Report on Business Innovation and Commercialisation at C & K Holdings

This report provides a comprehensive analysis of innovation and commercialisation within the context of C & K Holdings, a construction and building project development company in the UK. It begins by defining innovation and comparing it to invention, highlighting their importance for business growth. The report then explores the roles of vision, leadership, teamwork, and organizational culture in fostering innovation and commercialisation. It delves into various sources of innovation and explains the 4Ps of innovation (product, position, process, and paradigm) and the innovation funnel. Frugal innovation is discussed in detail, including its principles and applications, followed by an evaluation of its effectiveness. The report also demonstrates how C&K Holdings implements the innovation funnel to introduce innovative products in the market. The content covers key concepts, including the importance of innovation, types of innovation, and strategies for commercialisation, providing a practical overview of business development strategies.

Innovation

Table of Contents

INTRODUCTION
Innovations is the process of creating a new idea to make modification in existing
products, services and method so that business can be expanded on a broad level.
Commercialisation refers to the process of running business primarily for the purpose of
acquiring higher profits. These elements are required for the achievement of long term goals. It is
essential for the companies to make effective policies to implement innovation to achieve long
term sustainability (Abebe and et. al., 2013). Proper and effective market research may help to
evaluate the needs and demand of customers and this may lead to a successful innovation which
is going to be implemented by business entities in future. Company chosen for this project report
is C & K holdings which is a developing company of building projects and operating business
activities in UK.
Various topics are discussed under this assignment such as overview of the company,
importance of innovation as compare to invention, different types of innovation and detailed
discussion of the process which is required to commercialise innovation. Evaluation of different
methods for protecting ideas and their advantages and disadvantages are also done under this
project report.
TASK 1
P1 Explanation of innovation and it comparison with invention
Overview of C & K Holdings: The organisation is a development company of building
projects and established in Slough, Buckinghamshire, UK. It is currently operating business
effectively and gaining higher profits in the market.
Innovation: It refers to the process of launching a new idea in the market by modifying
existing products or services. As C & K Holdings is a construction company and it is using
effective techniques in the construction process so that higher profits can be acquired in long
term (Avimanyu, Reed and Jessup, 2012).
Invention: launching a new idea in the market for the first time is invention it helps to
attract large number of customers toward the organisation. C & K Holdings can use invention in
machinery that are used in the construction process in order to expand the business. An invention
can lead the organisation toward success or failure.
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Both the elements are very important for the organisation and importance of both of them
are shown in the form of comparison in the table below:
Innovation Invention
It is important for the organisation as it may
help to save cost because modifications are
made in existing products.
It is beneficial for the organisation as it may
help to grab attention of customers by
launching a new product in the market.
It helps to retain existing customers and attract
prospect customers by proving them innovative
products by using innovative methods.
It is an effective concept that help
organisations to expand their business.
Professional skills are required for innovation
that may be acquired by the employees who
are working in field.
Technical skills are required for invention and
organisation have to hire experts form outside
of the organisation.
Innovation and invention both are very important for C & K Holdings as they may help to
attract new and retain existing customers (Batkovskiy and et. al., 2015). These two elements may
also help the employees top attain their personal goals by putting their efforts in the
organisational processes and business activities. If organisational goals are achieved than it may
help the workers to acquire higher benefits according to their activities that are performed by
them while contributing in the organisational goals.
P2 Vision, leadership, teamwork and culture can share innovation and commercialisation
Commercialisation and innovation both are such type of concepts that may help a
business entity to deal with all its challenges because they helps to attract large amount of
customers with the help of modified products that are offered to them. Organisational culture,
vision, teamwork and leadership helps to shape the process of innovation and commercialisation.
All of them are explained below:
Organisational vision: Vision is the long term view of future in which organisations
plan to be in a good situation in future. Vision of C & K Holdings is to expand its business in
upcoming years by acquiring higher market share. The company may reach to its vision with the
help of innovation because the modification in the process of construction my help the
organisation to attract large amount of customers. This may also clear the organisation when
innovation is required so that business can acquire the growth (Budzianowski, 2016).
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Leadership: Leadership refers to the activity of leading a group of individuals. Id leaders
of C & K Holdings are able to motivate their subordinates than they will put high efforts to
perform their duties. It will help to run the process of innovation and commercialisation because
employees will be able to work effectively for the growth of the company.
