Report on Innovation and Commercialization- Vodafone Ltd

Icon College of Technology and Management
Faculty of Business and Management Studies
BTEC HND in Business
INNOVATION and COMMERCIALISATION
Teacher: Dr. Svetlana Shevelova
Student`s name: Anna Diaconu
ID Number: 17692
Session: February 2021

Table of contents:
Introduction. .............................................................................................3
I. The concept of Innovation.................................................................4
I.1 Definitions. ...................................................................................4
I.2 Importance of innovation. ..................................................................5
I.3 1Source of Innovation. ......................................................................6
I.4 The differences between Invention and Innovation. ....................................7
I.5 How to turn Invention into Innovation....................................................8
I.6 How Vision, Leadership, Culture and Teamwork shape Innovation. ...............11
II. The Innovation Process. .................................................................12
II.1 Innovation Process- 4Ps. .................................................................12
II.1.1 Product Innovation. ..............................................................12
II.1.2 Process Innovation. ..............................................................13
II.1.3 Position Innovation. .............................................................13
II.1.4 Paradigm Innovation. ............................................................13
II.2The Innovation Funnel and Application at Vodafone. ................................13
II.3Frugal Innovation and its application at Vodafone. ...................................13
III. The Commercialisation Process. ......................................................15
III.1 The Commercialisation of Innovation.
..................................................15
Stage 1: Idea Generation....... ...........................................................16
Stage 2: Idea Screening......... .........................................................16
Stage 3: Concept testing. .................................................................17
Stage 4:. Product/Market Development. ..............................................17
Stage 5: Business Analysis. .............................................................17
Stage 6: Test Marketing..................... .............................................18
Stage 7: Commercialisation. ............................................................18
Stage 8: Review of Market Performance. .............................................19
IV. Tools to develop, retain and protect knowledge and Intellectual Property. .19
Conclusion. .....................................................................................20
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Bibliography. ..................................................................................21
Introduction.
In the this report, I will present what innovation is and how a company can introduce
new products on market.
Innovation “is the creation, development and implementation of a new product,
process or service, to improve efficiency, effectiveness or competitive advantage” (Dodgson
et al., 2014).
Peter Drucker developed the definition of innovation being a thing changed that looks
to construct something new that perform big things. It involves making ideas, transforming
invention into production that is estimated and that people are paying for. Innovation is
divided into social, open innovation, incremental innovation, radical innovation, disruptive
innovation, or architectural innovation, among others. Renewing and bringing a product,
service or process up to date is also a form of innovation that is crucial in the business world
today (Dodgson, 2014). This report critically analyses innovativeness at Vodafone and how
the company can move forward with developing new products and being innovative to
remain competitive in the market.
According to Pete Foley, innovation speaks about a great idea exceptionally good
executed and about the communication in an intuitive mode from the initial mode (Pete
Foley, 2014).
According to the Australian Innovation Report, commercialisation represents the way of
creating transformed ideas, knowledge in something better for society (Australian Innovation
Report, 2003).
The organisation I am going to analyse in this assignment is Vodafone LTD UK.
Vodafone Limited is a British telecommunications company that is part of the
Vodafone Group. Vodafone is the third-biggest cell phone organization in the UK with more
than 17.3 million endorsers in 2020 behind EE and O2. Vodafone has more than 300 million
customers (Vodafone, 2021). As shown in figure 1 below, Vodafone held a 21% market share
in the UK as of 2018 (O’Dea, 2020). Vodafone is one of the most innovative companies in
the UK. Management Today (2020) ranked Vodafone among the top fifty most innovative
companies in the UK holding the 49th positions. Vodafone keeps on pushing forward with
regards to growing new advancements that encourage individuals and make a superior future
which demonstrates the high level of innovativeness within the company. The company’s
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Enterprise Innovation Programme helps the most adventurous customers within the company
think of thoughts to improve their organizations starting from the earliest stage. The
organization has an advancement lab that offers a cutting-edge climate to create items for the
mass market and coordinate with our current administrations (Vodafone, 2021).
The way Vodafone believes that innovation happens is the one they think differently,
trying to ask difficult questions and answering with innovations to them. Vodafone thinks
that the heart of their approach to innovation is customers because new ideas and products all
should start with a conversation. The company use and mix all new ideas and methods.
Based on my role as an innovation consultant, I will explore innovation and its influence
upon an organisation comparing with invention, and then determine the benefits of a new
product. Also, I will analyse the various sources of innovation, and speak about
organisational vision, leadership, culture, and teamwork that are shaping innovation and
commercialisation.
Therefore, I will explain the 4Ps of innovation and the use of the innovation funnel in
the context of shaping new ideas. I will explain the frugal innovation and its role in my
chosen company, critically analysing how it is developed, incorporated and reasonable set.
Furthermore, I will develop an understanding of innovation, investigating the significance of
the business channel and the utilization of new product development in my chosen
organisation, constructing an innovation business case.
