Innovation and Commercialisation Drive

This assignment explores the importance of innovation and commercialisation in F-Drones, focusing on the development and measurement of innovation, the role of culture, vision, leadership and teamwork in shaping innovation and commercialisation, sources of innovation and development of an innovative culture, the importance and use of the innovation funnel, and the concept of frugal innovation in the context of F-Drones.

Innovation
andCommercialisation Drive
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Table of Contents
INTRODUCTION...........................................................................................................................2
PART ONE......................................................................................................................................2
1- Critically analysing how innovation is developed and measured in the F-Drones............2
2- Evaluating how F-Drone's culture, vision, leadership and teamwork assist in shaping
innovation and commercialization.........................................................................................3
3- Varied sources of innovation and development of innovative culture within company....5
4- Importance and use of innovation funnel...........................................................................6
5- Frugal innovation concept in context of organization........................................................7
PART TWO.....................................................................................................................................9
1- Commercial funnel and new product development procedure..........................................9
2- Business case for innovation............................................................................................11
3- IP tools that organization can use to retain, protect and develop knowledge & intellectual
property.................................................................................................................................13
4- Examples based on use of intellectual property tools......................................................13
5- Nature of innovation and methods used to overcome challenges....................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Innovation and commercialization are two key different elements that contribute in
growth and success of a company. Innovation refers to developing effective products, procedures
and ideas, which in return provide several benefits to organizations. While commercialization is
consider as process of bringing new items or services to target market. Wider act of this term
entails marketing, consumers support, production and sales. The current assignment will be
based on F-drones organization, which introduced world’s first and the best transition drone.
This study will explain importance of innovation to firm in comparison with innovation. It will
define sources of innovation and ways through which company will create environment of
innovation.
Furthermore, this report will describe significant of innovation funnel and frugal
innovation term. It will justify commercial funnel and application of NPDP for
commercialization of innovation. This assignment will define business case for innovation,
which includes range of approaches and will also explain range of IP tools that organization can
utilize.
PART ONE
1- Critically analysing how innovation is developed and measured in the F-Drones
Innovation
It refers to the process of coming up the new ideas in respect to the product and services
which is having a huge impact over the success of the organization. There are various factors or
the drivers that push an organization towards innovation process (Kamasak and et.al., 2016). For
the organization's point of view, it refers to the creative thinking, courage along with the
differentiating mind that drives an organization in the direction of innovation.
Invention
It is the process through which actualization of the idea takes place. In simple words, it is
the process of putting an idea into action. It is different from innovation as innovation only refers
to coming up with a new thinking but on the other hand, invention refers to bringing that idea to
the market.
Importance of innovation in comparison with the invention in case of F-Drones
The current world of business is changing with a higher pace and in an unpredictable
manner. F-Drones is the Aerospace logistics company based on the Singapore which is known
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for innovation. For this company, coming up with the new and innovative ideas will mean that it
is going to take advantage of the competitive market and invention is the process of making real
or actualize the competitive benefits in an action form., this is because of the reason that
innovative and distinctive products results into attaining more success in the market place and
also results into taking the competitive advantage. In the current market, people are more focused
on innovative and differentiated products which is consequently lead to the success and
appreciation of this innovative company (Aksoy, 2017). In case of F-Drones, it is working on
building up the world's 1st such drone with the core purpose of enabling the aerial deliveries to
the ships and the offshore platforms. The most attractive feature is that this transformational
drone is having the capacity to deliver up to 100 kg over the distance of 100 km which is fully
autonomous and electric.
The actual outcome of this drone is that it will result into saving 80% of time and cost.
Along with that, it will help in saving manpower and the reduction of carbon emission in regard
to the transportation in marine and the offshore logistics (Fuentes-Blasco and et.al., 2017). On
the other hand, invention is the final stage in respect to shaping of the product. F-Drones being
an innovative company has been able to attain success which in turn is unique and value adding
for its users. Therefore, it can be said that innovation is having a greater importance in the
organization F-Drones, as compared to the invention. This is because if innovation is not there
then invention does not exist. Thus, innovation and invention both are needed for attaining
success and grabbing first mover advantage in the competitive market.
2- Evaluating how F-Drone's culture, vision, leadership and teamwork assist in shaping
innovation and commercialization
Commercialization mainly refers to process of combining all the activities in order to
introduce a new product in the market (Yun and et.al., 2020). It involves production, distribution,
support services, advertising, marketing and sales in order to achieve commercial success with
the launching of new product.
