Report On Innovation & Commercialisation

Innovation and
Commercialisation

Table of Contents
INTRODUCTION..................................................................................................................3
P1 Explain the concept of innovation and determine the difference between invention and
innovation...............................................................................................................................3
P2 Explain the different types of innovation..........................................................................6
P 3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................9
Evaluate the role of frugal innovation in an organisational context.......................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Innovation refers to creating something new which is not sell be any one in the
marketplace. It is develop by an entrepreneur in order to satisfy the requirements of society. In
the present context of YOYO Drinks, company wants to bring something new in the market
which will aid them in order to enhance their sales at the marketplace. The present report is
distinguished into four basic parts which includes advantages as well as disadvantages along
with some tools and techniques of innovation (Bagchi-Sen, 2007). Along with this, the present
report includes 4P’s of innovation along with difference between invention and innovation.
P1 Explain the concept of innovation and determine the difference between invention and
innovation.
The process of translating any kind of inventions in order to serve the society for which
customers will liable to pay. Innovation means creating and developing new products and
services in order to satisfy the requirements and expectations of customers. In context of a
business, innovation provide outcomes to the company when they apply and earn profitability as
well as goodwill at the marketplace.
INNOVATION INVENTION
Innovation mainly explained as a tool for
attracting large number of consumers. In
general, it is the method of adding value to the
products.
But on the other hand, invention means to
create and develop something new and fresh.
In the present context of YOYO Drinks,
company wants to raise their sales by adding
something unique features. It is known as
innovation.
But on the other hand, if company wants to
launch totally new products in the new
marketplace, it is known as invention.
In innovation, innovator can be any skilled,
semi skilled or experienced person. They will
contribute their work and create something
innovative.
But on the other hand, invention refers to the
procedure which includes skilled, talented and
experienced person. Invention, is the procedure
which includes totally new and creative
products at the marketplace.

Explain innovation and determine its importance to organisations in comparison with invention.
Innovation refers to the process in which company bring new products and services
which highly affects the profitability at competitive marketplace. There are ample number of
factors which pushes the innovation process. These elements includes courage, thinking,
intellectuality, differentiating.
Importance of Innovation: One of the biggest advantage for any company who innovates new
idea, new products and new services, is that they gain competitive advantages at the marketplace.
With the help of this they can attract large number of customers towards their products and
generate more profitability.
On the other, innovation helps in adding more value to the products and services offered
by the company and help them in maintaining their effectiveness at the marketplace.
Explain how organisational vision, leadership, culture, and teamwork can shape innovation and
commercialisation.
It is very essential for the organisation to have fair objectives in order to attain goals and
objectives of the company in an effective manner. In order to have good brand image of the
company at the marketplace, it is very essential to convey its vision, objectives, mission and long
term goals to every staff member of the company (Aarikka-Stenroos and Sandberg, 2012) .
Vision, leadership, team work and culture plays very important role while innovating something
unique.
 Vision:- Effective goals and objectives of YOYO Drinks helps the management team of
the company in order to gain more profitability and beat the competition at the
marketplace. Vision is the statement of company which includes its purpose in order to
run the business in a smooth and effective manner. Vision statement highlights the main
purpose and motive for establishing the business at marketplace.
 Leadership:- Leadership refers to the process where an individual motivate, encourage,
guide and direct other employees in order to perform their task in an effective manner. In
case of innovation, managers create innovative and creative idea and the role of a leader
is to direct their employees in order to attain the set target (Rafinejad, 2007) . Along
with this, managers of YOYO Drinks can develop innovative ideas as they have the
power and authority. On the other hand, leadership helps in achieving these set targets in
an effective manner as well as control and manage the whole staff members.

 Culture:- In this factor of innovation various elements are included which are rules,
norms, beliefs and regulations (Schoonmaker and Carayannis, 2010) . In context of
YOYO Drinks, staff members of the company work according to the set norms and
behaviours. In addition to this, culture of the company should be healthy and positive, so
that employees will be able to perform their task in an effective manner as well as in
specific period of time.
 Teamwork:- It refers to the togetherness of whole organisation in order to achieve
organisational goals and objectives as well as to maximise profitability and minimising
the cost. Teamwork means cooperative nature of employees and other members of the
company in order to achieve their pre defined task.
As per the above mention, it has been concluded that all the above mention factors helps
in innovating new products and services at the competitive marketplace ( Bogers and West,
2010) . Along with this, if all these factors should be taken enough care, company will be able to
satisfy the requirements of customers in an effective manner.
Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation.
Sources of Innovation: There are various sources with the help of which innovation can
help and foster the organisation in an effective manner. Most of the owners or top authority of
the company values creativity and innovativeness which the help of which company's culture
will be foster. Some of these sources are as follows: Brainstorming sessions: With the help of this session, managers of the company create a
positive working environment where employees can think and create innovative products
and services so that they can satisfy the requirements of customers. In case of YOYO
Drinks, managers conduct a brainstorming sessions to their employees in order to bring
innovative ideas and thoughts.
 Necessity: Innovations can be take place only when there is any kind of necessity occurs
within the environment. In addition to this, it is very necessary to examine the current
market trends and situations (indič and et. al., 2011) . In the present context of YOYO
Drink, members of the company examine the market condition and then innovate
products and services. Therefore with the assistance of this managers can fulfil the
requirements of customers in an effective and positive manner.