Finally, I will critically evaluate types of innovation and the environment where it can be
developed, based on provided examples.
I. The Concept of Innovation.
I.1 Definitions.
Peter Drucker argued that innovation is an improvement that can be considered a new
element of execution within an organization. It is an assignment of enriching human and
material assets with new and more prominent abundance creating a limit. It is more of a term
of economics than technology (Drucker, 2002). Innovation is a particular tool for
entrepreneurs because it provides show they explore and take advantage of change as a
chance for an alternate business or distinctive assistance. It is an order that is fit for being
learned and rehearsed (Drucker, 1985). Commercialisation is the way toward carrying new
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items to the market. The idea of commercialisation involves the creation, conveyance,
advertising, deals, client upholds and other fundamental capacities in achieving the business
accomplishment of a new product or service (Daniels, 2021).
I.2 Importance of Innovation.
Innovation is a particular aspect that is crucial in entrepreneurship regardless of the
type of business. It is an important strategy when it comes to the development of new
products or resources that help generate wealth and improve an organizations capacity and
potential (Sull, 2015). According to Jong M. (2015), innovation is significantly important
within an organization. Strategic and organizational factors play a huge role in separating
successful big-company innovators from the rest of the world. Thus, innovation helps an
organization stand out in the market. It helps enhance game-changing creativity within an
organization that helps the organization stand out amongst competitors. Innovation also helps
optimize efficiency within an organization thus improving profitability (Jong, M., 2015).
I.3 Source of Innovation.
To succeed in the business world, entrepreneurs must look tirelessly for new sources of
innovation. They must know how to identify the signs of new business opportunities to take
advantage and innovate. While sometimes innovation can be the result of being a genius, it is
not always the case. In most instances, some of the ideas that are more innovative are
identified in the day-to-day operations and through purposeful identification by
entrepreneurs. As a result, entrepreneurs must methodologically look and identify various
chances for innovation within an organization or in the outside business environment.
Some areas for opportunity lie within the company or the industry, and some are brought by
social changes in the business environment. Managers ought to identify these opportunities
and take advantage of them (Drucker, 1985). Unexpected occurrences in the market which
exist within the company or industry are a significant source used by entrepreneurs for
innovation opportunities. Many innovation companies succeed from grabbing opportunities
presented by the unexpected (Drucker, 2002).
For example, in the telecommunication industry, unexpected opportunities can occur
in the form of digital communication technologies as well as the opportunity to expand the
Internet of Things ecosystem to 5 million connected devices. The need for personalisation is
also another unexpected opportunity that is presenting itself in the industry that Vodafone
Limited should focus on grabbing to enhance innovation within the company (Clarke, 2020).
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Unexpected failure is also another source of innovation that companies can take advantage of
to be innovative.
Another source of innovation is incongruity. For example, the incongruity between
economic reality is a big source of innovation. When an industry faces a steady market
growth, but profit margins are falling, an incongruity exists that companies can take
advantage of (Drucker, 2002). For example, Arora (2016) argues that the biggest push for
transformation in the UK telecommunications industry stems from changing consumer
expectations. Today, the needs and wants of consumers are constantly changing. Consumers
have become trendy. For instance, the insightful buyer today has gotten used to first gathering
adequate information before deciding to make a purchase. Digitization has brought about new
opportunities to search for information using computers or smartphones and compare
products, processes, and services offered. Consumers also connect with other consumers
online which has changed their expectations. In the future, it is expected that the desire to
continue being connected will continue to develop. Thus, fruitful consumer satisfaction will
rely vigorously upon the change development excursion of telecom specialist organizations in
the UK (Arora, 2016). The changing consumer expectations are below what is offered in the
industry which leaves an incongruity. This provides an opportunity for companies in the
industry, like Vodafone to innovate and meet consumer expectations.
Process needs is another source of innovation. Drucker (2002) argues that the need
for new processes rises the opportunity for innovation within an organization or industry. For
example, what is now called the media was a product of innovation in the 1890s that was
driven by process needs. One of the innovations was the production of newspapers on mass
scales while the other was modern advertising (Drucker, 2002). Focusing on Vodafone, the
company is currently transforming how clients use innovation and availability guaranteeing
they are prepared for now and the advanced development for the future. This demonstrates
process needs within the company that is driving innovation (Vodafone, 2020).
Innovation is also driven by industry and market changes. When an industry
grows fast with growth estimated to be more than 40% within a decade or less, the industry
structure changes and new trends emerge. This provides new opportunities for innovation for
organizations, although, in most instances, established companies tend to concentrate on
defending what they already have and fail to take advantage of the opportunities to innovate.
However, changes in an industry or market present huge opportunities for innovation. For
example, the Covid-19 pandemic is one of the big current changes in the UK
telecommunications industry which offers an opportunity for organizations in the sector to
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