Innovation and Commercialisation in Tesla: Sources of Innovation, 4Ps of Innovation, and Frugal Innovation

This report discusses the sources of innovation, 4Ps of innovation, and frugal innovation in Tesla. It also explores the link between innovativeness of a specific organisation and its leadership, organisational culture, and teamwork. The report evaluates Tesla's commercial potential and background in the automotive industry.

INNOVATION AND
COMMERCIALISATION
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INTRODUCTION...........................................................................................................................3
Section 1...........................................................................................................................................3
Background to the company and its commercial potential....................................................3
Examine the difference between invention and innovation, analyse sources of innovation as a
core process in a specific company........................................................................................4
Critically discuss link between innovativeness of a specific organisation and its leadership,
organisational culture and teamwork......................................................................................5
Evaluate 4 Ps of innovation, appraise the value of the innovation funnel and frugal innovation
with reference to your case study...........................................................................................6
Explain the 4Ps of innovation with reference to your company......................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7
2

INTRODUCTION
Innovation is defined as a practical implementation of new ideas, products, methods etc in
order to add value to an organisation. In simple terms innovation is basically application of ideas
that are useful and novel (Chebo and Wubatie, 2021). This process allows companies to deliver
new and unique products and services to consumers in a market segment with an aim to improve
profitability and competitiveness in industry. Innovation is a specific instrument which helps in
creating wealth and influencing attention of consumers. Present report is conducted on Tesla
which is operating in automotive industry. Organisation was founded in the year 2003 and offer
number of high-quality products in electric vehicle segment and clean energy. Present report
include discussion upon the background and commercial potential of organisation, difference
between invention and innovation and link between innovativeness of organisation and its
leadership culture as well as team work. Along with this value of innovation funnel and frugal
innovation is also discussed in present report.
Section 1
Background to the company and its commercial potential.
Tesla was established in the year 2003 by group of engineers those who have innovative
spirits to prove that individual does not need to compromise to drive electric vehicles. In this
they provide more fun to drive in their cars as compared to gasoline cars. This led Tesla owners
to offer electric vehicles in market segment along with focusing upon clean energy as to stop
relying on fossil fuels. Tesla created an entire sustainable energy ecosystem and manufacture
innovative set of powerful energy solutions, solar roof, power pack etc with the help of
renewable energy. The main goal of Tesla is to develop a compelling car of the 21st century in
order to drive world towards electric vehicles with an innovative spirit and focus upon
sustainable energy. Tesla have commercial potential to drive technology this organisation is
continuously rolling out several new electric vehicles.
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Examine the difference between invention and innovation, analyse sources of innovation as a
core process in a specific company
Invention Innovation
 Invention is defined as a process of
creating something completely new.
 For invention there is a requirement of
scientific skills.
 Innovation is something which is
associated to implementation of ideas
for process and products for the very
first time.
 In innovation the certain skills
required include technical, marketing
and strategic skills.
There are different types of sources of innovation such as an unexpected occurrence,
incongruities industry and market change demographic change and change in perception of
consumers. Mentioned below in-depth analysis of all the sources of innovation is being
conducted:
Unexpected occurrence:
This is a source of innovation that happened by a chance for suddenly. In addition to this
it has been evaluated that this form of innovations under take place in unexpected way.
Incongruities:
This is a source of innovation in the need is basically in congruent with the supply. It
further led towards innovation which is basically and attempt to solve the existing incongruity in
which a person might innovate.
Market structure:
This source of innovation is termed as an existing market structure which of a chance of
innovation rise.
Changing perception:
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This is an innovation source in which a situation changed perception of individual which
were the lead towards birth of innovation (Daniels and Amadi-Echendu, 2021). For instance, in
today's world people are more conscious of health. It significantly led towards increase in
demand of healthy foods and low-calorie food products in market segment.
Lifestyle:
This is a source of innovation which is basically due to lifestyle of individual for example
due to dangerous impact of smoking on people health the innovation of e-cigarettes take place.
Critically discuss link between innovativeness of a specific organisation and its leadership,
organisational culture and teamwork
Innovativeness & leadership
Leadership plays important role in organisation as with the help of strong and effective
