Innovation and Commercialisation in Online Grocery Retailers

This report discusses how innovation is fostered and sourced by online grocery retailers, Amazon and Iceland, and the types and procedures of innovation. It also evaluates the success or failure of innovation in each retailer and provides recommendations for innovative procedures for new online grocery retailers. The report covers funding channels, tools to protect intellectual property rights, and action planning for innovation. The subject is Innovation and Commercialisation, and the course code and college/university are not mentioned.

UNIT 8 INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Discussing and analysing how innovation is fostered and sourced by each of the chosen
retailers.........................................................................................................................................3
Detailed analysis on types and procedures of innovation in the retailers....................................5
Critically evaluating success or failure of innovation in each retailer.- 300...............................7
PART 2-...........................................................................................................................................8
Recommendations for innovative procedures for new online grocery retailer ...........................8
Funding channels for innovation supported with business value ...............................................9
Tools to protect intellectual property rights...............................................................................11
Action planning for innovation with suitable methods to secure them.....................................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation and commercialization are the key pillars of organizational success in the
business world. Innovation in the organizations occurs in any industry, due to certain factors,
such as consumer demand, while commercialization is considered as further steps of innovation.
This step can be taken in form of promoting venture and running businesses in appropriate
sector. The current study will be based on Amazon and Iceland, which falls under the list of
leading online grocery retailers in the United Kingdom. The assessment will explain how
innovation is sourced and fostered by each of the selected retailers, and process & types of
innovation. It will also specify the success of innovation in the chosen retailers, and
recommended innovative item or process for a new online grocery retailers, including innovation
risk and benefit analysis. The report will clarify the funding channels, tools to retain or protect
knowledge and intellectual property, along with action plan for innovation supported by the
approaches or methods.
PART 1
Discussing and analysing how innovation is fostered and sourced by each of the chosen retailers.
Innovation plays significant role in the context of business growth in the competitive
market or sector. It can be sourced and effectively fostered by Amazon and Iceland as online
grocery retailers in varied manners such as;
New knowledge-
New knowledge among individuals, related to a technology, products or service can
become a key source of innovation, that both retailers, such as Amazon and Iceland can consider
appropriately. It is important for the management to source innovation, when they have overall
information about new things, like trends that recently customers prefer to follow, so that they
can take action to innovate new item accordingly (What Are The Different Sources Of
Innovation, 2020). Knowledge is the key base of innovation, which move a person forward or
make them ahead of competition as always, which can benefit all. Knowledge gaining process
can allow Amazon to sourced innovation effectively.
Demographic changes-
Innovation is sourced by the Iceland and Amazon, in term of demographic changes
consideration, as they consider the modification in the context of current factor that impact
decisions and actions. For example, when consumers need and demands are changed, it can

become a source of innovation, that both retailers can taken into their considerations. Its drives
the attention of companies toward considering the actual needs of customers and determining the
reason behind needs change that affect process of innovation, which can be sourced strategically
and effectively, which is important and beneficial too. It can aid to retain and gain the attention
of new target market.
Market structure change-
By considering market structure modification, Amazon and Iceland can sourced
innovation appropriately, in term of following new guidelines, related to product quality and
quantity. Both chosen retailers can always focused on this factor, because it makes them capable
to beat rivals and stay in connection with those stakeholders, who can benefit them. They can
keep an eye on several things that occur in the context of market structure change, which firms
consider and sourced innovation accordingly. Therefore, the practice can be done in term of
major or minor modification in products or service context as well as production or other
process.
Unexpected-
Amazon can sourced innovation, by considering unexpected things happen in the retail
sector, that pressurize firm to source innovation appropriately and systematically. It is fact that
innovation can be happened suddenly or surprisingly, that Iceland and Amazon can be sourced in
form of considering change and developing plan to add value in the current offers and services
accordingly. Emerging trends and technology advancement is the best example of unexpected
things, because no one can predict the extent to which these two terms occur in the world, and
how can it impact on venture practices, either in negative or positive manner.
Fostered-
Employee engagement-
In the Amazon and Iceland, management can effectively and appropriately fostered
innovation in form of engaging employees in the context of decision-making (Hasan and et.al.,
2021). They can take initiative to take employees reviews and opinion related to innovation, so
that it helps to boost their morale and confidence as well as commitment level, more than last
few weeks or months. In the world of business, employee engagement can play unexpected role
in form of increasing employees motivational level. It can support management to foster

