Types of Innovation & Commercialization Process

This assignment delves into the diverse realm of innovations, their classification, and the process involved in commercializing these groundbreaking ideas. It also explores methods to protect intellectual property, each with its unique advantages and disadvantages. The task is supported by numerous references from scholarly journals and books, providing a robust foundation for analysis.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
P.1 Innovation and the importance to organizations as compared to innovation........................1
P.2 Use of organization vision,leadership,culture and teamwork in creating innovation and
Commercialization......................................................................................................................2
P3 4P'S of Innovation and use of innovation funnel ..................................................................3
P4 Development in frugal innovation ........................................................................................4
P5 Importance of Commercial Funnel and application of New Product Development..............5
P6 Build an Innovation Business Case .......................................................................................6
P7 Different tools that company can use in order to develop, retain and protect intellectual
property.......................................................................................................................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Innovation is considered as the basic requirement of every business enterprise. It refers to
the activity that is concerned with attracting more and more customer and maintain strong their
brand image in the market. It refers to the process in which idea has been generated by any
employee or employer of the company that is related with adding new feature to existing product
or totally inventing the brand new product (Amit and Zott, 2012). In simple words it an
aggregation of opportunities, idea, sales, marketing and production. This report talks about
Unicorn Grocery which is a UK based co-operative grocery store which mainly deals in selling
grocery and household items to ample customer. This report talks about importance of
innovation, 4P's of innovation funnel, commercial funnel, application of new product
development and lastly different types of intellectual property.
P.1 Innovation and the importance to organizations as compared to innovation
Innovation is the process of creating new and innovative ideas in the product or service.
Through this there are significant changes in the products and services. Unicorn company is the
company which creates the beverages and foods. The manager and leader make alterations in the
products and services. Importance of innovation to employees of unicorn grocery are - Development of skills – Company produces new and innovative products. So thus it
increases the skills of employees to create innovative products. Thus they can perform
efficiently and effectively. All staff members can easily achieve their targets and
objectives. It leads to growth and development of the employees. This results in efficient
functioning of activities and tasks. It helps in increasing the productivity and profits of
the firm (Ariga and et. al., 2013).
 Efficiency of work – In innovation existing product is modified to create a new product.
Thus it helps in increasing the efficiency of workers to perform the work. Through this
staff members give good results. Thus it improves the quality of work. This helps in
improving the performance of employees. It leads to increasing of productivity and
profits of company. This results in growth of firm. Enhances Productivity – Through innovation employees create unique and innovative
products. Thus it increases the efficiency of employees to perform better. It results in
increasing the productivity of employees. Thus staff members give good results. This
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improves the performance of employees. It leads to growth and development of all
employees. This results in success of firm in long term.
 Creative mindset – Through innovation employees create new and innovative products.
This required the creative mindset of employees (Davila, Epstein and Shelton, 2012).
Hence it creates the mind of all employees very creative. Through this staff members can
create good quality of products.
Innovation Invention
Innovation increases the value of the product
which is already existed in the market.
Invention creates and introduce new product in
the market.
It has wide scope. It is expanded in various
departments and not a single unit.
It is spread in Research and Department only.
It is the process which take place at first time
by making modification in existing product.
It is the process in which new products are
launched in the market and they are not existed
in the market.
It executes the new idea and making alterations
in existing product.
This involves new idea of practices of working
theory.
P.2 Use of organization vision,leadership,culture and teamwork in creating innovation and
Commercialization
Every company has their own vision ,mission,leadership and team so that business
activities can run successfully. This motivates employees so that they can work efficient and
effectively. Employees do innovation through modification of the existing products. It results in
increasing of the productivity and profits of the firm (Drucker, 2014). Thus they can increase the
market share and operate globally. Vision,mission and leadership styles of Unicorn grocery
company are - Vision – It is a statement which tell about the objectives of the company. Vision of
Unicorn Grocery company is to deliver good and healthier products to the customers.
