Innovation and Commercialization

This report discusses the importance of innovation and commercialization in business organizations. It explores the impact of vision, leadership culture, and teamwork on innovation. The report also explains the 4 P's of innovation and provides ways to develop frugal innovation. Additionally, it highlights the significance of the commercial funnel and the application of new product development. The case scenarios of Apple Inc and Virgin Group are used as examples throughout the report.

Innovation and Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explaining innovation and its importance to employees........................................................3
P2 Assessing the impact of vision, leadership culture and teamwork innovation as well as
commercialization........................................................................................................................4
TASK 2............................................................................................................................................5
P3 Explaining the 4p’s of innovation and use of it......................................................................5
P4 Ways to develop frugal innovation.........................................................................................7
TASK 3............................................................................................................................................8
P5. Explaining the importance of commercial funnel and application of new product
development.................................................................................................................................8
P6. Building an innovation case..................................................................................................9
TASK 4..........................................................................................................................................10
P7 Evaluating the different tools for developing, retaining and protecting knowledge as well as
intellectual property...................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In the present era, innovation is the key of success which in turn offers opportunity to the
business organization to build or sustain competitive edge over others. Moreover, now customers
prefer to purchase innovative products and services rather than traditional. Hence, it is highly
required for business organization to place emphasis on innovative business practices and
enhance sales revenue through the means of commercialization. By offering or something unique
or innovative products to the customers company can maximize both productivity and
profitability. The present report is based on the case scenarios of Apple Inc and Virgin Group.
Cited case situation entails that Virgin group is one of the leading business organization of UK
which continues wide range of Atlantic, express, rail, money, entertainment etc. Further, Apple
is another major company that offers quality I’pod to the customers. In this, the present report
will describe ways through which above mentioned business organizations can assess and
implement innovative practices.
TASK 1
P1 Explaining innovation and its importance to employees
Innovation may be defined as a process which is highly related with the transformation of
idea or invention into a goods and services. Hence, innovative practices are highly concerned
with offering high quality and better services to the customer as compared to rival firms. It is
highly significant which in turn enables firm to get desired level of outcome or success by
creating high value for money (Smith, H. L. and Bagchi-Sen, 2004). Innovation lays high level
of emphasis on making improvements in the product, processes, technologies and business
models. Thus, by offering high quality and exclusive services to the customers company can
attain success in the competitive business environment (Rasmussen, 2010). Hence, there is a
significant difference takes place in innovation and invention. Moreover, invention implies for
the ability of creating something unique or new. On the other side, innovation is when creative
ability or idea of business entity turns into end product via engineering process.
Now, innovative business practices are highly significant to the employees which in turn
develops high level of motivation and satisfaction among the personnel. In the recent times,

employees prefer to work with the organization which offers growth and development
opportunity to them. Moreover, career advancement and success is one of the main objectives of
business organization. Along with this, innovative practices also help personnel in building
distinct image within the business organization. In this way, innovation has high level of
importance to the personnel (Johannessen, 2017). For example: Apple offers opportunity to their
human resources to think innovative and covert their ideas into reality. In this way, by offering
enough time for innovative activities company Apple raises motivational aspect of their
personnel. On the other side, by considering the case study of Virgin media it can be said that it
encourages personnel to come up with unique ideas and suggestions. However, firm does not
offer time to the workforce in relation to converting unique ideas into reality (Abdul Razak,
2016). This activity is recognized as an invention which is highly differing from innovation.
Moreover, innovation is called when ideas of employees convert into reality.
P2 Assessing the impact of vision, leadership culture and teamwork innovation as well as
commercialization
Organizational vision, leadership, culture and teamwork are the major elements that
provide assistance to the employees in performing activities in relation to innovation and
commercialization. In the business organization, vision provides direction to the personnel about
the destination where company wants to go. In this way, by considering vision employees of
both the organizations such as Apple and Virgin Group can implement innovative business
practices (Kedron and Bagchi-Sen, 2016). For instance: Vision of Apple is to enrich the live of
people by offering better hardware, software and technological services. Hence, by considering
such vision Apple has made digital music revolution with its iPods and iTune online store. In this
way, by taking into consideration the vision employees of Apple have facilitated innovation in
technological aspects to a great extent.
Leadership is another major factor that has high level of influence on innovative and
commercialization activities. Moreover, encouragement and motivation which is provided from
the side of leaders have significant impact on innovation. Hence, leadership styles which are
practiced by firm closely influence the ability of personnel in relation to offering or presenting
something unique. There are mainly two types of leadership styles that are undertaken by leaders
within the firm such as democratic and autocratic. For example: Virgin media employs

