Innovation and Commercialisation

This document discusses the importance of innovation and commercialisation in the context of F-Drone, an UK based organisation dealing in aerial deliveries by drones. It covers topics such as the difference between invention and innovation, organization vision, leadership, culture and teamwork in shaping innovation and commercialisation, 4 P's of innovation, use of innovation funnel, development of frugal innovations, importance of commercial funnel and new product development for commercial innovation.

INNOVATION AND COMMERCIALISATION
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Importance of innovation and comparison between invention and innovation................3
P2 Determine organisation vision, leadership, culture and teamwork in shaping innovation
and commercialisation............................................................................................................4
TASK 2............................................................................................................................................5
P3 Determine 4 P's of innovation and use of innovation funnel to shape innovative ideas...5
P4 Determine development of frugal innovations and how it is used by F-Drone................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and plication of new product development for
commercial innovation...........................................................................................................8
P6 Determine an Innovation Business Case, including ways to access funding..................10
TASK 4..........................................................................................................................................12
P7 Determine different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
2

INTRODUCTION
Innovation is the process of developing and generating new ideas for introducing new
products, services, strategies to improve existing products. Innovation can also be termed as the
of implementing changes in the existing products. Whereas, commercialisation is defined as the
process of introducing new products and services in the market for achieving organisation
objectives. Both innovation and commercialisation renders better solution and improvement in
existing business processes (Bertrand and et. al., 2021. In context of F-drone which is an UK
based organisation, deals in aerial deliveries by drones. It develops customers, aviation grade
drones by rendering high efficient and fulfilling standards to capture market share. This report
covers the importance of innovation, difference between innovation and invention, 4 P's of
innovation and innovation funnel, process required to commercialise innovation and methods of
protecting ideas and their merits and demerits.
TASK 1
P1 Importance of innovation and comparison between invention and innovation
Innovation is defined as implementing changes to existing products and services. As
external environment is full of uncertainties and challenges, it becomes important for an
organisation to adapt and respond to new changes in order to attain profit goals and business
growth. In context F-drones which is renders services of drone services, it looks at implementing
new changes to ensure that the drone able to carrying heavy load and long range capabilities
(Coventry, 2018). The importance of innovation and strategies are been defined below:
 Competitive advantages: F-drones innovates new drones which is new to the existing
market. It helps gain competitive advantages to the organisation, as it attracts more
customers. It generates new demand in the market and shift consumer preferences in
buying innovative products and services.
 Profitability: F-drones is innovating drones which are unique to the market which helps
the organisation to fulfil profit goals. It strengthen customer base which further support
boost the sales of products and services. The organisation attains customers and clients
which helps in achieving profitability.
3

INVENTION: It is a technical method of product development is which involves different
procedures to develop the products and services (Dedehayir, Mäkinen and Ortt, 2018).
Comparison between innovation and invention can be understood as:
INNOVATION INVENTION
Innovation is defined as generating new ideas
and plans to develop new product and services
Inventions is defined by implementation of the
innovative ideas to develop product and
services. Invention deals in shaping the ideas
into actual market offering.
There is limited research and development
department involvement, as ideas are been
generated by different employees in an
organisation.
Major contribution of research and
development department as the ideas is been
implemented and checked whether they are as
per the current demand in the market.
It requires technical skills to innovate new
ideas and strategies.
It requires different technical, marketing skills
to develop new product.
P2 Determine organisation vision, leadership, culture and teamwork in shaping innovation and
commercialisation
Innovation generates new ideas and whereas inventions is implementing the ideas
generated. The major purpose of innovation and invention is to commercialize products and
services. Commercialisation is defined by the process of which involves innovation, invention,
managing, developing goods and services to attain organisational objectives and marketing the
goods and services to the customers. In other words, commercialisation involves different
process and strategies to launch products and services in market. For marketing and
communicating products and services in the market, involves different factors which impacts
innovation and commercialisation of products and services in the market (Eckhardt, Ciuchta and
Carpenter, 2018). These factors are vision, leadership, culture and teamwork which are discussed
below:
 Vision: The vision of F-drones is to innovate new changes and render best quality
drones. It promotes new strategies and process to commercialise products in the market.
4