Organisational culture: It is the combination of values, beliefs and values of the
employees who are working in the organisation. In C & K Holdings task culture is implemented
by the managers and leaders at their work place in which different teams are formulated to find
solutions for organisational problems. It help to shape the commercialisation and innovation
because team members make efforts to deal with each problem that may be faced by an
organisation. All of them provide their opinion so that effective strategies can be formulated in
order to attain goals (Cho and Lee, 2013).
Team work: If all the employees of the organisation are working together and
cooperating with each other than it will help to achieve success. In C & K Holdings all the
workers are supporting each other and working effectively. This will result in successful
introduction of innovation and commercialisation of the business entity.
M1 Various sources of innovation
There are various types of innovations that leads to the process of innovation and also
guides the organisations to make effective strategies to effectively implement the modification in
their products or services. These sources are development in knowledge, modification of market
structure, changes in perception of customers etc. all these elements guide the companies for
innovations because it is not possible to operate the business with out making appropriate
changes in the products or services that are offered by them to the society. In the situation of
introduction of a modified product may help to attract large number of customers and also
enhance the market share.
P3 Detailed explanation of 4ps of innovation and innovation funnel
Innovation method which involves various activities to uncover the new ideas or invent new
things. There are 4Ps of innovation which was discovered by Joe Tidd and John Bessant (4Ps of
innovation, 2015). These 4Ps help the organisation to do effective innovation in services and
product. C&K Holdings used these 4Ps – product, position, process and paradigm to get
competitive advantages in marketplace. 4Ps are mention below:
Product:
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Product is the essential element delivered by the organisation and changes made
according to the consumers needs so that they acquire high market share. C&K Holdings use this
element to attract the consumers, for that they have to formulate the new strategies and the
innovative ideas for the product (Datta, Mukherjee and Jessup, 2015).
Position:
Position is the elements used by the company so that they increase the market share by
making new strategies and innovative products. This elements helps the C&K Holdings to
improve position in the market so that its provide effective quality of product to the customers
and increase its sales and profits.
Process:
Process is the execution of improved production and method of delivery. In C&K
Holding, use this elements to decrease production unit cost and increase the quality so that they
deliver and produce the new products.
Paradigm:
Paradigm is the elements use by the company to formulate the policies which is used to
monitor the organisational activities. C&K Holdings use paradigm elements to show the
management capability to make business plans and think innovative.
From the above innovation elements, C&K Holding prefer the process innovation so that
it helps them to think about all steps such as hiring, supplying and training which should be
enhanced for profit maximisation and current trends to carry out those processes (Datta, Reed
and Jessup, 2013).
Innovation funnel
Innovation funnel is the management capability which is used by the organisation to
determine and describe the method used in product and process development. So that product
and process are made according to customers needs and wants. This is the combination of three
essentials such as researching, development and delivering products. In C&K Holdings,
innovation funnel is used so that they implement the plan to modify and deliver the products. In
researching, company gathered the whole market information. In development process, all the
modification made that are required into the competitive market. In delivering process,
innovative products and services are delivered into market which are offered to the customers.
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P4 Development in frugal innovation and their use
Frugal innovation: It is a technique which is used by different organizations to reduce
cost of different products that are sold by them. It is done with the help of modification and
removing such type of features that are not required by the customers. This helps to reduce
complexity in production process. In C & K Holdings frugal innovation can be used in the
process of construction in which buildings are made according to demand of customers. It can
help to remove any old features form the manufacturing process and add any new and innovating
feature according to the need of buyers. Higher profits and sales can be attained with the help of
this type of innovation. It guides the organisation through out the process of success. Attention of
large number of individuals can be grabbed with the help of this technique as it enhances the
attractiveness of products and services that are offered by the business entities (Dereli and Altun,
2013).
It can be used in C & K Holdings to modify its process of manufacturing buildings. For
example, organisation may use a new techniques in the construction process and remove any old
process. The new technique may be related to the process of mixing the material with the help
modified equipment. The organisation may change some parts of the equipment and than use
new parts so that it may result positively for the organisation by enhancing its profitability and
market share with the help of modified product. There are five different principles of frugal
innovations are as follows:
Find opportunity in adversity: According to this principles organisations should make
effective strategies so that all the threats can be turned in to opportunities.
Do more with less: In this principle the organisations think to create an innovation in the
existing products so that cost can be saved.
Think and act flexibly: It is suggested to the companies that they should act and think
improvisational rather than inflexible.
