Innovation Strategy & Commercialization

This assignment delves into the strategic management of innovation, focusing on strategy formulation, innovation types, and commercialization environments. Key readings include Gibson & Naquin's study on Portugal's global competitiveness, Hausman & Johnston's analysis of the global financial crisis, and various perspectives on open innovation by Huizingh, Inauen & Schenker-Wicki, and Kutvonen. Additionally, it explores creative CEO leadership impacts on innovation (Makri & Scandura) and technology commercialization methods (Teece). The assignment also covers renewable energy enterprise commercialization strategies (Walsh) and Silicon Valley's technology commercialization strategies (Wonglimpiyarat).

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Describe innovation and invention along with its importance for employees.......................3
P2 How organisational vision, leadership, culture and teamwork can shape innovation...........4
M1 Different sources of innovation............................................................................................5
D1 How innovation is developed, embedded and developed in an organization.......................5
TASK 2 ...........................................................................................................................................6
P3 Explain 4Ps of innovation and the use of innovation funnel.................................................6
P4 Developments in frugal innovation in an organization..........................................................7
M2 Analyse and apply innovation funnel in an organization.....................................................8
M3 Role of frugal innovation......................................................................................................9
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel in the context of an organization.....................................9
P6 Innovation business case and ways of funding....................................................................10
M 4 Detailed business case for an organization........................................................................10
TASK 4..........................................................................................................................................10
P7 Different tools used by an organization for innovation.......................................................10
M5 Evaluation of different tools used in context of organization...........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In this present scenario, the companies are looking for various techniques which results in
the development of their operations. The company that is being considered for the report is
4com, it offers services and software for telecommunication solutions. It looks forwards to
innovate and launch data cards for its users or customers. The basic fact is that the business
organizations sustain in the market area through the effective and reasonable competition in the
market area. In this aspect the management of the companies involve innovation and
commercialisation in the production and sale of their goods and services (Aarikka-Stenroos and
Sandberg, 20121). In this present assignment, importance of innovation and commercialisation is
explained in the context of business organizations. The company namely 4com plc is a small and
medium enterprise which is engaged in the business of telecommunication across UK.
Moreover, importance of innovation and commercialisation is elaborated. Also, mission and
objectives of the company can also lead the company to success. In addition to this, various
forms of innovation has been described. Reference to the case of Apple Inc. and Virgin Group is
taken.
TASK 1
P1 Describe innovation and invention along with its importance for employees
Innovation is the concept in which new ideas, methods and ways are developed. It can be
understood as a term which is related to application of better ideas and concepts for the
betterment of the products or services (Abou-Ras, Kirchartz and Rau, 2011). In the context of the
company namely 4com plc , innovation refers to the evolvement of new ideas and techniques in
the telecommunication services which are offered by organization. The management of the cited
organization realises the importance of innovation for following reasons:
 Innovation in the services will lead to the engagement and connection of 4com plc with
its customers. It can be achieved by rendering outstanding performance in different areas
of operations.
 Innovation leads to prosperity of company across the world, as it attracts consumers at a
wide range. For an instance, I pod launched by Apple Inc. can be considered as a great
success as it enable playing of 1000 songs in a single digital music player. From this
instance, it can be clarified that innovation always leads to the success of company.

