Innovation and Commercialisation in Business Organizations - Desklib

The report discusses the concept of innovation and commercialisation in business organizations, with a focus on Iceland and Meijer. It critically analyzes various ways to source and foster innovation in business organizations, different kinds of innovation, and their implementation process. It also produces a detailed business case for innovation inclusive of risk, benefits, and methods to access funds.

INNOVATION AND
COMMERCIALISATION

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Critically analysing various ways to source and foster innovation in the business
organisations along with different examples...............................................................................1
M1 Critically analyze different methods in which innovation is sourced and supported into
different organization their culture and environment..................................................................3
TASK 2 ...........................................................................................................................................3
P2 Analyzing difference between different kinds of innovation and process of their
implementation within the organization......................................................................................3
M2 Critically analyzing different kinds of innovation that are applying within various
organizational settings.................................................................................................................4
D1 Critically analyze the successfully developed and enclosed innovation into different
business contexts..........................................................................................................................5
TASK 3............................................................................................................................................5
P3 Produce a detailed business case that helps to bring innovation in the business inclusive of
risk, benefits and methods to access funds..................................................................................5
M3 Produce the analysis of evidence based business case for innovation that provides business
value for potential investment......................................................................................................8
TASK 4............................................................................................................................................9
M4 Critically evaluating various tools that are used by business to develop, retain and protect
knowledge of intellectual property broadly...............................................................................10
D2 Produce a business case that helps business to bring innovation, also frame an action plan
for development of methods to protect the environment...........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation refers to bringing new ideas and inventions in the market for making
aggressively competitive environment. It leads in development of business organisation and also
helps them in gaining competitive advantages. It can be influenced by management of business
by making unique strategies, differentiated product and advance policies to compete in the
market. Commercialisation is a tool of business that helps to analyse the process to introduce
new products and services in the competitive market for trading activities. For analysing concept
of innovation and commercialisation deeply the taken firm is Iceland. It is one of the British
supermarket chain that is headquartered in Deeside, Wales, United Kingdom. The company deals
in grocery products and having more than 2% share of UK food market. On the another hand,
Meijer is taken to evaluate the process of innovation that helps in gaining more profitability and
competitive advantages.
The report is highlighting about the analysis of ways to source and support the innovation
concept in different organisation. The report also covers process for applying innovation in the
businesses. The process that are required to commercialise innovation and range of methods in
the business also include in this report.
TASK 1
P1 Critically analysing various ways to source and foster innovation in the business
organisations along with different examples
There are various source that a business have to influence innovation for getting better
competitive advantages in the market (Cenamor and Frishammar, 2021). In relation with Iceland
and Meijer managements are using tool of innovation for bringing more productivity and
developing their business organisations. The companies also use Peter Drucker's seven sources
of innovation which is described below as: Unexpected: Innovation can have positive or negative impacts based on good or bad
outcomes from strategies made by management of business. In case of Iceland,
management had already faced issue of delivery failure and it helps them to frame new
innovative strategy to improve their delivery system. While in case of Meijer, product
development helps the company treat downfall in their sales figure.
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 Incongruity: In this concept, it is stated that actual outcomes are differentiated from
supposed outcomes of business management. Iceland also use source of incongruity for
taking corrective measures to fill the gap between actual happening and supposed
happening. The incongruity also affects business operations that leads in diminishing
profitability in the competitive market. Meijer also use innovative tools to improve
profitability and to sustain at the competitive edge in the market. Process deficiencies: It is the inability of process to accomplish business task set by the
management of organization for achieving business objectives (Cheah and Ho, 2020). In
relation with Iceland, management have decided to decrease delivery time but fails to do
so. It leads in more innovative strategies to improve delivery system for being efficient in
the market. Where as in Meijer, deficiency of stocks helps management to make
strategies to influence innovative production technology in the business. Dynamic market structure and industry: The business environment is highly dynamic
and change can occur anytime in various aspects. It also impacts innovation and
commercialization in the business. Due to change in taste of consumers, Iceland have
negative impact in the market. Management feels requirement of innovative strategies to
influence their product's quality as per customer's demand. Where as in case of Meijer,
change in market trends decrease their sales figure and requirement of new innovations
arises thoroughly. Demographic change: It includes dynamic behavior of education, age and income of the
people in communities that helps to raise need of innovative strategies in organization. In
context to Iceland, management is framing different strategies for reducing risk of low
income of consumers. They are introducing cheap products with high qualities. Whereas
in Meijer, low literacy rate is impacting their profitability and competitiveness. Their
management is taking innovative steps to resolve this problem in the market. Change in perception: Change in consumer's mood, preferences and taste may leads in
introducing new strategies in the business for abolishing the negative impacts. In Iceland,
management fails to meet consumer's preferences in the market and there is needs to be
more innovated for fulfilling their demands. While in case of Meijer, company is
continuously introducing innovative techniques for delivering goods faster and
influencing customers towards them.
