Innovation & Commercialisation.

Innovation &
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1) Concept of innovation and its importance for organisation...............................................1
2) Role of vision, leadership, culture and teamwork in shaping innovation..........................2
3) Different sources of innovation..........................................................................................3
4) 4P's of innovation and use of Innovation funnel in context of the organisation................3
5) Developments in frugal innovation....................................................................................5
6) Analyse and apply innovation funnel in an organisation...................................................5
7) Role of frugal innovation...................................................................................................6
TASK 2............................................................................................................................................6
1) Importance of commercial funnel and the application of NPD for the commercialisation of
innovation within Big-Belly...................................................................................................6
2) Innovation business case and how to measure the effectiveness.......................................8
3) Different tools which Big-Belly could use to develop, retain and protect knowledge and
intellectual property..............................................................................................................10
4) Evaluation of these tools..................................................................................................11
5) Critically evaluate the nature of innovation and how Big-Belly can overcome challenges in
order to develop successful innovation................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation and commercialisation is one of the important concept which simply explains
that company is required to become innovate with their ideas and concept to sustain within the
market. It is necessary because it will allow to accomplish the goals of an organisation within the
specific time period. The chosen organisation for this respective assignment is Big-Belly which
was introduced in the year 2003. Company deals in the innovative work where they manufacture
SMART dustbins.
In respect of the file, it will be explained in two part where first part will be based on
concept of innovation as it will be explained in detail. Different sources of innovation will be
discussed and innovation funnel will be explained. In second part, new innovation will
conducted where every detail will be explained that how company can introduce it in best
possible manner. Also, ways to prevent the innovation idea will be discussed in it.
TASK 1
1) Concept of innovation and its importance for organisation
Innovation is a process which helps the organisation in determining new ways of doing
the things that can be realised by introducing creativity either in the existing processes or the
products so offered by the organisation. Nowadays it is important for the organisations to keep
themselves updated with the changes taking place in the technology and in the taste and
preference of the customers so that they can satisfy them efficiently. Leaders in the organisation
identifies new opportunity for the business as they are open-minded and collaborative due to
which they are ready to take risk (Rasmussen and Eliason, 2017). It has various advantages for
the business such as :
 it helps the businesses in improving the productivity by way of adopting new technology
as it will helps them in reducing the cost
 it gives the businesses competitive advantage as with innovation they can effectively
satisfy the customers
 it helps the organisation in increasing turnover and thus it improves profitability of the
organisation
Invention Innovation
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Invention is related with introduction of any
new product, device, process or concept for the
first time.
While innovation is related with introduction
of solution which can help the organisation in
meeting with the requirements of the marketing
needs.
For invention it is important to have
knowledge and understanding of the subject in
which invention can be made.
For innovation it is important to have technical
knowledge and understanding of the factors in
the market due to which the need of innovation
arises (Yin, 2015).
Invention is related with one product or
process i.e., it facilitate the organisation in
identifying any solution for on specific issue or
concern.
Innovation involves group of factors such as
products, processes etc. and it helps in making
overall improvement in the organisational
performance.
2) Role of vision, leadership, culture and teamwork in shaping innovation
Commercialisation helps the organisations in introducing the new product and services in
the market so as to satisfy the needs and wants of the customers. With this the organisation such
as Big-Belly's can effectively place their products in the market. The role of leadership,
teamwork, culture in shaping the innovation are: Leadership: The commercialisation need to be supported by the leaders of the Big-
Belly's as they create vision for the employees by making them understand the benefits of
such innovation. For this various strategies need to be adopted by the leaders as it helps
them in making the employees participative and provide them guidance for undertaking
their roles. For example, with the help of autocratic style the employees can be provided
various roles and responsibilities as per the capabilities of the employees (Aryal, 2016) . Culture: Culture also plays important role in implementing innovation and
commercialising the new product and service. The culture in Big-Belly's is cooperative
and comfortable due to which the employees feel motivated. Positive culture has positive
influence on the performance and the behaviour of the employees.
 Vision: The aim of Big-Belly's is to recycle the waste by collecting it and for this they
keep on introducing innovation in their processes and the product. Such vision motivates
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the employees working in the organisation as for achieving such aim they tends to adopt
innovation frequently.
 Teamwork: By developing team spirit among the employees of the organisation the
innovation can easily be shaped in the organisation. With this the employees of Big-
Belly's will have understanding and it enables them to undertake the tasks and the
activities that can help in implementing innovation effectively.
3) Different sources of innovation
The need of innovation can be generated due to various sources and some of such sources for
Big-Belly's are given below: Demographics: Due to various demographic factors, innovation can for forced in the
organisation as it includes factors such as age, income, population size, human capital
etc. With change in such factors it becomes important for the organisation to innovate
their products and processes (Weng, 2018). Industrial Structure Change: Due to competition the organisation has to make changes
as per the requirement such as in technology, infrastructure and many more. This leads to
restructuring of the strategies by Big-Belly's as for coping up with change the new
strategies need to be adopted by them.