 Innovation also leads to the increased ROI to stakeholders of the company as profitability
of the company is increased (Bogers and West, 2010).
 Moreover, due to innovation in the services of company, 4com plc can compete with its
competitors which hikes market share and product cycle.
 Furthermore, conception of new ideas will lead to the growth and development objectives
of the cited organization. In case of Virgin Group, it can be ascertained that team work
along with innovation and invention can lead to the increased profits.
There is an another term namely invention related to the innovation. It means the process
and method which evolve development of product and services (Bogers and West, 2012). It can
also relate to the development of machine or any new service. Invention can be in terms of social
and cultural aspects. The management of the 4com plc always desires to execute innovation and
invention of new products and services so as to increase its customers.
P2 How organisational vision, leadership, culture and teamwork can shape innovation
Organizational vision refers to the objective for which the company has been formed.
This includes the main aim which the company wants to fulfil through its operations. On the
other hand, the organization culture is the term which denotes the prevailing organizational
customs and culture. It can be analysed that the companies can shape and structure their
innovation of products and services (DAtta, Jessup and Reed, 2011). In this aspect the company
namely 4com plc can ascertain their organizational goals through effective innovation and
invention. It means that for achieving the organizational goals and aim, the company generates
new ideas and concepts in their existing products and services. It can be further stated that the
team work is also considered as an important factor in bringing innovation and
commercialisation of the products and services.
From reference to the given case study, Virgin Group is a company registered in UK
having different areas of operations. The management of the cited company is of opinion that
there should be a clear vision and mission which initiates creativity in production of goods and
services. The manager of the Virgin Group is of opinion that for improved results there should be
an effective and efficient team, which work together to achieve desired results. In addition to
this, it is considered that for obtaining better and improvised results the team mates should strive
for effective performance of the company (Datta, Mukherjee and Jessup, 2015). Also there
should be a cultural environment which is a prerequisite for innovation of goods and services.

There are following ways through which the company can achieve its innovation goals
and objectives:
 Invention measurements or metrics.
 Recognition and rewards.
 Support from organization and procedure.
 Strategies of HR.
Moreover, the business organization should form a team in which effective
communication should be set out so that innovation and initiative plans or strategies can be
communicated to team mates.
M1 Different sources of innovation
There are various sources of innovation which can be considered as an important part for
company. This can be classified as:
Process need: It is the concept in which a person thinks different from others. It means that
there should be some ways in which an innovator must fix the problems that exists in society or
business.
Demographics: It is related to change and variations in population. Demographics affects
the method of innovators in which they conduct their business operations (Eesley, Hsu and
Roberts, 2014). In other words, it can be said that an innovator desires to perceive an idea which
is associated to the demographic area of that particular area.
D1 How innovation is developed, embedded and developed in an organization
In the words of, Gibson and Naquin (2011)Innovation is developed in an organization to
make it successful at a level higher. It means that it leads to profitability and success as more
customers are attracted if a new and fresh product or services is evolved by a business concern.
Innovation is developed in a business organization by germinating new-fangled and fresh ideas,
said by, Hausman and Johnston (2014) Also, team work and interest to innovate a new product is
also an important task. It contributes a lot to the developing and enhancing the goods and
services. Furthermore, modernisation can be developed in a business entity by implementing the
conception of innovation in team framed in a business organization.
For an instance, Virgin group has developed its area of operations in different fields by an
effective involvement of senior management with different departments formed in their
organization.

TASK 2
P3 Explain 4Ps of innovation and the use of innovation funnel
Innovation is the concept which includes to upgrade and modify the existing goods or
services for improved results. In other words, innovation is a term which enhances the value of
existing products and services by an introduction of fresh ideas and ways (Huizingh, 2011). It
can be said that there are different types of innovation which has been adopted by the
management of company namely 4com plc. Also, innovation is a perception which can defined
as an introduction of new products and services which is distinguished from the term invention.
There are 4Ps of innovation implemented by cited organization are explained as follows:
Figure 1: 4Ps of Innovation

