The Role of Commercialisation and Innovation

The given research highlights the significance of commercialisation and innovation in driving organisational growth. Tesco's implementation of frugal innovation and other concepts has led to improved management and protection of innovative ideas through intellectual property tools.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Importance of Innovation and comparison with inventions.................................................1
Importance of innovation in comparison to invention in case of Tesco:....................................2
P2 Role of Organizational vision, leadership, culture and teamwork to shape innovation and
commercialism............................................................................................................................3
TASK 2............................................................................................................................................4
P3. 4P's of innovation and use of innovation funnel to examine and shape innovation ideas . .4
P4. Developments in frugal innovation and how it is used in the organisation..........................5
TASK 3............................................................................................................................................6
P5 importance of commercial funnel and application regarding NDP.......................................6
P6 Make an Innovation Business Case.......................................................................................7
TASK4.............................................................................................................................................8
P7 Tools to develop, retain and protect knowledge and intellectual property............................8
CONCLUSION................................................................................................................................9

INTRODUCTION
In business environment, each company needs to satisfy wants and requirements of their
clients for achieving desired success. Innovation is defined as a tactics to convert an invention or
idea into a required product and service for which customer is wiling to pay. Innovative ideas
need to be economically viable only than they will impact the growth margins of a firm. This
present assignment is based on Tesco which is a Britain based multinational retailer, situated in
England, UK (Abdul Razak, Murray and Roberts, 2014). This report will analyses processes like
innovation and invention of the items with respect to Tesco. Tasks also includes teamwork,
leadership, culture related with firm. 4P's of innovation, frugal and funnel innovation is also
mentioned. It also involves the incorporation of innovation in context to Tesco by developing
mobile Application facility to increase their customer base. Also, the knowledge related with
innovator and holding innovation is discussed. At last, effect on innovation, commercialization
and invention processes on success of firm.
TASK 1
P1. Importance of Innovation and comparison with inventions
Innovation: It is a way of incorporating new ideas regarding a good or service in the company,
which will help the firm in achieving desired success. There are several aspects that carry
forward innovative process. Factors like thinking, differentiating and intellectualism are some of
the driving forces that can push innovation in context to Tesco ahead.
Importance of innovation in reference with Tesco:
 Enhance creative development: Merits offered by innovative ideas are vital for building a
new business. Desired growth can be achieved by incorporating new and creative ideas
within business. Creative development means introducing concepts which are new for
concerned firm. High creativity will leads to more productivity which will helps the
Tesco in earning high revenues.
 Continuous improvement: Innovation leads towards sustainability when an organization
improves at a constant rate by re-branding and repacking their services and products.
Managers of Tesco needs to introduce new schemes and offers that will help the company
in improving their business strategies (Bain and Kleinknecht, 2016).
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 Response to rivals and trends: Innovation foresees the needs and opportunities that must
be incorporated to tackle future requirements. Successful companies not only focus on
present needs but along with this they come up with schemes that can fulfill the future
needs in a quick way. This can help Tesco in increasing their brand image.
Invention: It is implementation of a new thought or idea into reality. This is treated as a second
level while inventing new services. It helps in formulating new schemes in already existing
product by bringing it into marketplace. Hence, supports Tesco in improving their market value.
Difference between Invention and Innovation
Basis for comparison Invention Innovation
Meaning It is thinking of idea regarding
existing goods that has never
considered before
To implement an idea for the
first time either for a product
or service.
Related with Developing new commodity. Enhancing value of existing
products.
Concept Based on original idea and
theory of working.
It is based on practical
execution of an idea.
Skills needed Advanced scientific skills. Technical, strategic and
marketing skills.
Occurrence When new idea formulated in
minds of employees.
When improvement in a
product is required.
Concerned with Individual process or product Combination of processes and
products (Balmer, Bulpin and
Molyneux-Hodgson, 2016).
Activities Related with Research and
development sector.
Across the company.
Importance of innovation in comparison to invention in case of Tesco:
Tesco is a grocery retail company based in England. By incorporating new idea firm will
achieve competitive advantage and invention will convert this advantage into action. By
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providing different products from rival firms, Tesco can achieve desired targets due to increased
vale of products.