 Perception: The perception of the customers also plays crucial role in introducing the
innovation in the organisation. Due to perception the buying habits of the customers
varies and this will enable them to switch to other products. This becomes the source for
the organisation such as Big-Belly's to incorporate innovation.
4) 4P's of innovation and use of Innovation funnel in context of the organisation
The strategy of four P's of innovation helps the organisation in implementing the
innovation by determining the needs and various strategies. For Big-Belly's, 4P's are given
below: Paradigm : This paradigm in innovation suggest the changes in the mental modes which
help the organisation in framing what they want to do and the ways in which they do.
With this the Big-Belly's can identify the strategy that can help them in introducing
innovation (Koirala, 2016). For example: With this the business can see new aspect of
the business such as with SMART dustbins they can develop electricity which can
contribute to the effective waste management.
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 Process : Process is the way with which the customers are served by the company and
with this Big-Belly's can determine the strategy that can help them in changing the
existing way of delivering the service. For example: With this the strategies related to
displaying the products, channel of distribution with which products can be made
available to the customers can be formulated. Positioning : This is the way in which the products are placed by the company in the
market and this can be done by Big-Belly's through formulating various stories about
their services as this will make their customers understand effectively. For example:
With this they can position their products such as they can determine the target market. In
case of Big-belly's it can be adult males and females as they take such decisions of the
family.
 Product : The product is the offering in which the innovation is introduced by the
organisation. This will enable the Big-Belly's in conveying the changes and the benefits
to the customers by the offerings of the organisation. For example: The product that Big-
Belly's offers are related to smart waste management and recycling system. So for
innovating their product they are planning to offer SMART dustbin which can improve
satisfaction level of the customers.
Innovation funnel is a tool which is applied by the organisation while innovating the product as
it describe various steps with which the innovation can be incorporated (Stankosky and
Baldanza, 2018). This techniques will help Big-Belly's in effectively meeting up with the needs
of the market as they apply this model in different steps which are given below:
 Wide open mouth of funnel: In this step of innovation funnel the managers and the
leaders gather all the information about the market and the customers. Such information
helps them in identifying the product that they can offer in the market. Also with the help
of this they can create a balance among their goals and their offerings.
 Narrowing segment of the Funnel: In this step the resources are gathered by the
management and are allocated among various activities as per their requirement. Also the
risk which are associated with the innovation are identified. The offers are tested in the
market by them so that they can analyse their efficiency.
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 Narrowing the Funnel: After all these analysis the products are launched by the
organisation as they have already tested the efficiency. This makes the management
capable of identifying the changes which they have to focus upon.
5) Developments in frugal innovation
Frugal innovation is a process with the help of which the complexity in the processes can
be reduced by the organisation with which the overall cost of the production can be reduced. For
this they need to focus upon eliminating the non essential features from the process of the
company. For example: Tata Nano was launched by Tata Group is an example of frugal
innovation as they designed the car in such a manner that they can appeal those who drive
motorcycles. They developed the cheapest car of the world which can be afforded by the
individual easily.
With the help of frugal innovation the complexity which is been faced by the organisation
are reduced and the cost of producing the goods and services can also be managed. It can be
done by eliminating all the features from the products and services which are not required and it
facilitates reduction in overall cost of the organisation (Kirchberger and Pohl, 2016). Big-Belly's
have limited resources that can be financial or institutional resources. For achieving the benefits
of the frugal innovation, better quality solutions need to be identified that can help Big-Belly's in
making them affordable.
Also with this the requirement of finance can be reduced for Big-Belly's as they can
determine one technology or method that can help reduce the requirement of funds. The
innovation makes the product comparatively of lower cost as with latest technology the
processes gets improved. It will facilitate Big-Belly's in making the customers satisfied.
6) Analyse and apply innovation funnel in an organisation
With the help of innovation funnel the organisation such as Big-Belly's can gather the
information and the data so that they can take effective decisions regarding the changes which
they have to made. The Big-Belly's with the help of various steps can efficiently introduce the
innovation within the organisation as they can effectively manage their resources and allocate
them to people in the organisation so that they can reduce the cost related to it (Ke, 2015) . It
will also make them, capable of testing the additional or the innovative changes, with this the
company can ensure the chances of being successful in introducing the changes.
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7) Role of frugal innovation
With the help of frugal innovation the Big-Belly's can effectively manage the cost which
is associated with the production by way of adopting one specific techniques instead of different
techniques. In addition to this frugal innovation will enable the Big-Belly's in making the
business sustainable. Reduction in the cost by eliminating various non essential features are quite
helpful as with this they can manage their other addition features that have capability to attract
the customers.
