Importance of Innovation and Commercialization

This document discusses the importance of innovation and commercialization in organizations, highlighting the difference between innovation and invention. It also explores the analysis of 4P's of innovation and the application of the innovation funnel in developing innovative ideas. Additionally, it covers the concept of frugal innovation and the use of NPD for innovation and commercialization.

Innovation and commercialization

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Importance of innovation and difference between innovation and invention......................................3
P2 Contribution of organizational vision, culture, leadership and team to develop innovation and
commercialization...................................................................................................................................5
TASK 2.......................................................................................................................................................6
P3 Analysis of 4P’s of innovation and application of innovation funnel in development of innovative
ideas........................................................................................................................................................6
P4 Developments in frugal innovation.....................................................................................................7
TASK 3.......................................................................................................................................................8
P5 Use of NPD for innovation and commercialization and importance of commercial funnel................8
P6 Development of innovation business case..........................................................................................9
TASK 4.....................................................................................................................................................10
P7 Evaluation of the tools which are used by the organization to develop, retain or protect knowledge
and intellectual property rights..............................................................................................................10
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Innovation refers to creation of something new with the application of new methods and
techniques. There is huge requirement of innovation for the organizations to attain sustainability
in their business operations. It provides the opportunity to the management of organization is to
create innovate features in their products according to their different requirements of customers
and satisfy their various demands. To attain innovation in their operations need to adopt new
technologies. Through implementation of new technologies and development of innovative ideas
large number of benefits are gathered by organization like competitive advantage, higher
customer base, build good brand image, higher customer satisfaction etc. Application of innovate
technologies improves the internal strength of organization and motivates the employees to
provide their best to attain desired results. Rowlinson Knitwear is small clothing organization
provides their products in UK.
In the present report explain about, importance of innovation and difference between
innovation and invention, creation of innovation and commercialization through organizational
vision, culture, leadership and team, 4P’s of innovation and creation of innovative ideas through
application of innovation funnel and use of frugal innovation. Also, importance of commercial
funnel and contribution of NPD for innovation and commercialization and application of tools
which helps in protection of intellectual property rights (Baraldi and Waluszewski, 2011).
TASK 1
P1 Importance of innovation and difference between innovation and invention
Difference between innovation and invention
Innovation and invention are two different things. Innovation in their old process leads to
new inventions in organization. The different points which make difference between both the
terms are defined below:
Innovation Invention
It is the process which involves the use of new
ideas and methods for development of new
features in their existing products.
It includes the process of application of new
ideas to develop something new which is not
present in market yet. Under the process of
new product is emerged which is different in
every aspects.
It can be used by the management of
organization regarding development of the
existing features and quality of their products.
It is the process which helps in development of
new product line which helps in attraction of
the new customer base.
Example: Rowlinson Knitwear produces
school and corporate wear clothes. Application
of innovative ideas helps in improvement of
Example: Invention by the management of
Rowlinson Knitwear helps in development of
new line of clothing’s which is not yet exist in

the designs and comfortability in their clothes. market.
Importance of Innovation
Through application of innovative technologies Rowlinson Knitwear attains both internal
and external benefits. Internal benefits are referred as improvement of the existing skills and
knowledge of employees of organization. It helps to retain their employees for longer period of
time through build their good professional career. Other internal benefit is improvement of the
quality of their clothes. On other hand, external benefits which are gathered through innovation
are competitive advantage, large number of profit, high market share, good brand image etc.
Such importance of innovation which is attained by Rowlinson Knitwear is mentioned below:
 Competitive advantage: One of the major advantages which is gathered by Rowlinson
Knitwear through innovation is to attain competitiveness. Innovation helps in
implementation of changes in production and marketing process which makes their
clothes more unique and different from others. It also helps in improving the quality of
their products and reduction of operation cost which provides opportunity to fix
reasonable prices (Bianchi and et. al., 2010). It helps in attraction of large number of
customers through providence of new design of corporate wears which are more
comfortable for them. It influences the behavior of customers and helps in creation of
long term bond which helps to provide tough competition to their competitors.
 Application of best methods: Innovation helps in use of innovative technologies,
methods and techniques in production process and marketing activities. It provides the
opportunity to capture large market share and satisfaction of the different preferences of
customers. It contributes in development of long term relation with customers to ascertain
their trust and loyalty. It provides the opportunity regarding retention of their customers
for longer period of time. It helps in application modern tools of marketing like social
media which has wide range in comparison to other measures. It bring awareness among
customers about their clothing lines.