Technological innovation in the existing drones to develop heavy load and long range
capabilities.
 Leadership: Leadership is the process of actualising organisational objectives, it
involves framing policies and strategies for influencing employee of the organisation to
achieve targetted objectives. F drones uses different leadership styles such as democratic,
participative to coordinate group efforts. Each employee renders their opinions and
generates new innovative ideas, to make collective decision which helps in achieving the
organisational productivity (Fisher and Qualls, 2018).
 Organisational culture: These includes the value, beliefs, behaviour of different
employees in an organisation. Cultural differences leads to clash of opinions of the
employees. It is crucial to maintain ethics of cultural environment as it impacts the
objectives of commercialisation of products and services in the market. F-Drones frame
policies for maintaining the cultural environment and manages ethical code of conduct.
 Teamwork: Teamwork is crucial for coordinating group efforts to achieve organisation
objectives. F-drones has different team and department which are responsible in carrying
specific task. These teams perform different functions in accordance of targetted
objectives. Some functions performed by different teams involves innovating new ideas
and policies which requires identification of current market need and demand,
implementing these ideas into products and services and commercialisation and
communication of the products in the market.
TASK 2
P3 Determine 4 P's of innovation and use of innovation funnel to shape innovative ideas
4 P'S of innovation mix is given by John Bessant and Joe Tidd. These innovation mix are
being used by organisation to formulate new innovative ideas and policies in order to develop
new product and services. The innovation mix are as follows:
 Paradigm: It the process by which an organisation develops strategies to perform
different task to accomplish the objectives of innovative ideas of product development. F-
drones formulates different policies to perform organisational task by adapting to changes
and challenges. It develops flexible policies to adapt to future uncertain (Goodman,
Korsunova and Halme, 2017).
5

 Product: Product is the most important factor of product mix, it is the offering which is
offered to the final customers, a product should be innovative which attracts consumers to
purchase products and services. F-drone has developed products which are very different
and innovative, helps to attain market share and accomplish organisational objectives to
achieving profit goals.
 Process: Process involves the plans and policies to determine the proper functioning of
any task. It is determined by the objectives to be accomplished, different process ensures
the way of achieving organisational objectives. F-drones assigns different roles and duties
to different departments in order to carry proper functioning of the business. The
organisational functions like financing, marketing, sales all these are require specific
process to achieve goals and target (Hnatenko and et. al., 2020).
 Position: Position is defined by the goals and objectives set by the organisation. F-drones
set objectives to accomplish market share and growth. It gains the competitive advantage
by rendering unique drones, which are new in the market. By rendering unique features,
the organisation renders market positioning from the competitors.
INNOVATION FUNNEL
Innovation funnel involves objectives and ideas which will satisfy consumer needs and
wants and render quality services to the consumers. Innovation funnel involves different steps
and process to accomplish defined objectives. F-drone follows these steps of innovation funnel in
order to set objectives and defined actions to achieve goals. These procedures are stated are as
follows:
First steps in innovation funnel involves gathering information from different sources,
which involves identifying market demand and desires. The next step involves in defining the
ideas, this steps signifies that how the idea will satisfy and meet market demand. Third step
involves in designing ideas which requires screening of the ideas, identifying the ideas which
suits consumer demand and wants, it also involves selecting the best ideas from different
alternatives. Forth and the last steps involves implementation of ideas and plans into workable
actions, in this stage the product is been developed for market offering (Kogabayev and
Maziliauskas, 2017).
6