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 New knowledge: Knowledge is a key element under innovation and commercialization.
Managers must have appropriate knowledge about making innovative strategies, plans
and policies in the organization. In Iceland, sales figures are decreasing and it requires to
be increased and management is continuously making innovative plans for this purpose.
While in Meijer, company is providing development programs to boost the knowledge of
workers in context to use of modern technologies of production.
M1 Critically analyze different methods in which innovation is sourced and supported into
different organization their culture and environment
The seven sources of innovation that are given by Peter Drucker helps the organization to
successfully bring innovation in firm to compete aggressively. All the sources have capability to
raise requirements of innovative ideas into organization for better performance and position of
business (Eshraqi and Bandarian, 2019). Both of the organizations are using this model to
enhance their profitability in the market or to capture new market for expanding their business.
The tools of this models used by Iceland and Meijer are unexpected, incongruity, process
deficiencies, dynamic market structure and industry, demographic change, perception change
and new knowledge.
TASK 2
P2 Analyzing difference between different kinds of innovation and process of their
implementation within the organization
Innovation is a process that helps management to achieve business objectives easily and
sustainability in the competitive market. In retail industry, there is very high competition and to
meet requirements of competitive market, business uses 4Ps that helps to gain advantages
(Gaglio and Et. Al., 2019). Different kinds of innovation in context to Iceland and Meijer are
mentioned underneath: Product innovation: It is described as creating new ideas to introduce new product and to
develop the existing product for meeting competition level in market. In relation with
Iceland, managers continuously framing innovative ideas to develop their existing
products for increase sales figure in the market. This innovation is also using by Meijer,
to introduce new product in the market for gaining competitive advantages.
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 Paradigm innovation: It refers to altering capabilities to way of thinking and perceptions
of customers in the marketplace. Management of Iceland is focusing on faster delivery of
their product in the market. They are continuously opening various stores of their
business in different demographic areas. Where as Meijer is trying to capture new market
through online platforms and they are developing their website and making new online
portals for shopping by consumers. Process innovation: Implementation of new ideas for influencing production and
distribution system in the business is included into process innovation (Gbadegeshin,
2018). In context to Iceland, management is planning to provide new machinery for
influencing the production level in business organization. Whereas managers of Meijer is
deciding to improve their selling techniques in the competitive market. They are focusing
on influencing sales figures in the competitive environment.
 Position innovation: The management of various business organization used this
innovation to position their product and services in the competitive market. It helps
business to increase sales and profitability in the market. In context to Iceland, managers
are focusing on positioning their product and service in the competitive market. While in
case of Meijer, proper analysis of tools used for positioning the product is taken by
management for gaining competitive advantages.
M2 Critically analyzing different kinds of innovation that are applying within various
organizational settings
Innovation in the business organization can be done through various processes. Business
environment is mainly inclusive of different types of innovations (Gómez, 2019). Management
of Iceland and Meijer are using 4Ps of innovation into their business for maintaining
sustainability and gaining competitive advantages. Managers of Iceland are framing various
strategies and plans to influence kinds of innovation into their business. These innovations also
used by Meijer into their business for sustaining their organization in competitive market. The
company is introducing new product and developing their existing products in the market for
increase their profitability.
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D1 Critically analyze the successfully developed and enclosed innovation into different business
contexts
Innovation plays very crucial role in existence of business as it helps organization to
foster new technology and ideas for influencing productivity. Peter Drucker's seven source
model is used by many organization for implementing appropriate innovative strategies and to
identify needs of innovation within the business. Innovation and commercialization helps to
foster growth and expansion in the business organizations and also enables sustainability in
competition. New ideas can derive growth of business into different aspects. Innovations in
business are divided into different categories that are specified as 4Ps of innovation. These 4Ps
helps in evaluating methods of implementing innovations within the business organization. The
business can take benefits of expansion and growth with the help of innovative techniques.