innovation and proceed with the same further, with create and productive candidate's
engagement.
Change in leadership and management styles-
Another factor that enable managers and leaders to fostered innovation is current one,
according to which leader and manager can conduct practice of changing their leadership and
management styles. By doing that, they can create a positive and supporting environment, where
employees feel collaborative and communicative. It is important for the candidates to be the
same, because it gives them power to innovate something new and unique, than the existing
items, offering by the other online grocery retailers. Change can provide varied benefits to the
companies, in term of driving the attention towards innovation and practices related to that.
Organizational culture-
Development of appropriate organizational cultural can also become a factor that fostered
innovation appropriately. In the context of Iceland and Amazon, this factor can play important
role in form of creating environment positive where employees feel free to innovate and share
creative ideas, that affect positively upon venture. It can enable companies to create the best
environment, where innovation can occur easily and effectively, without too many complications
that lead to decrease the effectiveness and efficiency of employees related to innovation. It helps
to reach desire outcomes in varied terms such as introducing new product or service.
Detailed analysis on types and procedures of innovation in the retailers
It is important for the Iceland and Amazon, to select a particular form and process of
innovation, among varied and these are;
Disruptive innovation-
The main factors behind occurrence of disruptive innovation is behavioural and
technological changes that can drive the attention of companies toward innovating new things,
like services, from offline to online grocery purchase (Create Sustainable Success with the 4
Types of Innovation, 2021). The current type of innovation is leverage by something in the
Amazon and Iceland has offered and as outcome made their brand image, but in general. It can
consider scalable change that helps retailers to reach varied consumers at the same time, without
putting too many efforts.
Incremental innovation-

Incremental is another form of innovation, which enable companies or retailers to add
new features to a brand product or service that make it valuable. It can evolve innovation already
implement by the companies that complements and provide development, be it to candidates,
consumers and features of a venture. Iceland is the best example of incremental innovation,
because it create online grocery venture, that help consumer to purchase goods offline, without
taking a single step out of home.
Sustaining innovation-
Among above form of innovation, the current one is the best, because it enables firms to
protect ventures position in the retail sector, by conducting some valuable, beneficial and
essential practices. For example, it can drive their concentration toward focusing on small
improvements and developments to the current items and services like online product delivery
that aid to increase value and target market satisfaction level, more than last few years or months,
that is essential for companies to focus on.
Radical innovation-
The current category of innovation actually changes the situation of a company, either
Amazon or Iceland. It can occur due to varied factors such as overall change in the organizations
positioning, process and work approaches, because of technology change that drive the attention
of firm toward innovation. For example, Amazon can apply radical innovation, when firm's
management realize that grocery shopping is existed in the market, but online shopping features
are quite different that can change the whole market and buying behaviour of consumers.
Proceeding innovation-
Stage 1- Iden generation and mobilization 74
Organizations can easily proceed with innovation or innovative idea, after conducting practice of
idea generation, which means management can conduct practice of employee engagement. They
can support and encourage candidates to give their creative ideas, for purpose of introducing new
product or service in the market, that rivals do not offering recently. The engagement of
candidates can boost the confidence of managers and leaders to have the ideas that they can
present in front of high authority, which is important for them to do that.
Stage 2- Advocacy and screening 74