P4 Determine development of frugal innovations and how it is used by F-Drone
Frugal innovation is the process of manufacturing products and services by optimise use
of resources. Optimum utilisation of resources helps to reduce manufacturing cost. Frugal
innovation terms at developing product which require low cost of production. The process of
frugal innovation involves avoiding the complex process which accumulate cost burden of
production. Resource optimisation helps in developing better quality of goods and services as
minimising complexities will support to focus on only important aspects of the product. In
context of F-Drone, it uses frugal innovation which helps in developing Drones by optimise use
of resources. Frugal innovation helps to cut down the cost of production by reducing complex
steps and procedures. Frugal innovation simplifies production process by making product more
effective. F-Drones develops products which requires low cost per unit by substituting existing
products with more technologically advanced. Frugal innovation involves two major techniques
of production which are mass production and use of advanced technologies. F-Drones carries
large manufacturing of Drones which helps to reduces per unit cost of production and other
production expenses (Nambisan, Siegel and Kenney, 2018). Implementing new technological
advanced which helps to reduce cost of production and brings product efficiency. It helps in
focusing on specific aspects which renders to achieve product quality. Product quality helps to
attain high profit margins to the organisation. For improving quality of existing Drone, the
company focuses on developing Drones which are capable of carrying heavy load and cover long
range capacity to ships and offshore platforms. To optimise use of resource F-Drones focuses on
specific aspects which are stated below:
 Product cost: Frugal innovation used by F-Drones helps in cutting down cost of
production. It reduces complex process which helps in attaining product quality. Reduced
cost of production renders economies to scale in production, which further retains
stability and sustainability in the market.
 Product features: F- Drones develops innovative products by adding new features to the
existing product, in order to attain market share and helps to stand out from the
competitors to competitive advantage.
 New technologies: F-Drones develops delivery drones which are technologically
advanced, it adds new features of technology which promotes high capacity and cover
7

long range. Technological factors substitute existing technologies with new technological
features which adds success to organisational objectives (Páez-Avilés, 2018).
TASK 3
P5 Importance of commercial funnel and plication of new product development for commercial
innovation
Commercial funnel is defined as a marketing tool of attracting customers for buying
different products and services. It involves process which helps organisation to developing new
marketing strategies. It helps to render new opportunities to the business for improving product
quality. Business needs to analyse current market demand to ascertain preferences of the
customers in order to improve the quality of goods and services which will satisfy consumer
demand. F-drone implement new innovative strategies to existing drones in order to achieve
market share and profitability. It develops new strategies to meet current demand of customers, it
implements new technological changes. It is a marketing tool which influences customers to
purchase products and services. It promotes new additional features to attract more customers. It
develops effective product positioning in the minds of customers (Popova and et. al., 2019).
Commercial funnel places an important role developing business strategies. Importance of
commercial funnel are being stated below:
 Reduces wastage: It reduces wastage of work leads as it avoids complexity in work. It
improves the quality of product and services, as it involves implementation of new
business strategies which renders innovative features.
 Boost sales: It influences the customers for purchasing products and services of the
company. F-Drones influences customers by effective marketing campaign by rendering
them them new innovative feature which boost the sales of the company.
 Profitability: F-Drones uses commercial funnel by attracting more customers top buy the
products and services which increases profitability of the company. It spreads awareness
of products and services in market which strengthens customer base.
 Competitive advantages: It helps in gaining competitive advantages as it develops
product which are highly efficient so it develops market positioning to gain competitive
advantage (Schwabe and et. al., 2021).
NEW PRODUCT DEVELOPMENT
8