Through this employees create new ideas to develop new and innovative products. It
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increases the efficiency of employees to perform better. It results in smooth functioning
of the processes and methods to create products. Through this there is effective and
efficient functioning of the activities and tasks. This results in increasing the productivity
and profits of the company. Thus it increases the market share of the company. So firm
can expand its operations globally (Gordon, 2012). This results in capturing of more
customers and can generate more profits. Company can give strong competition to other
firms. Leadership – Company follows the democratic leadership in which all employees can
give their suggestions and feedback regarding the plans and policies. Through this leaders
can maintain good relationship with the employee. Thus employees can perform
efficiently and effectively. Through this manager can give rewards to the employees for
their good performance. This increases the motivation level and skills of employees to
perform better. Employees can give new and creative ideas to the leader. Thus leader can
implement these new ideas in creating different products. Leader can also adopt advanced
technologies which can be used in various activities and tasks. Thus all activities and
tasks perform smoothly and successfully. It results inn increasing the productivity and
profits. Company can also increase the market share. It can maintain a competitive edge
on other firms.
 Team work and culture – In company there is team of various employees. Some
employees create new innovative ideas and give it to the leader. Through it leaders can
implement these new ideas in creating various products. Thus good quality of products
can be manufactured. It results in increasing the productivity and profits of the firm.
Company follows the ethical rules and regulations in creating healthier product. They do
not do any cheating and frauds in company. So thus firm can produce good quality of
products. It results in generation of more profits and company can expand their
operations globally (Huberman and Miles, 2013).
P3 4P'S of Innovation and use of innovation funnel
Innovation can be defined as a change that takes place anywhere or at any department of the
firm. Anything that company wants to improve or make it better refers as Innovation. According
to J.B Stroke, “It is the process that converts an invention into finished goods or services that
generate values. Innovation mix consist of 4P's namely Product, Process, Position and Paradigm.
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Mentioned below is the detailed explanation of all 4P's:
Product: It deals with change in product or services generally made by the company and its
owner. For example: As Unicorn Grocery deals in selling organic food and drink to its customers
(Huizingh, 2011). They are require to understand that ample of customers prefer to drink sugar
free juices as they are more conscious about their weight. Therefore, company can innovate in
terms of offering low calorie or sugar free organic drink to its customers. Also they can put
sample of their organic food in display so that customer can itself distinguish their product
product from non-organic.
Process: It deals with changing the process in which goods and services has been delivered to
end customer. Unicorn Grocery can start selling their product on online websites so to satisfy the
requirement of target audience. Apart from that it aid in increasing their market share. Till now
the company is selling their product through its physical outlet. Now they can enter into contract
with various websites such as Amazon where they can sell their product online.
Position: This deal with changes that takes place in terms of how goods and services are
communicated or framed. It basically deals with re-positioning the perception of existing goods
and services of a company in another context. The referred company can enter into restaurant or
food joint line. As Unicorn Grocery deals in selling organic goods which are hugely in demand
now-a-days. Taking the advantage of this, they can start making healthy fast food for their
customer.
Paradigm: This refers to the change that is concerned with the way in something is done in
Unicorn Grocery. This can be anything. From selling their organic products and services through
physical store to online websites. Also the company has also redefine its advertising model via
online model.
Innovation Funnel is mainly used to define all the essential steps that takes place in the
development of particular product or process (Jain and et. al., 2013). Their main purpose is to
effectively fulfil the market needs and wants in economic and manufacturable forms. With the
help of innovation funnel, Unicorn Grocery can redesign its process or product in an innovative
or creative way so to gain higher competitive edge in the market over their rivals firm. For
example: Unicorn Grocery is trying to enter into the sector of restaurant chain so that they can
offer organic with low calorie fast food to ample customers. It's main usage is it assist in
generating more profits and revenues.