For the purpose of commercialization of the product, there are various factors and aspects
that are required to considered having an influence over the innovation process along with
commercialization which is not a different thing in case of F-Drones. The different factors are
stated below:
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Culture and Vision: The culture of the F-Drones is based upon the future goals and
objectives that the company wants to accomplish. The Vision of F-Drones is to become the
leader in the heavy payload logistics with quality product and services for which it requires
innovative ideas, coming up with the new ideas and then commercializing the product in the
desired market (Srisathan, Ketkaew and Naruetharadhol, 2020). Therefore, the vision of the
organization has a greater impact over the innovation process. The organizational values is a sum
up of the values, norms, behaviours along with the attitude of the employees which has been
there for years. Culture is having the tendency to change or shape the countries and its
perspectives. But the cultural differences cannot be avoided and the effect of innovation on one
nation can be positive and valid but in other it can be void.
Leadership: It refers to managing and organizing an organization based upon the
objectives set and the attaining success in regard to the norms set by the organization. There are
various forms of leadership style but in this company the democratic leadership style is used.
This is because the leaders of this company does not want to compromise on taking advantage of
the opportunities which it can easily grab in this competitive market. This has resulted into
making this company innovative.
Teamwork: For attaining greater success, it is very imperative for the organization to
focus on teamwork as it is very effective in solving problems in respect to a particular task which
will help in completion of the task as per the plan (Adnan and Valliappan, 2019). For carrying
different types of tasks or activities, F-Drones has a team who are specialized in different fields
and are useful in innovating and commercialization of the new product or service. If the entire
team works in accordance with the set goals and objectives of the organization through the way
of providing innovative ideas with regard to new product or service to the clients then F-Drones
would be effectively able to accomplish its goals in a simple and efficient way. Therefore, it can
be said that innovation supports in formulating the process in relation to innovation and in
shaping commercialization.
Thus, it can be stated that the organization's culture, vision, leadership style and the team
dynamics has a huge impact or influence on account of innovation and commercialization of that
innovation in the market which describes its success and failure.
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3- Varied sources of innovation and development of innovative culture within company
There are varied types of sources relate to innovation accessible in the world of venture
that F-drone’s Company can use to gain competitive benefits (Lalic and et.al., 2017). Following
sources of funding are described by Peter. F. Drucker.
Necessity-
This source drives company towards innovating something unique, which gain attention
of more buyers. Gaining competitive advantages is one of the necessities of organization in
recent time that they need to fulfil through innovation.
Unexpected-
When something unpredicted happens to firm they can move towards innovation.
Unexpected creative thoughts create more sales for business and increase their progress rather
than before.
New knowledge-
New and developed knowledge about market trends and competitive environment gives
idea in regard to innovate new services or items, which in turn assist the firm to increasing sales.
Changing perception-
Different customers have own perceptions; accordant to varied buyers points of views
above component tools are utilized. With eras, there are important modifications in the way
individual perceive the world, and this recognize impact decision making related to purchase. It
leads to innovation and make company able to gain competitive edge.
Incongruity-
When need is unrelated with supply and other operation of organization, creations or
innovations may be developed. In efforts to solve current incongruities workers may drive
towards creativity.
Market structure-
It can be analysed that current market structure gives rise to opportunities like other
sources do for innovation.
Demographics-
Customers lifestyles can also be a excellent source of this force that move firms to bring
innovation at floor and then market, where company operated.
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F-Drones can develop and foster environment of innovation by considering and following
all seven sources of creation (Verdu-Jover, Alos-Simo and Gomez-Gras, 2018). It can be created
by practicing innovative culture with according to standards of market. Furthermore,
organization can empower their workers and they can cater value in new manners.
4- Importance and use of innovation funnel
4Ps of innovation-
Paradigm-
This component clearly establishes what chosen brand can do to make modifications or
innovation in their existing drones. This is a key part in procedures of innovation, where F-
Drones tries to find out purpose while do actions in their ventures (Ubaid and et.al., 2019).
Manager’s and leader’s continuously effort to search out the appropriate way of doing business
so that essential change becomes suitable to all stakeholders.
Product-
It is another element of 4Ps of innovation, which is offered to target market because it is
valuable for them and company as well. It exhibited that how can companies like F-Drones make
their goods better by using techniques of innovation.
Process-
It is the mode by which organization provide their products or services to customers.
Procedure does not include process of innovation preparation of things. It includes all phases,
such as production, recruitment, workflow, supplying and training.
Position-
It is the main area of innovation that decides that how F-Drones frames item in front of
market. Organization can gain top position in sector by using the latest promotional tools that can
help to promote brand effectively and allow reaching at international level.