New product development refers to the development of new product and services in order
to achieve organisational objectives. An organisation develops new product to achieve market
share goals by establishing strong customer positioning. It involves different steps and
procedures to introduce new product in the market. These steps are as follows:
 Idea generation: It involves generating ideas for developing new products. It involves
collection of information to generate new product ideas from internal and external
sources of the organisation.
 Idea screening: It involves screening of ideas and selecting the best idea which satisfy
customer needs and wants. It involves coordination of different team members to select
the best possible idea. F-drones develops new ideas in existing delivery drones for
rendering effective market offering (Shashlo, Petruk and Korostelev, 2018).
 Define concept: It involves defining the objectives and the concept that the company
wants to convey to the customers. The organisation sets objectives which it wants to
achieve from the market offering of new product development. F-drones defines the
objectives which has to be delivered from the new product. It formulates effective ideas
to bring new technological changes in the product. It develops new technical changes in a
way which will render more capabilities to cover long ranges and take heavy loads.
Different department in f-Drones works in coordination with each other to implement
new product development.
 Marketing strategy: It involves defining the marketing concept, of how the organisation
going to aware the target customers, it invo0lves different marketing campaign that
organisation to going to use to promotes goods and services in the market. F-drones
develops different marketing strategies to identify which marketing campaign delivers
consumer message and attain consumer attractiveness.
 Business analysis: Business analysis involves identifying cost, sales, external and
internal environment, to identify the market positioning, it also involves market survey to
analyse the effectiveness of the product in the market (Sheth, Acharya and Sareen, 2019).
F-Drones Different Swot analysis and Pestle analysis to identify business environment
and analyse whether new product development achieves organisational objectives.
 Product development: This step involves developing the physical product or
establishing services that has to be delivered to the target customers. F-drones
9

accumulates all the defines procedures to develop new product to create an effective
market offering (Sylkina and Baitukayeva, 2018).
 Test marketing: Under this process, the company determine effective the developed
product and services in the market. It also involves to check the effective of the
marketing campaign to the customers. F-drones conducts different market survey to the
final prospects to analyse new product development whether the product delivers strong
market positioning.
 Commercialisation: It involves using effective marketing and promotional tool to aware
and promote products and services in market. F-Drones commercialises its products to
the final customers in order to aware target customer about the products and services.
P6 Determine an Innovation Business Case, including ways to access funding.
F-drones is an organisation which deals in developing delivery drones. According to the
new product ideas it deals in bringing technological changes in the existing drones. It develops
new technological advanced tools which will render more capabilities to take more heavy load
and cover long range to deliver items in ships and offshore platforms. The problem faced by F-
drones increasing technological changes and competitions which makes unable to cope up with
the external challenges. F-drones determines innovative business case to adapt to the
challenges,different aspects covered in the business case are termed as:
 Mission statements: It involves determining the objectives of the business, F-drone
defines mission which includes to develop strong market positioning, business growth
and sustainability of the business in the market.
 Problem statement: Issues faced by F-drones faced by includes increasing technological
changes and competition which leads to increase in customer demand,
 Proposed solution: The proposed solution of F-drone is to identify the current market
trend. Research and development conducts proper market survey to analyse market
demand, it develops innovative technological advanced tools in the existing products to
meet current market demand (Symeonidou, Bruneel and Autio, 2017).
 Executive summary: F-drones is an UK based organisation which develops delivery
drones. It develops consumer grade drones and aviation-grade drones with high standard
and safety. To meet consumer demand and market share it develops innovative products
which are high tech savvy and ensures more capabilities. The main objectives of F-
10

Drones is to achieve market share and attain profit goals. It uses different marketing
campaigns to render customer awareness, market share and competitive advantage. It
develops differentiated products to capture market share and attain competitive advantage
(Tayauova and et. al., 2019).
 Needs: F-drones needs to implement innovative strategies to develop new technological
changes in existing drones to cope up with increasing market demand.
 Solution: To meet current market demand, F-Drones has implemented new technological
innovation in existing delivering drones by developing high capacity to hold heavy hold
and cover long range. It develops innovative range of drones for customer, aviation and
new drones involves delivery to ships and offshore platforms. New advanced drones can
take off vertically. It promotes innovative technologically advanced features to
implement modern solution to cope up with the issue of increasing market demand.
 Market research: research and development department coordinates with marketing
department to conduct market research and survey to analyse current market demand. It
formulates innovative policies to satisfy customer wants.
 Develop plan: It formulates plans and policies to achieve organisational objectives. It
develops marketing strategies to aware customers and achieve market positioning.
Developing business plans implies formulation of the plans in accordance to
organisational objectives and market demand which renders in sustainability and
profitability to the organisation (Usmanov and Mendigaliyev, 2019).
 Funding: Access funding to carry different organisational funding, F-drones collects
funding from different sources, it involves funding from internal and external sources.
External funding involves sources from managers, directors which is also called as
capital for the organisation. External sources involve funding from different financial
institutions. F-drones also issues shares and debentures to raise funds from public
sources. Financing activities are crucial for proper functioning of business activities. To
implement new technological changes, financing is required to implement targetted
changes.
11

