Innovation and Commercialization in Business

This assignment delves into the crucial aspects of innovation and commercialization in business. It requires students to analyze various strategies employed by organizations to bring innovative ideas to market successfully. The discussion encompasses challenges faced during this process, along with successful examples and best practices. Students are expected to demonstrate a comprehensive understanding of the interplay between innovation, commercialization, and overall business growth.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Innovation and its importance as compared to invention.......................................................1
P2 How organizational vision, leadership, culture and teamwork can shape innovation and
commercialization........................................................................................................................2
LO2..................................................................................................................................................3
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................3
P4 Explain developments in frugal innovation and provide examples of how it is used in
Amazon Go..................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation is the key driving factor for an organisation that aids to grow and develop the
operational activities. It helps the firm to carry out their business operations that will maintain
the development in effective and better manner (Greenaway and Rudd, 2014). A proper
commercialisation of these innovative approaches will benefit the firm to bring a balance
between sustainability and usefulness. For the report, Amazon Go has been selected which is a
subsidiary of Amazon.com. This report will lay an emphasis on innovation and its importance.
Impact of organisational vision and leadership on innovation will be analysed with the role of
frugal innovation in its development. Other than this, the commercial funnel and NPD process is
been analysed with building of innovation business case and usage of different tools to protect
their knowledge and individual property.
LO1
P1 Innovation and its importance as compared to invention
Innovation is the process or an activity that is been followed to make suitable changes in
an existing product or services to improve their performance and create a better value so that
customers can readily pay for it. The concept of innovation is to bring out the economic cost that
is been applied in production and manufacturing of the firm. Besides this, an innovative product
aims to fulfil the specific needs of the customers. The innovation process is deeply based on 3
factors which are as follows:
 Information: This is been gained through the means of market research and the
feedback received by the firm on existing product. This will help the firm to carry out the
business actions and activities that will help in carrying out the superior production and
innovation process within the organisation. This will also help the innovator to find out
the proper scope of improvement to be made within the product or services.
 Imagination: This is the hypothesis that is been led by an innovator in order to make the
desired and feasible improvements in an existing product or services. This will help the
organisation to identify the extent of innovation or feasible alterations that can be made
or incorporated within the existing product or services. This will help the organisation or
innovator to handle the innovation process in much effective way.
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 Initiative: This is the process or initiation taken in development of a product or a service
that will lead to innovation by the firm. This involves the proper management of
activities or processes that are been taken within the organisation or by an innovator to
get the innovation done. This is deeply based on the willingness, extent of changes that
can be made within the product or services, without much alterations in the
manufacturing or production process that is been followed.
Besides this, the innovation process that is followed by a firm is been classified further in
2 categories:
 Evolutionary Innovation: It is the process, in which, the innovator brings out the
incremental advancements in technology or process to make the product or service more
effective. For example, updates of iOS etc. It is like an improvement over the existing
innovative product or services and may or may not hamper the functioning of existing
functionality it performs. This is been made when the requirement or a problem can be
solved by just making few changes in prevailing product or services.
 Revolutionary Innovation: This involves the development of something new as the
product of innovation to bring a unique product or service (Dutta and Folta, 2016). For
example, Amazon Go etc. It involves the approach or attempt to develop a completely
new product or services. This is based on the extensive market research and the measures
that are been taken by the organization or innovator to get the solution to a problem or
issue that is been faced by the users. This approach is undertaken when the rectification
to a problem can’t be obtained easily by few alteration in existing product or services and
thus will help in improving the quality of overall product.
Innovation is more important as compared to invention. The core difference between the
innovation and invention process is as follows:
Invention Innovation
It involves the discovery of a new
technology or product, unaware of its value
and usage.
It is the process to make the appropriate and
feasible changes in an existing product or
services to create value.
This may or may not have any commercial
or financial usability.
It leads to commercial usage by a person or
a company to gain proper profit and
revenue.
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It is completely based on research and
technical concepts and theories.
It may or may not be research based.
It includes the original ideas with a working
principle.
It is the practical implementation of these
idea or invention.
It is related to as a product by R&D
department of a firm.
It is spread all around the organisation to get
suitable output.
It is the creation of entirely new product or
service.
It includes both, the usage of existing
product with slight modification as well as
development of a new product or service.
