Innovation Funnel and Commercialization

This assignment delves into the concept of the innovation funnel, examining the stages involved in bringing an idea to market. It analyzes various case studies illustrating how innovations are transformed from conceptualization to commercial products. The text further explores the factors influencing successful innovation commercialization and the challenges faced during the process.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance to organisation in comparison with invention......................1
P2. Shaping of innovation and commercialization by organisation’s vision, leadership, culture
and team work.............................................................................................................................3
TASK 2............................................................................................................................................4
P3 The 4P's of innovation and use of innovation funnel.............................................................4
P4 Development of frugal innovation.........................................................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel..........................................................................................8
P6 Innovation business case and ways to access funding...........................................................9
TASK 4..........................................................................................................................................10
P7 Tools to protect, develop and retain knowledge and intellectual property..........................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The innovation can be simply defined as a new idea or method. Apart for this, it is also
stated as an application of the best and effective solutions which support in meeting new wants
of customers or for meeting the needs of existing market (Aryal and et. al., 2016). It is achieved
with the help of more effective products, services and technologies. The effective process of
innovation supports in adding values to products or services which is being used by customers.
Many large organisations such as Apple Inc. and Virgin Group conducts the process of
innovation in order to add values in their products and services offered to customers which
ultimately improves the brand image. Following assignment is based on Periscopix organisation
which is a small enterprise operating in the economy of United Kingdom. It provides service
such as Pay Per Click and Display advertising and Google Analytics to its potential customers.
Following assignment will help learners to understand the innovation, invention and their
importance to organisation. Apart from this, assignment supports in understanding the way in
which vision, leadership and culture of organisation shapes commercialization and innovation.
The use of innovation funnel and 4P's of innovation are being studied briefly.
TASK 1
P1. Innovation and its importance to organisation in comparison with invention
Innovation:
It is a process by which new ideas are transferred into reality which supports in adding
values to existing products and services of organisation by making some changes in same. It is
essential for every enterprises in order to fulfil the wants of customers through delivery of better
goods and services as well as help in achieving complete satisfaction level of users. It is the most
significant process by which an enterprise can maintain higher competitive level in today's
business world as well as it develops a strong brand image. By adoption of following process,
business makes some modification in its existing products and services in order to cope up with
the current market demand. The process involves generation of new ideas and their transfer into
practical world to develop goods and services (Breznitz and Etzkowitz, 2016).
Invention:
Discovery and creation of new method device or process which does not have any
presence in earlier time period is stated as an invention. It is the emergence of new scientific or
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logical idea came out of research and experiments which is conducted by highly skilled
personnel. It can be related to evolution of new method and process in order to produce the
products and services.
Importance of innovation and invention for the organisation:
The innovation and invention has a great importance for business which supports in all
activities (Chun and et. al., 2015). Some main importance of innovation and invention for
Periscopix is being described as follows:
 Enhances capabilities of employees: Employees of organisation are the main
component who are directly linked with its success. Innovation and invention are
elements which support in emergence of new methods of production and this leads to
increase the capabilities of employees in effective manufacturing and delivery of
products and services.
 Increases productivity: As discussed above, innovation and invention enhances
capabilities of employees which support in increasing productivity which is the most
important for Periscopix.
 Develops the brand image: The effective innovation and invention adopted by firm has
a great importance in developing its brand image in business world. Apart from this, it
also supports in increasing its competitive level.
 Increases number of new customers: Both factors i.e. innovation and invention
supports in modifying the products and services by which needs of customers can be
easily fulfilled. These support the organisation to increase interest of new customers
towards innovative products offered by them and enhances their profitability as well.
The above mentioned are some importance for Periscopix. The Apple Inc. and Virgin
Group are two organisations who adopt innovation and invention in business which supports
them in attaining various benefits (Datta, Mukherjee and Jessup, 2015).
Comparison between innovation and invention
BASIS INNOVATION INVENTION
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Meaning It is a significant process by which
new ideas for products and services
are implemented for the very first
time.
It is stated as the generation of new
ideas for products and services which
do not have any existence in earlier
time.
What is it? It supports in adding values to the
existing goods and services.
It is linked with the creation of new
products or services.
Concept It is a practical implementation of
generated idea.
It is a real idea which works in this
theory.
Required skills It requires a set of strategic, marketing
and technical skills.
In this, scientific skills are highly
needed.
Occurrence It occurs with the need of product
development and improvement in
existing ones.
It occurs when new idea is emerged.
Concerned
with
It is directly linked with the
combination of various products and
services.
It has concern only with a single
product or service.
Activities Its activities are performed within
whole enterprise (Dutta and Folta,
2016).
Its activities are limited to research
and development department of
business.
P2. Shaping of innovation and commercialization by organisation’s vision, leadership, culture
and team work
Commercialization: It is a process by which existing organisation launches new products
and services in its target market. The commercialization process is divided into certain phases
which starts from first stage i.e. introduction of product. For commercialization, it is necessary
for enterprise to develop strategies for marketing and distribution of products and services
introduced. Strategy will help in seeking the attention of potential customers towards new
products. It is only a process which supports in achieving the benefits of innovation and
enhances competitiveness of Periscopix.
