Importance of Innovation and Commercialisation in Organizations

This report discusses the importance of innovation and commercialisation in organizations, using the case study of IKEA. It explains the concept of innovation and its significance in comparison to invention. It also explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialisation. Additionally, it delves into the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. The report concludes with an evaluation of different tools that organizations can use to develop, retain, and protect knowledge and intellectual property.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK1.......................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.........................................................................................5
TASK2.......................................................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.....................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..........................................................................................................10
TASK3.....................................................................................................................................10
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation................................10
P6 Build an Innovation Business Case for an organisation, including ways to access
funding.................................................................................................................................12
TASK4.....................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................13
CONCLUSION........................................................................................................................14

INTRODUCTION
Innovation can be define final function with his related to developing or improving
the existing product by using innovative ideas in order to achieve the objectives (Ahmadi and
O'Cass, 2016). Innovation in an important part of business organisation as it helps the
organisation in attractive customers as well as using the function recorder to the needs and
requirement of firm. This report is based on the case study of IKEA. It wills multinational
Swedish company which is headquarters in Netherlands. It is Selling designing ready to sell
and assemble furniture, kitchen appliances, appliances other goods which are related to home
services. It was founded in 1943 and become a largest furniture retailer. This report consist
discussion about explanation of innovation and determining its importance to organisation. It
also includes vision leadership culture and teamwork function which shape innovation and
commercialization. It also includes discussion about the 4ps of innovation and role of frugal
innovation in organisation context. Along with this, it will include commercial funnel and
application of new product development process for achieving the objectives of
commercialization of innovation. There is also a discussion about different ways of funding.
In last, there is evaluation of different tools which can be used by organisation in relation to
protecting the knowledge and intellectual property.
MAIN BODY
TASK1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation: Innovation can be defined as in function which is related to developing
and carrying out a new research in order to improve or bring a new product and services. This
is directly related to satisfy the needs and requirement of customer so that organisation can
attract the customer with the market by improvising their products and services. This will
improve the satisfaction level in customer and provide them new and innovative product. It
also manages number of functions which are required to achieve the objectives and fulfil
these objectives (Amponsah and Adams, 2017).
Importance of innovation

Development of creativity: creativity is the prime objective of every organisation
which is related to using new and innovative ideas so that form can improve its products and
services to satisfy the needs and requirements of customers. Innovation is directly linked to
improving the creativity within the organisation this is because it helps in creating innovative
environment which support creativity within employees. In context of IKEA, organisations
operating with higher productivity which help in improving a better environment which
support better productivity and improving creative functions. This is also useful in
implementing the products and services in the market and choosing a particular product to
improve its function.
Continuous improvement: One more significance of innovation in organisation is
related to bringing continuous improvement. One of the major importance of innovation
within the organisation is related to continuous improvement in the process of organisation
functioning. Under this continuous improvement help in increasing the worth of employees.
In context of IKEA, operating in furniture business where it is important for organisation to
use continuous improvement so that it can provide innovative products to the customers and
can achieve its business objectives. Here, medicine is using high quality products and
services to offer its customers which will not harm the environment and are useful in gaining
maximum profitability (Azarmi, 2016).
Responding to competitor and Trend: Innovation is also useful in relation to
responding its competitors and trends in the market. In context of IKEA, organisation is using
its function in an appropriate manner where organisation used to analyse the current trends
within the market and follow these trends for producing innovative products so that it can
achieve its objectives and perform in an appropriate manner. It can also see that competition
can also eliminate within the market by the use of this function. This can be seen from the
example of eye care organisation use innovative ideas to eliminate the competitors in relation
to decreasing their profitability by implementing innovative products in the market.
Invention: Invention can be defined as a system which involve development of
normal and unique method and system which is related to a particular process of engineering
so that a new product can be developed within the market which include a different
technology and process in comparison to other products.
Importance of invention

