Importance of Innovation and Commercialisation in Organizations

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