TASK 2
1) Importance of commercial funnel and the application of NPD for the commercialisation of
innovation within Big-Belly.
Commercial funnel: It is understood as a sales funnel where major objective is all about
achieving the targets of a company by increasing the overall sales. It will be also focused that
how any of the customer can be connected with the company for enhancing the overall sales. In
context of Big Belly, they are required to form those pricing and policies which will allow them
to attract more customers towards the organisation (Breznitz and Etzkowitz, 2017). In addition,
company will get the option to take the help of commercial funnel where they will get the option
to bring innovation in the company and that will allow them to improve their sales.
Commercialisation: It is explained as the process in which organisation tries to
introduce any of the new product within the market for the purpose of enhancing the overall
profit of the firm. It includes production, distribution, marketing, sales, customers support for the
purpose of accomplishing the goals on specific time period. There are different process of
commercialisation which Big Belly is required to consider at the time of introduction of new
technology within the market. The different steps are Discover, Disclose, Analysis, Protect,
License, Start-Up Company and Further Develop (Commercialization Process, 2019).
New Product Development (NPD): Everyday requirement and preferences of customer
changes and it is crucial that development must be done as per the requirement. By taking the
help of NPD company like Big Belly will be able to introduce new product in competitive
market. Below, there is the detail discussion about the process to be used for new product
development.
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 Idea generation: In any of the innovation process, it becomes crucial for the business
organisation to understand that they must try to be innovative so that development can be
done. In context of Big-Belly's, they are required to do proper research where they try to
generate electric from the waste that has been collected in SMART dustbins. This will
allow them to earn profit at higher speed (Menter, 2016). Idea screening: In this respective stage, Big Belly will have to consider different option
and among them they will have to select best option through which they can accomplish
their goals. Development concept: It will be the stage where idea has converted into new concept
which will help in the process of development in an effective manner. Marketing strategy: In this respective stage, the major of Big Belly will be to cover
maximum number of customers towards the services they will be providing. Detail
analysis will be done with the help of target market, pricing strategy as well as marketing
mix. Business analysis: Here, effectiveness of newly generated idea will be considered which
will allow to determine about the profitability of a company. Product development: It will be necessary for the business organisation like Big Belly to
focus that they will provide the best possible services in the market which will allow
them to perform better with the help of innovative ideas (Roh, Jeong and Park, 2016) . Test marketing: Here, the idea which has been generated related to producing electricity
with in the help of waste product will be checked in market. According to the test
conducted by the organisation, it will allow to form new strategies and to target,
positioning and distributing it in the best possible manner.
 Commercialisation: Here, tests which has been conducted by Big-Belly will provide the
detail analysis that whether company will succeed or not in the market. This stage will
mainly focus that whether new idea will allow to attract more customers towards the
company or not.
Importance of commercial funnel:
 In present situation, commercial funnel will help the business organisation to determine
the ways that how they can be innovative in any of the situation so that future results can
be achieved in best possible manner.
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 It is also helpful in determining each and every activity which will directly allow to
reduce unnecessary expenses and they can be one of the way to accomplish the target
(Zhou, 2016).
2) Innovation business case and how to measure the effectiveness.
Business case: It is understood as document which delivers the detail information about
the every single activity which will be conduct during the time of conducting the project. It will
also give the clear idea about the advantages that can be obtained from it. In same manner, Big-
Belly's, they can prepare a detail business documents which will allow them to estimate the
overall cost required for the project. Business can also allow to identify each and every risk that
occurs upon the business while working upon new project. Below, some of the aspects are
mentioned which is needed to be considered. Executive summary: It is explained as the project or business plan that gives the idea
about the project and target market. Also, about needs, opportunities and many more. In
short, it will be one of the way through which investor can be attracted towards the
organisation for future investment in project. Background: The company was incorporated in the year 2003 where they had the main
vision was to reduce the overall use of fossil fuel consumption and they have been
working on it. The company has developed the concept of introducing the idea of
compact bin which will be used within the public areas and beaches. In the same manner,
company is planning to bring more changes in their technologies which they are using fir
generating more profit (Souto, 2015). Vision: The vision of Big Belly is to becomes the leading organisation in reducing the
wastage and deliver the health live to everyone. Mission: The area of mission statement of Big-Belly's is to develop new techniques and
technology in order to clear all of waste from every single city and make them clean. Needs satisfied: As Big Belly has introduced new technology where they will generate
electricity with the help of waste collected in the dustbin which will allow to utilise the
wastage in best possible manner. Opportunity in the market: As market of UK is very active where they focuses on
environment and health the most. Also, it will give them the idea to customers that they
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can use dustbin and waste material for multiple purpose (Jonsson, Baraldi and Larsson,
2015). How will service meet that requirement: Here, customers will not have to pay higher
amount of charges for electricity as SMART dustbin will all w to generate electricity. It
will be the reason to increase the sale of SMART dustbin. Competitive edge: This sort of innovation always helps the business organisation
because there are very less business organisation which manufactures SMART dustbin
where wastage can be used for multiple purpose. Size & growth possibilities: It will allow organisation to enhance their sale by almost
30% where they will capture around 70% of the market. Target market: The main focus of the company will be towards public places,
communities as well as business association. Strategy: It will be important for Big Belly to use premium pricing strategy to accomplish
their goals. Promotional strategy: Digital marketing and advertisement through televisions will be
the major key to promote product of a company.