P2 How organizational vision, leadership, culture and teamwork can shape innovation and
commercialization
In case of innovation, the organisational vision, leadership, culture and team work plays
significant and crucial role. All these factors help to meet the operational requirements of an
organisation and facilitates proper development of innovation and commercialization (Monotti,
2017). These elements help organisation to handle the business operations and activities to a
greater extent. The influence of all this aspects to shape innovation and commercialisation can be
explained as:
Organisational vision: The vision or mission of the organisation like Amazon Go will
help in effective development and implementation of innovation process to a greater extent. A
proper vision will act as a catalyst for development of innovations and their implementation in
firm for commercialisation purpose. Innovation is based upon an idea, and a good vision
supporting that idea will prove as a beneficial factor for the firm. A good and supportive vision
from the organisation’s management will assist the R&D department as well as the innovator to
carry out the business activities in a much effective and significant manner. This will also
support a good rise in the capabilities and effective problem solving approach, leading to better
commercialisation of innovative products and services that are been developed by an
organisation or innovator.
Leadership: Along with a good vision, effective leadership is also vital for shaping up
the proper innovation and its commercialization by selected business enterprise. Efficient
leadership will lead the employees or firm as a whole in order to work for proper execution for
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innovation development and applying various ideas to improve the overall commercial growth in
positive way. Other than this, leaders act as mentors to support new and innovative ideas at
workplace. An effective and efficient leader will provide the suitable knowledge and resources to
its team and will guide them to carry out the effective innovative operations and activities in
much effective and suitable manner. Besides this, he/she will see through the proper utilisation
and marketing or delivering of this innovative product or services that will help the organisation
to carry out business activities in much suitable and effective way.
Culture: Organisational culture is the medium through which innovation drives its way
within an organisation. A supportive work culture and environment will help in nurturing and
fostering the different sort of innovative ideas that emerge at the work floor. This motivates the
employees or innovators to work freely and with more determination and dedication (Cockbill,
2017). This approach will help Amazon Go to shape a better commercial or economic policy or
reward system for each feasible innovative idea. Innovative culture plays a very vital role in
management of business activities and carrying out of wide range of innovative activities. Other
than this, the culture will also plays a very wide role in the adoption of the expectancy level of
innovative product and services in society and the market. This will help the better sales of the
goods and services and hence, leads to an effective commercialization of existing products and
services (Hussain and et.al., 2014).
Team work: The process of innovation doesn’t exist without a proper coordination and
support of a team. Hence, this factor is required to be team in consideration by every entity. A
good and proper team will help the organisation to work for a more effective and innovative
ideas to be implemented within the firm. A good team work will help in development of
innovative products and services that will help in suitable rise of development of innovative
products or services and have a good rise in commercialization. A good team will help the
organisation to have a much effective and innovative approach. A group of like-minded
individuals will work together to have a better idea about the different sort of activities and
actions that will lead to the proper implementation of innovation process that will facilitates the
development of high quality, effectively functioning products and services that will helps in
improving the commercial handling of different activities and actions that are been taken in
consideration by a firm.
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Thus, this can be said that the proper management of various factors such as leadership, vision
and culture catalyses the process of development of new and effective product or services that
will help a firm or an innovator (Tan, 2012). To make the suitable alterations and have a good
initiation towards an innovation process or activity. Other than this, a proper innovation and
alteration process that is been undertaken by the firm will help the organisation to have a proper
commercial growth and development.
LO2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
Innovation is the most important factor of growth and development of the firm, the organisation
will see through the proper management of various factors leading to it (Abdul Razak and
Murray, 2017). The 4P’s factor or innovation mix is the important constraint that is been taken in
consideration by a firm like Amazon Go. This measure is undertaken by the firm to find out the
proper direction and guidelines that will help the firm to develop a proper innovation process and
plan at its work place. It is been usually applied to business as a whole, but can be modified as
per the components (Drori, 2010). Extensive research and analysis has to be performed in order
to get the suitable idea about the measures that are ben taken to carry out the innovation process
and development of new product and services that are been taken into consideration by the
organisation. It helps the management of firm to have a clear and precise idea about the measures
that are been required to be carried out by an innovator. These four elements will act as a
stepping stone in the innovation process that is been taken in consideration by the firm. The 4 P’s
of innovation are as follows:
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Figure 1:4 P's of Innovation
(Source: What is Innovation Space 4Ps, 2018)
 Paradigm: It involve the usage of processes and activities that will help the selected firm
to make the suitable changes which are positive in nature. It helps in leveraging the profit
of a firm. This may also include the alteration of business model of firm (Boehm and
Hogan, T., 2013). The paradigm is deeply based on the research and analysis activities
that are been taken in consideration by the firm. It also helps the organisation and the
innovator to meet the operational requirements of the organisation. Also, it will help in
increasing the needs and demands of the organisations that helps in initiating the
innovation process within the organisation.