Organizational culture and environment can be influenced through innovative strategies made by
the management of business.
TASK 3
P3 Produce a detailed business case that helps to bring innovation in the business inclusive of
risk, benefits and methods to access funds
Business case is defined as a document in the form of oral or written that helps business
in influencing decision power and implementation for the purpose of achieving organizational
goal (Gomezel and Rangus, 2018). It includes various aspects like vision, mission, innovation,
risks and many others that helps management to analyze business performance by applying
different strategies. The business case for prescribed organization is produced below as:
Particulars Description
Company name Meijer
Executive summary This business case is produced to evaluate
risks, benefits and ways of funding in context
to Meijer. It includes innovative product that
can be used by company to enter new market
or to enhance their growth.
Vision statement The vision of Meijer is decided to become
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leading supercentre across the world and to
develop their name in retail industry.
Mission statement Meijer have mission of offering improved
services with low price (Meijer, 2022).
Management also framing strategies to provide
high quality foods and other items.
Innovative product or process Management of Meijer is deciding to introduce
livestream shopping of sports equipments into
their business to improve profitability.
Risks Risk are the factor that can influence business
threats by raising future uncertainties (Guo,
2021). In context to Meijer, risk can be faced
by management in introducing livestream of
sports equipments are mentioned underneath:
 Financial risk: Livestream of sports
equipments needs huge funding and
Meijer have to borrow more from
market. It can increase cost of capital
that derives financial risk in business.
 Strategic risk: Management have to
frame different strategies for
introducing live stream of sports
equipments. These strategies can also
fails in meeting business objectives and
it can impact product innovation of the
company.
Benefits Livestream of sports equipments can helps
business to generate more profit and it also
enables expansion of Meijer intro new
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economy.
Funding Funding is very essential element for all the
businesses as the operation can not be
accomplish without capital (Ho and Chuah,
2019). Meijer have decided sources of funding
for introducing livestream of their sports
equipments. Funding sources in Meijer are
mentioned below:
 Debt capital: In this source, Meijer can
raise funds for their innovation of
livestream of sports equipments by
issuing debentures, taking loans and
other channels.
 Retained earning: Meijer can also use
their retained funds made from profits
to influence innovative product's ability
in the market.
 Equity capital: This source of funds
helps Meijer in obtaining low cost
funding from the market by issuing
equity shares. It can be used by
company in their innovation of
livestream under sports equipments.
Evaluation and monitoring Management of business must evaluate their
business case in context to innovation. Meijer
also use evaluating and monitoring tool that are
described under as:
 KPI: Meijer use SMART objective as
key performance indicators to evaluate
and monitor that their business case is
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suitable for bring innovation or not.
 Benchmark: This procedure used by
Meijer to analyse internal advantages of
company that provides benefits and
contributes in business goals.
Management of company used it to
influence effect of livestream of sports
equipments on their profitability.
Recommendation of innovative product and process for supermarket and also includes risk
and benefits of them
Innovative strategies helps business to gain competitive advantages and also helps to
influence productivity of organization. Management frame new ideas that are to be implemented
for enhancing business growth (Jianying, 2019). Meijer is implementing livestream of their
sports equipment to boost sales in the market. They also have to face various risks that can affect
their innovation in the competitive market. Managing these risks can provide them success of
live streaming. It can also provide competitive advantage to the business.
Suggesting different funding channels for recommended innovation that can be supported by
analyzing value of organization for potential investment
Every development and innovation needs funds to get implemented in the market. In
business organization funds can be arranged from various channels available in the economy
(Wright and Phan, 2018). Meijer can use retain earning, debt capital and equity capital to
implement their new idea of livestream of sports equipments. The management evaluate cheapest
and most efficient funding channels from the sources given in business case of Meijer. They can
capture new market through this innovation and by using low cost source their innovation may
prove effective in competitive market.
M3 Produce the analysis of evidence based business case for innovation that provides business
value for potential investment
Business case is well framed document that can be oral as well as written to influence
positive effects of innovations bringing by organization in the market (Krushelnytska). Meijer
can also use different funding channels to enhance innovative process within their business.