 Funding: In present scenario, managing the fund within the business organisation is not
an easy task as there are number of work which is required to be done on regular basis.
The major work which requires to be done is related with managing the fund. In context
of Big Belly, they have number of resources available for them through which they can
raise fund. Some of the popular source through which they can raise fund are:
◦ Shares can be issued within the market.
◦ Loan can be borrowed from different financial institution.
◦ Peer to Peer Lending is one of the popular option available through which fund can
be raise.
◦ Not only this, as company has the option to take the help of government agencies who
major motive is to provide fund to local agencies.
3) Different tools which Big-Belly could use to develop, retain and protect knowledge and
intellectual property.
Patent: It is explained as one of the most effective process that can be used by the
business organisation like Big Belly because it will allow them to retain the rights with them. In
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this respective situation, any of the other organisation will not be able to copy or sell the product
of company without obtaining the legal permission. Here, Big Belly has introduced their concept
producing electricity with the help of dustbin so they can have patent on it which will restrict
other organisation to copy the product. It can be one of the way through which they can easily
capture the market. Below, some of the pros and cons are mentioned which is related with patent
Advantages Disadvantages
 After having the patent on product
company will ensure the product will
not be copied by other
 Patent right will allow to generate more
idea to enhance the sell as monopoly
will be created in the market.
 It is a time consuming process.
 It is applicable for the specific area only
and to extend the area it will be
necessary for organisation to take a
patent right in different areas.
Trademark: It is symbol or sign which is used by organisation for the purpose of making
the product of company identifiable in the market. Here, Big Belly has the option to register the
trademark for their products which they sell in the market. There are some of the pros and cons
of trademarks and they are
Advantages Disadvantages
 It ensures the safety and reduce the
chances of violation of rights and
services which is being delivered by the
organisation.
 It is also a asset for organisation which
enhances the goodwill.
 It follows the renewable process where
length and expensive process are to be
followed (Carayannis, Grigoroudis and
Goletsis, 2016).
 It is just the marketing tool that can be
used by company but it rarely protects
the product from being copied.
Copyright: It is explained as the right which is being given to the organisation who has
invented the idea to sell any of the product in the market. In context of Big Belly, they have the
option to have a copy right on the invention which has been don by them. It will not allow any of
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the organisation to copy the product and idea. There are some of the advantages and
disadvantage of copyrights which has been discussed below:
Advantage Disadvantages
 It gives the right to organisation that
their product will not be copied.
 Legal possession of the services can be
given to Big-Belly.
 It can be given to single person or
organisation only.
 It is a expensive process which is not
possible for each and every
organisation.
4) Evaluation of these tools.
There are different tools which can be used by business organisation for the purpose of
reducing the chances of copying the product or idea by anyone. Here, it will be important for
organisation like Big-Belly's to take the help of patent right because this will allow them to
create monopoly within the market (Ke, and et. al., 2015). This will increase the overall profit of
a company through which they will be able to attain their goals in best possible manner.
5) Critically evaluate the nature of innovation and how Big-Belly can overcome challenges in
order to develop successful innovation.
In present scenario, innovation is one of the most important concept for any of the
business organisation. If any of the company wants to perform better then they are required to
understand that they must bring innovation. Innovation also helps to develop brand image of
organisation which provide additional advantage to an association. There are some of the
challenging situation which company has to face and in order to overcome form this respective
situation they must use different form of policies for future growth. Also, there are some of
challenges where changes are required which is one of the costly process.
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CONCLUSION
From the above file, it can be discussed that innovation and commercial is one of the
most important thing for any of the organisation to give competition to rivalry firm. 4P's can be
used by business for knowing the market position and according to that company can plans their
innovational work for attaining their goals. Innovation helps organisation to keep them alive to
give competition. Also, organisation gets the opportunities to protect the innovation and ideas
with the help of patent and copyrights which doesn't allow anyone to copy the concept.
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Commercialization Process. 2019. [Online]. Available Through:
<https://www.umassmed.edu/bridge/Inventors/commercialization-process/>
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