Product innovation: It is considered as a most integral part of revolution of a product,
which implies a change or improves a particular substance or services. Change can be
determined in the term in which it has been offered to its end users (Inauen and Schenker-Wicki,
2012). For an example, a Ball point pen is recognised as an invention which provides benefits
from its original creation. Product innovation is also important as its evolution always aim to
render good quality services and comfort. They are designed to increase the ease of consumers.
Process innovation: It is an another concept in which the main focus is on the process
through which the goods and services are formed and then distributed. In addition to this, this is
deliberated as vital component because if the process is innovated then only the end product will
be able to attract the costumers as finished product will be distinctive in nature.
Position Innovation: It is the third part of innovation. It mainly focuses on change of
position of an existing innovated product. It refers to the variations through which a particular
product or services can be conceived characteristically.
Paradigm Innovation: It is the final P which explains a paradigm which are dominant in
organization and structure.
Innovation funnel is a term which is utilised to describe the phases of enhancing of a
particular goods or services produced by a business organization (Kutvonen, 2011). The main
aim of innovation or creation of new material things includes to boost procedure so that it can
easily meet the current needs of its customers in terms of economic terms.
P4 Developments in frugal innovation in an organization
Frugal innovation is a concept which is related to the sustainable innovation of a certain
product, reverse creativity or frugal engineering. The basic aim of this theory is to redesign the
stuffs and services in a different manner through excluding activities which are not important.,
which reduces the cost to the company (Makri and Scandura, 2010). In the context of the 4com
plc, it has been evaluated that management of the cited organization has evolved frugal
innovation in their operations. This type of innovation is applied in cited firm so that the
management would be able to construct a new product or any other material substance in a cheap
manner without decreasing the level of quality. As, it has assessed that frugal innovation is also
considered as vital component for both invention and innovation. The senior managerial
personnel implied this concept in their business concern as it will enable them to attract cost
sensitive customers along with fresh markets.

The development of operations of the cited firm can be analysed as it supports in
defending the position of market against its rival establishments. The 4com plc is desirous of
implementing the term of frugal innovation in their business because:
1. It provides new opportunities in the prevailing market area and also identifies the
new market opportunities in the market area. So, the cited firm should be capable
enough for the management of the resources and innovate a pertinent product.
2. Frugal innovation is applied in an entity as it is helpful in managing the resources
(Shahid and et .al., 2011).
3. Through frugal innovation, proper engagement with the customers can be done
their behaviour is analysed in context of natural environment.
The said type of innovation is practised in 4com plc by focusing on the following:
 Customer group which is cost sensitive.
 Knowledge of consumers.
 Cost minimisation.
M2 Analyse and apply innovation funnel in an organization
Innovation funnel is a criterion which is used by the companies in order to convert all the
themes and thoughts into reality which attracts the customers (Yin and et .al., 2014). It is an
important task through which the companies are able to develop and enhance the value of their
existing products. In the context of 4com plc, the management personnel wish to implement
innovation funnel in their premises as it offers an opportunity to company to improve quality of
services and goods offered. For an instance, in Apple Inc. has used this concept which results in
the creation of its famous and popular handset that is IPod.
The main stages of innovation funnel in 4com plc are as follows:
 Assessment of opportunities are done in the first stage of modernisation funnel.
 The second stage involves creation of a healthy environment with its customers by
conducting market research.
 Furthermore, the conceptualisation of innovation is done as it improves the quality of
products and services.
M3 Role of frugal innovation
Frugal innovation is a concept which is considered as an important part as it is related to
the redesigning of the products and its compatibility. It also reduces the cost of production of the

cited organization. The role of Frugal innovation in the context of 4com plc is that it attracts new
customers, which increases its profitability (Wonglimpiyarat, 2010). It supports the marketability
of goods and services of company and enable them to brought and sold in the market with help
of their features. It also enable the cited business organization to sustain in a competitive
environment.
TASK 3
P5 Importance of commercial funnel in the context of an organization
With the increasing demand for the new and innovative products with shorter life cycle
there is a lot of money and time spent on the new product development team, so that they can
produce various new portfolios of the products and their designs and manage the risk involved in
starting stages of the product launch. I.e minimising he risk of failure. The effective and proper
way of introducing a new product in the market is actually a sign because of which many
companies can get a significant competitive advantage over each other (Walsh, 2012).
Although while giving much importance to the new product development concept, there have
been various companies who have failed after launching their products in the market. A research
demonstrates that most of the concepts which enter the New Product Development have failure
chances more than success chances. Also it is understandable that any new product can actually
not be judged upon its success rated rather it should be intercepted in its realistic goals.
From time to time new product development methodologies have been developed and practices
over time but till date, the stage gate model developed by Cooper in 1990 is irrevocably used and
is recognised as one of the best known and most practised method.
The basic stage gate model includes five stages namely, i]concept development stage , ii]
building a business case stage, iii] product development stage, iv] testing and validation stage,
v]product launch stage. An idea that enters the New Product development is evaluated at each
and every stage and either is allowed to move to the next stage by crossing the gate or the gate is
closed after which a product is either terminated or is moved forward and shelved.