Innovation funnel significance-
It is a way that mostly all big companies use to manage their innovation in products or
services (Rubin and Abramson, 2018). This is one of the approaches that firms like F-drones can
use for innovation. It is very important for organization because innovation funnel make firm
able to be evaluated for viability through a procedure of filters, rules and gates.
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Figure 1Illustration 1: Innovation Funnel Procedure
(Source: Innovation Funnel, 2019)
Innovation funnel is utilized by company to define each stage of product or innovation
development, which is quite beneficial for business in term of generating more revenues,
increasing profits and gaining competitive advantages. This concept is important because it helps
to satisfy target market according to their needs which is possible when firm follow all the stages
in systematic manner. It aid to develop innovative idea and then promote into marketplace.
5- Frugal innovation concept in context of organization
Frugal innovation is about delivering additional values to customers at lower costs, which
allow each of them to remain with company and purchase their products (Hossain, 2018). This
thing can be done when organization focus on reduce unnecessary things within current products
and their production procedure.
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Figure 2Illustration 2: Frugal innovation development
(Source: Frugal Innovation, 2020)
It is important for F-drone Company because frugal innovation gives management chance
to retain their potential buyer for longer period of time, which in return increase sales rather than
before. Development of this process is quite essential and helpful task for firm as it assure wide
scales sales of drones to different market segments (Shibin and et.al., 2018). By following norms
of frugal innovation company can develop it in effective manner.
Find chance in adversity-
F-drones can consider this principle and reframe their problems that bring a lot of
benefits for its business. Management can take something that is threat that turn into the growth
opportunity for venture.
Do more with less-
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Organization along with existing plans and strategies relate to products, needs think more
creatively about what things they already have and who to give unique features to them in
systematic manner.
Think and act flexibly-
While taking decision to produce drones, organization needs to think twice and efforts to
add unique elements within it, which make people able to experience greater than before. Firm
take action flexibly which means they can select option in which key modification will be done
according to situations.
Keep it simple-
Ideas developed by workers or management would not be complex and difficult to
understand because it causes issues that put negative impact on production procedure, manager
had to chose the best idea instead in bulk.
Include margin-
Organization and their managers in order to produce unique drone will need understand
their consumers preferences, identify their needs and analyse current market trend as well as
include each buyer while making decision. It can be done by taking feedbacks and reviews from
customers, which is really very important.
Follow heart-
In order to get desire outcomes, company needs to follow this principle as well. Their
skilled and talented applicants has to be passionate and use their skills to move creative ideas
like innovating new drone that will have voice.
PART TWO
1- Commercial funnel and new product development procedure
Commercial funnel can be said as sales funnel of goods and services. It refers to
purchasing process that F-Drones lead consumers through when purchasing goods. The
understanding of their term refers to procedure through which organization search, qualifies, and
sells their items to target market (Astolfi and et.al., 2019).
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It is one of the most effective and essential marketing tools that company can use to trade
their products to customers, those people in which they firm is interested. It breaks down journey
of customers from awareness to purchase phase.
Application of new product development is also important along with commercial funnel
because it directly impact commercialization and innovation process of business in effective
manner.
NPD-
Idea generation-
With this phase, manufacturing department of chosen company can analyse current
market needs and then move towards idea generation to satisfy target market. It define
systematic search for new ideas in context of innovated goods.
Idea screening-
It is an important stage of new product development for commercialization and
innovation in regard to F-Drones. It is process of filtering idea to pick out better ones. Ideas
related to innovative drones, generated by management were screened by organization to spot
good ones and eliminate the bad ones.
Concept development and testing-
It is two phase level in NPD in which potential customers are presented first with
description of new drones and then with item in final form, to get their reaction.
Marketing strategy development-
When ideas has been transformed into actual products, and tested by expert, it’s time to
create an effective promotional plan and develop tactics for new drones based on product
concept for promoting in market.
Product development-
The overall concept goes with product development. According to this stage, research &
development departments will test and then develop specific physical versions of product
concept.
Test marketing-
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Before commercialization, market test is really very important, in this stage proposed
marketing strategy and plan are tested by marketing department and top authority in realistic
market settings. It gives F-Drones company experiences with promotional good.
Commercialization-
Along with above phases, this is also significant for company when they consider it.
After considering all positive feedbacks and reviews from above phases, it's time to launch new
drone into market place where firm wants, which in return generates brand awareness and
increase profit margin.