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Their innovation of livestream in sport equipments can increase their profitability in competitive
market. Various risks under this innovation must be managed by business to minimize negative
impacts of uncertainties in the business. Management of Meijer also introduced different
strategies within the organization to improve profitability and productivity. Business case helps
them most in bringing innovation into competitive market.
TASK 4
P4. Evaluating various tools used by businesses for development, retention, and protection of
intellectual property rights
Intellectual property refers to the development, creation or innovation of mind of an
individual or a firm that can be used for the purpose of trade. It also helps business to gain
competitive advantage and to maintain sustainability in the environment (Jordan, 2021). These
may include several inventions, artistry of several artists, symbols or names, scripts,etc
prevailing in an organization. Therefore, Intellectual property rights are described as the rights to
protect the originality of the work of an organization for a particular period of time. This not
only protects the new creations in an organization but also prevents it from duplication.
Similarly, Meijer uses intellectual property rights to protect their new creations to stand out and
gain a competitive edge in the market. Businesses like Meijer uses several tools for development,
retention and protection of their intellectual rights is underneath:
Patents: Patents are the legal safety provided by legal authorities for conceptualizing the
organizational processes. Meijer is also using this tool of intellectual property to enhance their
competitiveness in the market. The company took a major benefit from the patent to protect its
intellectual property rights for their innovation in live-streaming of sports equipment. This is a
kind of intellectual property rights that benefits the firm by protecting the latest creations or
inventions of creators or organizations. It restricts the competitors to copy their work, innovation
or structures. This generally provides an efficient way of getting things done by offering
technical solutions under different circumstances. But, filing for a patent could turn out to be a
lengthy process which is also time consuming.
Copyrights: Copyrights is a type of intellectual rights that gives the creator or an
organization an exclusive right to remake or sell their copies legally in the market. This
intellectual property right is build to reward the work of creators of an organization by securing
their work over a legal procedure (Radnejad and Vredenburg, 2019). It safeguards the plans or
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policies of an organization to prevent them till they turn them into actions. These provides a
lawful authority to Meijer which protects the original policies, strategies, goals, vision, ideas and
technology from being copied. Copyrights are the matter of consideration in Meijer to prevent
their innovative and useful ideas from being stolen by their competitors. Despite this, these may
often cause the problem of copyright infringement which may prove to be hazardous for the
resources of a company.
Trademarks: Trademarks are a kind of intellectual property that contains signs or
symbols for representing the brand name for an organization to prove its exclusivity (Ratten,
2019). In addition, it benefits the firms like Meijer to gain a competitive edge in the ever-
competing market. This helps Meijer to protect and enhance the identity of a brand name or
brand image in the eyes of the target customers. An attractive and fascinating brand name
secured with legality of a trademark helps Meijer to stand out in a market. This facilitate the
customers in identifying the the brand name and its legal security builds trust among the
customers on an organization. However, its unattractive aspects may badly affect the position of
the firm in this competitive market.
M4 Critically evaluating various tools that are used by business to develop, retain and protect
knowledge of intellectual property broadly
Tools of intellectual property rights helps business in provide safety to their innovations
and inventions made by management for gaining competitive advantages and influencing
profitability (Shin and Lee, 2022). These helps to provide safeguards to business ideas, strategies
and policies made by management. In context to Meijer, company is deciding to bring innovation
as livestream of their sports equipments that can help them in sustaining at the competitive edge.
Company use trademarks, copyrights and patents to abolish duplication in the industry. Fear of
stealing innovative idea can be reduced through these tools. These tools of intellectual property
right have various advantage within the business organization. The key benefit is competitive
gain under intellectual property. In spite of having different advantages tools also have some
disadvantages.
D2 Produce a business case that helps business to bring innovation, also frame an action plan for
development of methods to protect the environment
Business case is very essential to be made in organization for developing through
innovative ideas and strategies framed by management. Management also take help of business
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case to identify risks, benefits and ways of funding to evaluate and monitor the innovation
process (Torchia and Calabrò, 2019). Appropriate business case also discuss about vision and
mission of the organization. It also includes channels or arranging funds to manage innovative
process brings by the business to gain competitive advantages. An organization can use business
case as a path to achieve their goals efficiently in the competitive market. As there is very high
competition and company can give aggressive competition with the help of innovative
techniques but these techniques must have supported from tools of intellectual property rights.