The idea generation stage, move companies toward taking further actions and adopting
approaches, such as screening. According to the term, they can effort to identify the effectiveness
of chosen idea, among many, so the employees can proceed further for strategic implementation.
The second stage of innovation processing or proceeding drives the management attention
toward analysing the idea and evaluating the same appropriately.
Stage 3- Experimentation
the experimentation will works into the innovative process which are clearly helps to realize the
crucial part in which it shows the better reinforcing and new knowledge which is very crucial for
reducing the costs and to prevent the errors which can be a major barrier for the business.
Stage 4- Commercialization
in the stage of the commercialization it shows that the new product or services which are going
to be introduced in the market which create a potential way to attract more customers. It simply
shows the accountability of the product as well as the distributing and marketing are the form of
support in which it will help to develop the marketing plan which are more essential.
Stage 5- Diffusion and implementation
this stage shows that to understand the different situations and condirtions which are very
necessary to have a different innovatiobn in which it helps to find the new obstacles which are
occur due to this and have a major influence on it. This helps the organzitaion to be more capable
through which it helps to know about the different kind of stages as well.
Critically evaluating success or failure of innovation in each retailer.
Innovation plays a very important role in the organziation in which it serves which gives a better
chance to conduct a business opportunties. Whereas, both the organization have a effective ideas
in which it helps with the fundamental process which are driven to have a ability for conducting
the practices which are in the favour of the business as well. Amazon and Iceland both follows
the suitable approach in which it helps to figure out the new ideas and the new products which
will help to serve the most valuable products as well. Though, it is clarify that the Amazon and
the Iceland are the one who are more approachable and creates more opportunities which helps
to success in the business with its innovations. By implementing the new product ideas it shows
that the product ideas are the one which enables the workforce to serve the product effectively.
With the help of these startegies it shows that the organziation are able to generate its
productivity which helps to gain the sustainable advantages as well. It is also beneficial for the

business because it increases the market share and helps to gain the competitive advanatge as
well. There are the different and effective changes which are initiated through the organiztaion
which shows that the business environment are basically in the term of having a better part fro
the development of the company.
PART 2-
Recommendations for innovative procedures for new online grocery retailer
 Enabling the voice ordering for the online services- it can be the most innovative idea
which are used in such technological aspects which are shaping the total working criteria
which are involve in gaining the competitive advantages. This feature can easily allow
the customers to shop easily, and also helps to interarct with the different people in the
market which are all necessary.
 Offline and online experiences with the new products- by implementing such different
physical stores it will simply helps with having in a respective areas which are allow to
have a access to online. To mind the comfortness of the customers it will allow the
different facilities over both these platforms. As the trends are changing rapidly online is
one of the biggest trend which are follow by the offline stores to make more creativity to
their busienss. The new online retailing are the sources in which it will helps to improve
all kind of the facilities which will help to provide different level of the customer
satisfaction in which it will nicely affect the business performance as well.
 For starting the new grocery store, the retailer needs to be clear with its research upon the
market. Although, it is very necessary to cope up with the new and suitable marketing
startegy in which, it helps to serving with the new values which are up with the products
and services as well. The market research can be clearly done by the reatiler in which it
shows the new and existing products in which it helps to analysis the risks as well as the
benefits.
 There are the different kind of measures which are being suggested to the reatiler for
conducting the proper online facilities in a very better way. There are the huge market
competition is there in which it has a online retailer facility which will help to gain the
competitive advantage as well.
 Also, the groceries stores are the one who are willing to serves the better quality of the
products in which it can gain the customer experience as well in this retail market. The

online facilities has a major contribution in this current phase, which helps to gain a
competitive advantages. There are some startegies in which it can follow with these
suggested measures which are conducting the online practices as well for the smooth
functioning as well.
Therefor, the innovation wioth the benefits and risks are counted as the new factors which are
helps to get the negative as well as the psoitive aspect.
Benefit of the innovation by innovating into the new product or the services which are involve
in the market, the business can get the ability to conducting different kind of the practices which
are accessing with the several benefits as well.
 Developing the product portfolio- there are the different product segmnets in which it
can easily driven by having a proper access and creates a chance for the business to
attract many customers. It can also easily provides the comparison between the
competitors which are in the different market segment as well. Although, it also helps to
generate the major sales and the profitability in which it lead to the minimum number of
risks which are to the shareholders as well.
 Better quality- the better quality services are very familiar to meet with the demands of
the customers which helps to gain the better advantage into the business as well. It also
helps to gain the higher profit from the sales in which it will basically create an advantage
for the new retailer.
Risks in the innovation
where there are the benefits it also have some risks factors which can occur for the new retailer.
 Uncertainity in the commercial returns- many research says that, having a profitability
in the business revenue are at no guarantee there always have a doubt to opening any kind
of the business which are in the term of the different criteria as well.
 Competition- as the market competition is increasing rapidly there are the different kind
of the changes in which it get the valuable for the better position into the market and have
a legal criteria in which to have a different kidn of the products which are also secured.
Funding channels for innovation supported with business value
Funding sources can be provide to the company in several ways which will help them to
offer the different type of the sources which are essential to start a new business (Belli and et.al.,
2020). It is counted as the source for the business to have a proper growth plan in which it helps