2- Business case for innovation
Executive summary-
F-drones build the world’s first transition drone to allow aerial deliveries to offshore
platforms and ships. They want to produce the best drones in the whole world, which make them
able to gain competitive advantages. Firm has been used appropriate way to funding through
which they achieve set aims and objectives.
Vision-
Vision of F-Drones is to become global leader by building aviation grade drones that will
set high reliability & safety standards.
Mission-
Mission of company is to offer the Drones at wide scale and on demand aerial
transportation of products, within creative drones that can serve with heavier loads.
Objectives-
 To reach at international level
 To sustain at global brand image within next 3 years
 To retain potential consumers and attract new one
Analysis-
It can be analysed that advancement and development of technologies provide several
benefits to company in term of achieving their set objectives and allow them obtaining desire
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outcomes in effective manner. With this factor, F-Drones organization can do some innovation
and drive business towards high success.
Discussion of possible options-
In order to reach at global level and become market leader at international level
organization needs to consider factors which make them able to drive towards achieve these
objectives. They can consider range of funding sources such as angel investors (Crick and
Crick, 2018). Firm can get funds from this source which is one of the 5 ways of funding for
ventures Angel groups can be found in most places and on internet, with clear description
purpose and objectives of business. Angel investor after analysis needs and requirement of
companies, decide to invest within their project. Another suggestion, F-drones and its
management can recognize that is bank loan, this is the best and easiest source of funding
through which firm can collect money and invest for making their objectives achievable.
Suggestions-
As discussed above, F-Drones wants to build excellent drones that would carry a lot of
burden for which they need huge amount, which is possible when company consider sources of
funding. They must take loan from bank to achieve objectives in systematic and effective
manner.
Financial analysis-
It is process of analysing businesses, budgets, projects and other finance related
transactions to determine suitability and organizational performance.
Basis Cost £
Labour 600
Training 500
Key materials or drones parts 850
Total 1950
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3- IP tools that organization can use to retain, protect and develop knowledge & intellectual
property
Intellectual property is a group of asset that includes intangible creations of human mind.
There are varied forms of IP and some nations consider more than others. Copyrights, trade
secrets, trademarks and patents are examples of well known types of IP.
Patents-
F-Drones as Technology Company can use this tool because it permits to protect their
products, creative plans effectively. Application of patent will help to prevent innovations and
improvements to current inventions. It best thing about this tool is that it gives right to stop rivals
from copying. But it requires high costs to maintained patent appropriately.
Trademarks-
Along with above tool, Firm can consider this one as well because it is also beneficial for
company in term of protecting their unique products from others, who can copy idea. There are
names, images, symbols or brand logo which organization can use to protect their items.
Drawback of this tool is that when company use it they have to pay fee in every 10 eras to
maintain it.
Copyrights-
F-drones can apply application of copyrights to save and secure expression of ideas in
artistic works. A copyright is a collection of rights that repeatedly vest to person who creates real
work of authorship. It can be analysed that with this tool firm can take benefit in term of
preventing monetary loss. The major drawback for copyright is that it secure status of innovative
idea not simple one.
4- Examples based on use of intellectual property tools
F-Drones Company can use patent and other intellectual property tools that are suitable
for their business. By using appropriate tools organization gain many benefits in term of
protecting their innovative products like drones in systematic manner.
5- Nature of innovation and methods used to overcome challenges
Innovation is defining as application of new concepts to goods, and other aspects of
activities a firm that lead to maximize value. Nature of this term is referring to process of
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creating innovative business that have only some limited assets. There are many problems that
can lead to some major challenges for F-Drones such as reaction of customers on innovative
items and accessibility of finance.
Changing taste of buyers and intense competition from competitors are two different
types of challenges, faced by company. It can overcome these barriers in development of
successful innovations process by creating innovative ideas which make them able to gain
competitive edge. Manager can hire team of staff who are able to conduct market research which
allow them to identify taste change of consumers.
CONCLUSION
By summing up above discussion, it has been concluded that as compare to invention,
innovation plays significant role in F-Drone's organization, because company has been used this
element while developing something new for their target market. Organization effectively shaped
commercialization and innovation by creative productive and inclusive work culture at
workplace, where numbers of skilled and talented workers are working in order to achieve set
goals & objectives of business. From above analysis, it has been summarized that innovation
funnel, frugal and 4Ps of innovation are really very important for company in term of increasing
their sales, profitability and revenues more than competitors.
It has been identified that by considering and using the ways of funding, organization
make their management more able to innovation new product and obtain desire outcomes. By
utilizing Patent, Trade mark and other intellectual property tools firm successfully retaining and
protecting their key information as well as knowledge for longer period of time.
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