Analysis of Innovation and Commercialization

The provided document is an assignment on innovation and commercialization, covering various topics such as business model innovation, open innovation, service innovation, and technology commercialization. It includes a list of academic sources and articles related to the topic, as well as online resources providing information on the difference between invention and innovation. The assignment aims to analyze and discuss key concepts, research studies, and case studies in the field of innovation and commercialization.

INNOVATION

Table of Contents
INNOVATION................................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and its significance as compared to invention.....................................................3
P2 State how organizational vision, culture, team work, leadership can shape innovation and
commercialization ......................................................................................................................5
TASK 2............................................................................................................................................6
P3 Explain 4P's of innovation and use of innovation funnel......................................................6
P4 Development in frugal innovation.........................................................................................6
TASK 3............................................................................................................................................7
P5 Significance of commercial funnel & application of new product development..................7
P6 Building an Innovative Business Case ..................................................................................8
P7 Tools used by firm to retain, secure and protect intellectual property...................................9
CONCLUSION..............................................................................................................................10
REFERENCES.............................................................................................................................11

INTRODUCTION
The process of converting an invention or idea into final goods or services that create
value for customer or for which consumer is willing to pay is known as Innovation. In context of
business, it is normally applied by company for satisfying diverse needs and wants of customer's
in an effective and efficient manner (Aarikka-Stenroos and Sandberg, 2012). It often seen as the
application of providing better solution that complete unarticulated needs, new requirement and
existing marketing needs in an appropriate manner. Generally, it refers to the process of
developing more effective products, process, ideas and workflows. With the help of innovation,
association can gain high competitive advantage in the marketplace. The selected organization
for this report is Unicorn Grocery which is a co-operative grocery store, headquarter in
Manchester, England. The main aim of given report is to figure out how innovation and
commercialisation help in achieving business goals in an effective manner. It also include
application of new product tool, sources of funding, commercial funnel, innovation mix and
various tools for retaining and protecting intellectual property rights.
TASK 1
P1 Innovation and its significance as compared to invention
Innovation concept is dealing with conversion of an idea into product or service for
which buyers are willing to pay. A new idea is very essential for any innovation and individuals
or entrepreneur are require to come up with creative ways and new ideas for doing things in
different way. Bringing innovation within firm provides competitive advantage to company
within market. It assists in making business distinctive from others. Its contribution is very high
in success as well as growth of firm. It is like catalyst for firm as it assists in growth by providing
competitiveness to company.
There is a difference between innovation and invention. Bringing innovation within
company doesn't mean it is invention (Difference Between Invention and Innovation. 2016). It
refers to the process of change and adapting themselves as per the changes takes place in
environment. Innovation assists in delivering such goods and services that completely satisfy
needs and requirements of customers. If a innovative culture is developed within firm,
employees are being more creative and an ability is developed among them for solving problems
in effective way. It is believed that sustainability of a business organisation highly rely on

innovation. So, firms are require to constantly innovate in their goods and services for
maintaining their position in market for long term. The success key of every business
organisation is unique and creative idea (Bagchi-Sen, 2010). Currently, significant profits are
earn by Unicorn Grocery in market but, there are some other firms which offer similar products.
So, for maintaining its position in market and gaining high competitiveness, it is required by firm
to do something different. So, management has takes decisions for launching an mobile
application so that time, efforts and energy of firm as well as its customers can be reduced. They
also emphasize on making their layout properly structured in order to make it easy to find
product. Some advantages of innovation gain by firm are defined below:
 One of the greatest means to create unique selling proposition for specific process or
goods is effective innovation.
 Higher profit & sales are yield by company.
 Increased motivation, retention of workforce and flexible recruitment.
 Helps in developing good brand image or brand.
 Innovation is the best way of gaining high competitive edge and acquiring large portion
of market share (Bogers and West, 2010).
 Improved productivity as well as performance of company and reduces its cost. Speedy increment in satisfaction level of buyers or consumers.
Comparison between Invention and Innovation:
Innovation Invention
Innovation occurs when significant
improvements are made in existing goods and
services.
It is a comparatively discrete creative act in
which the product or service is completely new
or which never exist before.
It refers to a modern idea that can be applied to
existing situation.
Invention is a practical aspect and can be
assessed by people.
It is about making product reach to final users
or make it marketable.
It is a alteration of novel notion in substantial
idea.
Innovation consist of amalgamation of
different products or processes.
The concern of invention is single product or
process.