P2 Role of Organizational vision, leadership, culture and teamwork to shape innovation and
commercialism
Developing a new idea is the basis of innovation and invention help in decoding these
ideas. The main motive behind this is to commercialize goods and service (Chrisman and et.al.,
2015). Commercialism is the aggregate of invention, marketing, innovation and communication
with clients. Basically, it is introducing new commodities into market. To commercialize an item
in market, various aspects impacts innovation. One of them is culture of organization which
involves future aims and targets of a firm. In case of Tesco, company's vision is to deliver best
merchandise and grocery products, for this they need to improve old tactics by introducing new
concepts and then commercialize new product in market. Hence, vision plays a great role.
Leadership: It is the way of managing a firm in accordance with the desired objectives and
targets. Leadership results in success and appropriate conditions with the company. It includes
various types of methods such as democratic, participative, bureaucratic and autocratic etc. In
case of Tesco, autocratic is best as leaders needs to be agile to obtain capabilities and less people
making decision results in fast decisions.
Organization culture: It is the sum of aspects like norms, values and behavior of employees.
This decides the way with which things are going to take place in an organisation. Culture is
shaped in accordance with the values of country (Cunningham, 2013). Sometimes culture varies
for different companies within the same country. In reference to Tesco, culture difference can
impacts innovation in a bad way. Other than that, it helps Tesco in shaping the process of
commercialism if given proper consideration.
Team: It helps the firm in carrying out allotted tasks according to the formulated plan. For
performing different jobs, Tesco has created several teams and groups which conduct required
task for innovating and commiserating the commodities. These teams can act in accordance to
Tesco's objectives by delivering new ideas and concepts to the client. By this, teamwork supports
commercialization and innovation within an organisation.
Vision: It is a desired view of where the firm wants to reach. It sets a benchmark to the
objectives of company. Tesco motivation lies around consumers and employees. It provide
guidance regarding organizational direction. Tesco's vision is to best valued business. After
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considering a new content it needs to commercialize the merchandise in socio-economic class, it
is a manner to penetrate in market by introducing new items. Therefore, vision of firm has large
effect on the creative thinking and innovation procedure. Vision of Tesco is to serve around 29
cities in United Kingdom and in accordance with vision, innovation and invention related
process carried out.
TASK 2
P3. 4P's of innovation and use of innovation funnel to examine and shape innovation ideas
The main aspect of innovation is, dealing with those processes through which a company
develop new concepts and ideas by incorporating new products in market (Dincer, 2017). 4P's of
innovation are considered as innovative mix that is used by companies to formulate new
thoughts. These 4P's were developed by Bessant and Tidd. In reference with Tesco, these 4P's
can be defined as follow:
 paradigm: It is a specific category in innovation. It is related with the change of manner
in which innovative ideas are introduced in the company. It also involves the manner in
which firm complete their job, face threats and challenge. Tesco needs to strategize about
the changed condition and situation in providing goods to consumers.
 Product: This is the main commodity that is offered to the consumers, it will only be
valuable to the company, if its capable to add value by involving competitive advantages.
For Tesco, if company introduce new items and delivers eminent services to clients then
only value will be added because of increase in competitive advantage. This is the main
aspect in 4P's which results in innovation and commercialism.
 Process: It is a tactics due to which an item is delivered to potential clients. This aspect is
very important as, if providing process is lengthy then success rates are less and if
delivery process is shortened than succeeding possibility is high for Tesco.
 Position: This is the ultimate goal of the innovative and commercialized process. In more
simple way according to which a firm want to maintain its position, Tesco wants to
achieve its ranking by delivering best facilities to its clients.
Innovation funnel of Tesco:
It is the procedure of creating new concepts by specifying the steps through which an
idea can be best for providing efficient service to clients. There are various kinds of funnel
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available for Tesco through which the thinking and idea can be processed and supports in
achieving the targets (Fischer, Diez, and Snickars, 2013). In case of Tesco, first step involved in
innovation funnel is to gather sufficient and required information. It is related with the fitting of
idea in fulfilling the needs and wants of clients. Next step is to select the idea that is more relate-
able among different ideas. Step that promises best result is chosen by Tesco. Next task which is
needed to be resolved is to find that idea which supports the company in best way. At last, the
idea is implemented to convert it into action. This will helps Tesco in improving their working
efficiency.