Bring new goods and services: Invention is important function for the organisation
because it helps in bringing new products and services in the market. Invention is helpful for
the organisation because it cover number of consequences which are related to the current
market trends and important in order to bring production services. These new products and
services are helpful for organisation in attracting customer base. In context of IKEA,
organisations operating various functions which are related to using invention and normative
ideas in order to bring new production services in the product mix of organisation (Beaudry,
Héroux-Vaillancourt and Rietsc, 2016).
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Role of organisation vision in innovation and commercialization
Organisation vision is a main function which has direct role in functioning of
organisation and achieving its goals and objective regarding innovation. This is directly
related to the aims and objectives of the organisation where the firm has to manage its
function according to needs and requirement (Boretti, 2020). In context of IKEA, the main
vision of organisation is to provide good quality services to its customers so that it can satisfy
their needs and requirements by making an innovative functioning within the area where it is
working. This can be seen from the above mentioned vision that mission of the organisation
is the prime think with support the organisation growth toward the innovation. Organisation
mission provide different strategies and direction to the innovation function in the
organisation which will help in leading with Innovation and bringing changes according to
the objectives and vision. These changes will lead in successful implementation of innovation
concept and bring positive approaches towards the development of innovative ideas.
Leadership in shaping Innovation and commercialization
Leadership is also important function in context of innovation in organisation.
Leadership can be defined as in function which is performed by the management of the
organisation in relation to leading the employees towards a particular direction by
maintaining up level of motivation and using appropriate functioning. In context of IKEA,
organisation follows transformational and democratic leadership style. Both of these styles
has direct influence in innovation within the organisation and are useful in achieving the
objectives of the firm (Dincer, 2017). Under this context it can be seen that transformational
leadership style help in building a innovative environment within the organisation because it

include using those tools and techniques which are related to innovation. These tools and
techniques are useful for the firm in order to achieve its objectives and managing better
productivity. On the other side, it can also see that using democratic leadership style will help
the organisation in increasing the participation of employees which will bring creativity and
innovation in their contribution. It Help in shaping innovation concept in the Ferb and
improve its functioning by changing the existing rules and providing better opportunities by
taking their Idea into consideration.
Teamwork in shaping Innovation and commercialization
Teamwork can be defined as essential element within the organisation which is
related to performing the task in a team related manner. This can be seen from the above-
mentioned information that there are various functions which has to be performed in a team
management system so that organisation can achieve its objectives regarding innovation and
fulfil its liabilities in context of this. Teamwork is directly related to shaping Innovation and
commercialization in organisation because performing with the team employee can use its
function in an appropriate manner where it can relate the productivity and manage all this
function in a time related way (Kergroach, Meissner and Vonortas, 2018).
Culture
Culture is also important function which is related to organisation performance and
bringing innovation in business entity. Culture within the organisation is related to the
working environment where innovation gets its existence. In relation to culture that directly
impact the innovation and commercialization within the organisation because firm has to use
appropriate functions which are useful in matching and using these functions to achieve its
objectives. In relation to this organisation can use appropriate system which provides
information regarding the functioning of culture. In context of IKEA, it can see that culture is
appropriate system which directly impact on the performance of and will provide various
opportunities to achieve the objectives in a timely manner. If employees belong to a better
culture that they will perform in an appropriate way in order to improve innovative
functioning and achieve the objectives and timely manner.
It can be evaluated that these all functions as direct relationship with the culture in the
organisation and will impact the performance of firm in a direct way.

TASK2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
4p's of innovation
Figure 1 4p’s of innovation
Paradigm innovation: This type of innovation can be elaborated as an innovation
which includes a series of changes within the products and services of the organisation which
bring a complete change in the industry and become a patent of an organisation to bring the
changes (Mattila, 2017). In context of this kind of innovation Apple is a major example of
this innovation where the organisation used to launch a series of I phones. This can also use
by IKEA in order to improve its functioning and achieve the objectives of the market. Under
this system of innovation organisation has to focus on building a innovation chain which
become a brand value for the firm and will be in a regular nature. This is important for
organisation to use this kind of innovation so that it can use the chain of innovation which
include continuous changes in a regular manner to attracting and retaining the customer for a
longer period of time.
Process innovation: process innovation can be defined as an innovation which
include a particular process and is directly related to the internal environment of the
organisation. This will impact on the profitability and efficiency of the organisation because
it includes these kinds of changes which are based on a particular process. This is the cost
player method in context of IKEA. This is because organisation has to use appropriate flow