P2 State how organizational vision, culture, team work, leadership can shape innovation and
commercialization
Unicorn Grocery is a UK-based small co-operative store that is democratically controlled
and managed by its members. The company mainly deals in offering fresh, dried and processed
food and drink that is made up of organic ingredients. It also deals in selling general grocery
items, body-care and household items. In order to cope up with other rivalry firm, the company
has decided to do innovation in the form of launching its own mobile application through which
they are able to sell their product to target customer (Ettlie and Rosenthal, 2012). The reason
for doing this innovation is because in modern era, most of the customer prefer to buy goods via
online platform.
Commercialization: It is important for every business entity to identify problem first that are
prevailing in the company and are required to be solved. After determining the issue, firm needs
to evaluate various source that help in formulating best possible solution for the given problem.
After gathering data from analysis, designing and development of product is done. Next step
deals with testing and sampling of innovation that is going to render specific information
concerned with product cost. After getting positive response from prototype, company finally
introduce new product in the market. But for carrying out all these in systematic manner,
business enterprise needs to look into its vision, leadership, team work and culture.
Vision: The vision statement of Unicorn Grocery is “to have strong market and customer base by
providing such goods and services to target customer that creates values for them”. From its
vision statement, it can clearly stated that referred firm is they are carrying its business operation
accordingly. Their members have identified that consumer prefer to buy products through online
channel and as a result, the have decided to introduce its own mobile application (Gambardella
and McGahan, 2010).
Culture and Team Work: Unicorn Grocery is promoting healthy and positive working
environment as the firm is wholly controlled and managed by its members. This indicates that all
its members contribute equally towards achieving business gaols and objectives in an effective
and efficient manner. Employees perform according to the respective roles assigned to them. As
it is a small scale organization, it believe in accomplishing task with team efforts rather than
doing it solely.

Leadership: The leadership style followed by Unicorn Grocery is participative style of
leadership. Under this, their members are equally involved in decision making process. This
create higher sense of recognition and satisfaction among them. Additionally, the company
provide freedom to workers which inspire them to generate more unique ideas (Godin, 2012).
TASK 2
P3 Explain 4P's of innovation and use of innovation funnel
The concept of innovation mix is given by Joe Tidd and Joe Beasant. According to this
framework, process of conducting research is little bit complicated. Employees who are
performing this gets confused and might select wrong path for carrying out systematically. In
order to make the process of innovation simpler, there are 4P's of innovation including product,
process, position and paradigm that are explained below:
 Product: Unicorn Grocery is required to produce such goods and services that attracts
customer without doing much advertising or promotion. Every company needs to embed
innovation on constant basis so as to hold strong position in the market. For example:
Unicorn Grocery can start selling organic fruits and vegetables.
 Process: It deals with the change in process involved in production and delivery of
respective product to end-user. With this, both customer and company gets equal
benefits. As the referred entity has decided to innovate the process in which they deliver
final goods and services to potential buyers. For example: The company has decided to
introduce its online mobile application (Huizingh, 2011).
 Position: This “P” revolve around repositioning of existing products or services. Re-
branding of product is usually done so as to achieve business goals and objectives in a
structured manner. Unicorn Grocery needs to introduce its items in other different
segment or sector so as to attain strong hold on market and capture large market share.
 Paradigm: Sometimes it is required by company to ignore society views so that distinct
products or services can be produced. This innovation is more related with mental model.
Unicorn Grocery has embedded innovation in terms of introducing own mobile
application application keeping in view the thoughts and imagination of people.
P4 Development in frugal innovation
Frugal innovation is one of the concept that deals with process by which company is
trying to minimize complexity of production & cost of goods sold. An innovator consider their

available resources as opportunity rather then liability (Kim and et.al., 2011). This concept deals
with developing better solutions for consumers which offers high value to them at minimum cost
rather than concept of sophisticated goods selling. Several firms are there which transform its
business model radically and their mental model as well. The stages of frugal innovation are
defined below:
Finding opportunity in adversity: Existing or current problem is reframed by workers at
this stage. In Unicorn Grocery, threat is effectively translated into an opportunity by
management of firm with the aim of gaining high competitive edge in market.
Do more with less: All the available resources are evaluated by workforce at this stage
and then try to make their optimum utilization.
Think & act flexibly: It is believed in this stage that rather than being rigid, it is better to
be spontaneous.
Keep it simple: Any kind of complexity that takes place within business firm may disrupt
the whole business functioning and it is not good. So, it has been recommended that a firm
should have numerous choices rather than having fewer (Lindič and et.al., 2011).
Include the margin: Firm needs to be aware of preferences and needs of customers so
that effective product can be produced. For this, suggestions & feedbacks of customers can be
taken by company.
TASK 3
P5 Significance of commercial funnel & application of new product development
Commercial Funnel:
It identified as a cost effective process by which firm try to determine appropriate sources
which helps the company in delivering innovative goods to potential customers in systematic and
structured way. It is the duty or responsibility of manager to select proper distribution channel
which supports in yielding high profits and revenues (Innovation Funnel. 2016). As Unicorn
Grocery has decided to introduce their mobile application and for which they undergo the
process of new product development. It helps them in effectively meeting requirements of
customers. Various steps are involved in this process which are defined below: Idea generation: This is then stage in which ideas are generated. There are various
sources through which these can be generated.