participative leadership style and encourages their personnel to come up with unique ideas and
suggestions that aid in the growth and profitability of firm. In this, through the support of leaders
employees can shape their ideas by the means of innovation and commercialization. Along with
this, culture which is prevailed within the business unit also has major impact on the activities
and behavior of employees (Balmer, Bulpin and Molyneux-Hodgson, 2016). Moreover, team
working aspect is highly affected from culture which exists within the business unit. For
instance: Individuals become able to present innovative ideas and transform them into reality
more quickly when they work in a team. In addition to this, when people work in a team then
they are highly able to come with innovative ideas which makes contribution in the attainment of
organizational goals (Styhre and Remneland-Wikhamn, 2016). For instance: iPod which is
offered by Apple to its customers is the main examples of teamwork. Hence, by inventing and
commercializing iPod within the suitable time frame company has built and sustains competitive
edge over others.
TASK 2
P3 Explaining the 4p’s of innovation and use of it
Innovation P’s such as product, price, process and paradigm are the main elements which
provide assistance to the business unit in implementing the unique ideas more effectually. Hence,
by developing such four P’s competently company can gain competitive edge over others. 4 P’s
of innovation are as follows:
 Product: It entails that business unit needs to lay emphasis on offering products which
are highly related to the needs and wants of individuals. Along with this, product which
company is planning to introduce in the market must be unique in comparison to the rival
firms (Wonglimpiyarat and Khaemasunun, 2017). For instance: Apple has introduced
unique iPod in the market with the weight of 6.5 ounces and having capacity to store
1000 songs. Thus, by offering highly innovative product to the customers Apple has
given high value for money to the customers and raised their living standards.
 Process: This p of innovation focuses on providing customers with possible information
which they require for decision making. In this, company is required to provide
information clear and precise information to the customers about feature, price as well as

other queries related to it (Abdul Razak, Murray and Roberts, 2014). For instance: Apple
has uploaded information about the features of iPod on online channel with the aim to
develop awareness among the large number of customers. The rationale behind this, now
before taking decision about purchase customers make evaluation of information through
the means of online channel. Hence, by developing awareness among the large number of
customers Apple can entice sales to the large extent.
 Position: Such element places high level of emphasis on promoting and presenting
products or services in the market. Business unit has opportunity to market the products
and services with their existing brand name. Moreover, people usually prefer to purchase
products or services of brand from which they are highly familiar with. Moreover, once
loyalty has been developed among the customers regarding particular brand then they do
not prefer to purchase product from other retailer. Along with this, people have more trust
on their known brand rather than others (Ye, 2014). Hence, by considering all such
aspects Apple has introduced iPod with its existing brand name.
Moreover, Apple is the major brand which has developed high level of trust in mind of
customers in the category of technological equipments such as laptop, smart phones etc.
Further, people have high level of trust towards the products which are offered by Apple. It
shows that high market share has been captured by such brand in the market as compared to
others (Lin and et.al., 2014). Hence, t is a mass market provider as compared to niche market.
By keeping all such factors in mind Apple has introduced iPod from its existing brand name
and thereby fulfills aims and objectives.
 Paradigm: Such element is highly concerned with changing the opinion of people
towards the products and services offered. Hence, by offering something unique or
exclusive to the customers company can attain success to the large extent (Baudry and
Hervouet, 2014). By considering the cited case situation it can be stated that Apple has
generated high market share by offering iPod to the customers.
All the above mentioned aspects clearly present that Apple has achieved success by taking
into consideration all such P’s of innovation. Further, innovation funnel is the process which is
highly related to the transformation of an idea into reality in terms of specific product and
services. Such process is highly significant which in turn helps in introducing high level of

