Innovation Funnel and New Product Development

This assignment delves into the 'Innovation Funnel' model, outlining its various stages from ideation to commercialization. It examines scholarly research on effective strategies for bringing innovative products to market, particularly focusing on the challenges faced by small and medium enterprises (SMEs) in the renewable energy sector. The analysis encompasses case studies and empirical data, highlighting the crucial role of R&D, technology commercialization capabilities, and collaborative networks in driving innovation success.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Definition of innovation and its importance and comparison with invention...................1
P2 Vision, leadership, culture and teamwork can shape innovation......................................3
M1 Analyse different sources of innovation..........................................................................4
TASK 2............................................................................................................................................4
P3 Explanation of 4Ps of innovation and use of innovation funnel in shaping innovative ideas
................................................................................................................................................4
P4 Improvement of frugal innovation and how it can be used in workplace........................6
M2 Analyse innovation funnel of organisation......................................................................7
M3 Role of frugal innovation in enterprise............................................................................8
D1 Innovation is measured on chosen organisation...............................................................8
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and use of new product development process............8
P6 Innovation organisational case and ways for its funding................................................10
M4 Innovation business of Austin Fraser.............................................................................10
D2 Overcome challenges to develop successful innovation................................................11
TASK 4..........................................................................................................................................11
P7 Techniques to develop, retain, protect intellectual property...........................................11
M5 Evidence based evaluation.............................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation refers to a process through which business enterprise can achieve its goals and
objectives. There are various activities and practices that are undertaken by the organisation as to
manage goods, process, services and technology so that firm can work in more effectively.
Innovation is the process where an existing item or theory is improved by an individual an
organisation. It is the activity of renewing and elaborate existing products and services. This
concept plays an essential role in enhancing economic growth of business (Abou-Ras, Kirchartz
and Rau, 2011). It provide various modification in products, such as, improvement in quality of
products. In simple term, innovation is important aspect of entrepreneurship. This report is based
on Austin Fraser which specialises in Engineering, IT and life science recruitment services. It
provide skilled and experience worker to the large organisation who have accurate knowledge
and ability to handle effective task. The purpose of this project is to understand various steps of
commercialise innovation and also evaluate method of protecting ideas.
TASK 1
P1 Definition of innovation and its importance and comparison with invention
Innovation is important part in business industry. It help in attracting large number of
customers towards company's new designed products. The innovation can change people mindset
and mentality towards specific goods or services. An organisation will provide better
commodities to their actual customers. This is a process in which an individual can build various
ideas and thoughts which assist in making innovative products. It help in developing growth and
also make maximise profitability and productivity of company. According to the research and
analysis, a firm need to capture whole market place which help in enhancing high growth. This is
that concept which plays an important role in public, private and voluntary sector (Chun and et.
al., 2015). It also help in improving performance of employees and provide greater efficiency in
proper manner.
This is an approach which help in gaining profit at high level. For getting advantage of
competition, it is very important for company to have right structure of organisation. It is
necessary for company to build sound environment within work place. Managers need to change
the manner of their thinking about present strategies and policies. Innovation assist in changing
organisation structure, market structure, international demographic, individual attitude and
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necessary ideas or thoughts. Austin Fraser need to adopt latest technologies which provide
innovative products or services to customers. The information technology and alterations of
business process, also create lot of favourable innovation environment. There are various
importance of innovation which are as under:
 Select best method for enterprise- An organisation have to choose best tool as a
business operation. Without innovation, no firm can survive in huge competitive market
for long time period (Eesley, Hsu and Roberts, 2014). The company can change their
performance and also select best technique and plans for operating activities of an
organisation.
 Create competitive advantage- By using innovative schemes and methods company can
build a good position in market place. Every enterprise use new ideas and capabilities to
get commercial advantages. Innovative concept help in increasing value of various
products or services. It assist firm in facing big challengers in the market.
So there are some points which highlights innovation is important for business operations
and growth. There are certain things which identify difference between innovation and invention
which are as follows:
Innovation Invention
 It is necessary for all department of
business functions.
 This includes marketing, strategic and
managerial skills.
 It is that process which enhance value
of present goods and services.
 It help in improving skill of researching
and technical.
 It refers to an process which make
products or services in effective
manner.
 An individual who have scientific skill
who will make new goods for
customers.
Austin Fraser company is a private limited which is specialised in IT, engineering
recruitment service centre. They provide high qualified employees who handle all work of
organisation in effective manner. Apple Inc. is firm which make innovative goods for their
buyers and sell in large market. They develop iPods which is small in size but stores more than
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1000 songs in it. The company can not provide heavy products which does not handle by
customers.