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Definition
 Vision: - It is an important statement of firm which describes what they want to achieve
in the coming future (Ge and et. al., 2016).
 Leadership: - It is referred as an ability of organisation’s management to set and attain
challenging goals and objectives. The individuals having significant leadership quality
are known as leaders and they achieve a significant position within business.
 Culture: - The organisational culture is a system of shared values and beliefs which
decide the way in which individuals behave within firm. All shared values has significant
influence on the workforce and the way they perform their job. Teamwork: - It is a process of working in collaboration with two or more individuals in
group for achieving common goals and objectives (Hossain, 2015).
Factors of organisation which shapes innovation and commercialization
 Vision: It is important for business to set challenging and effective vision which can be
achieved in practical life. The vision statement will act as an guideline and significantly
assist organisation to shape innovation and commercialization as per vision. The
statement will support in carrying out innovation according to it and this must be
commercialized in order to achieve vision of organisation. If innovation are not
commercialized in practical world than the expenses done on it are of no use.
 Leadership: It is important for leader to conduct innovation as per the goals and
objectives of firm which will assist in attaining benefits of innovation which are
commercialized.
 Culture: It is important that innovation must comply with organisations values and
beliefs. If these are not considered in the process than it will have negative impact over
innovation. For shaping innovation and commercialization effectively these factor is
important to be considered.
 Teamwork: It is another factors which shapes innovation and commercialization of
organisation effectively. The teamwork within organisation for innovation according to
vision helps positively in commercializing innovation significantly.
Apple Inc. and Virgin Group are the best example who have considered all the above
mentioned factors in innovation and commercialization which supported them significantly in
enhancing their brand image and profitability (Ke and et. al., 2015).
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TASK 2
P3 The 4P's of innovation and use of innovation funnel
Product, Process, Position and Paradigm are the 4P's of innovation which are described as
follows: - Product innovation: - It is directly linked with products and services which are offered
by organisation within its target market. Product innovation is defined as introduction of
new goods and services which are modified as per the demand in target market. In the
following, value is being added in existing products of organisations by making
significant alterations in it (Ke and et. al., 2016). Process innovation: - it is referred to changes which are made in the process of
producing goods and services or alterations in process by which products and services are
delivered. It is necessary for organisation which will help in selection of new effective
process in order to deliver goods. It plays vital role which supports in changing the
method of production andn increases productivity. Position Innovation: - It is another factor of innovation which is linked with
repositioning the customers perceptions towards existing products and services provided
by organisation. Apart from this, it is consist of alteration in process by which goods and
service of firm are introduced.
 Paradigm Innovation: - It is significantly linked with the changes in business shape and
structure. It supports in defining new path for business by which they can reach among
their potential customers and a way by which they can make profits out of products and
services.
Innovation funnel: It is mainly used by an organisation in order to manage process of New
Product Development (NPD). In the following, Research and Development department of firm
works on various ideas which have been evaluated and shapes these ideas with effective testing
until the products is launched within target market (Khan and et. al., 2015).
Main parts of innovation funnel are described briefly as follows:
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 Idea generation: - It is the step where various ideas is being generated after analysing all
opportunities available in relation to new product range. It comply with insight of market
and customers by making market research such as surveys on target group and online
communities (Koirala and et. al., 2016). Concept investigation: - It is second step in process of funnel innovation under which the
ideas generated are investigated by making use of different methods. It supports in
analysing actual reliability of ideas whether they are good to adopt or not. Under this,
team of enterprise work together in order to design realistic concepts. It may include copy
of advertisement, packaging and different configuration of products and services. Feasibility: - In is nest step just after investigation of concepts. These stage helps to
understand the practicability of then selected ideas and supports in determining it is
reasonable to adopt of not. Apart form this, it helps in analysing financial condition of
organisation whether they have funds to adopt the idea or not (Kolychev and Prokhorov,
2015). Capability: - This stage consist of developing an sample or model of new product ideas
before launching it within target market. It is an significant stage for testing effectiveness
of ideas before making it available for potential customers.
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Illustration 1: Innovation funnel

 Launch: - It is last step in which products and services are launched in target market after
considering effective concept for various alternatives.
P4 Development of frugal innovation
Frugal innovation:
It is an process where new models of business are discovered and products are redesigned
by which they can serve their products and services in target market who cannot afford it. It is
also referred to eliminate complexity, product cost and its distribution. Frugal innovation is
effectively used by organisation for identifying new ideas for development of existing products
and services (Mowery and et. al., 2015). It is carried down in order to innovate new things by
modifying existing one. For cutting the cost of products waste and other resources are used.
Development in Frugal innovation:
New market opportunities: Business conducts market analysis for identifying all opportunities
for innovation available within market place. This helps firm to grab all opportunities within an
time frame. Many problems are faced by Periscopix in market place so, it is important for firm to
innovate its services.
Resources: It is essential for firm to manage all available resource by which they can make
innovation effectively in existing products and services and helps in providing better options to
its customers.
Innovation funnel: It have direct link with development of new products and services. This
process is being adopted by firm for making new developments. It starts with initial step of
generating ideas in relation to product development.