TASK 4
P7 Determine different tools that organisations can use to develop, retain and protect knowledge
and intellectual property
F-Drones is an organisation which develops delivery drones. It renders develops
innovative plans and strategies to adapt the external challenges in the business environment. It
formulates different changes in the products to different the product from the competitors in the
market. It ensures that all unique designs are secured and are not used for any unauthorised and
malicious content. It secures its designs and innovative strategies to secure from different
unauthentic parties. F-drones evaluate different tools to secure intellectual property.
Intellectual property refers to an intangible asset which is broadly divided into of trademarks,
copyrights and patents to create intellectual property. It gives people and business the right of
information, product or property to secure from different parties (Varadarajan, 2018). Intellectual
property includes three tools which are stated below:
 Patents: Patent is an intangible asset of granting or rendering access by government to
the inventor for invention of the property. It provides the right to the investor to over a
period of time to disclose information regarding invention. Main objective of creating
patent is to ensure security of own property to restrict other people to replicate and
duplicate of own invent.
Advantages:
Patents helps the business of seek the monopoly over the ideas purchased from the
investor, and protect the particular idea from stealing by others. FR-drones can use patent
to protect the idea of the offerings from the stealer in the market.
Disadvantages:
Patents are the expensive source and unsuccessful, different fees including patent fee,
attorney fee and other adds up to huge bills. F-Drone might face financial risk to purchase
patents of the ides.
 Trademarks: Trademarks are the marks and symbols which is owned by different
organisation. Different organisation has different trademarks in order to differentiate the
product in the market. It also helps to attain brand identity in market. Trademarks are
given for a period of 10 years, after that organisation can renew or even change its
symbol. It differentiates the products from competitors. It develops product positioning in
12

the minds of the customers. Customers identifies product and services offered by
trademarks offered by the company. Trademarks helps to develop brand image of the
product or service in the market. Registered trademarks render exclusive rights to the
owner over the sole authority over the product. It helps in create product reliability in the
minds of customers (Zhu and et. al., 2017).
Advantages:
The greatest advantages of trademarks are that the proprietor’s ideas have statutory life,
where it determines the propitiators right for the rest of its life and the proprietor can use it
for implementing changes and uses to it.
Disadvantages:
Trademarks determine the unpredictability in the market demand, it also leads to risk of
genericide, which happen when the customer starts comparing the brand with other related
product in the market.
 Copyrights: Copyrights are the rights granted by owner to the third party in order to use
or modify the products and services over a period of time. The third party have the access
of transferred property. Only inventor can transfer the property to other party. If other
party wants to transfer property, it should access permission from the inventor of
property. It renders legal protection of property by the government. It helps in building
good will and prestige in the market.
Advantages:
Copy rights are the affordable prices and it renders longer period of life of the ideas to the
creator which adds up to 70 years. F-Drone can purchase the copyrights of the ideas
affordable prices.
Disadvantages:
The major disadvantages to copyrights is that it does renders security assurances of the ideas
of the creator. F-Drones buying copyrights might face risk, as copyrights just protects the
concept and objective of the idea by the inventor not the entire idea.
CONCLUSION
Innovation and commercialisation is an important tool for any organisation. Innovation is
needed by the organisation to implement new changes as per the changing market demand.
13

Innovation ascertains different policies and procedures to which involves identifying consumer
needs and wants and developing the products and services. An organisation implement different
innovative decisions to satisfy current market demand and achieve profitability.
Commercialisation is needed by the organisation to promote goods and services to targetted
prospects. For commercialisation of products and services it uses different marketing strategies
in order to influence the target customer to purchase products and services. Innovation and
commercialisation is used by organisation to attain market share and long term sustainability.
14