P2 Vision, leadership, culture and teamwork can shape innovation
All business organisation will attracts towards doing innovation procedures for higher
growth ad development. So, all company are promoting new ideas and thoughts on continuous
basis. It can assist in reducing operating coast ad increasing financial profit. It is important
managers to use innovative ideas which can improve their quality of products or services. This
can help in satisfying customers demand and needs (Ke and et. al., 2016). Most of entrepreneur
take help for adopting innovative ideas and to change environmental factors and due to failure of
present business system. In this process, there are three steps such as evaluate need of
innovation, acquire technical resources and identify financial sources. The Apple Inc. manage
their worker’s quality and capacity that evaluate skilled employees who can perform challenging
tasks and manage their co-workers in specific project. The mission, vision, leadership style and
environment are main factor which motivate and inspire manager to do work in innovative
manner.
 Mission- It is also known as short term goals that assist in identifying nature of business
operations. The mission of Austin Fraser company is to enhance effectiveness and
efficiency of business which provide better services to its customers.
 Vision- It represent all long term goals for which company can set their objectives. The
cited enterprise is enhance power of corporate world and assist society.
 Leadership- It is important aspect of management which control and manage all business
operations (Kim and et. al., 2011). This will provide skill to an individual and guide them
for achieving specific goals and objectives.
 Organisational culture- It refers to an structure which is all around in all business areas.
This provide various values and behaviours that assist in maintaining positive
environment. The culture of organisation help in representing beliefs, values and
principles of staff members.
 Team work- This is a process in which two or more persons work together for achieving
specific goals and targets. It is such concept which help in building same type of
individual team who understand each other and operate task in effective manner.
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For the above mentioned points it can be explained that vision, mission, culture,
leadership and team work can help in accomplish innovative ideas. By attaining all these points,
company managers acquired high innovative business environment (Shahid and et. al., 2011).
Cited enterprise can not achieve its target goals as well as can not fulfil new requirement of
buyers.
M1 Analyse different sources of innovation
Austin Fraser has to analyse various sources of innovation such as create innovative ideas
or thoughts, examine customers taste, choice and preferences, gain new knowledge and produce
products in different design, size and shape. It is important for every organisation to examine
these sources and work on it. Company should also analyse new market areas where they can
expand their business.
TASK 2
P3 Explanation of 4Ps of innovation and use of innovation funnel in shaping innovative ideas
Innovation plays an important role in every organisation. By using this, company can
achieve its available resources in more effective and efficient manner. It assist in eliminating all
errors and barriers which arises during process of producing products or services (Innovation
funnel. 2012). On the other hand, innovation funnel is a process which assist in developing
creative ideas within an organisation. It also help in inventing new or modify products or
services and serve in the large market. According to the research, innovation is essential aspect
for business enterprise which help in providing high success.
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(Source: Innovation funnel, 2012)
This also assist in enhancing productivity and profitability of company. Innovation funnel
can render more effective products and services to their potential customers. In current scenario,
it is necessary to innovate culture,services, goods, plans and strategies on regular basis otherwise
they can not accomplish competitive advantage in the market areas (Snow and et. al., 2011). It is
that concept in which company can develop their ideas and implement in real market for
attracting large number of buskers. This is helpful for update and modify their company
technology and methods. There are 4Ps of innovation which are discussed as under:
 Product innovation- It is an item or object which can be develop by business
enterprise. An organisation will make so many types of goods and services which help
in satisfying customers needs and demand. It is necessary for company to make
innovative types of products otherwise they can achieve target goals and objectives.
Austin Fraser can make modifications in its present and upcoming service or products
for high growth d development and also expand business operations in large market.
 Process innovation- It is that procedure of manufacturing various types of goods or
commodities for new buyers. For use of innovation process, company can enhance
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Illustration 1: Innovation funnel, 2012

organisation effectiveness and efficiency. Austin Fraser can make innovative products
which help in attracting new and existing buyers towards it. It also develop
improvements in existing product services which provide growth and development.
 Position innovation- the company mainly focus on innovation process which help in
changing current goods and services. This can assist in high level of success. Cited
organisation should divide its services according to segmenting of market areas (van
Hemert, Nijkamp and Masurel, 2013). A firm attracts more customers which assist in
achieving its goals and objectives in effective manner.
 Paradigm- innovation- It will help in understanding expected approaches and shape of
business enterprise. The main motive of this function is to incorporate innovation and
organisational process in systematic manner.
