Facebook Innovation and Commercialization Report

The report outlines Facebook's approach to innovation and commercialization, from conducting market research to developing new products and services using the innovation funnel and frugal innovation strategies. It highlights the company's ability to turn ideas into successful business ventures through its talent-driven approach.

“An idea can turn to dust or magic,
depending on the talent that rubs
against it.” — Bill Bernbach, co-
founder of Doyle Dane Bernbach
Facebook
Business Innovation Report

Contents
Contents...........................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1. Difference between Invention and Innovations.......................................................................2
3.4P's of innovation.....................................................................................................................4
4. Innovation Funnel and Frugal Innovation...............................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation is the action or process of innovating and it is very essential for continuing
success of organisation. The process of translating an idea or invention into good and services
that creates values for which customers. Organisation which continuously focus and come up
with innovations are one of the successful organisations. In this present report, Facebook
Company is being chosen for assessment. It is an American online social media as well as social
networking service company based in Menlo Park, California. The website of the Facebook was
launched by Mark Zuckerberg in 2004. There are two parts in this project which are Business
innovation report which explains the entire process and importance of innovation and second
part is presentation which will be on innovation plan.
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TASK 1
1. Difference between Invention and Innovations.
Innovation is the very important for the success and retention of company in the business
world and it is the key concern of the company. Innovation is the creation of new ideas or
methods which are not just represented by introducing or implementing new ideas and processed.
In simple words, it can be defined as the process which includes multiple activities to uncover
new ways to do things. For example: digital payment methods (Osoro, Kirama and Vermeulen,
2017).
Invention is different from innovation as many people think it is same, but both are
entirely different. It is something which never been made before. It is process of creating
something that has never been made by anyone before. For example: invention of mobile phones,
vehicles for the first time.
2. Difference between Invention and Innovations.
Innovation is the core buysinress procedure for most of the companies. . According to Deloitte
Innovation Survey 2015 stated that Innovation is within the top 5 priorities for the vast majority
of companies and is considered as top priority for over 20% of the companies.
Innovation is important for business in order to foster growth andf sucess. Innovation is
statergy which assist an organisation in adapting to changes in business enviroment . It enables
firm to satisfy the needs and demnds of customers. Innovation aid an organisation in dealing with
business problem. It helps an organisation in bringing improvement in procedures and assist
firm in increasing productivity. In context of Deloitte, Innovation has assisted an enterprise in
gaining the comnpretitive davnatge in the market. Innovatyion strategy has helped an
organisation in achieving leadership position in an industry. It has preovided firm anh ease in
attrcating more number of customers.
Difference between Innovation and Invention
Innovation Invention
Innovation is bringing improvement in
something which already exist.
Invention is creating things which are entirely
new which never been used and seen by
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anyone (Yin, Shi and Yan, 2014).
Both marketing and technical skills are
required in innovation.
Technical Skills are required for doing
invention.
Innovation take place when there is realization
of need of bringing improvement in existing
products.
Innovation occurs when new ideas strikes an
individual.
Innovation is born from the constant need to
make things better as well as to gain a market
advantage for an existing product along with
invention.
The major source of invention is the
innovation in an industry .
The main reason for innovation by facebook is to foster business growth. Other reasonb
of faciliating innovation by facebook is that an enterprise wants to diffrentiate itself from that of
competititors. In addittion to this, facebook has faciliated innovation in order to attrcat more
number of customers. The main motive of facebiook to faciliate innovation is to fuldfil the needs
as well as demands of existing customers.
Businesses that innovate in increase and attract customers investing to meet customers’
needs makes easier growth and productivity therefore a bigger share in the market. Differently it
happens when there is a strong competition in the market, the right innovation will have to offer
something unique to the customers and manage to come up with solutions others cannot. This
fact allows them to know future market demand effectively.
Innovation is far more valuable because it raises the productivity of both capital and
labor. A great business model is one that creates, delivers and captures value effectively.
Some innovators like Mark Zuckerberg noted that the social network wasn’t originally
designed to be a company. "It was built to accomplish a social mission to make the world more
open and connected." After that he decide to update his company mission to “Give people the
power to build community and bring the world closer together.”
When a company has an innovative culture as Facebook, there are essential elements that
differentiate it from others. One of them is that everyone can be part of innovation and at the
same time significance of capturing employee ideas through frequent ideation. When employees
think, add and rate the ideas of others frequently, collaborate with each other and think to solve
problems and provide new possibilities to the company is what leads to a successful culture of
innovation.
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On the other hand, another of the most important components to create a culture of innovation is
making innovation itself a routine habit for employees. For example, think of innovation as a
muscle. The more you work it out, the bigger it gets and the better it performs.