 Idea screening: There are various ideas but only few of them are good and can be
utilized. In this stage, managers check the feasibility of idea. From all the ideas, best
ideas are selected and remaining are eliminated. Before selecting the idea, various factors
are considered by manager such as affordability, customers needs, strengths and
weaknesses of firm etc. Concept testing & development: This step includes testing in which selected idea is
tested. It is a blue print of idea which is converted into concept at this stage. A prototype
of idea is developed for the purpose of testing. The concept is tested on selected group of
customers and information getting from those customers are used for checking feasibility
of it. Suggestions or feedback from customers plays crucial role in determining whether
to move on with the concept or not (Rafinejad, 2010). Market development & strategy: After concept testing, if results are satisfactory then
effective business strategies are developed by manager. Various factors are taken into
consideration in this stage such as branding strategies are developed, profitability is
anticipated and marketing mix are applied. Pricing strategies are also formulated by
company in this stage. Business and financial analysis: Actual sales of good will examine by manager at this
stage and measure it by sales objectives which are established previously. Viability of
product is check in this stage.
 Commercialization: It is the final stage in which firm launches their product in market.
P6 Building an Innovative Business Case
Application of Business Case is usually done so as to compute the amount of risk
associated with investing in innovation (Schoonmaker and Carayannis, 2010). In the preset
report, Unicorn Grocery has decided to come up with its own mobile application for generating
higher profits and revenues. Series of steps involve in building an innovative business case
which are discussed below:
11 The Need: At this stage, Unicorn Grocery identify current issue prevailing within the
work environment. Basically it determine what is the exact need for embedding
innovating within the company. With rapid change in technology, customer buying
pattern also gets affected. As a result,s sales of referred firm decrease as target customer
willing purchase item via mode of online websites. In order to deal with this situation, the

firm has decided to introduce its own mobile application through which they are able to
sell its items in a better manner.11 Your Solution: Solution formulated by company must be creative and unique that gives
them high competitive edge in the marketplace. Here, the best possible solution for
attracting large number of customer and making both consumer and market base stronger,
Unicorn Grocery will launch its own mobile application (Snow and et.al., 2011).11 Why it is innovative: The solution framed by association is innovative as it become the
first SME among other UK-based SME's to have its own mobile application through
which they are able to sell their items in the market and comparatively in better manner.11 Customer Research: Before engrafting innovation, it is chiefly important to conduct
mini-research for measuring what are the current likes and dislikes of customer so that
they can innovate accordingly. It can takes place through focus group, interview, survey,
questionnaire etc.11 Investment Required: At this level, Unicorn Grocery will compute total investment
needed for successfully implementing innovation. Mainly, there are sources of funding
through which firm can generate sufficient amount of funding one is Internal and other is
External. Internal means when funds are arranged within the company only such as using
profits, retained earning, long term assets that are no longer in use. On the other hand,
External means when funds are collected outside the organization such as angel investors,
banks, creditors, individual donor etc.11 Expected Benefit: Innovation not only affect organisation operation and activities but it
also influence environment and society that is measured at this stage.11 The Ask: This is the last stage in which company take valuable feedback and suggestion
from customer after implementing innovation (Teece, 2010).
P7 Tools used by firm to retain, secure and protect intellectual property
IP are the rights that is given to an individual for protecting their invention. An exclusive
right is given to person for their idea. It involves copyright, patent, trademark and trade secret
which are same as any other right. With assistance of these tools, monetary benefit or recognition
is given to inventor. Some tools in detail are defined below:
Patents: This is one of the right that is given to an individual for invention. It allows the
owner to restricts others from copying or selling their product without permission. Invention

assists many businesses to become successful and gain advantage in market over their
competitors.
Copy right: This right is given to the owner for their original art, musical, dramatic or
literary work. It allows an individual to control its subsequent utilization. With the assistance of
this protection, exclusive right is getting by an inventor related to copy, modify, perform, display
or distribute their work (Thore, 2012).
Trade-Secrets: It include device, formula or any other business information that gives
high competitive advantage to the firm over its rivals. These intellectual tools cannot be acquire
through registration. It remain private until and unless it has not been shared by such person.
There is high confidentiality of data and its protection level varies from one country to another.
Trademark: It is in the form of word, design, symbol or phrase that makes product
distinctive from other competitor's brand. The main purpose for using this intellectual property is
to make its product different from that of rivals so that consumer can easily identify product
among others (Walsh, 2012).
CONCLUSION
As per the above mentioned report, it has been concluded that for maintaining long term
sustainability in market and gaining high competitive advantage, bringing innovation within firm
is very essential. Innovation refers to the process through which firms add new features in their
existing goods and services in order to satisfy needs and requirements of customers. Various
tools and techniques are used by company that helps in bringing innovation and in
commercializing of products. Innovation funnel is utilized for determining needs of customers
effectively. Apart from this, different intellectual property rights assists in protecting ownership
of individual for their discovery or invention.

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.
Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
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., 2010. 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.
Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Wonglimpiyarat, J., 2010. Commercialization strategies of technology: lessons from Silicon
Valley. The Journal of Technology Transfer. 35(2). pp.225-236.
Online

Difference Between Invention and Innovation. 2016. [online]. Available
through:<http://keydifferences.com/difference-between-invention-and-
innovation.html>. [Accessed on 16th May 2017].
Innovation Funnel. 2016. [online]. Available through:
<https://www.cleverism.com/lexicon/innovation-funnel-definition/>. [Accessed on 10th
July 2017].