to align with the different soruces as well. Business needs to have a financial success as well to
accomplish the goal in which it will need to have a planning before implementing anything this
can be the major source which are more available to the new products as well. There are the
different kind of the sources which are important as well in w-hich it will use to have a better
sources of funding in which it helps to make a innovative access.
Funding from friends or family-
family or friends are the one who can easily provides the fund which can help to get
much for easier for the borrowing the funds (Bloom, Van Reenen and Williams, 2019). Also,
having these kind of the agreemenst can have a risk into the business because any kind of the
grudges can easily harm the relationship between the family members which cannot be that much
easy to maintain.
Crowd funding-
this is the major source in which it helps to get the funding through any individual which
can be for the venture or the new projects which are necessary for raising up the bunch of the
individuals (Colombo, Pansera and Owen, 2019). It will simply allows the entreprenuer which
can be help to perevnting in the giving up and also the market validation are the one as well. It
can also be done by an effective manner through the different kind of the websites which are
used in the crowd funding as well.
Angle investors-
this also have a name with the business investors in which it helps to provide the proper
funding options which are more required to have a proper net worth which are necessary. It is
also a type of the smart money in which it will simply provides the value to the different
investors. For serving the proper angle financing in which it can not be considered for the
pursuing and different kind of the abilities as well. So it need to have a proper investment for
sharing with the different desires and the investments which are helps to get the profits and
shares as well (De Silva and Wright, 2019). The angle investors are the one who knows the
better ideas with giving the funds with the long period of time to compared for the better
investing for having better investment criteria.
Government grants-
this grants are obtained by having the different criteria in which it will obtained to have a
different type of the levels of the governments. It will have a different perspective which are

includes in the different industry. There are various eligibility criterias which are used to have
funds which have more availability. It shows that there are the different activities which are more
crucial and helps to gain the competitive advantages as well.
Debt-
this type of funding certainly shows the different kind of purpose for the sourcing funds
by the third pary which will agree to pay the amount back on the given time without charging
any interest on it. This type of loan are critically suitable for the accessing with the different
unions and the various financial institutions which helps business to get more chance for
retaining the flexibility to its payment options as well.
Equity-
the finance which are through the equity are normally influence to arrange funds which
are given by the third party for having a proper investment in the new business. This fund can
easily be arrives by the different sources which can be the friends and family and the angle
investors as well (Haman and Etwall., 2021). By having a proper analysis it needs to be have a
requirement in which it will basically support the different kind of the products which are
necessary to have a potential on it.
To having a proper evaluation it needs to be done through the various identification
which shows the investment are made by the different resources for any kind of the start ups. It
will much more easier to be have a proper analysation in the profits of the business and made the
specific time for the certain period (Lee and et.al., 2021). The investor is more able to execute
the different kidn of the profits and sales ratios in which it will be more convinient with the
business operations as well.
Tools to protect intellectual property rights
The intellectual property rights are considered as to having a proper rights which are
covering the original ideas, creativity and the discoveries which are made up with the group and
the persons. As previously the rights to be on every thing there were not a big deal but as having
a different sources which are being able to manages by the new technologies which are essential
in the market. The intellectual property right is one of the significance in which it shows the
different innovations which cannot be copied by any person in which it will shows the different
rights which are although not necessary to have a proper rights. Business can get the advanatge