innovation within the firm (Innovation Funnel, 2017). For instance: By considering the market
trend and other factors Apple has provided opportunities to the personnel to think highly unique
and innovative manner. Hence, brainstorming session has also been organized by business unit
before the introduction of iPod. Moreover, such session offers chance to personnel in to sharing
their innovative views and suggestions (Lee and et.al., 2010). Thereafter, result derived from
brainstorming session tested through research and development activity. Hence, after assessing
the viability of iPod Apple has introduced product in the market. Thus, by following such
process Apple has launched its product in the market. In this way, by following such process
company can assess and shape the innovative ideas of personnel in the best possible way.
P4 Ways to develop frugal innovation
Frugal innovation is the process which is concerned with reducing the level of
complexity and cost of goods. It is highly significant which in turn helps in enhancing production
efficiency by removing the non-essential features (Frugal innovation, 2017). By following
mainly four stages frugal can be developed within the business unit. It includes market analysis,
product design, and value chain configuration and change management (Rasmussen, 2010).
Thus, by following all such four steps business unit can get desired level of outcome in the
emerging market. Apple has also undertaken all such four stages at the time of making plan

about the introduction of iPod. Hence, Apple has primarily placed emphasis on understanding
the needs and requirements of customers.
By this, business unit has identified the need of iPod and thereby target to related market.
Thereafter, Apple has conducted R&D activity with the motive to convert idea into reality. Once
iPod has been developed thereafter business unit has placed emphasis on developing high
effectual production sites. For offering product in the new market more effectually business unit
has developed effectual co-operation with local partners (Smith and Bagchi-Sen, 2004).
Moreover, sales revenue and profit margin of firm is highly influenced from the efforts made by
individuals in relation to selling of iPod. In the last stage, changes have been made and
implemented by Apple in iPod according to the reviews of customers. Hence, by taking into
consideration all such aspects it can be said that frugal innovation helps company in attaining
competitive position over others.

TASK 3
P5. Explaining the importance of commercial funnel and application of new product
development
Commercial funnel is highly significant when business unit plans to offer new product.
Thus, effectual selection suitable channel is highly required to get appropriate outcome from new
offering. Moreover, commercial channels are the one which provide information to the
customers about the product or services that are launched by the firm in market. The rationale
behind this, commercial funnel are the one which in turn helps in enticing the decision making
aspect of target market. Moreover, sales channel helps company in developing awareness among
customers in relation to the products or services offered by it (Johannessen, 2017). For example:
Apple has developed online marketing campaign with the aim to provide information to large
number of people. Moreover, now people make focus on doing internet surfing before making
selection of product. In addition to this, now use of social media increased with the very high
pace. By considering this, advertisement has placed by Apple in relation to iPod on social sites
with the aim to develop interest level of customers.
Along with this, online commercial funnel also enables customers to make evaluation of
iPod with another firm. Hence, by doing this, customers can select suitable product which offers
high value for money to them. Thereafter, customers take decision in relation to purchasing of
iPod. Once, customers have been satisfied from such aspect thereafter they become more
committed towards it (Abdul Razak, 2016). Further, satisfied customers also refer products to
others like their friends and family members. In addition to this, online commercial funnel also
helps in generating high customer loyalty through the means of repeat purchase. By considering
all such aspects it can be said that commercial funnel has provided high level of assistance to
Apple in achieving success in the highly strategic business environment.
In addition to this, application of new product development processing
commercialization is highly significant. Moreover, company’s success is not only associated
with the development of new product but also the motive of firm to provide it to the end
customers (Kedron and Bagchi-Sen, 2016). Thus, by taking into consideration such aspect it can
be said that employees of Apple needs to highly effectual framework for that contributes in the
success of an organization. In this way, by employing highly effectual and competent new

product development process employees of Apple can get success in the process of
commercialization.
P6. Building an innovation case
Business unit requires huge fund when they take decision about introducing new product
in the market. Moreover, new product development aspects go through from several. From, idea
generation to product introduction Apple needs enough fund to execute the plan more effectually
and efficiently. Moreover, to assess the market gap business unit gathers data from several
sources such as internal and external. Such activity requires enough funds for the proper
execution of business ideas and plan. Along with this, Apple also requires enough funds for
conducting research and development activity. Moreover, research helps in assessing market
trend and opportunities (Balmer, Bulpin and Molyneux-Hodgson, 2016). The rationale behind
this, company can gain competitive edge over others only when they provide customers with out
of box product and services. In this, such activity business unit needed more fund. Besides this,
for the development of artificial product or service and stereotype company also requires more
fund.
In addition to this, for converting model into end product and taking feedback from
customer fund is also needed. Thus, at each and every stage business unit needs fund for the
effectual execution or implementation of plan. Further, to access fund there are several sources
of fund which can be undertaken by CEO of Apple and Virgin include issue of shares, bank loan
and government grant. By issuing shares to the general public companies can generate enough
funds (Styhre and Remneland-Wikhamn, 2016). It is the most effectual sources which in turn
help in meeting financial needs to the large extent. Along with this, by presenting product or
business plan to banking institution in a competent way Apple and Virgin both the business
organizations can raise fund. This is turn provides high level of assistance to the business
organizations in implementing the plan in the best possible way.