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P4 Development in frugal innovation
Frugal Innovation deals with discovering new business model, redesign product and services and
reconfigure business value chain that faces extreme constraints in a sustainable and scalable
manner. This type of innovation is mainly used by the companies so to reduces the probability of
product and services complexities faced by end-user. It assist the firm in reducing overall cost of
production and cost of product. Products and services produced under this innovation proves to
be more useful and effective (Johnston and Marshall, 2016). Such types of products are formed
with optimum utilisation of available resources and are environment friendly. These are faster,
better and cheaper than other resources manufactured under standard innovation. However,
certain kind of risk is associated with this innovation but almost every other organisation is using
it in their business operation.
Some of the examples of frugal innovation is Haier Washing Machine in China, TATA
NANO in India and many more. For inventing such kind of products, Unicorn Grocery requires
highly creative team. Though these are the examples of big companies but small firms are also
following the same path. This type of innovation can takes place in business model and process
as well. Such types of innovation requires less marketing or promotion support as they are going
to be promoted on their own because of its social cause objective or aim.
Principle of Frugal Innovation:
1. Find opportunity in adversity: This principle deals with re-framing the issues or
problems. Take something that appears like adversity or threat and then convert it into an
effective opportunity that proves to be beneficial for both company and customers.
2. Do more with less: Companies are not required to ask more rather than they need to find
out creative way for framing best possible solution to the defined problem. Basically firm
needs to re-think its way.
3. Think and act flexibly: It is better to be improvisational rather than being rigid.
4. Keep it simple: Sometimes many option or choices may create ambiguity. Therefore, it is
recommended to posses fewer choice which are better an effective rather than ample
number of choices (Leeuwis, 2013).
5. Include the margin: Unicorn Grocery requires to involve their customer and take
appropriate feedback from them for further modification or improvement. They can
simply ask them what are their needs and expectation in context of the product.
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6. Follow your heart: Be passionate and motivated and keep developing new ideas.
P5 Importance of Commercial Funnel and application of New Product Development
Commercial Funnel can be described as a process via which enterprise tries to determine best
sources through delivering best product and services to end customer in the market. Manager of
Unicorn Grocery is liable to select best distribution channel for their product and services. This
will assist in increasing the sales figure and maximise their profit and revenue in an effective and
efficient manner (Manso, 2011). It is essential for all company's to significantly reach to its
target audience because they are the one who contributes immensely in lead generation and this
can only takes place via commercial funnel framework.
Unicorn Grocery is require to use this framework whenever they will redesign its
structure or process. Various steps involved in new product development are defined below:
Idea Generation: At this step, idea is generated in employee mind. This is the first step that
depicts that idea that has been generated for new product development. The idea must be
innovative and creative which gives them higher competitive edge. The idea should be unique
which none of has used.
1. Idea Screening: At this step, screening of idea takes place in which company checks
whether the idea is realistic or not. Ample of ideas generated in the mind of personnel, it
is the duty of management to screen each and every idea and then find the best one. They
are require to select the one which is fulfils company's goal in an effective manner.
2. Concept Development and Testing: At this level, idea that has been selected is finally
converting into product. Also when product is ready, company present it in-front of the
customer so that they can check and identifies whether the product is liked by the
customer or not.
3. Market Strategy and Development: At this strategy for marketing the product is created
that defines target market, promotional techniques, product positioning etc.
4. Business and Financial Analysis: This is done once the organisation is done with
determining the volume and sales of the product according to its size. Here company's
thoroughly look break even point, profit and cost analysis (Schaffers and et. al., 2011).
5. Commercialization: This the last stage in which company finally introduced their
product in the market.
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P6 Build an Innovation Business Case
Innovation is a way in which company introduces new product or alter existing product as per
the demand of customer. By applying this framework in on business operation, company can
sustain in the market for longer duration and gains higher competitive edge in the market place
over their rivals. But for this management needs to determine all important aspect and start
working on it in an effective manner (Stokes, 2011). But it should be noted down that not only
innovation plays important role but commercialisation also plays the vital role. Therefore it is
necessary to to use both innovation and commercialisation for product. For launching new
product in the market at vast level, company requires adequate amount of funding inn order to
carry out them in an effective and efficient manner. Higher authorities are require to take
decision regarding that or they can involve account manager as well because they are the one
who actually plays with financial figures and numbers. But for this management needs to
perform several steps that are defined below:
 Identification of target and goal for which adequate amount of funding is required.