Keep it simple: The product should be modified with simple innovations rather than
complexities as it can cause problem.
Include the margin: The organisations should gather information about their customers
and than include their decision in the process of problem solving.
Follow your heart: The managers of the organisations should remain passionate as it
may help to generate innovative ideas (Grimm and Jaenicke, 2012).
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All the above mentioned principles can help to make the innovation process effective and
appropriate for the customers.
M2 Application of innovation funnel in the organisation
C&K Holdings implement the innovation funnel to introduce innovative product into the
existing market. The three essentials of this which helps them to guide the organisation
employees and managers to research the market by collecting effective market information and
according to the current trends of market they develop the products. And efficaciously deliver
the products in market. It also help them to form the innovative ideas so that they choose the
correct strategy to achieve the goals.
M3 Evaluation of frugal innovation
Frugal innovation is the methods which is used to reduce the products and services cost
by reducing its complexities. It plays an essentials role as they remove the unnecessary
characteristics of products and services that are not helpful but increase the cost and
complexities. C&K Holdings uses this process to minimize the production cost to maximise the
profit margin. It also helps them to produce the product and serve the services at lower price by
minimising the use of resources in product development. This is the common ideas of innovation
which assist them to modify innovative products and services into the existing market.
D1 Examination of growth, scope and development of entrepreneurial venture
Different entrepreneurial ventures are developing continuously in UK and all of them are
using innovative ideas to develop their business. It is not possible to launch the innovative
products by all the companies. The process of innovation help the organisation to expand their
scope, attain growth and get developed by expanding business.
TASK 2
P5 Importance of commercial funnel and use of new product development process
Commercial funnel: It is also known as purchase funnel which can be defined as the
process of buying a product by the customer with the help of the information that they are having
about a particular product. It is essential for an organisation as it helps to monitor the demand
and supply of the products (Hsieh, 2013). If C & K Holdings is willing to use the commercial
funnel technique than it has to follow five different stages that are required to be followed. First
stage is awareness that helps to aware the customers about the features and benefits of the
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product. In second stage opinion of the customers is acquired about the innovative product in the
form of their feedback so that if they are not satisfied than changes can be made according to
their demand. The third stage is related to the consideration in which price of the product is
decided according to its features. Forth stage is preference, in which customers analyse that all
the products that are provided by the company are according to their preference or not. Last and
fifth stage is the purchase in which customers make choice to purchase or not to purchase the
product of the organisation or not (Jacobsson, Lindholm-Dahlstrand and Elg, 2013).
Commercial funnel is mainly used for the process of new product development process
for the organisation. C & K Holdings is willing to launch an innovative idea in the market in
which it will modify its process of construction by using effective equipments that may help to
attain organisational goals. For this purpose organisation have to follow some stages. Following
steps are related to this process:
Idea generation: It refers to the creation of the idea in which various new ideas are
developed by the employees and the managers of the organisation. These ideas are provided to
the higher authority of the organisation.
Idea screening: Different ideas are gathered from the employees and other persons of the
organisation they give ideas to launch the innovation. One idea is selected by the owner which is
going to be implemented.
Business analysis: In this stage the organisation needs to gather information of the
market by conducting an analysis. This may also help to identify growth opportunities in the
market.
Product development: In this stage design and features of the new product or equipment
is developed which is going to be modified by the organisation (Kilelu, Klerkx and Leeuwis,
2014).
Test marketing: In this step company provides the product to the certain markets to
record their feed back and identify the effectiveness of the product.
Commercialisation: this is the last stage of this process in which product is supplied to
different geographic location of the country.
All the above mentioned steps needs to be followed by C & K Holdings while modifying
the process of construction that may help to attract large number of customers.
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P6 Innovation business case for the organisation
Executive Summary: C & K Holdings is a construction company which is going to use
innovative process in all the activities of construction by using modified equipments. The
organisation have decided to use an innovative technology in the construction process in which
wearable technology is going to be used at the site. This technology help the managers to track
that workers are on site or not. It also help to inform workforce about the hazards that may take
place in future at site. Organisation is operating its business effectively in the market. Company
is having a good market image which helps to attain all its predetermined goals. For building
business size is made by innovating criteria like crowd funding, boot stepping for start-ups.