The same thing happens with Facebook, committing to devise new ideas and giving them life,
whether it is an incremental improvement of the product or something completely new, it is a
culture that thinks and breathes ideas. What about leadership????
An innovation in organisation can be successfully embedded in an organisation culture
with the help of an effective leadership. Leaders are those people who drive innovation. They
are people who encourage employees to facilitate innovation. In context of Facebook, Leaders In
an organisation values creativity by putting creative people in the position of higher authority,
they inspire other workers to facilitate innovation. Leaders in an enterprise enables people to
work together for accomplishing common goals and objectives. They are the people those who
make their significant contribution in development of creative environment with an organisation
in order to support employees in development of creative thinking. Development of creative
thinking is very much essential in order to generate useful ideas. Leaders encourages employees
to develop creative ideas. Leaders evaluate the ideas provided by team members and they
implement the best ideas. As per the path goal theory, multiple leadership styles are very much
crucial for managing number of subordinates. In context of Facebook, leader in an organisation
has adopted the unique leadership style for encouraging people to facilitate innovation. Path goal
theory states that leadership style adopted by leader have great bas well as significant effect on
innovation.
3.4P's of innovation.
This is the model which is developed by John Bessant and Joe Tidd. There are Four P's of
innovation which are product, process, position and paradigm. This model is very helpful for the
all the company in order to discover the process of innovation which can improve as well as to
bring in the business. Facebook Company also used this model to bring improvement in the
products. Here are the explanations of 4P's of innovation which are as follows-
Product Innovation- This step focused on bringing innovation in the product that
already exists. Redesigning of the product is done in this step. How about NPD? Facebook
company used to bring some changes in their products so that they can bring improvement in the
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products. Facebook company is going to bring innovation by implementing new feature called
Video call with chat. During the last few years, Facebook has spent approx. 2.1 billion dollar on
product development. An organisation is launching advertisement products. Business entity has
implemented 2 G Tuesday which has assisted an enterprise in accomplishing a leadership
position in an industry. It has helped an enterprise in gaining competitive advantage. The
product 2G Tuesday recognise the frustration of subscriber and intends to help an organisation
in providing good experience to customer. In addition to this, an enterprise has also launched
video hub. Launch of this product has helped firm in generating revenue.
Process Innovation- This step focuses on bringing improvement or changes in the
process of delivery or manufacturing of products and goods to the customers. Facebook company
can use Just In Time method of delivery (Ke and et.al., 2016). This is one the best method of
bringing improvement in the system of delivery. Sorry, but what exactly Facebook
delivers??? Try to be company-specific. What are the processes running in FB? Why would
they be improved? What new, what extra value it would deliver to customers? Facebook is
basically an American international online company. It provides the advertising platform to
organisation. An organisation offers social networking service The different services provided by
an organisation can be easily accessed from different devices such as computer or mobile. The
services offered by company includes the whts app, Instagram, Osculus rift, messenger . All
these apps launched by Facebook enables users to share pictures, information etc. It enables
people to connect with each other. Facebook allows people as well as other companies to
display information , pictures etc.
Facebook is facing issues in maintaining the flexibility which is very much important in
order to foster business growth and to expand business in overseas markets. Business entity need
to bring improvement in different business aspects in order to manage expansion in effective as
well as efficient manner. An enterprise can collaborate with other companies for deploying
Human Capital Management Optimization, as this strategy will provide organisation an ease in
effectively monitoring as well as managing human resource. In addition to this, business entity
needs to bring improvement in their business procedures.
Position Innovation- This third step of innovation model where the change in the
context in which products and services are introduced. It is very important that the products of
company should be effectively communicated to the customers. It is very essential that company
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should know what customers think about the product. Facebook company can use social media
and by lunch events for communicating the products and services to the customers. You did not
provide an example of re-positioning. For instance, Amazon has developed speaker and Alexa
digital assistant, an organisation has brought drastic change in an industry. An organisation has
created new methods or ways of Online shopping. Business entity has also formed strategic
partnership with one of the well known digital platform such as Snap chat for taking benefit of
image based search. Smart speaker launched by an organisation has assisted them in increasing
sales and profitability.
Paradigm Innovation- This is last element in innovation model which is somewhat
specific category of innovation. It is bringing radical change in the manner done in the company
and it can be anything. Facebook can facilitate innovation in business model
Sorry, what soft drinks? FB is a retailer? Are they? Be careful!
You should talk here about a change in famework used in business, model of the business…
Just read the literature check internet.!! So far it’s wrong!
4. Innovation Funnel and Frugal Innovation.
It is fact that company survives in the competitive environment by generating profit by
sales and revenue. In order to survive for longer time in the market, Facebook is focusing on
raising the sales as well as market share through innovation. They can also adopt innovative
ideas to bring effectiveness in the process of business.