P4. Developments in frugal innovation and how it is used in the organisation
Frugal innovation is described as a procedure related with invent of a commodity or
service idea in references with scarcity of resources within a country. It depends on several
aspects like political, social, cultural and environmental components. These features are
supporting in shaping an innovative process. It involves production of a product by cutting out
capital in a considerable amount. In some cases, it is modified because of the expectation of a
gaining situation by eliminating poverty from the Tesco along with society.
It reduces the production rates of items and decreases the complexity associated in
production. It also specifies the process through which product is delivered to the clients. Along
with it, this helps in assessing which product is useful or bad for particular sections of people. In
case of Tesco, to implementing a frugal innovative process critical factors needs to be
considered. For instance, Tesco a renowned firm provide merchandise items to different part of
world. This is considered as a frugal innovation as citizens living there have different needs,
choices and preferences. Customers of UK are more standardized than most of other customers
around the globe so Tesco introduces quality approved products there as people are ready to pay
more in UK. In context of other nations, poor than UK then funnel innovation is to provide good
quality and easily accessible products (Hemphill, 2014).
There are several levels which are concerned with the frugal innovation that Tesco is going to
use while introducing mobile application are mentioned below:
Identify the target market:
To establish a strong business, it is essential for a company to analyse the market
thoroughly. Tesco needs to identify the potential markets and customers so that they can promote
their new mobile application that provide commodities according to their needs and demands.
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Analysis of the environment:
Analysis of business atmosphere is must for the firm to take proper decisions according
to the present situation. In reference to Tesco, the organisation must analyse environmental
aspects that are technological, legal, social and political etc. It supports the firm in protecting
itself from the counter consequences that can take place while introducing online application to
their customers.
Pattern based ideation:
This is very important in determining the suitable pool of solution patterns. Tesco can
apply these parameters to evolve the solution and assessment of resultant ideas while introducing
mobile application such that the firm can find finer , innovative and advanced ideas when they
are facing any difficulty in the company (Lember, Kattel and Kalvet, 2013).
These all process concerned with the frugal innovation helps the organisation in thinking
better and utilize innovation in managing operations of business such that it can accomplish
sustainable prosperity.
TASK 3
P5 importance of commercial funnel and application regarding NDP
Commercial funnel is defined as introduction of the ideas that bring forward focus of
thousands of people but leads to only those clients that are interested in buying the services and
products. It follows various steps that help in increasing the profit margins like assessment,
knowledge of concept, interest, acquisition, decisions in purchasing etc. In the context of a
company like Tesco, senior managers and managers applies the process of commercial funnel
due to which promotion and advertisement of the mobile application is carried out in effective
way. Importance associated with it is discussed below:
 Management of an organisation is liable to handle the gathered data and information in a
appropriate way. Due to this reaching an effective conclusion will be a easy task. This is
very important for the Tesco to achieve customer's satisfaction in regard with mobile
application.
 Commercial funnel assists Tesco to produce quality approved and standardized products
like mobile application which will enhance their customer base and brand loyalty. This
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help the firm in achieving sustainability, capabilities and increase the motivation of a firm
to achieve targeted goals and objectives.
 It assist in specifying beneficial and positive measured strategies which will improve the
brand image of the company considerably in the minds of the clients. Due to this, huge
number of consumers are allured towards the online application offered by the
organisation to help their clients.
New product development process: In order to enhance the generation of revenue and sales,
every company formulated various kinds of tactics to create a new product. To achieve these
developments, Tesco's manager provides guidance and training to their workforce. This helps the
firm in introducing new products like online application that are mentioned below:
New product strategy: Major task of a company's management is to develop efficient
tactics and strategies that supports in introducing new products. With the help of appropriate
research carried out by marketing department, Tesco determines the desired needs and
requirements of clients by launching mobile application which helps the consumer to connect
with the firm .
