: Normally, frugal firm don't see great customers which
is having method product, but although it do strive the good things with solution and the thing
which deliver greatest value of customers in great way at the lower cost as well. Generally, the
things are there which need to foster the frugal culture in organisation and it is be like as:
 Building the circular networks in proper manner.
 Crowdsource solutions.
 It also simplify with structure and also empower employees too.
 Moreover, use various KPI's incentivize which sustain behaviour the organisation.
 Work with a good though that “ do better with less”.
Innovation is such which provide the appropriate tool and technique which does help in
making focus on creating several thing in great manner and this is such which is related to the
durable product too. Therefore, frugal innovation is such which involve engineering and also
somewhere having a main motto of implementing the new and the impressive plan for many
customers and consumers as well (Snow and et. al., 2011). Products are those which are
manufactured at minimum cost and ultimately known with the name as inferior good and it is
something which is demanded in weaker sections of society in proper way too.
Some of the greatest development and growth in frugal innovation and they are as:
 Additional features in current product: Using proper methodologies and tools with
technique help in making addition in existing product so that customer can get attracted
in better way and thus his scenario help firm to earn more profit too. Customer
satisfaction is the top priority for entity for which they make better policy and procedure.

 Reduction in cost: Frugal innovation is such which try different thing with expenses and
also make various impressive goods and services in better manner as well. Quality
resources can help in having production at lower cost as well which does help in meeting
the requirement of customer demand with the whole society in right context too.
 Emergence of ideas: In company various employees are there who has great ideas with
them and thus they can use such in development of commodities as well with quality and
provide the product and services on time as well, even though with this they are able to
earn higher profit as well.
Innovation funnel is such which is mainly adopted to have different thing and also
express the several ideas and employees of 299 Lighting Ltd. Which do uplift the various and
different abilities with knowledge too.
TASK 3
P5 Importance of commercial funnel and application of NPD.
Funnel is that which is divided into three parts and does have a alter with changes in
product as well which does lead to have an attention of different thing and having millions of
people that make strategies as well with policies too (Teece, 2010). It is required that 299
lighting company should attain their goals and objectives in great manner with the help of funnel
in great way.
Moreover, it has seen that different thing is there which needs to be considered and
important factor of funnel is there and it is be like:
 Conduct investigation program: Manager of 299 lighting Ltd is such which help to
gather the information and data which thus lead to have an modification n strategy and
services in proper manner as well. Although the organisation is such which is looking
forward to have implementation with the use of techniques with the necessary evidence
in various and effective manner and thus proof it to different method and it is being
considered as useful in nature as well.
 Improvement in quality: The 299 lighting Ltd is that which look forward to bring
improvement in their quality of product through using quality resources and having
innovation in product can help in attaining goals and objectives in right contrast as well.

Quality has to be maintained in better manner and thus they have to bring innovation per-
forma in such a way which can help in having right direction of working too.
 Goodwill: The company is working hard to have an goodwill of their organisation and
thus this can be done by satisfying customer with their product and services with
reasonable prices and this is such which covert company to attain there goals and
objectives in effective way.
 Advance equipment: Advanced equipment with the company can help them to bring a
proper innovation in their product and services and 299 lighting Ltd is that small
company who does use advance technology in their working so that they can enhance
their business as well in market.
Illustration 1: Innovation funnel
(Source: Innovation funnel. 2017)
Moreover, having a quality procedure make a successful scheme which does help in
producing the quality product and services in right context too. 299 lighting company has various
lighting which does attract millions of people and businessman too and this help in making a
goodwill of firm in corporate industry.
Improvement in product should be done with the help these steps as:

 Different ideas: Therefore, investigation is such which help company to introduce new
and various ideas in form of innovation in product and services. Although the employees
of 299 lighting Ltd. Do share there ideas and thought with their leaders which help them
to work on various ideas and chooses the best one to earn higher profit as well.
 Testing analysis: After introducing the idea, it is required to work on such and this can
be done with the help of testing in market that the idea will help company to earn more
profit or not. Even though, at the time of implementation the team work is required as
because this help in reducing hurdles in great manner too.
Improvement and implementation of innovation on product is done in various ways and thus it is
required that this thing needs to be done in right context. Importance of commercial funnel is
there in organisation which make them to have working according to such only.
P6 Innovation business case using access of funding.
Business case is such which help in making important strategy in company and thus 299
lighting Ltd is such which execute their goods and service at the maximum benefits is there with
advantage. Moreover, the main aim of selecting the business case is to reduce the hurdles coming
in between the work and during the assembling process as well (Thore, 2012). Generally there
are various thing which does affect the company which needs to be taken under care as because
ignorance of such thing can lead to have an increase of risk and non accomplishment of goals
and objectives in great manner too.
But on the other side there are some advances which make them effective in various ways and
thus it can be discussed as:
 Executive summary: 299 Lighting Ltd is that firm which is established lighting
company in UK and having a main objective to enhance their business to large scale and
up to global level as well. 299 is having thought that they need to explore their business
in such a way that they have to become the top position firm in UK and whenever
business or people think f lighting they should go with 299 lighting Ltd.
 Goals: Goal is to fight in with competition in market and thus they have to expand their
business to global and international level in proper way and thus it also make it to retain
such for the longer period of time in great way as well (Kim and et. al., 2011). Goals and
objectives has to be attained within the time period stated in for accomplishing such in
better manner.