REFERENCES
Books and journals
Bertrand, A.A., and et. al., 2021. The Development and Commercialization of Medical
Technologies. Aesthetic Surgery Journal.
Coventry, K., 2018. Regulatory Considerations for Natural Health Product & Functional Food
Commercialization in the North American Health Products Marketplace. Planta Medica
International Open. 5(S 01). p.COM03.
Dedehayir, O., Mäkinen, S. J. and Ortt, J. R., 2018. Roles during innovation ecosystem genesis:
A literature review. Technological Forecasting and Social Change. 136. pp.18-29.
Eckhardt, J. T., Ciuchta, M. P. and Carpenter, M., 2018. Open innovation, information, and
entrepreneurship within platform ecosystems. Strategic entrepreneurship journal. 12(3).
pp.369-391.
Fisher, G. J. and Qualls, W. J., 2018. A framework of interfirm open innovation: relationship and
knowledge based perspectives. Journal of Business & Industrial Marketing.
Goodman, J., Korsunova, A. and Halme, M., 2017. Our collaborative future: Activities and roles
of stakeholders in sustainability‐oriented innovation. Business Strategy and the
Environment. 26(6). pp.731-753.
Hnatenko, I., and et. al., 2020. An approach to innovation potential evaluation as a means of
enterprise management improving. International Journal of Supply and Operations
Management. 7(1). pp.112-118.'
Kogabayev, T. and Maziliauskas, A., 2017. The definition and classification of
innovation. HOLISTICA–Journal of Business and Public Administration. 8(1). pp.59-72.
Nambisan, S., Siegel, D. and Kenney, M., 2018. On open innovation, platforms, and
entrepreneurship. Strategic Entrepreneurship Journal. 12(3). pp.354-368.
Páez-Avilés, C., 2018. Processes and Ecosystems of Innovation with a Multi-KET Approach to
Foster Technology Transfer and Commercialization of Nanotechnologies in the Field of
Healthcare. New Waves in Innovation Management Research (ISPIM Insights), p.417.
Popova, L. V., and et. al., 2019. Value formation of innovative product: a way to
commercialization.
Schwabe, O., and et. al., 2021. A Framework for Accelerating Innovation Through Innovation
Webs. In Sustainability and Automation in Smart Constructions (pp. 205-210). Springer,
Cham.
Shashlo, N. V., Petruk, G. V. and Korostelev, A. A., 2018. Determinants of integration
interaction among the subjects of the entrepreneurial innovation ecosystem of macro
region. Amazonia Investiga. 7(13). pp.351-363.
Sheth, B. P., Acharya, S. R. and Sareen, S. B., 2019. Policy implications for the improvement of
technology transfer and commercialization process in the Indian context. Journal of
Science and Technology Policy Management.
Sylkina, S. and Baitukayeva, D., 2018. International legal features of commercialization of space
activity. International Relations and International Law Journal. 78(2). pp.143-152.
Symeonidou, N., Bruneel, J. and Autio, E., 2017. Commercialization strategy and
internationalization outcomes in technology-based new ventures. Journal of Business
Venturing. 32(3). pp.302-317.
Tayauova, G., and et. al., 2019. MODERN TOOLS FOR THE COMMERCİALİZATİON OF
CAPİTAL-INTENSİVE RESEARCH. Bilge Kağan ISC-2019, p.308.
15

Usmanov, A. S. and Mendigaliyev, K. E., 2019. The models of commercialization of scientific
developments. Вестник университета «Туран». (1). pp.172-176.
Varadarajan, R., 2018. Innovation, innovation strategy, and strategic innovation. In Innovation
and Strategy. Emerald Publishing Limited.
Zhu, X., and et. al., 2017. How do informal ties drive open innovation? The contingency role of
market dynamism. IEEE Transactions on Engineering Management. 64(2). pp.208-219.
16