Hence, these are 4Ps of innovation which assist company in accomplishing required
growth and development.
P4 Improvement of frugal innovation and how it can be used in workplace
In present time, innovation is an important approach which is used in various
organisation functions to enhance its effectiveness and efficiency. This is very advantageous for
business corporations because its assist in increasing profit of finance and reduced operational
cost. Frugal innovation is approach that provide different companies who minimise their
expenses and problems of company. The main objective of this approach is to improve
customers relationship which help in attracting more customers. It provides importance to rising
market. This is the helpful concept of business because that can improve quality of various
products and services and also eliminate unwanted resource or barriers. It is problem based
approach that can remove all problem of organisation (Walsh, 2012). The better improvement of
company can help in inquiring knowledge and adopt latest technologies which gain from past
experience. By use of frugal innovation, local or multinational firms can develop positive
relation with potential customers.
As per case study, Apple Inc. and Virgin group use limited resources in an effective
manner. They also increase their employees skills which assist in accomplishing target goals and
satisfy all customers. Austin Fraser Company can achieve its social and economical outcomes
with the help of frugal innovation. It help in improving products or services design, colour and
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shape which are demanded by buyers. There are various ways by which enterprise can do frugal
innovation within workplace. There are are follows:
 Manufacture reasonable and durable products- Company should produce innovative
goods or services for effective growth and development. This organisation can improve
their economic condition in efficient manner. All things done by using frugal innovation.
Austin Fraser provide durable goods and services and it can attracts large number of
customers.
 Emergence of advanced devices- Business enterprise use advanced technology for
developing innovative goods or services and add some more features in it (Xiao and et.
al., 2016). It also assist in improving quality of commodities or services.
 Reduce production cost- This innovation help in decreasing business enterprise
unnecessary production cost. If an organisation will make products or services without
taking help of another firm and it also decrease its production value. The company can
make produce goods in effective manner and then attracts more and more buyers. They
help in manufacturing goods in high quality. It also minimise cost of operational
activities.
 Extra characteristics of present commodity or services- Company should add more
features in its current goods or services which improves development or growth of
organisation. It can preserve competitive advantage in market place.
So, there are certain ways by which Austin Fraser can use frugal innovation within
workplace. It is that method which provide improvement and growth in the organisation.
M2 Analyse innovation funnel of organisation
It is the important for organisation to produce innovative products and services. This will
help in developing new goods which attracts customers in large market place. Innovation funnel
assist in managing business operations and functions. It can be analysed through collecting
market data and information regarding innovative product by buyers. Austin Fraser will also
adopt and analyse this funnel for increasing company productivity and profitability.
M3 Role of frugal innovation in enterprise
The main role of frugal innovation is to develop economy. It help in selling products and
services at cheaper rate and also company will contribute and design effective goods of the
market. This will assist in smooth running of business in better manner.
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D1 Innovation is measured on chosen organisation
There are many factors which assist in measuring innovation by performance, skill,
knowledge and attributes of an employees. These elements help in identifying Austin Fraser firm
measurement that will assist in enhancing growth and development. They need to develop new
strategies and plans which required in smooth running of business operations and functions. It
will help in measuring performance and growth of organisation.
TASK 3
P5 Importance of commercial funnel and use of new product development process
Commercial funnel is a business conception which assist manager in understanding
purchase behaviour of customers. It is that approach by which company can evaluate its
customer and their income level. It consist of four aspects which are activity, want, curiosity and
awareness (Yin, Shi and Yan, 2014). Commercial funnel provide knowledge to customers about
various types of products or services, after that they should have create some interest in specific
goods or services. They need to take correct action for reaching target buyers in the large market.
Commercial funnel help company in modifying of existing products. Innovative goods and
services assist organisation in attracting customers.
Apple Inc. company has change its music library and also provide more goods. In recent
time period, organisation is only provides services to the business houses but currently the
company helps to provides qualitative services to the employees and co-workers. An
organisation need to identify loopholes that makes continuous changes in current and previous
financial position. There are certain benefits of this concept which are as under:
 Reduced operational cost- If company will change their current scheme and policies
then it can help in developing production process. This effects on decrease cost of
operations. An effective production of process will always create less operational
expenses.
 Quality enhancement- Commercial funnel used by organisation for making various
quality products or services. All business enterprise can work on giving quality made
goods which help in satisfying customers in more effective and systematic manner.
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 Enhance profitability- Austin Fraser can use this approach for increasing profitability
and productivity in higher level. People want quality based goods or commodities which
is new and innovative in nature.