process chart and various other kind of systems to maintain appropriate Innovation and use it
for longer benefits.
Position innovation: Position innovation can be defined as in that kind of innovation
where organisation has to position a particular product within the market or use some new
changes within the existing product so that it can attract the customer and retain them for a
longer period of time by providing position innovation. This concept is also used by
organisation in order to maintain the position of the form within the market and using this
position in to gain revenue by selling the products and services. This kind of innovation can
be used by IKEA in its existing stores where company can improve this position of existing
stores by building New and innovative ideas within the organisation and attracting the
customer to add these innovative products and services (Mattila, Yrjölä and Lehtimäki,
2019).
Product innovation: Product innovation is also a factor which included in the four
p's of innovation. Under this kind of innovation the organisation has to identify the products
which include some minor or major changes so that form can attract the customer within the
market. This is the appropriate system which can be adopted by the organisation because in
follow the innovation on the products by changing the product or improving the product to
serve the customer. This will improve the functioning of organisation as an organisation can
use its goods and services to eliminate the competition and improve its functioning.
In context of IKEA, these principles can be used by the organisational manager in
order to maintain innovation and attract innovation. This will boost the productivity and will
manage efficient working condition in organisation to benefit Innovation and
commercialization of production services (Naughton and Foss, L 2019).
Innovation funnel: Innovation funnel can be defined as a mechanism which is
directly related to using appropriate framework to lead the organisation with ideas and
innovation. It is a steam line which consists of Idea creation retaining an external
environment of the organisation so that form can achieve its objectives regarding
development of innovation and managing the process of innovation within the firm.

Figure 2 Innovation Funnel
Focus on wide mouth of funnel: The first time the innovation funnel is related to
focusing on the wider mouth of the funnel. Under this function of innovation funnel, the
manager needs to identify a particular knowledge and information for the process of
innovation so that it can use this information to initiate the idea of innovation. This is a
beginning of innovation in the organisation where manager try to collect as many as ideas
which can be possible collected to manage Innovation and identify appropriate system for
producing production services and selling them with innovative functions (Özilgen, 2019).
The narrow segment of funnel: Under the second stage of innovation process there
will be focus on narrow segment of funnel where the different idea which is collected by the
manager of innovation within the organisation will be tamed and go through under a
particular screening process. The screening of these ideas is helpful to the organisation in
bringing Innovation and using the machinery in an appropriate manner so that it can achieve
the goals and objectives and perform its function in in appropriate way. This will boost the
profitability and develop the chances of success by choosing appropriate idea which can be
implemented.
The narrow segment of funnel: The last age of this final is related to engineering and using
a particular idea which has been selected by the management team of the organisation to
facilitate innovation. It is the responsibility of manager to link this idea with objectives of the
organisation so that it can easily interpret and anticipates from the beginning to the end. Real

manager needs to improve the production services by using the function at the current age
and managing resources according to the requirement (Polzin, von Flotow and Klerkx, 2016).
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation: It can be defined as and that kind of innovation which is related
to managing innovation in the organisation by using an engineering pattern to reduce the
complexity related to the goods and services and decreasing their caused by using cheap
methods of innovation. This method is used in order to reduce the non-essential and non-
required elements and features from the innovation purpose of goods and services. This kind
of innovation is used developing countries in order to use their limited resources in an
appropriate way and using the limited resources to fulfil the objectives of innovation and
product development (Ramljak, 2020).
The most prominent example of frugal innovation which is used by IKEA in its
functioning is related to to use of local chairs which include development of that kind of
chairs which can be reused after damage or break up. This kind of innovation is important for
the organisation in relation to increasing its profit margin and selling product in developing
countries. In addition to this kind of innovation, organisation is using various kind of
functions which are helpful in improving its profitability and productivity. This is an
appropriate system which can be used by the organisation to achieve its objectives and when
is the function in an appropriate way so that it can perform in a cheapest way to achieve the
objectives.
TASK3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation
Commercial funnel: Commercial funnel can be defined as a system which is used by
the organisation in relation to improving its sales and purchase process of goods and services.
It is a funnel which includes step by step processes to improve the sales of the organisation
using appropriate system. It consists of three types of functions which are known as top,
middle and bottom. This is a natural system in the organisation will help in improving the
productivity and achieving better results.