Critically analyse how innovation is developed, embedded and measured in an organisational
context.
Innovation has both negative and positive impacts on operation of business. An
innovation is done in products for increasing the number of customer base or increasing the sales
of the company. If innovation is done in an organisation, it requires a lot of investment and if this
innovation fails, company's financial status will decline (Kim and et. al., 2011) . On the other
hand, if innovation in product is liked by customers then it will increase the profit and sales of
company.
P2 Explain the different types of innovation.
Innovation in a product offered by company is important as it helps in attracting more
number of customers towards buying products of the company. In context of YOYO drink it can
apply following types of innovation in it's organisation or product -
Incremental innovation – This is type of innovation in which the existing technology of
the company is enhanced for increasing the value in front of customers. This includes adding
design, features, tastes, services, etc. of the company (Bogers and West, 2012). In context of
YOYO drink the company can increase it's value by adding new drinks of Lassi in market. This
company is making a new Lassi drink named as Vermicelli Lassi which is offered in different
fruit flavours.
Disruptive innovation - This is also known as stealth innovation and this includes
adopting a new technology or process in the company the new technology for YOYO drink will
be more expensive to use so this type of innovation is not a right decision for this company.
Architectural innovation – This innovations includes taking lessons, technology and
skills and applying them in the company. This kind of innovation helps in increasing customer
bas. There is a lot of risk in this type of innovation. YOYO drink can develop it's architecture by
adding new creations.
Radical innovation – In this type of innovation, new industry are produced by the
swallowing the present industry. These consist of innovation that are requirement of society or
customers. This change can be explained by an example- the airline industry was need of
customers and this gave rise to development of airways transport.

P 3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
The 4 P's of innovation are listed below -
Paradigm – When innovation is done in a product, it is not necessary that this will be
successful. Innovation is done for improving the way of doing business.
Product – This includes improving the product by adding innovations. This is done for
improving the quality of product of the company.
Process – This consists of preparation process of product or service (Ettlieand Rosenthal,
2012) . All processes of company are involved in innovation like workflow, supplying, hiring
employees and training.
Position – The aspect on which this works is how changes in a product will impact the
innovation done in product. Company has to work on improving market position of the
innovative product.
In context of YOYO drink it is making a new innovative product that is Vermicelli Lassi
in market and it is following all the above mentioned P's of innovation.
Innovation funnel is defined as the mechanism for enabling ideas that can be applied to a
product. This is also known as funnel management process and this is a common approach used
by various companies to create an innovative action plan in a product. The innovation funnel
consists of various steps like ideas, criteria, testing and external environment. The first step of
innovation is creation of ideas which includes gathering of innovative ideas that can be applied
in a product. In the next step of innovation funnel, ideas of new product developed in first step
are screened. In this step an evaluation is done for analysing cost benefit and risk matrix
(Huizingh, 2011) . In the next step organisation ensures that innovative idea is appropriate for
the company's objective or not.

Illustration 1: Innovation funnel,2013
Analyse and apply the innovation funnel in an organisational context
In case of YOYO drink company, the innovative idea given by this company is
Vermicelli Lassi and this is offered with different flavours like mango, orange, chocolate, etc. If
innovation funnel is applied in this case then first step is the idea generation and this includes
creating an idea for Lassi (Gambardella and McGahan, 2010) . The marketing managers of
YOYO Drink have thought of a new innovation i.e. Vermicelli Lassi. The next step is analysing
that this product will add value to the company or not. Customers will like this new Vermicelli
Lassi that is rich in nutrition as well as it has delightful taste. There is no risk to the company by
applying this innovation as it is not costing a huge amount of investment.

P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is defined as the process of reduction of complexity and cost of
products and it's production. The designing of innovative products creates increment in durability
while selling of products and services. Frugal innovations helps in growth and cutting funds and
reducing debts (Godin, 2012.) . New technologies are applied in an organisation and innovation
are done for improving the condition of business.
Evaluate the role of frugal innovation in an organisational context.
There are basically two steps in the frugal innovation listed below- Problem: Innovation is required in products of company for continuous development and
growth.
 Related to product: The marketing managers of the company must promote their new
innovative product in an effective manner.
Steps taken in this context:-
 Generate idea for innovation: The company must generate innovations that are
attractive and will increase the customer base.
 Screening new idea: The managers estimates that innovation of product is effective or
not.
 Idea screening: Some modifications can be done in innovative product at this stage.
 Testing: Alternatives are suggested by the marketing managers.
 Internal analysis: This is estimated by administration of assets of YOYO drink.
 Market analysis: This includes market research for Vermicelli Lassi of YOYO drink.
 Commercialisation: In this step products are introduced with the motive of satisfying
needs of customers.
 Review market: Checking of present position of item in market place is done and
necessary alterations are made.

REFERENCES
Books and Journals
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Bagchi-Sen, S., 2007. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1). pp.61-75.
Ettlie, J. E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp.440-454.
Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2).
pp.262-271.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kim, S. K. And et. al., 2011. The effect of R&D, technology commercialization capabilities and
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Lindič, J., and et. al., 2011. Deploying information technologies for organizational innovation:
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pp.183-188.
Rafinejad, D., 2007. Innovation, product development and commercialization: Case studies and
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networks. Journal of the Knowledge Economy. 1(1). pp.48-66.
Snow, C. C. And et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
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Teece, D .J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.