Idea generation and screening: Management concerned with a company formulates
alternative concepts which helps in the production of modern and new commodities. They
choose the most appropriate option form the available aspects. This helps in determining what
features needs to be included in mobile application so that consumers will became more
satisfied.
Business analysis: Manager investigates about the expected business growth in industry
place, that increases their attitude for the approaching time (Mowery and et.al., 2015). Tesco
gathers all the opportunities that might be available to the firm in improving their mobile
application's features.
Commercialization: This is concerned with increasing popularity of online application
by following various strategies and tactics by Tesco. This is the most vital aspect as the
application will not be valued until it is accepted by huge customer base.
New product: The final step is concerned with the development of the application. It is
the main target of the firm to produce and launch those facilities that satisfies the requirements
and needs of consumers.
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P6 Make an Innovation Business Case
In marketing and management world every firm wants to establish a business that helps
in assigning the specified objectives and targets. To achieve this firm needs a specific approach
that supports in competing targets in an efficient manner and given time. Tesco's manager take
care of all the relevant factors that help the organisation in fighting against rival and competitors.
These cases are outlined below:
Executive summary: Tesco is a retail company which deals and offers groceries and
related items to their clients. The new product which is innovated by company is online mobile
application which helps the customer to take benefits by purchasing groceries and other food
items via ordering on phone. Buying groceries is a daily need and this will saves a lot of time
and efforts of people. Due to this application, sales and revenue of Tesco will enhance and their
profit margins will reach a new height.
vision of organization: Vision provides a long path and support to tackle future targets
which are completed to attain profit margins and long term sustainable development. Manager
develop some actions and schemes that help in achieving results. It is under the supervision of
the manager to maintain a friendly work environment with in the company that will improve the
productivity for a large run.
Mission: The mission of Tesco is to provide facilities and services to their client in best
Possible way. This will help them in expanding their client base.
Objective: To innovate an efficient mobile application through which customers can
purchase commodities even if they are not physically present there.
Target: It is a basic requirement to set targets that will help the company in achieving
their desired goals without facing serious issues. Manager of Tesco, needs to explain the desired
targets to the staff members so that every member working in it can together achieve the needed
results. In the end, it will enhance the productivity and performance of workers and organisation
as a whole (Scholz, 2015).
Problem statement: It involves all those aspects which are faced while developing the
innovated product. Problem which can take place are application is not working properly, mode
of payments is limited to online payment only, people are not able to understand how to use
application and many more.
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Funding: Funds are viewed as the most crucial component for any business because
organizations needs capital to manage their activities and objectives related with business . They
have several derivatives to increase finances for there finer procedure and follow some
regulation and concept to maintain business operation's. One of the most noteworthy sources of
funds are equity. But only few companies like Tesco, are able to conduct this process because of
their efficient management.
Recommendations: By considering all the feedback which are given by customers
regarding mobile application, the company can improve the functionality of application. Also,
they can add new features which attract more clients toward application.
Benefits: This will help Tesco in improving their revenues due to improved sales.
Also, the image of brand will improve which will help them in increasing their market value.
 Return on investment: In innovation, ROI is a measure which evaluates the
effectiveness of investment within an organization while introducing new service or
product. Due to Mobile application introduced by Tesco, revenues and profits of
company will enhance due to which ratio associated with net profit and cost investment
will increase. This denotes that company will face profitability and enhanced market
shares.
If the revenue generated by the company due to mobile application is enhanced and profit
margins have increased, in that case it is beneficial for Tesco to further invest in mobile
application. In case no profit or less revenue is achieved, it is better for a firm to shut down that
project to maintain its finances. Cost invested by Tesco on Mobile application is approx 5
million pound and in return company is able to earn around 8 million pounds of revenue form
this. This shows that company had a profit of approx 3 million pounds. Hence, Mobile
application launched by Tesco is profitable and adds value to the company.