Objective: The purpose of C & K Holdings for the innovation is to attract large number
of customers and expand its business all around the world. C & K Holding's objective is to
enhance productivity by innovating the process of construction and makes their saving by having
flexible interest rate (Qian and Haynes, 2014).
Solution: C & K Holdings company can attain all its objectives by providing customers
such items that are required by them. All the objectives of the organisation can be achieved by
using effective and innovative marketing and promotional strategies. The result opt from this is
new process of construction. From this, C & K Holdings receive positive surface area, enhanced
quality, faster of production.
Research for customers: C & K Holdings has chosen this option by analysing needs and
demand of customers. The organisation is delivering an innovative process in the construction
activities.
Develop and design plans: developing and designing of plans is made on the basis of
decisions made by manager. C & K Holdings raising funds in market operations is made on new
innovative product which is designed for development.
Necessity of capital:
Particular Amount
Material cost 15000
Research cost 12000
Development cost 11000
Customer's feedback 1000
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Cost of new equipment 15000
Total requirement 54000
Total requirement of the capital for the company is 54000 which is required to operate
the business and to successfully launch the innovation in the market.
Expectable benefits: C & K Holdings is considering achievements by enhancing
benefits relating to funds, rate, expenses. They are dealing with an innovation which is based on
increasing potentials towards making enhancements in the process of constructing building
projects. Employees of C & K Holdings leading benefits in making finest production in market
place (Thore, 2012).
There is certain other technology that can be more in protecting the house of both inside or
outside are mentioned below:
Insulation material: It is an effective material that can reduce or prevent the transmission
of heat, sound or electricity. Building material can be used for constructing building more strong
walls so that chances of noise pollution can be controlled effectively for longer period of time.
An electrical insulation is a material that are related with the charges do not flow freely that are
associated with certain impacts that are occur on the building.
Sound proof classes / walls: It is said to be a soundproof room insulated it from noise or
any other layman terms. This is done for the purpose of protecting the noise from entering or
escaping a room. It has also become more simple for people to soundproof their apartments and
homes because of the street noise and shared walls.
M4 Business case that consists measurement of all effective techniques
Business case is the concept refers to the process of launching new product in the market.
It is essential for the C & K Holdings to analyse the market demand so that the new product can
be launched successfully in the market. The efficiency of the product which is introduced in the
market can be measured with the help of budgets and future estimation of demand.
P7 Different types of tools that can be used by organisation to develop, retain and protect
knowledge
C & K Holdings, Inc., manufacture electromechanical switches in United Kingdom. It aimed to
provide designers a next- generation switch which s compact yet strong resistant to water. Their
switch features in a soft actuator that results in upgrading customer experience. Due to increase
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in competition in market place this company needs to secure its innovative ideas, business plans
and other aspects from its competitors. In U.K. There are various laws made by which a
company protects its business from illegal activities. It includes intellectual rights that are
trademark, copyrights and patent.
Trademark: It is a brand name, word, symbol, design, slogan and logos that are used on
goods and services and create differentiation of product or services from one business company
to other. By using this right C & K Holdings can secure their product trademark from any illegal
use. This will help them to reduce their amount of time and money.
Patent: This right provides property rights on any invention but that invention has to be
new and are not known by anybody else. C & K Holdings can utilise this right to file patent
application. It will secure them to get copied by their competitors in the market. And allow them
to be successful because they develop new product that offer competition on marketplace.
Copyright: It is a legal right of the owner of intellectual property. In general copyright
means right to copy. This law does not restrain owner of a copy from reselling of their
copyrighted works. By granting this right C & K Holdings can protect their creative product.
Only the original creator of a product and whom he authorized have the exclusive right to
reproduce the product or services.
As per above discussion, C&K Holdings can secure their product and set their business apart
from competitors. From all above mentioned points organisation can use to develop, retain and
protect their knowledge. By securing their goods and services with help of these rights
organisation can able to increase their competitiveness in many ways by dedicating time and
resources to intellectual property protection. This will help an organisation to promote their
growth (Vishnevskiy, Karasev and Meissner, 2015).
M5 Evaluation of tools in the context of wider business environment
There three different products that are used for the protection of invention and
innovation. These are patent, copyright and trademarks. C & K holdings is using these tools in
order to secure their innovative ideas. All of the tools help to secure the innovative ideas of the
organisation.
D2 Impact of small businesses on different stages of economy
Small business organisations are the base of the economy they help to enhance the
national income. If the businesses are operating effectively than they may acquire long term
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