Six principles of Frugal innovation
1. Find opportunity in adversity: - According to the following principle it is necessary to
reframe the problems. Following principle also states that all the threats must be taken in
positive way and it must be converted into opportunity.
2. Do more with Less: - This principle stated that it is important to carry out innovation with
available resource. Organisation must not demand for more (Novikova, 2015).
3. Think and act flexibly: - These principle states that be improvisational rather than strict.
4. Keep it simple: - More complexity leads to various problems. So according to the
principle organisation must not adopt complex innovation they must keep it simple as
may be possible.
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5. Include the margin: - It is important for enterprise to know their potential customers and
their issues must be considered important.
6. Follow your heart: - This principle states that organisation must be passionate and they
must use that in order to move their ideas forward (Sharifian, 2015).
The effective way to use fugal innovation is to start it by solving issues rather than with product.
Following steps has to be use:
1. Generating idea for innovation.
2. Screening new idea.
3. Testing.
4. Internal analysis.
5. Market analysis.
6. Commercialisation.
7. Market review.
TASK 3
P5 Importance of commercial funnel
The main role played by commercial funnel is to develop new products and services. It is an
significant element which is to be by firm in order to sell their products and services which
enhances profitability. Apart form this it is most important for firm to carry out effective
innovation in their existing services by which they can deliver products in significant manner.
Commercial funnel is an significant strength for every organisation by which they can deliver
services effectively in determined market.
Innovative process is being used by Periscopix for launching their new products and services
within its target market. The steps covered in NDP process is being stated as follows: Idea generation: It is an initial stage where idea for development of products is being
generated. Idea screening: All the ideas generated are scrutinised by business for adopting
appropriate one (Song and et. al., 2016). Development and testing: In the following market research is being done by Periscopix
in for development of product.
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 Product development: After assessing different segments it is necessary for firm to
develop its goods and services as per consumer needs. Market testing: Before making products available for customers market testing is
important to be carried out. Commercialisation: It is essential for Periscopix to develop best plans and policies in
relation to marketing and pricing which are main and directly related to sale of products.
 Launch: It is final stage where developed products are launched within target market and
it is made available for customers (Sotarauta and Mustikkamäki, 2015).
P6 Innovation business case and ways to access funding
Business case is being build in order to conduct effective planning for organisation has to
consider many factors which allows them to evaluate factors which may have impact over future
operations.
Mission statement: It is an written declaration of organisation which states purpose and
objectives of business operations. Mission statement of Periscopix includes:
 Main factors of firm New services will be offered by them in which marketplace.
Proposal statement: Main components are considered under this, as an purpose and objectives,
investigations which are required to make key information. It also includes certain information
about improvements of products and services with its benefits.
Resources: There are various resources which has to be considered by organisation for the
following. And it is important to use all available resources effectively which will support in
innovation significantly.
Time management: It is essential for firm to have time management strategies which will
support in commercialising innovation within a stipulated time frame.
Ways of funding: There are different sources from where business can assess funds for
innovation (Vishnevskiy, Karasev and Meissner, 2015). Some of them are listed as follows: Bank and financial institutions: Periscopix can access funds by taking loans from banks
and institutions. It is most secured external source to acquire money. Investors: There are many individuals and organisations who invests significant amount
of money in businesses. It is most effective way to raise required amount of funds which
supports in carrying out innovation.
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 Government: There are some projects in which government invest huge amount of funds.
They provide money in order to generate more employment opportunities and investment
is also done for public welfare (Xiao and et. al., 2016).
TASK 4
P7 Tools to protect, develop and retain knowledge and intellectual property
Intellectual property:
The main elements of organisation which may be process of manufacturing product,
important plans, trade secrets or chemical formula is being referred as intellectual property.
There are various tools by which organisation can protect knowledge and intellectual property.
Some tools is being described as follows: -
Patents: It is tool by the use of which organisation can register their invention with government
legally. It consumes more time in getting legal right. These covers only things which are tangible
in nature. The patents last for period of 20 years.
Trademarks: It is referred to the name, logo or phrase used by organisation in respect of its
products and services. Trademarks are highly used by organisation in order to develop their
brand image and it helps in defining brand with it product quality. The protection of intellectual
property by these method last for period of 10 years which can be renewed after after its expiry.
Copy rights: It is a law which supports in protecting written or artistic expressions such as songs,
movies or novels. It only expression of idea not idea itself. It protects all expression for the
period of 50 years (Aryal and et. al., 2016).
CONCLUSION
From the above report it is being concluded that innovation is most essential element of
organisation by which existing products are developed by making important alterations in it.
Apart from the following, it is also being analysed that there is significant difference between
innovation and invention. It states that invention is first step just before innovation. The report
also concludes that innovation helps business to attract new customers towards its products and
services. At last it is being analysed that innovations can be protected by the use of different
tools.
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REFERENCES
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Online
The innovation funnel: Bringing Idea To Life. 2017. [Online]. Available through:
<http://www.greenbookblog.org/2011/06/04/the-innovation-funnel-bringing-ideas-to-
life/>. [Accessed 1st August 2017]
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