Innovation & Commercialization: Importance, Strategies, Frugal Innovation, NPD, Funding

This report covers the importance of innovation and commercialization for organizations, strategies to shape innovation and commercialization, frugal innovation, NPD, and funding options. It discusses the difference between invention and innovation, the role of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization, the 4Ps of innovation, and the use of the innovation funnel. It also explains frugal innovation and the importance of the commercial funnel and NPD processing for commercialization of innovation. Finally, it provides an innovation business case for organizations with ways to access funding.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Innovation and its importance to organisations in comparison with invention..........................3
P2 How organisational vision, leadership, culture and teamwork could shape innovation and
commercialisation............................................................................................................................4
P3 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas
..........................................................................................................................................................5
P4 Explain developments in frugal innovation and provide examples of how it is used................6
P5 Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation..................................................................7
P6 Innovation Business Case for organisation with ways to access funding................................10
P7 Organisations can use various techniques to develop, retain and protect knowledge and
intellectual property.......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Innovation is considered as a continuous process of developing new product or services
for their consumers that could fulfil their wants and needs. Commercialization is the procedure
of brining new commodities into the market. The financial incentives and the market includes
other businesses which required an acceptable design and creation of the commodities, return on
investment and also a research in the competitive industry. Fresh oven bakery is taken as base
company. In the case study, one drink is launched which is a vegan lassi into the UK markets. In
this report, it covers the difference between invention and innovation. As with it, it involves
several forms of innovation with the procedure of commercialising innovation. Also, various
strategies for securing the opinion and knowing their benefits and drawbacks is mentioned.
P1 Innovation and its importance to organisations in comparison with invention
Innovation is described as the transforming of ideas to reality. Also, it could be
considered as a change which made its efforts to the commodities in effort to satisfy the need and
wants of the customers. This happens when a new and innovative product enters and elevate the
consumers’ needs by proving high quality product and services. Innovation could also be
referred to as the introducing or creating the new product, technology, methodologies and
personalization of the existing commodity for satisfying the need and demands of the customer
and market (Buenechea-Elberdin, Sáenz and Kianto, 2018). The process by which there is
contribution in transforming of the ideas into customers demanded products are comprising in
the definition of Innovation.
The function of creating, innovating and researching a new commodity or process is
known as inventions. It is the new and abstract creation that is formed with evaluating and
analysing the product. Innovation is the creating of new goods or facilities with the prospective
section to make earning and creation of the modification of commodities that are already present
for increasing the satisfying of the customers and this gaining a huge advantage (van
Geenhuizen, Holbrook and Taheri, 2018).
In the case study of Fresh oven bakery s, the organisation has gain a lot of reputation and
revenue in first two years but gradually, their sales decreases in their third year of operation due
to heavy competition. Here, the firm has to concentrate on innovation (Alunni, 2019). For getting

a competitive edge on the business, they have to increase their manufacturing process as well as
its promotion. This should be focused on the developing the new drink.
The difference between invention and innovation are as follows -
INVENTION INNOVATION
 Invention is the contemporaries of new
thoughts for the products and facilities
that has not been created by another.
 It is considered as developing of new
product.
 The product which is getting developed
has original idea
 Innovation is the implementation of the
commodities for the very first time.
 It adds value in the existing product or
service
 It is based on the applications and
implementation of the new idea
P2 How organisational vision, leadership, culture and teamwork could shape innovation and
commercialisation
Innovation and corporate capabilities has a vital role in the success as well as failure of an
organisation. Fresh oven bakery brings several innovations in its commodities which facilitates
organisation for creating a meaningful qualities in the present goods and services. This could
also be done to assists in expanding of product line by launching of a new product to capture the
customer's attention (Symeonidis, 2019). A constant innovation supports in the organisational
growth and maintaining an effective positioning. If the company is able to offer innovative and
new product or service in the market, they would be able to stand out of the crowd from its rivals
and also offers a sustainable competitive edge. The firm would analyse the present market trends
and patterns as well as the needs and demand of the customers and would finally take the
decision for launching the new product which has the ability to satisfy the consumer need and
also retain them with the company for a longer period of time.
Company's vision: Vision statement is a written commitment which comprises of main
objective and goal of the organisation which would came in existence and need to accomplish in
the future. The statement includes all activities which are defined as per the stipulated time such
as, in six to seven months, the company wants to achieve the defined goal.