TASK 4
P7 Evaluating the different tools for developing, retaining and protecting knowledge as well as
intellectual property
There are several tools which can be used by Apple to develop, retain and protect the
knowledge of intellectual property. Hence, by using intellectual (IPMS) and knowledge-based
management system (KBIPMS) company can reduce the level of undesirable activities. IPMS
are the most effectual tools which in turn helps company in maintaining IP inventory to a great
extent (Wonglimpiyarat and Khaemasunun, 2017). Further, such tool also helps in increasing the
rate of innovation capability to the large extent. By using IPMS company can facilitate effectual
management of assets such intellectual property (IP). In addition to this, software’s are also
available in the market which in turn helps company in managing and securing the intellectual
properties such as copyright, patent etc. IPMS system not only helps in protecting the current
assets but also provides high level of assistance in transferring and creating new knowledge. By
this, innovation capability of personnel can be enhanced by individual to the significant level. In
the present times, companies including Apple are facing difficulty in relation to managing the
intellectual property (Abdul Razak, Murray and Roberts, 2014). In this situation, IPMS is the
technique which enables firm to exert better control and thereby protect IP assets in an effectual
way. Hence, by taking into account all the above mentioned aspects it can be said that IPMS
helps in protecting the intellectual property to the large extent. Instalment way of such IPM
system is standalone. Further, it has simple alert system which in turn enables firm to protect
intellectual property from undesirable users.
Along with this, IP portfolio management and searching are the key elements or functions
which provide assistance to the firm in securing the securing and protecting the knowledge. IP
portfolio management lays high level of emphasis on recording, reminding and reporting the
functions. In this way, such portfolio management helps in managing IP assets more effectively.
On the other side, IP searching tool contains internal and external search and related map (Ye,
2014). All these functions help in searching internal data and thereby assist in finding details. In
addition to this, information and knowledge can also be protected by Apple through the means of
search map and tag cloud. Hence, KBIPMS clearly provides information to the business

organization about the ways in which they need to manage IP assets and knowledge of
innovation among frontline and top management.
For instance: Apple can make use of such tool when it is on the stage of product design.
Moreover, at the stage of product design there are lots of blueprints and documents which are
prepared by firm through the means of internal and external search. Hence, company places high
level of emphasis on recording and protecting such valuable information through the means of
copyright. Likewise, at the time of developing iPod information has been collected by Apple
from varied sources. Thus, company can register some of its documents by the means of
trademark and patent (Lin and et.al., 2014). In this way, which is protected through trademark
can be protected in IPMS. Along with this, KBIPMS also reminds user of the application about
renewal date which in turn helps in protecting IP assets significantly. Moreover, IP assets imply
for the outcome of knowledge which is created by staff of firm. In this, report function and
search map helps in analyzing data with the aim to create knowledge (Baudry and Hervouet,
2014). By this, effectual business decisions can be made by firm and its personnel to the
significant level that directly aid in the growth aspect of firm. Thus, by taking into account all the
above mentioned aspects it can be said business unit can create, use and retain different IP
knowledge through the means of KBIPMS.
CONCLUSION
From the above report, it has been concluded that both Apple and Virgin has built distinct
position within the marketplace by converting ideas into reality. It can be revealed from the
report that each individual has unique skills and capabilities. In this, by offering opportunities to
the personnel company can assess and implement unique ideas. Besides this, it can be inferred
that by using 4 P’s of innovation Apple has applied its strategic framework more effectually.
Thus, business unit needs to consider all such 4 P’s while taking decision about introducing
something new in the market. Along with this, it has been articulated that company needs to
make focus on employing high effectual leadership style which in turn develops motivation
among them. Further, it can be summarized that frugal innovation aspect assists company in
gaining competitive position over the rival firms. It can be stated that by using PIMS and
KBIPMS business units can retain and project data base in an effectual way.

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