Frugal innovation means to reduce the cost along with its complexity of the goods.
Frugal innovation is used to emphasise on removing unnecessary or extra features in the older
products. The fundamental purpose is to redesign the entire process of the manufacturing. It is
recommended that Facebook Company should focus on implementing frugal innovation in the
operations and function of from to bring innovation in the products and services and process. It
resulted in increasing of profit by eliminating extra cost. For example- TATA NANO which
comes up with the drastic innovation and make a cheap car which proves innovation to be cost
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effective. You are too generic. If you talk about FB, find where frugal innovation may
happen. What exactly can be innovated? Not good so far.
The purpose of development of any product or process is to take an idea from the idea to
reality by converting to a special product which can meet the demand and expectations of market
in an economical and manufacture form (Innovation Funnel, 2017). Innovation Funnel is
converting idea into actual development of products. The thought of development in process and
product is taken from the concept of development and applying it to the process which will able
to meet the demands and expectation of customers. Facebook company is planning to implement
some changes in video call system in order to growth and develop more in the market (Tanev,
Rasmussen and Zijdemans, 2015). Facebook should use innovation funnel and brink
improvement in the products and services that can meet the needs and expectation of customers.
You cannot use that picture with ‘sample text’ – it’s some template. It also shows an open
innovation model – you did not discuss it at all. Find another illustration.
Plus: you did not explain how the funnel works, how the ideas are generated, selected,
further filtered, the choice narrowed, until one product, one specific improvement, one
specific innovative idea is left.
Marketing as well as sales funnel works together and support management in making
decisions. Marketing funnel consists of different stages through which consumer undergoes
and generate awareness about brand. The different stages in marketing funnel are :
Awareness: It is the uppermost stage in marketing funnel. At this stage Facebook need to
conduct marketing campaign in order to inform people about the services offered by enterprise.
Interest: this is the phase in marketing funnel where consumer shows interest in getting the
information about an organisation , products or services etc. At this stage, Facebook can get a
chance to develop strong relationship with customers.
Consideration : at this phase Facebook can send prospects more information about products and
offers through automated email campaigns,
Intend: At this phase, market research can be conducted by Facebook in order to analyse the
intention of customers related to purchase of specific services or product offered by company.
Evaluation : At this stage marketing as well as sales team works together in order to identify an
appropriate solution for increasing sales and profitability.
Purchase: This is the last stage of marketing funnel.
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Here are some recommendations for Facebook
 They should conduct effective and efficient market research to identify the needs and
demands of customers.
 In order to bring innovation on continuous basis, Facebook should invest some fund in
Research and Development.
 They should use the best promotion tools in order to attract number of customers.
 They should maintain and try to build effective relationship with customers such as
employees, customers, suppliers etc.
 Facebook needs to be more flexible, if an organisation wants to expand business ta
international level.
 It has been recommended that an enterprise should also target other aspects rather
than just advertising.
 It has been recommended that Facebook need persuade users to trust the social network
with their personal information.
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CONCLUSION
From the above study it has been summarised that innovation and invention both were
different things. Facebook which had used different strategies for the innovation and made the
organisation profitable. Scoping of ideas to develop the new product and used innovation funnel
in it. The organisation used this strategy to increase the sales. This file has summarised the
overview of the organisation and role of innovation funnel and frugal innovation in it.
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REFERENCES
Books and Journals:
Tanev, S., Rasmussen, E.S. and Zijdemans, E., 2015. Product innovation and commercialization
in lean global start-ups: the challenges of turning uncertainties into risks. In 22nd
Innovation and Product Development Management ConferenceInternational Product
Development Management Conference. Proceedings. European Institute for Advanced
Studies in Management.
Ke, W., Xiao, C., Wang, C., Saparov, B., Duan, H.S., Zhao, D., Xiao, Z., Schulz, P., Harvey,
S.P., Liao, W. and Meng, W., 2016. Employing lead thiocyanate additive to reduce the
hysteresis and boost the fill factor of planar perovskite solar cells. Advanced
materials.28(26). pp.5214-5221.
Osoro, O., Kirama, S. and Vermeulen, P., 2017. Factors Affecting Engagement and
Commercialization Of Innovation Activities of Firms in Tanzania. Tanzania Economic
Review.4(1-2).
Yin, W.J., Shi, T. and Yan, Y., 2014. Unique properties of halide perovskites as possible origins
of the superior solar cell performance. Advanced Materials.26(27). pp.4653-4658.
Online:
Innovation Funnel. 2017. [Online]. Accessed through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>.
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