 Arrangement: The management and the responsible manager try to bring various
process and strategies in such a way that he/she is able to remove the hurdles and
hindrances from the work in various ways. Although this can help company to have an
better working as well without any disturbances in task and effective performance can
also be seen of employees too.
 Client research: This is such which needs to be considered while making and forming
any rules and regulation in organisation and thus effective policy and procedure should
be there as this help in completing the work on time too. Moreover, this is such which
help in aiding the company and needs to make compare of different thing like features
with the constituted grounds in perfect way.
 Requirement of capital: It is being considered as the primary need of organisation as
this help in establishing company in perfect way. In organisation to carry out the
activities and task in better manner it is required to have finance in hand so that every
work can be done in right context too. In every organisation, capital is the base of every
function and different criteria which lead to have an effective working too.
 Framing and improving drafted plans: This is such which is used to carry out the work
process which need to do in effective and efficient way, although this is be like which
necessary and thus plans needs to be fulfilled in effective way and thus help in having a
great working as well.
TASK 4
P7 Different tool use to develop, retain, protect knowledge and intellectual property.
Moreover there are various thing which needs to be there in organisation and thus it leads
to have proper working in company and thus having rules and regulation which is framed by
government body which needs to have an intellectual property right is there of an individual as
well. Tools are such which help firm to have effective working in firm and t makes them to attain
their goals and objectives in great manner as well.
 Copyrights: This is something which is obtained by company and thus framing some
unique substance is there in form of various thing like programming and music etc.
moreover, formulas are such 299 lighting Ltd has taken now other one can take such too.

 Patent right: It is such which is done over product and services manufactured by 299
lighting firm cannot be utilized by other business. Although, it is such which provide the
security to the parent entity. The Patent right is that which help firm to get secure with
their product as no other firm can produce same product as 299 lighting Ltd is having
patent of such, normally if any issues and problems faced by them then business is having
a right to sue the opposition company in legal terms (Godin, 2012).
 Trade secrets: Various feature is there which is adopted by the firm and thus which lead
to save their secret formulas. Hence, trademark is such which lead to assist the 299
lighting Ltd which apply the information in better way with their own business in right
context too.
 Trademarks: It is something which is considered as the mixture of various symbols,
logos, signs etc. it is be like people in society is there which differentiate different
product of one company from the other in right context too. Hence, it is be like that
company is having various information which relates to the goods and services in proper
way. Trademark is such which help firm to get recognize in market in between various
people.
These are some tools which help in retaining, developing with intellectual property as well.
These are those which make 299 lighting company different from others in great manner too.
CONCLUSION
From the above assignment, it can be stated that creation and innovation is that which
needs to have important and needed success from the different and whole organisation and
having benefit with the whole enterprises as well. In fact, assignment is such which was made
mainly and although having several techniques and thus also look for adoption and having
various one by one small organisation as well, and this is such which help to look forward in
facilitating the desired outcomes too. Moreover, it is be like implementing the different thing in
various ideas which help in protecting the property as well.

REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
commercialization through networks. Journal of Business Research. 65(2). pp.198-206.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1). pp.61-75.
Ettlie, J. E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp. 440-454.
Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2).
pp.262-271.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kim, S. K. and et. al., 2011. The effect of R&D, technology commercialization capabilities and
innovation performance. Technological and Economic Development of Economy. (4).
pp.563-578.
Lindič, J. and et. al., 2011. Deploying information technologies for organizational innovation:
Lessons from case studies. International Journal of Information Management. 31(2).
pp.183-188.
Rafinejad, D., 2007. Innovation, product development and commercialization: Case studies and
key practices for market leadership. J. Ross Publishing.
Schoonmaker, M. G. and Carayannis, E. G., 2010. Assessing the value of regional innovation
networks. Journal of the Knowledge Economy. 1(1). pp.48-66.
Snow, C. C. and et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management. 28(1). pp.3-16.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Thore, S. A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.

Online
Difference between Invention and Innovation. 2016. [Online]. Available through:
<http://keydifferences.com/difference-between-invention-and-innovation.html>.
[Accessed on 4th August 2017].
Innovation Funnel. 2016. [Online]. Available through:
<https://www.cleverism.com/lexicon/innovation-funnel-definition/>. [Accessed on 4th
August 2017].