 Build strong brand image- Innovative products and services can provide satisfaction to
their customers (Process of New Product Development. 2017). It will help business
enterprise to build strong relation with potential customers and build positive image.
Following are steps which make complete process of new product development are as
under:
(Source: New product development, 2017)
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Illustration 2: New product development process, 2017

P6 Innovation organisational case and ways for its funding
Every organisation need a suitable innovation organisational case through which it can
understand about its various activities and exercises. Company require to acquire limited
working capital (Yin and et. al., 2014). Effective planning of enterprise which are under:
 Identify and understand firms objectives- For acquiring new innovation in within
organisation, it is important to recognise requirement of innovation (Eesley, Hsu and
Roberts, 2014). After, analyse that an organisation can set their target goals.
 Market research- Company need to set business goals and objectives which help in
conducting research for determining various alteration in wants, choice and preferences
and latest trends of customers.
 Analysis- After identification of market research, manager should decide that which
policies and strategies are best suitable for accomplishing required goals and objectives.
 Evaluation- It is the last stage of innovation plan of business. Managers evaluate all
organisation activities and functions which are necessary for the identify outcome of
specific task.
These are some important points which are need for effective innovation planning of
organisation. The most famous company Apple Inc. adopt this plan which help them in
enhancing business growth and development. The investors provide correct or accurate funds for
operating business functions and activities. There are different types of investors which are as
follows:
Business angels- They are those individual who have large source of financial sources.
These type of investors are attracted towards those firm who have big image in large market
place.
Venture capital firm- the firm who take some business share of company in exchange of
their investment capital.
M4 Innovation business of Austin Fraser
Company was introduce innovative office with new design and tools. They also create
dynamic space which help in doing work in effective manner. The manager always encourage
and motivate team members to develop innovative products in the organisation. With using of
new ideas or concept, firm will attracts their customers towards the schemes and policies.
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D2 Overcome challenges to develop successful innovation
Company will face many challenges which occurs during during producing innovative
goods and services for potential buyers. They protect their rights and patent because many fake
people try to acquire other persons rights and gain profit with it. A person who innovate product
should use ideas efficiently and effectively. Firm also establish protected internal structure which
can not leak the information of producing goods. So this will help in overcoming challenges
which arises during innovation success.
TASK 4
P7 Techniques to develop, retain, protect intellectual property
Intellectual property is that concept which assist an individual or some business
enterprise to make their legal right for their knowledge, thought, innovation, invention and
creator work (Chun and et. al., 2015). Theses rights help various companies for protecting their
property by external person. It assist organisation in developing creative and innovative work
environment which motivate employees for doing effective working. It help in achieving goals
and objectives. Apple Inc. have face many loss because their property is used by other company.
So it is necessary for every business enterprise to protect their intellectual property in appropriate
manner. There are certain methods which can protect their legal rights are as follows:
 Patent
 Copyright
 Trademark
 Industrial design
Austin Fraser company provide skilled employees to large organisation and earn profit in
high level. Company should take care of their property rights but still few fake people who take
unnecessary benefit by using other properties. Here are some rights which are as under:
 Copyright- It is that method which help in protecting novels, books, music and creative
drawing of any person. A person who acquire other property without taking permission of
real owner. If any use some one else property ten they should take permission of owner.
 Patent- This method is used to defend some exceptional inventions that have never been
experienced in past (Abou-Ras, Kirchartz and Rau, 2011). An individual invent new item
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in the market then he has legal right to get patent from government. An investor must
registered patent right in the court the it is the duty of every patent holder.
 Trademark- It is that technique which is used by business firm to protect design of their
goods and services. It also essential for making different product from others.
 Industrial design- This method is used to protect product design, shape and size of any
person.
M5 Evidence based evaluation
This tool examine the current and future position of performance of company. There are
certain evidence based methods which help in prospecting innovative ideas and thoughts such as
patent, property rights, copyrights, trade design and trademark. This will secure organisation
rights and techniques which assist in enhancing growth and development.
CONCLUSION
By evaluating above mentioned report, it has been concluded that innovation and
commercialisation both are important concept of business enterprise. It help achieving new
customers in the large market place. Innovation is the operation which is operated by
professional engineers. It is the activity of renewing and elaborate existing products and services.
The concept play essential role in economic growth and business. An innovation can change
people mindset and mentality towards specific goods or services. Organisation will provide
better commodities to their actual customers. Commercial funnel provide knowledge to
customers about various types of products or services, after that they should have create some
interest in specific goods or services. They need to take correct action for reaching target buyers
in the large market. The company can protect their rights which help in providing effective
growth and development.
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REFERENCES
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