leadership leaders can motivate employees towards innovative spirit. This help organisations to
implement innovativeness in their roles and responsibilities and encourage new ideas which
helps in bringing change. In addition to this, it has been underlined that leadership is a process in
which leader lead, guide and direct individuals and team towards accomplishment of
organisational goals.
Innovativeness & organisational culture
It is essential for an innovative organisation like Tesla to increase flexibility. In this
organisation leaders and managers provide flexibility to employees and share their viewpoints
and ideas with management which helps in bringing change of innovativeness. With the help of
positive organisational culture Tesla can retain talented and skilled individuals for longer period
of time.
Innovativeness & teamwork
Teamwork plays important role which help the organisation to bring innovativeness. With
the help of collaborating individuals with different skills talent and competencies organisation
can efficiently bring innovativeness,
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From the above analysis it has been evaluated that with strong and democratise leadership,
positive organisational culture and teamwork Tesla can increase competitiveness in industry and
can retain employees for longer period of time.
Evaluate 4 Ps of innovation, appraise the value of the innovation funnel and frugal innovation
with reference to your case study
Explain the 4Ps of innovation with reference to your company
Product Process Position Paradigm
If it is talked about
innovation the
primary thing which
basically strike is
conducting
alteration as well as
modification in
products on making
change as to bring
new in a market.
This is mainly
termed as making
change in production
process in which
manufacturing is
done to efficiently
deliver new to
consumers.
Position is
specifically defined
as a change in the
way in which new
products are being
introduced in the
market segment or
changes in target
audience.
This is defined as
change in mental
model framing.
Innovation funnel is specifically defined as a mechanism which enables a constant stream of
ideas which helps in screening viability. The main motive of innovation funnel is to generate
many ideas as possible which helps organisation to discover new opportunities. While in terms
frugal innovation it is a procedure in which value to consumers is being delivered at lower
affordable cost. In this organisation is needed to implement a mind set in which they are required
to offer production services in extremely low cost without making sacrifices in quality of their
products. This will help organisation to ensure high quality production services to market while
ensuring competitiveness in industry. With the help of taking advantage of frugal innovation
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Tesla can enhance its market segment base and can influence consumers from different
geographical location. In context with Tesla innovation funnel plays important role and is
valuable as it will allow them to systematically structure the chaps of innovative ideas and gain
more growth opportunities. In addition to this, it has been underlined that both innovation funnel
and frugal innovation will benefit in number of ways, for example with the help of this Tesla can
make more realistic plan to expand their electric cars effectiveness as compared to other
competitors.
It has been identified that with the help of taking advantage of innovation funnel Tesla can
have mechanism which helps in enabling a constant stream of ideas. This will significantly help
organisation to ensure long-term profitability and growth in market (Gan, Hong and Hou, 2021).
There is significant increase in competition in market segment their number of other competitors
of Tesla are manufacturing electric cars. In this to enhance competitiveness industry and large
base of consumer towards organisation offering frugal innovation a significant role for Tesla. In
this Tesla by delivering more value to consumers at lower cost can increase user experience and
can develop strong competitiveness and market segment.
CONCLUSION
As per the above-mentioned report it has been concluded that innovation is defined as a
process of creating new ideas product or services in order to led a positive change. Innovation
helps in organisation to enhance value and satisfy dynamic needs of consumers in a market
segment. With the implementation of new methods ideas and products business organisation can
drive successful change in society and can also ensure long-term sustainability.
REFERENCES
Books and Journals
Chebo, A.K. and Wubatie, Y.F., 2021. Commercialisation of technology through technology
entrepreneurship: the role of strategic flexibility and strategic alliance. Technology
Analysis & Strategic Management, 33(4), pp.414-425.
Daniels, C. and Amadi-Echendu, J., 2021. Entrepreneurship, Innovation, and Technology
Commercialisation for Transformative Change in Africa: Perspectives, Policies and
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Practices. In Entrepreneurship, Technology Commercialisation, and Innovation Policy
in Africa (pp. 1-9). Springer, Cham.
Das, S., 2021. Managing innovation: The three ‘Ps’ of creativity and commercialisation.
In Innovations in Magazine Publishing (pp. 80-102). Routledge.
Franco-Giraldo, L. and Gentilin, M., 2021. Factors affecting the commercialisation of new
knowledge: a roadmap proposal. International Journal of Business Innovation and
Research, 25(1), pp.19-34.
Gan, Q., Hong, J. and Hou, B., 2021. Assessing the different types of policy instruments and
policy mix for commercialisation of university technologies. Technology Analysis &
Strategic Management, 33(5), pp.554-567.
Watkins, A. and May, S., 2021. Innovation Sucks!: Time to Think Differently. Routledge.
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