ROI = (Total revenue – Total cost/ Total cost) * 100
Total revenue earned by Tesco = 8 million pounds
Total cost invested = 5 million pounds
ROI = ( 8,000,000 – 5, 000,000/ 5,000,000) * 100
= 3,000,000* 100/ 5,000,000
= 60 %
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60% will be the Return on Investment in this case. This denotes that investing in mobile
application will be beneficial for Tesco.
TASK4
P7 Tools to develop, retain and protect knowledge and intellectual property.
Innovation is concerned with a process of converting modern ideas and thoughts in a
proper manner such that present commodity can have a new brand value and they will be able to
fulfil consumer needs in a efficient way. In big corporations like Tesco, staff members utilize
innovative ideas to maintain, develop, enhance and conduct there attempt in improving the
productivity level. They also take care of this factor to render profit growth in business
operations and activities to carry out a change in performance of the company. Leader and other
senior officials of firm contribute in innovation procedures that help in encouraging clients and
generating potential to carry business hence to attain company goals. In Tesco, human resources
professionals especially managers provides required training to their worker that assist in rising
the knowledge and ability.
Copyrights: This concept helps the companies in claiming the rights which they have
produced. Commodities produced and offered by Tesco, such as their mobile application is their
innovation and it is important for company to claim it. By this no other company will be able to
copy their content and application (Wallace, 2017).
Patents: For producing a product every company needs to get authentic permission from
the government officials before producing a community that is already introduced in market by
some other firm. This permission is given for a limited time after that they need to renew their
permission or stop production. Companies that create similar items incorporate different
innovative and modern tools to sold their items in market.
Trademark- These are the logo and names which identifies a brand in respect with its
value. It includes the concerned business name, exceptions involved,construction, figures and
good images, label line etc.
CONCLUSION
In accordance with the given research, it is carried out that commercialism and
innovation is crucial as it render assistance in fast growth of the organisation. In the case of
Tesco, the company is using innovative idea such that the firm can enhance its sales and profits
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along with satisfying their potential customers. It is implementing concepts like frugal and
innovation of frugal so that firm can achieve the profit from it and as it is proved both
innovation and commercialization assist in maintaining required vision and skills of leadership.
Due to this the management within the firm has improved drastically. Along with this,
organisation has passed from different kinds of tools related with intellectual property which
help the organisation to protect its innovative ideas.
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REFERENCES
Books and Journals
Abdul Razak, A., Murray, P.A. and Roberts, D., 2014. Open innovation in universities: The
relationship between innovation and commercialisation. Knowledge and Process
Management. 21(4). pp.260-269.
Bain, D. and Kleinknecht, A. eds., 2016. New concepts in innovation output measurement.
Springer.
Balmer, A., Bulpin, K. and Molyneux-Hodgson, S., 2016. Synthetic Biology: A sociology of
changing practices. Springer.
Chrisman, J. J. and et.al., 2015. The ability and willingness paradox in family firm innovation.
Journal of Product Innovation Management. 32(3). pp.310-318.
Cunningham, S., 2013. Hidden innovation: Policy, industry and the creative sector. University of
Queensland Press (Australia).
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Fischer, M. M., Diez, J.R. and Snickars, F., 2013. Metropolitan innovation systems: theory and
evidence from three metropolitan regions in Europe. Springer Science & Business
Media.
Hemphill, T. A., 2014. Patent assertion entities: do they impede innovation and technology
commercialisation?. Technology Analysis & Strategic Management. 26(7). pp.717-731.
Lember, V., Kattel, R. and Kalvet, T. eds., 2013. Public procurement, innovation and policy:
International perspectives. Springer Science & Business Media.
Mowery, D. C. and et.al., 2015. Ivory tower and industrial innovation: University-industry
technology transfer before and after the Bayh-Dole Act. Stanford University Press.
Scholz, N., 2015. The relevance of Crowdfunding: The impact on the innovation process of
small entrepreneurial firms. Springer.
Wallace, D., 2017. Environmental policy and industrial innovation: Strategies in Europe, the
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Online
Commercialisation and Innovation. 2018. [Online]. Available
through:<https://www.innovationpolicyplatform.org/content/technology-transfer-and-
commercialisation>
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