of the intellectual property right by allowing the benefirts through the social media and well
managed target audience which are also the part of these property rights.
There are the different intellectual rights which the retailer can follow in a very effective way.
Copyrights-
this process is helps to ensures about the process which is originally done by the person
and no other person will have a right on it. It helps to ensures about the authorship with the
different type of the work, art and the music which are more important to be have a copyright on
it (Leong and Sung, 2018). Copyright is used to have a work which are doing in the basis of the
different kind of the production which will have no registration process on it. Whereas, the
registration simply indicates the way in which it is having a accessibility which are created on
the basis of the different consideration as well. With the use of the inventers and the
rumenarations which shows the equal rights in which helps to promote that.
Trade secret-
it is counted as the confedential as well as unique term which are very valuable for the
business which helps to gain the competitive advantage. For breaking such trade secrets can
harm the original owner. Whereas, the different competitive forces are not liable to have a proper
access to steal anything which includes the innovative and unique idea which are specified to
grant any legal security which are aligning for such trade secrets.
Patents-
it is a very confedentuial right in which it will basically provides such invention which is
supported by the different methodology which helps to serve everyone in a possible manner. It is
a basic protection which are provided on the long period of time with some long years. Whereas,
without the permission of the owner the patent innovation is the one which cannot be sale or
utilize in any manner (Lin and Luan, 2020). It shows that if the patent is getting expire it needs to
be have a proper innovation which are enters with the different usage as well.
For managing the different kind of the innovations which are used in the products which
are introducing into the grocery market of the UK are the one in which it helps to make the basic
program with the action plan. It is followed by some steps and the proper action plan which are
shown below:
Step 1 – to set the Smart objectives

in the first step it is shown that the planning and making the Smart objectives are basically
required to be stated with the client in order to make business more successive.
Objective- to enhancing the sales ratio by the 10% in the online retail grocery stores in
the UK's market and to make a customer holding in the business by the 20%.
measurable- by measuring the different aspects which will easily help to reten the
customers at its online platfrom which helps to analysis the internal trend.
Achivement- for accomplishing the goal which are corporated by making the online
grocery market more innovative. It have a unique strategy in which it will includes the
innovative product ideas as well as the different innovations.
Time period- at the first quarter it needs to be have a high customer retenion and have a
proper product development which will help to increase rge sales profitability within a year.
Step-2 forming lists of action
just in time system- it is counted as a very systematic approach which helps to manage
the stock which are followed by the retailer to have a proper access on managing the raw
material form its suppliers in that exact time which are more likely to be reduces the waste.
Arrangmenet of funds- the loan will simply provide by the bank and helps to provide
the different and proper interest rate which are more essential for the business.
Agreement with the sustainable supplier- this will be taken on the basis of the
effectiveness and also implemented by the different criteria for making the product successful
and innovative (Sharifi, 2019).
Solar panel- this type of the action shows the online retailer in which it will help to
incorporate with the solar panel which are essential for the business to be more innovative.
Step-3 timeline
There are the different kind of goals which are set by the every different organiztaion in
which it will helps to accomplish the goal in a very systematic time.
Step-4 delegation resources
It is important for having this resources which are utilized by the organization which are
likely to be more effective in which it helos to have a financial which are having a human and
the physical rights as well.
Step-5 evaluating the process

To guaging all over the process which are made by having the different desired goals
which are more important for the online grocery stores which are an essential part for the
business which are having with the long period of time (Sharifi, 2020).
CONCLUSION
From the above report, it has been concluded that the depth of the process are indetified
with the commercialization and innovation, which are most essential for the business. It is
depicts in the various terms which are in the technology for the new products which are
introduced in effective way. Thus, the report has been covered the potential informatio which are
more innovative for the foster in the context of the retailers which are chosen in the report.
Furthermore, it has been highlighted the broad assumptions which were shows the details and
found that it is very essential to have a different kind of the innovations.

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Online
What Are The Different Sources Of Innovation. 2020. [Online]. Available Through:
<https://mitidinnovation.com/recreation/what-are-the-different-sources-of-innovation/>

Create Sustainable Success with the 4 Types of Innovation. 2021. [Online]. Available Through:
<https://www.freshconsulting.com/insights/blog/the-4-types-of-innovation/>

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