Leadership: Leadership is the capability of leader to motivate, influence and inspire the
team member of the organisation in order to perform business function to achieve the goals and
objectives. In case of Fresh oven bakery , the leader uses democratic leadership and also
motivate their staff members for taking part in the decision making related to organisation.
Company's culture: Culture of a company is defined as working environment of the
organisation, employees, behaviour and characteristic. Every company has distinct culture which
could create impact on the overall performance. The selected organisation adopted a flexible
work environment and inspire staff members to offer ideas and taking part in the decision
making process of the organisation.
Teamwork: Team work is considered as one of the most vital element which is required
for an appropriate growth and development of firm and facilitates Fresh oven bakery s for
bringing innovation in the commodities and achieve the goal on time.
P3 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas
The continuous developing of new product or services assists in the success of
organisation is known as innovation. The 4P's of innovation in context to Fresh oven bakery s is
mentioned below:
Paradigm: It is the primary factor of the innovation procedure that are referred as
planned structure that helps management in coping with the variations that might occur as an
outcome of the innovative method in the firm and how organisations required all its operating
processes to operate efficiently. Fresh oven bakery s should properly govern their advancements
that might be beneficial or damaging.
Product: The product is considered as a vital element in every organisation which is
offered to the customers. To elevate the productivity, the organisation should develop creative
products. In regards to the selected organisation, the incremental changes in their commodities
might be executed to enhance sales (Eshraqi and Eshraqi, 2019).
Process: Process includes all the tactics of the company for efficiently advertising their
goods and services. Recruiting and hiring a qualified candidate, training the staff members are all
the components of effective systems for providing products and services to the customers. In
regards to the selected firm, in terms of changes, the organisation should take into account for
executing the methods which encompasses assuring that product satisfy the customer's
requirements.

Position: Positioning is the practice of creating a significant and desirable reputation of
brand for commodities by effective promotions. In context to the selected organisation, it might
be possible to make sure about the appropriate as well as effective market positioning of their
products and services is created (Taylor, 2020).
Innovation funnel
The innovation funnel is the primary phase in the growth of innovating goods or
facilities. It is a constant procedure that are offered with innovative ideas that should be
effectively evaluated in effort to showcase exceptional thoughts. The main objective of invention
funnel is to present various training sessions in order to measure if a certain idea is beneficial or
not. The utilisation of innovation funnel allows the organisation to have a constant flowing of
innovative ideas by group action Sessions and their best use helps in the sustainable supply of
goods and facilities. In context to Fresh oven bakery s, an effective funnel development would
aid the organisation in creating conception to increase the profitability.
P4 Explain developments in frugal innovation and provide examples of how it is used
The process of frugal innovation states the model of business in effort to reconfigured the
appropriate value chain, redesigning of commodities that is accessible to the consumers. It would
make sure about the extreme phase of affordability constraints. This is an essential procedure
that delivers to the targetted consumer with affordable costs. The aim is to create valuable
products and services at very affordable costs to captivate a big market share (Närvänen and et.
al., 2019). It refers as sustainable and scalable technique which includes tapping and overcoming
void in effort to constraint valuable resources. The selected organisation has adopted frugal
innovation as it has many advantages which could offer commodities at a very prices in order to
generate more sales and profitability to the organisation.
P5 Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnel is one of the most significant aspects which is utilised in a business.
Commercial funnel is also referred to as sales funnel. It is used by several marketers as a
reference to the closing of sales and lead generation. This is utilised by marketing professionals
of the organisation in effort to gain the visualise the sales process which is undertaken by the

prospect consumer. It is stated as a route undertaken by the prospects for being the valuable and
budding for the organisation.
The selected organisation makes the utilisation of commercial funnel to measure the
success of converting of leads to sales that clearly and concisely showcases the influence of
customer and their buying decisions (Escobar and et. al., 2021). Fresh oven bakery makes the use
of four divisions of commercial funnel that is provided by the marketing effort of the business
which is majorly purposed at creating awareness and developing a demand for the goods and
facilities.
New product development for Fresh oven bakery s
New product development is the procedure of bringing a new product into the market.
This process is significant for each organisation as this would assists in surviving in the market.
The selected organisation make use of new product development process for its innovative
commodities so that they could able to deliver more value and captivate a huge target segment.
Idea generation: It is the stage, where the selected organisation is come up with different
ideas which are generated with the assistance of internal and external sources. The internal
sources could be termed as local research and distributor, suppliers and so on are the external
sources. The main target at this section is to produce a feasible ideas. Fresh oven bakery has
came up with a new product which is a Vegan Lassi which would be made up of almond milk
and soya milk.