Importance of commercial funnel
It helps in making a marketing strategy: Commercial funnel helpful system to the
organisation as it help in identifying appropriate marketing strategies which can be used by
the organisation to improve its function and manage the current market situation according to
the needs and requirements of business. This can be used by IKEA in order to analyse the
market and use appropriate marketing strategies for selling the products and services and
targeting the customers (Rietsch, Beaudry and Héroux-Vaillancourt, 2016).
Help in creating customer: This is also helpful in creating a better customer base
where company can easily improve its product mix and sales strategies so that it can retain
customers for a longer period of time by classify them in different categories. Disallow
organisation to improve its function and achieve the objectives in a time related manner by
using the goals and objectives. This will improve the functioning of the form and we'll help in
managing the functions according to the needs of requirement.
Provide ways to improve business Innovation: Accommodation for really is also
system which can be used by the organisation in order to improve the business venturing and
achieve the objectives in a time related minor. This provide in increasing the innovation
opportunities to the organisation because a sales for their help in increasing the sales of the
products and services which will bring revenue to the organisation. Higher revenue will also
lead to increasing profitability where organisation can easily expand its functions and spend
the money on improving the innovative ideas. This will improve functioning as well as
manage your feedbacks of different departments so that they can contribute toward the
innovation.
Application of new product development process
 Idea generation: Idea generation is the first step in the new product development
process where organisation has to identify a particular idea in relation to developing a
product. In context of IKEA this system can be implemented within the organisation
by using an appropriate idea to improve the functioning and use the products and
services in an appropriate manner.
 Idea screening: Idea screening is also function which involved in the process of new
product development process where the manager has to identify different ideas and
used to scan them for the requirement of the current business market.

 Concept development and testing: Concept development and testing is a third stage
in this process where manager has to develop a particular concept according to the
idea which is chosen in the previous stages. This concept development and testing
will help in ensuring quality of the particular idea which is choose
 Making strategy development: Manager has to develop the marketing strategy
which can be used to implement Idea within the market. This marketing strategy is
directly related to the product which will be developed in order to implement within
the market where the IKEA is working.
 Business analysis: Business analysis also functions which include the different stages
within the current environment. In this to the business analysis organisation has to use
and implement the product to the market where it can easily improve the functioning
and achieve the better results.
 Product development: Product development is also a system which can be used by
the organisation to achieve the objectives where the manager has to ensure
appropriate product development process so that it can easily use the market situation
in business analysis.
 Test marketing: Test marketing is the stage where the management within the
organisation used to distribute samples and identify the current competitions of the
product so that it can test its product within the market by using the product of
competitors and effective tools and techniques in relation to promotion of the product.
This is an effective system which can be adopted by IKEA in order to implement its
new product with the market and attracting the customer toward the products and
services offered by form in the market.
 Commercialization: Commercialization is the last days in this process where
organisation has to commercialize the product by providing it a particular identity and
brand name of the organisation. This function is directly related to performance of
IKEA where various stakeholders are also invited in relation to commercialization of
product and introducing it to the market as a new product and innovation in the
product.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
In context of IKEA it is an organisation which is operating from a long period of time within
the market and it will need to improve its function so that it can achieve the objectives and
perform in an appropriate. This function IKEA has to provide and use number of strategies