There are three tools patents, trademarks and copyrights that can helps business to survive
competitive environment. These tools also helps to develop, retain and protect the knowledge in
context to intellectual property rights.
CONCLUSION
From the above report it can be concluded that innovation and commercialization are
aspects of organization that leads in development and growth of business in competitive market.
Business can bring innovation by making strategies, ideas and policies in the organization. There
are different kinds of innovation stated above. These are defined under the category of 4Ps of
innovation and it can give appropriate analysis regarding the concept of innovation. These 4Ps
helps an organization in developing and fostering innovative techniques in the business and it
also influence implementation of new ideas developed by management. Innovation can be
derived from different sources and many businesses are using Peter Drucker's seven sources of
innovation within their organization.
It helps to analyze needs and source of innovative ideas that are to be implemented in the
organization for influencing growth and for gaining competitive advantages. Innovative
products, ideas and strategies can be registered under tools of intellectual property rights that
provides them safeguard from duplication in the competitive market. Both innovation and
commercialization brings growth and success in business.
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REFERENCES
Books and Journals:
Cenamor, J. and Frishammar, J., 2021. Openness in platform ecosystems: Innovation strategies
for complementary products. Research Policy. 50(1). p.104148.
Cheah, S. L. Y. and Ho, Y. P., 2020. Effective industrial policy implementation for open
innovation: The role of government resources and capabilities. Technological
Forecasting and Social Change. 151. p.119845.
Eshraqi, S. and Bandarian, R., 2019. Commercialization capacity for small mobile application
developer firms. Journal of Technology Development Management. 7(1). pp.65-90.
Gaglio and Et. Al., 2019. X-Innovation: Re-Inventing innovation again and again. Novation:
Critical Studies of Innovation. (1). pp.1-16.
Gbadegeshin, S. A., 2018, November. Commercialization Skills: Necessity for High Technology
Entrepreneurs in Digital Era. In Proceedings of the Future Technologies
Conference (pp. 965-975). Springer, Cham.
Gómez, R. C., 2019. Innovation in the commercialization of new medicines: the 4 pillars from
the Marketing Authorization to Market Access. FarmaJournal. 4(1). pp.92-93.
Gomezel, A. S. and Rangus, K., 2018. An exploration of an entrepreneur’s open innovation
mindset in an emerging country. Management Decision. 56(9). pp.1869-1882.
Guo, Q., 2021. The Unique Challenges of Prudential Standing in Academic Technology
Commercialization. Hous. L. Rev. 59. p.915.
Ho, S. C. and Chuah, K. B., 2019. Critical Success Factors for Strategic Management of ITF
R&D Projects Commercialization: An Industry Expert Perspective. Handbook of
Research on Contemporary Approaches in Management and Organizational Strategy.
pp.146-172.
Jianying, W., 2019. A critical thinking on commercialization of scientific and technological
knowledge. Science Research Management. 40(5). p.175.
Jordan, J. F., 2021. Innovation, commercialization, and start-ups in life sciences. Crc Press.
Krushelnytska, S., DEVELOPMENT PROSPECTS OF COMPETITIVE POSITIONS OF
DOMESTIC ENTERPRISES ON THE BASIS OF COMMERCIALIZATION OF
OUT-OF-THE-BOX IDEAS. Innovational Processes of Economic, Social and Cultural
Development: Domestic and Foreign Experiences. p.168.
Radnejad, A. B. and Vredenburg, H., 2019. Disruptive technological process innovation in a
process-oriented industry: A case study. Journal of Engineering and Technology
Management. 53. pp.63-79.
Ratten, V., 2019. Sports technology and innovation. Cham: Springer Books.
Shin, H. J. and Lee, S., 2022, August. Identifying Areas of Technology Commercialization in the
Biomedical Sector: An Integrated Analysis of Patents and Publications. In 2022
Portland International Conference on Management of Engineering and Technology
(PICMET) (pp. 1-8). IEEE.
Torchia, M. and Calabrò, A., 2019. Open innovation in SMEs: A systematic literature
review. Journal of Enterprising Culture. 27(02). pp.201-228.
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Wright, M. and Phan, P., 2018. The commercialization of science: From determinants to
impact. Academy of Management Perspectives. 32(1). pp.1-3.
Online:
Meijer. 2022. [Online]. Available through: <https://www.meijer.com/>
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