 Product: Once the paradigm is been set, the innovative product or service is been
developed that helps the organisation to sustain in market (Sengoku, 2015). A good and
innovative product or service will not only improve the business performance of the firm
but also increase the curiosity of customers towards the product and the company,
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increasing its value and brand image. This is the result of innovative approaches and
activities that are been taken in consideration for the development proper
commercialisation and a problem solving of the users or clients. This is susceptible to
failure and thus, requires to be tested effectively in order to carry out their successful
launch and utilization by the consumers.
 Process: It is one of the most important element that is required to be taken in
knowledge by management of firm. This include the activities like data collection,
analysing, interpreting and evaluating it to get the proper information for developing an
innovative product. This involves the combination of market research and the
manufacturing process that is been taken in consideration by the organisation to a greater
extent. The proper innovation process will help the organisation to meet the operational
requirements for innovation process and thus will help in proper utilization of available
resources, technologies, information and skills to develop an innovative product or
services. This is a team oriented task and has to be carried out in a precise and effective
manner in order to get the successful and positive outcomes.
 Position: It’s like the promotional activity that is been taken in consideration by the firm.
Amazon Go has to position its product and services in market in order to have a good
sales and commercial success. The proper branding or marketing is required to be
undertaken in consideration that will help the organisation to handle the business
activities and operations to a greater extent. Promotion will not only gives a new identity
to the innovative product or services that are been undertaken by the organisation but will
also help in getting proper revenue or commercialising of innovative goods and services
by raising awareness about the product and improving the sales.
Innovation Funnel
This can be managed by the usage of innovation funnel that helps the firm to handle the
cases related to development of innovation in a much effective and better way. This helps the
organisation or innovator like Amazon Go to identify the proper and feasible scope of innovation
that can be undertaken by the organisation to meet the operational requirements of the
organisation. The innovation funnel will facilitates the proper planning of the measures and thus
will lead to handling of different sort of measures which will help in raising innovation
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capability of the organisation. The innovation funnel can be used to examine and shape the
innovation in following ways:
Figure 2: Innovation Funnel
(Source: Unique Innovation Funnel, 2018)
Investigation: This involve the assessment of market for an innovative idea based
services or product like Amazon Go. This will help the firm to make a better plan and thus will
support a proper rise in the capability of organization to shape innovation (Miller and et.al.,
2016). Data is been collected and evaluated in order to increase the quality of product that will be
developed. The selected fir will look after the proper market and customer research and
investigation that will help the Amazon Go to carry out the innovation process within the
firm.
Development: The development process is the beginning of the narrow end of the
innovation funnel. It means the development of innovative product on basis of output received in
innovation process. It also involve the trial process of the developed service or product.
Manufacturing the effective and innovative products that will help the firm to handle the
business operations to a greater extent (Bianchi and et.al., 2010). Based on the research
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process, Amazon Go will develop a suitable quality of innovative products and services for
their customers
Shipping products: This involves the marketing and delivering of products that are been
developed by the firm. It helps the firm to get the revenue on the basis of sales and customer
satisfaction. Proper delivery of finished innovative goods will help the organization to have a
better customer satisfaction level and improve their brand image. This will also include the
innovation level as Amazon Go will look after the effective placing of the innovative tools
and techniques inmuch suitable and effective manner.
P4 Explain developments in frugal innovation and provide examples of how it is used in Amazon
Go
Frugal innovation is the process to develop a product or service that is of low cost
version, affordable and very easy to use. The concept of frugal innovation aims to have a cheaper
alternative of existing product, providing the similar service at a lower cost. Amazon Go can use
this approach as it will help the firm to handle the business operations and activities to a greater
extent. Some of the major advantage of using the frugal innovation are as follows:
 Affordability: The frugal innovations and the product or services provided by them are
comparatively cheaper or affordable for the people. This increases its accessibility and
thus will help a company like Amazon Go to improve its reach to a larger section of
customers (Dincer, 2017).
 Ease in usage: The products or services that involves the frugal innovation approach that
help in effectiveness of the usage that help it to get used even by the basic users. The lack
of sophistication helps the consumers to use them very easily and thus helps in improving
the customer satisfaction. This element will help the firm to gain a better customer trust.