P6 Innovation business case and ways of funding.
A business case is a term in which justification and explanation for the project is given as
it could provide various benefits and advantages to operations of business. There are certain
steps which should be considered while framing a business case for 4com plc:
 Identification of a problem or issue related to the business should be done.
 Assess potential options for breakdown the issues which are related to the case of
business issue (Thore, 2012).
 Statement of business case should be reviewed.
 In addition to this, the problem statement is to be written down.
 Furthermore, the proposed solutions statement is to be created.
 Then, detailed time frames and deadlines are to be prepared so that every work should be
completed within a specified time period.
 Executive summary should be prepared.
The company must start to offer data cards to its customers on a prepaid basis. This will enable
the customers to access data in the location where WIFI is unavailable. These cards must provide
data to customers who purchase the data cards of the company. This will provide give the
company a competitive advantage over the competitors.
The Data cards available to the customers must be cheap with more data to attract more
customers in the region. This will attract more customers and increase the base of the company.
The company must develop a plan to increase launch new data cards into the market, this will
increase the popularity of the company.
The project will be funded partially through reserves and partially through the issue of new
shares in the market. Through this 4com plc will be able to raise enough funds to finance the
project. The issue of new shares will be used to create 65% of the funds for the project.
M 4 Detailed business case for an organization
There are many variables for the organization in order to measure their effectiveness of
operation department. Following are some measures which are associated with the evaluation.
 Manager of 4com can take feedback from their customer on regular basis.
 They have to analyses market demand before introducing any products or services.
 They have to use appropriate tools and techniques which will help them in introducing
new services and targeting new audience.

The all above technique will support the organization in getting fruitful results while introducing
any new products. Through this they can also rectify the problems which are facing by customers
in order to fulfill their needs.
TASK 4
P7 Different tools used by an organization for innovation
In our daily life we go through various products which have actually been a part of a long chain
of innovations, products characteristics and its design makes the product look different and better
in a sense. Creation and innovation are a part of our daily life which actually make us think that
our creativity an d intellectual property needs to be restored and backed up. Therefore no matter
whatever a company produces as a service, it becomes a part of its intellectual property and thus
should be systematically protected and managed so that best commercial results can be achieved
from its ownership.
There are various tools which can be used to protect the intellectual property including
trademarks, copyrights and patents.
Wherein, trademarks refer to the devices, symbols, names, words, images used or applied to the
product to identify their source.
And patents refer to the licence which the government authority provides to a particular
invention to a person for a set period without whose permission the product can't be used.
Patents should be done for what is important to others and not just what is important to us
(Teece, 2010)
Additional to applying for patents, it should be filed fast as it takes more than one year to line up
for patents, where in US government can take more than five years to issue a patent.
Copyrights are done in order to protect the ideas of artistic work, any musical material or literary
work.
Also trade secrets need to be looked after as converse to patents, trade secrets are protected
without any particular procedure and formalities. So a trade secret can be protected for an infinite
period.
Even investing in well written non-disclosure agreements can help protecting the intellectual
property of an organisation.

M5 Evaluation of different tools used in context of organization
There are some tools such as copyright, trade mark, patent and many more which will
aids the organization in fulfilling their targets. When the business enterprise is innovating new
products and services then their aim to target new as well as existing customers. So for this, it is
essential for them to make proper records. With the help of these tools the organization can attain
the success and introduce the products according to the requirements of customers. The company
can also protect their name from other organization.

CONCLUSION
As per above this research project, innovation is the systematic procedure in which
innovate existing products and services in the appropriate manner. By using the new ideas and
methods regarding particular product to update existing services that help to attract high number
of customers towards them. At this time all customers are wants something change and different
things. Innovation funnel refers to remove complexity from creativity process. There were
having many risk and problems that help to resolve them in the effective way. At this time
require day to day modify devices and try to install new or attractive features.
.

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