P2 Contribution of organizational vision, culture, leadership and team to develop
innovation and commercialization
There is huge role is played by the vision, culture, leadership and team in development of
innovation and commercialization in organization. The vision of organization is different as per
their nature and business activities are provided by them in market. It is the responsibility upon
the management of organization is to effectively define the objectives and vision of the
organization to their employees for the purpose of providence of direction while performing their
individual tasks. It helps them to work in a team and provides combine efforts to achieve
common goals of organization within stipulated period of time. In every organization cultural
differences are present which affects the internal strength of organization and arise conflicts
within the employees due to the clash of views, values and beliefs. So, it is an obligation upon
the management of organization is adopt effective work ethics policies which is required to
adhered by every employee while performs their function in organization(Bradley, Hayter and
Link, 2013). It helps in development of the effective communication and coordination among the
employees. It brings many benefits to organization like development of good teams, building
employee relations, removal of work politics and conflicts etc. Through this large number of
benefits which are associated with the employee of organization is helps in creation of innovative
ideas which helps in development of their personality and professional career in organization.
Leadership and team work is another important concept which contributes in overall
development of the performance of employees and organization.
Leaders of organization have the ability to adopt new ways which motivates other in
organization to provide their best in the context of organization. All these are such important
aspect which are need to implement by the management of Rowlinson Knitwear to bring
innovation and commercialization in their business operations. It provides the opportunity to the
cited organization is to develop better clothes from their competitors which provided greater
comfort to their customers. It helps the Rowlinson Knitwear to effectively compete with bog
organization like H&M in local market of UK. Some of the important aspect which is required to
consider by the organization while implementing innovation in business structure is mentioned
below:
Vision: It refers to organizational objectives and purpose for which organization is
formed by the owner to achive in future and earns large number of profits. The vision of
Rowlinson Knitwear is to provide good quality clothing lines of school and corporate wear at
affordable prices to attain good position in market. Through this they want to earn large number
of benefits and drive their competitors out of the market. To attain such objectives, cited
organization is need to forecast about action and formulation of new policies which helps in
development of new ideas and bring innovation in their products in terms of design, comfort,
colors, pattern etc.
Culture: Every employee of organization comes from different culture and background.
This will bring difference in their thoughts which impacts the communication channels and this

would results in creation of conflicts. To attain success need to remove such differences through
application of different programmes.
Leadership: Leaders of the organization has the capability to motivate other employees
to work in innovative ways to complete their tasks in more effective and efficient manner. It
contributes high amount of innovation. Rowlinson Knitwear Need to provide freedom to their
employees so, they can perform freely.
Team work: Perform in team helps in identification of strength and weaknesses of each
and every employee. It also helps to attain the support of other employees which helps in
creation of positive and friendly environment in organization. Skillful employees help in
enhancing the knowledge of other employees also(Caniëls and van den Bosch, 2011).
TASK 2
P3 Analysis of 4P’s of innovation and application of innovation funnel in development of
innovative ideas
4 P’s of innovation
Process innovation: It refers about ascertain changes in the manufacturing and
marketing processes which help to bring something new in product. It contributes in
improvement of their number of sales and earns large number of profits. Rowlinson Knitwear
needs to change their technology and marketing techniques which help to influence the behavior
of customers and reduction of operational cost.
Product innovation: It refers about bring innovation in their end products which are
ultimately used by the customers. It can be attained by Rowlinson Knitwear through improve the
quality, color, design and comfort of their clothes.
Position innovation: It includes about the process which helps in changing of the
perception about product regarding how it can be used and perceived. In this regard,
management of the organization needs change in logo, symbol and quality of products.
Paradigm Innovation: This will provides about change in the structure of business to
ascertain healthy environment which improves the confidence of employees and motivated them
to achieve their individual targets effectively. Rowlinson Knitwear Need to give proper shape to
structure with helps of innovative ideas and technologies.
Innovation funnel

It is the process which helps in improvement of the existing product through application
of innovate ideas to satisfy the different needs of market. The three steps which includes in this
process are mentioned below:
Wide of mouth: Development of the existing products by use if new innovate ideas
which are collected from different sources. In this regard, need to conduct research which helps
to gather ideas from competitors, employees, customers etc.
Selection of idea: It is the process, under which best alternative is select from different
options which guarantees the success of organization in future. Before implementation of
change, need to ascertain their effectiveness on their existing products and profitability of
organization.
Implementation of ideas: Under this step, need to successful implementation of change
to improve their earnings and attraction of large number of customers (Cooper, Seiford and Zhu,
2011).
P4 Developments in frugal innovation
Frugal innovation: It refers to the process under which some features of products are
removed which has adverse impact upon their sales. Sometimes, customers not like to buy the
product due to their design, color or pattern. It has direct impact upon the profit earning capacity
of organization. In this regard, Rowlinson Knitwear needs to apply the concept of frugal
innovation which reduction of cost from unwanted features and provide it to affordable prices.
The major benefits which are gathered by the organization are mentioned below:
Minimization of production cost: Rowlinson Knitwear need to identify such features
which are not necessary and affects their sales figure. Due to such features the cost of product is
also increases which reduce their profit margin. The manager of organization is needed to
remove such features through effective planning. It helps in reduction of production cost and
fixing of lower prices which is under the budget of customers.
Development of new feature: Only the elimination of the unwanted feature helps to
attain success and attraction of customers. In this regard, organization is needed to develop some
new features as per their preferences. It provides the opportunity regarding capturing of large
market share and improvement of sales. Such changes helps the organization is to build their
brand image and make connection with their customers for their retention with their brand of
clothes.
Application of new technologies: In effective implementation of frugal innovation, there
is huge need of innovative technologies which helps in development of the quality and new