 Solution oriented: Majority of products and services that are been developed or
produced under the frugal innovation are solution oriented in nature. The innovator
analyse the problem faced and then apply his logic to get the best out of the available
resources to get the proper solution of the problem faced (Aldridge and Audretsch, D.B.,
2010).
 Resource based: The basic reason behind the success of frugal innovation is that the
innovators use the minimal resources to develop them. Besides this, they give the true
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value for money. This help the organisation like Amazon Go to have a good utilization of
their available resources and get the better ROI from it (Chun, Chung and Bang, 2015).
The concept of “Walk in, pick and go” by Amazon Go allows the improvement in many
technical measures that will not only help the customers to have a unique experience but will
also prove as a time saving approach by removing the POS from the loop and facilitating the
direct payment in store (Huang and et.al., 2013). This system can incorporate many frugal
technologies that will enhance the user experience and change the shopping trends. This will
help the selected business enterprise to have a good starting of a market trend and will also
provide the organisation with the suitable opportunity to be a market leader in respective field.
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REFERENCES
Books and Journals
Abdul Razak, A. and Murray, P.A., 2017. Innovation strategies for successful commercialisation
in public universities. International Journal of Innovation Science. 9(3). pp.296-314.
Aldridge, T. and Audretsch, D.B., 2010. Does policy influence the commercialization route?
Evidence from National Institutes of Health funded scientists. Research Policy. 39(5).
pp.583-588.
Bianchi, M. and et.al., 2010. Enabling open innovation in small‐and medium‐sized enterprises:
how to find alternative applications for your technologies. R&d Management. 40(4).
pp.414-431.
Boehm, D.N. and Hogan, T., 2013. Science-to-Business collaborations: A science-to-business
marketing perspective on scientific knowledge commercialization. Industrial Marketing
Management. 42(4). pp.564-579.
Chun, D., Chung, Y. and Bang, S., 2015. Impact of firm size and industry type on R&D
efficiency throughout innovation and commercialisation stages: evidence from Korean
manufacturing firms. Technology Analysis & Strategic Management. 27(8). pp.895-909.
Cockbill, L., 2017. Turning point: An eye to success. Nature. 545(7653). pp.255-255.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Drori, G.S., 2010. Globalization and technology divides: bifurcation of policy between the
“digital divide” and the “innovation divide”. Sociological Inquiry. 80(1). pp.63-91.
Dutta, S. and Folta, T.B., 2016. Venture capital increases a startup’s chances of issuing stocks or
finding a buyer. LSE Business Review.
Greenaway, D. and Rudd, C.D. eds., 2014. The Business Growth Benefits of Higher Education.
Palgrave Macmillan.
Huang, H.C and et.al., 2013. Overcoming organizational inertia to strengthen business model
innovation: An open innovation perspective. Journal of Organizational Change
Management. 26(6). pp.977-1002.
Hussain, W.M.H.W and et.al., 2014. Mechanism and Government Initiatives Promoting
Innovation and Commercialization of University Invention. Pertanika Journal of Social
Sciences & Humanities. 22.
Miller, K and et.al., 2016. Knowledge transfer in university quadruple helix ecosystems: an
absorptive capacity perspective. R&D Management. 46(2). pp.383-399.
Monotti, A., 2017. Funding Innovation and Commercialisation.
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Sengoku, S., 2015. Innovation and commercialisation of induced pluripotent stem cells. Stem
cells in regenerative medicine: Science, regulation and business strategies. pp.423-446.
Tan, J.A.K., 2012, June. 3P approach in collaboration for product innovation and
commercialization. In Engineering, Technology and Innovation (ICE), 2012 18th
International ICE Conference on (pp. 1-10). IEEE.
Online
What is Innovation Space 4Ps, 2018. [Online]. Available through: <
https://innovationmanagement4.wordpress.com/innovation-space-4ps/what-is-innovation-
space-4ps/ >
Herigemblong, 2018. Npd Process Flow Chart Unique Innovation Funnel Innovative Dutch.
[Online]. Available through: http://dailyrevshare.com/npd-process-flow-chart/npd-
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Huang and et.al., 2013
Aldridge and Audretsch, D.B., 2010
Bianchi and et.al., 2010
Boehm and Hogan, T., 2013
Drori, 2010
Tan, 2012
Hussain and et.al., 2014
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