which will increase the worthiness of the form within the market and provide opportunities
for expansion and growth. According to the organisation there are number of functions which
can be used by the firm in order to attracting investment and using the investment to achieve
the business functions
Business case is the document that gives the detailed information for new product. It analyse
the cost, benefits and risk of the selected options and provides a reasoning of selected
options. Ikea should make innovative business case so that their prospective buyer get to
know about the product lines and their uses. There are important points which should be
considered in the business case of Ikea mentioned below: Executive Summary:
It is the summary of business case that Ikea should be writes in a innovative way so
that their buyers get all relevant knowledge of bottle. Problem:
In the business case it should be included that what company identify the problems
such as Ikea found out the environment gets polluted through plastic waste. Solution:
After the identification of problem it is important to give the solution to the
customers. Like Ikea found a solution to make modern and stylish bottles with minimum use
of plastic so that it get no harm to the society.
 Innovation:
In this step of business case innovation should be considered so that the buyer get to
know the differentiation of Ikea bottle as compare to their competitors. Market Research:
In the market research segment the Ikea should include all the marketing strategies
that was used to innovate their products. Funding:
Funding is the important part of business because it shows the budget that was
allocated to the new product development. It shows the financial abilities of Ikea company to
the customers that helps to make transparency. It includes bank loans, borrowings and other
types of funding. To get more innovative it should be considered financial statements such as
fund flow statement, cash flow statements and capital budgeting. It gives more briefing about
the product development. One example is given below:

 Monitor and Control:
After completing all points it is considered that the process is not ending it wants
proper monitor and control so that they achieve the desired results. It is the important part
because it is not a single time process, it apply on all above points because of pervasive
nature. So is Ikea wants to accomplish their goals then they should be do monitoring at every
stage. If any deviations occur then take necessary corrective action and control the situation.
Bootstrapping: Under this function organisation tries to attract individuals from the
family and friends so that it can use the investment from these sources in relation to fulfilling
the requirements of innovation. It acts as a cheapest way to seek investment within the market
hue organisation is trading. In context of IKEA, operating at global level where this function
is not required to the firm in addition to performing its functions related to innovation.
Crowd funding: use of crowd funding is a method which can be adopted by IKEA in
order to achieve the objectives of innovation in the organisation. This method is useful for the
firm to achieve its objectives where organisation can attract the customers in a large number
to invest within the organisation products and services (Seclen and Barrutia, 2018).
Venture capital: Venture capital is most productive method which can be used by
IKEA in order to seek investment within the market. Add this function organisation use the
existing products and services. This is helpful to the firm in attracting the customers and

invested toward the organisation and investing at larger level. This provides opportunity to
the firm to meet its objectives and perform the function in an appropriate manner.
TASK4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
Intellectual property: Intellectual property can be defined as in property of the
organisation which lies under the hands of the firm and belongs to organisation. This property
includes those kinds of assets to the organisation which are not visible but are useful for the
firm to achieve its objectives and perform function within the market.
Tools to save intellectual property rights
Copyright: Copyright can be defined as an function which is related to providing the
rights to the creator of the work in order to limit the use of the particular work which is
created by individual. Copyrights are essential part which help in saving the intellectual
property rights of different individuals and cover the information related to the production
services innovated in the current business environment. This can also be used by IKEA in
order to safeguard its Innovation and invention in the current business environment.
Patent: Patent is a form of tool which is related to saving the intellectual property
rights of an individual by providing them a document which contained a seal of government.
Patent consists of function which is performed by an individual to safeguard disk
performance or a particular function which is new in the market and can be copied by its
competitors. By the use of repeated organisation to receive its interest for being limited for
the content reduce the chances of plagiarism.
CONCLUSION
It can be concluded from the above information then there are various functions
which are performed under Innovation and commercialization of the products and services.
This can be seen the there are various methods which can be adopted by the organisation in
order to meet the intellectual property rights. This can also see that innovation is important
function which include different kind of peace these are essential to achieve the objectives
and perform the function according to the needs and requirement. Along with this it can also

concluded that organisations are performing their function in an appropriate way with require
a better attention and attraction. Manager within the firm has to focus on the functions and
using these forms to achieve the objectives.

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