feature in product. It will also bring passion among the employees to improve their efficiency by
use of such new techniques of working and accomplish the goals of organization.
TASK 3
P5 Use of NPD for innovation and commercialization and importance of commercial funnel
Commercial funnel: It is the process which includes the activities related to influencing
the mind of customers while they are purchasing their products and services. In this regard, need
to know their preferences and buying behavior which provides ideas to make changes in their
products accordingly. In this process, extra value is invested by organization which helps to build
their products unique and different from their competitors which contributes to attain
competitiveness in market (Gray, 2011).
Importance of commercial funnel
There are large number of benefits is gathered by Rowlinson Knitwear through
application of the concept of commercial funnel which are mentioned below:
 Improvement of quality: It motivates the management of organization is to improve the
quality of their products for manipulation of the mind of customer while purchasing their
products. It ensures that use of effective techniques which reduces the amount of wastes
and saves cost.
 Reduction of losses: Manipulation of the buyers mind helps in improvement of their
sales figure. Also application of new techniques helps in improvement of their profit
margins which ensures reduction amount of losses.
 Improvement in goodwill: Providence of good quality products which are more
comfortable helps in improvement of the goodwill of organization in between customers.
It can be attained by Rowlinson Knitwear through grabbing the attention of school kinds
and professional employees.
New product development
It is the process of introduction of new product after analyzing the conditions which are
present in market and preferences of customers to attain success in future. It helps to grab the
attention the large number of individual and earning of large number of profits. It is not the easy
process to introduce new product in market. For this purpose, need to follow different steps
which are mentioned below:
 Generation of idea: Under this step, new ideas are think by the management for
production of new clothing lines and through which the benefits which are gathered by
the organization in future.

 Screening of idea: It is the process which includes the selection of best idea which is
most suitable of Rowlinson Knitwear.
 Defining concept: At this stage, management of organization is needed to provide the
information about the idea to their employees to ascertain their support in production
process and get optimum results.
 Business analysis: Evaluation of the effectiveness of new product by the manager of
Rowlinson Knitwear.
 Product development: Under this stage, techniques and methods are adopted which
helps in manufacturing quality clothes and reduction of processing cost.
 Test marketing: Here marketing strategies are decided by the management which
provides the opportunity to attract large number of customers.
 Commercialization: Includes the process of reviewing all the above steps and
preparation of future actions which helps in effective introduction of new product in
market (Guan and Chen, 2010).
P6 Development of innovation business case
Rowlinson Knitwear is small clothing organization which faces many issues regarding
accomplishment of their goals. There are many challenges faced by the management of
organization to operate their business activities in such competitive market. So, need to use
different policies for adoption of innovation. Such policies are mentioned below:
Executive summary: Rowlinson Knitwear deals two clothing lines which are school and
corporate wear. The manager of organization is needed to use effective marketing strategies
which help in attraction of target customers. The main aim of organization is to bring product
differentiation.
Need: Such new clothing’s are manufacture after determination of needs of customers.
Solution: Conduct research of market which helps in determination of the effective
pricing policies.
Research on customers: Need to know the view points of their customers about quality
and price of products.
Designing and development of plan: Designing of new plan which helps to improve
existing features.
Investment requirements: Need to arrange proper amount of funds which helps in
production and marketing activities.

TASK 4
P7 Evaluation of the tools which are used by the organization to develop, retain or protect
knowledge and intellectual property rights
It is an obligation upon the management of organization is to develop, retain and protect
their knowledge and intellectual property rights. The different tools which are used in this
regarding by the management of Rowlinson Knitwear are mentioned below:
 Patent: It is the tool which is used by the company to restrict other person and
organization to copy their design and innovations in clothes. In this regard, need to
provide application to government.
 Trade mark: It includes the process of registration of the organizations symbol, work
line or tag. It brings restriction upon other organization not to use things (Huang and et.
al., 2012).
 Copyright: This is used by the organization is to provide exclusive right to some other
person of organization is to use their brand name to sell their products.
CONCLUSION
It has been concluded from the above report that, there is huge need to bring innovation
in their business operation by the management of Rowlinson Knitwear due to having their small
operations in UK. Application of innovative technologies helps to make their position sounder in
market and drive their competitors out of the market. Innovation in their school and business
clothing lines helps to improve their sales through attraction of large number of customers.
Satisfaction of their diversified demand helps to build good relation and retention of them for
longer period of time. Through such innovation new inventions are developed in organization.
To protect their new inventions management need to adopt different tools like copyright, patent
and trademark.

REFERENCES
Books and Journals

Online
New Product Development Stages. 2017.[ONLINE]. Available through:
<http://productlifecyclestages.com/new-product-development-stages/>.