Idea screening: The organisation would make sure to filter out that ideas which are not
realistic and feasible. They also make sure that the chosen idea should fulfil all the standards for
the feasibility and also has the potential to deliver adequate return (Van Lill and Agolla, 2017).
Concept development and testing: Fresh oven bakery s converts the ideas into a detail
product keeping the needs and wants of the customers in the mind. The organisation would
develop the Vegan Lassi as its innovative product and test it on a particular target audience for
checking the viability.
Development of marketing strategy: Fresh oven bakery s makes an effort to launch the
new product with the development of marketing strategy. Marketing mix has a vital role in this
stage as this would aid in creating the product according to the budget, taste and preferences of
the target customers. The organisation would utilise marketing strategies to achieve its target
customers also create interest for the new and innovative Vegan Lassi. The pricing of the new
product would be high in effort to place the product as high quality product.
Business analysis: In this stage, Fresh oven bakery s would test and make them through
business analysis in effort to identify if the production of Vegan Lassi is feasible financially and
also assessing all the risk which would be related to the project. Along with this, they also make
sure about the sales projections and income generations in order to keep the business healthy and
profitable.
Product development: In this stage, the Vegan Lassi is produces with almond milk and
soya milk. The selected organisation makes the decisions to create the new product after going
through all the stages of the new product development process (Gunawan, Schultmann and
Zarghami, 2017). Here the lassi would be measure on the basis of cost, availability, taste and
quality of the resources.
Test Marketing: The selected organisation would test the product as well as marketing
strategies in effort to identify its success rate and also how they meet the targetted audiences
effectively.
Commercialisation: From the testing stage results, the organisation would make the final
decision to launch the Vegan Lassi which is made up of almond milk and soya milk at greater
scale for its consumers. Commercialization stage includes all the activities such as from
production to distribution and thus, it is one of the most critical stage for the success for the
commodities.

P6 Innovation Business Case for organisation with ways to access funding
A business case for innovation is considered as a systematic study which explains the
significance of the organisation's longer term targets and objectives with vision and mission
statement.
Executive summary: Fresh oven bakery is seeking to produce a new beverage which
would assists the organisation in increasing their sales in their third year of trading.
Mission: The mission statement of the organisation is to create and provide a healthy and
quality fast food to the customers.
The innovation business case for Fresh oven bakery where they want to launch the new product
in the market in effort to elevate their sales are mentioned below:
Vision: The vision statement of the organisation is to manage their market situation and
enhances their income.
Problem statement: Fresh oven bakery was facing problems that are related to their sales
that are declining as the competitors maximisation. This makes the company less productive that
have an impact on their profitability (Hasan, Khan and Shah, 2017).
Problem analysis: It is essential for a firm to come up with a creative and innovative
commodity so that they can gain a brand goodwill in the industry. Also, it required to solve in
order to continue their production.
Recommended solution: As the organisation was facing a major challenge which leads in
decreasing of their sales when the rival companies come into the market. In effort to increase its
sales and productivity, the has decided to launch a new product which is a Vegan Lassi and it is
made up of almond milk and soya milk.
Financial overview:
Particulars 30/08/21 (£) 31/12/21(£) 31/05/22 (£)
Production cost 4000 - -
Technology cost 1100 1000 1600
Advertisements cost 1000 800 1000
Promotion cost 2000 1200 800

Total cost 8100 3000 3200
Product innovation: Product innovation is the process of developing a new innovative
idea which would assists Fresh oven bakery to elevate their sales and profits.
Source of funding: Fresh oven bakery s could use various types of source such as
borrowing assets, equity capital and profitability ratios which would retain the revenue as
income is generated by selling the commodities more than the market value (Rowe, Turner and
Waterton, 2018).
P7 Organisations can use various techniques to develop, retain and protect knowledge and
intellectual property
The main goal of launching new commodities into industry is to generate revenue of the
product or services. Innovation has a major contribution towards the success of the organisation
and allows to stand out of the crowd. As the competitors intensifies, it is necessary for
organisation to be innovative so that they are able to obtain competitive edge in the industry.
There are different businesses that could use several ways to create expertise and protect the
intellectual property which are mentioned below:
Patents: Patents are use to secure the innovations and improvement that are made to the
commodities of the business in which the chosen management would secure their managerial
framework.
Trademarks: Trademarks are used to secure the intellectual property rights in images,
names, and signals that are used by the selected organisation to remember the brand by the
consumer.
Copyright: Copyright is utilised to protect the transferring of thoughts in the production
of art, literature and other unique task. The selected firm could limit the continuation of their
promotions (Sebastian, 2021).
CONCLUSION
From the above discussion, it can be concluded that innovation is a continuous process of
relating the needs and wants of the consumers to technical abilities in order to fill the gap by
design, marketing and other functions. In this report, it involves value of innovation to the
business with the impact of leadership, vision, culture and teamwork to innovation and

commercialisation. It also includes the 4P's of innovation, utilisation of innovation funnel with
the importance of New Product Development. A business case with the manners to access funds
and tool which the business used to secure intellectual property that are discussed.

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