Therefore management is liable to critically assess each and every aspect which requires
huge funding.
 Companies are require to measure finance area in an appropriate manner which aid them
in determining the allocation of fund in a systematic manner.
 Optimum utilisation of fund enables the company to promote their product on
international or global level.
 In order to avoid wastage of time, money and resources companies are require to frame
appropriate allocation of funding strategy.
P7 Different tools that company can use in order to develop, retain and protect intellectual
property
Intellectual Property are the tools that aid in encouraging innovation within business enterprise.
Normally a firm deals with plenty of ideas that assist them in their growth and development but
however it is not possible for company to convert each and ever idea into reality. Fear is attached
with all ideas regarding idea being stolen by any of their competitor (Strayer, 2012). Therefore
companies are require to protect their ideas by using various types of tools that plays important
role in gaining higher competitive edge are defined below:
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1. Patent: Such type of tool is often used by the firms when they produced or bring any new
product in the market. It is mainly done at the time of product invention. In simple
words, exclusive rights of that particular product has been given to inventor or companies
when they produce new product. With the help of this, inventor of such product official
become the producer or manufacturer of that particular product. Time-period allotted for
patent is maximum 20 years. Though it can be extended further depend upon the inventor
choice (Tebbe, 2011).
2. Trademark: Different signs are allotted to different product on the basis of which these
are products and services are identified. Each product is having their own unique style
which makes them distinguish from others. It may be in the form of signs, symbols,
diagram or combination of all.
3. Copyrights: These are often used by person for their artistic work and literature. It is
mainly used for film, poem, poetry, photographs etc. Basically it is a legal right that has
been given to originator for a fixed or specific number of year. It is mainly created law of
the country.
4. Trade Secret: It has been believed that all ideas or products cannot be patented. Therefore
it is better to consider some ideas as trade secret that is going to be patented but for later
stage.
CONCLUSION
According to the report it can be concluded that innovation is important for the company
as it can create new and innovative products. Through this company can generate more profits.
Innovation and importance of innovation as compared to invention. There are various types of
innovation and there is process to commercialize the innovation. There are various methods for
protecting ideas and their different advantages and disadvantages.
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REFERENCES
Books & Journals
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review. 53(3). p.41.
Ariga, K. and et. al., 2013. Layer-by-layer nanoarchitectonics: invention, innovation, and
evolution. Chemistry Letters. 43(1). pp.36-68.
Davila, T., Epstein, M. and Shelton, R., 2012. Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Gordon, R.J., 2012. Is US economic growth over? Faltering innovation confronts the six
headwinds (No. w18315). National Bureau of Economic Research.
Huberman, A. M. and Miles, M. B., 2013. Innovation up close: How school improvement works.
Springer Science & Business Media.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Jain, A. and et. al., 2013. Commentary: The Materials Project: A materials genome approach to
accelerating materials innovation. Apl Materials. 1(1). p.011002.
Johnston, M. W. and Marshall, G. W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Leeuwis, C., 2013. Communication for rural innovation: rethinking agricultural extension. John
Wiley & Sons.
Manso, G., 2011. Motivating innovation. The Journal of Finance. 66(5). pp.1823-1860.
Schaffers, H. and et. al., 2011, May. Smart cities and the future internet: Towards cooperation
frameworks for open innovation. In The future internet assembly (pp. 431-446).
Springer, Berlin, Heidelberg.
Stokes, D. E., 2011. Pasteur's quadrant: Basic science and technological innovation. Brookings
Institution Press.
Strayer, J. F., 2012. How learning in an inverted classroom influences cooperation, innovation
and task orientation. Learning environments research. 15(2). pp.171-193.
Tebbe, J., 2011. Where good ideas come from: The natural history of innovation.
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