Innovation and Commercialisation

This document discusses the importance of innovation for organizations and compares invention and innovation. It also explores how organizational vision, leadership, culture, and teamwork shape innovation. The document further explains the 4Ps of innovation and the use of the innovation funnel. It also discusses developments in frugal innovation and the importance of the commercial funnel and new product development.

Innovation and
Commercialisation
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Innovation and its importance for the organisation in comparison to invention...................3
P2) Organisational vision, leadership, culture and teamwork that shape innovation..................5
TASK 2............................................................................................................................................6
P3) 4Ps of innovation and explain the use of the innovation funnel...........................................6
P4) Developments in frugal innovation.......................................................................................8
TASK 3............................................................................................................................................9
P5) Importance of the commercial funnel and the application of New Product Development...9
P6) Innovation Business Case for an organization....................................................................10
TASK 4..........................................................................................................................................11
P7) Different tools that organizations can use to develop, retain and protect knowledge and
intellectual property...................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Innovation is the process which includes various activities that can help in uncovering
new ways of doing same thing differently. In the rapidly changing business environment it
becomes important for the organisation to innovate their products and services. With this they
can meet up with the changing trends of the new generation. Commercialisation is the process
with which the customers can be attracted as with this the ideas and knowledge can be
transformed into value for the customers and the organisation. For developing an understanding
of various concepts of innovation and commercialisation the organisation that is taken into
consideration is Samsung, which is an electronics company offering smartphones, wearable
devices, digital appliances etc. In this report importance of innovation, 4P's of innovation, role of
organisational visions, leadership and team work is considered in shaping the innovation. Apart
form this process of development of new product is discussed.
TASK 1
P1) Innovation and its importance for the organisation in comparison to invention
Invention : Invention is the process with the help of which new product can be launched
in the market for the first time i.e., something that does not existed before, which will enable the
organisation in satisfying the customers (Aloini and et. al., 2015). For example: The team of
Samsung has invented television that blends into the wall.
Importance of invention: With invention entirely new product or service can be
developed and introduced which has unique features that are useful and convenient to the
customers.
Innovation: Innovation is the process in which new features are added or changes are
made in the existing products so that the experience of the customers can be improved. Such
changes are made on the basis of the preferences of the customers and it enables the company to
take the competitive advantage (Innovation .2019). For example: Samsung has developed a
process of New concept development which enables them to innovate products and services such
as introduction of 5G mobiles with unique specification and features.
Importance of the innovation for Samsung is given below:
 Increased productivity: By making the process innovative the productivity can be
improved as with improved way of doing things and streamlining the activities efficiency
3

can be increased. This will make Samsung capable of meeting specific demand of the
customers. For this they need to keep on update their software, processes etc. as it with
they adopt the latest technology so required.
 Competitive edge: With innovation in the products the company can take competitive
advantage as this will enable them to offer better products and services. By introducing
creativity and putting new designs in the existing products the customers can be
connected. For this appropriate marketing techniques need to be used and all this will
help Samsung in taking competitive edge over others (Bain and Kleinknecht, 2016).
Difference between Invention and Innovation
Basis Innovation Invention
Meaning Innovation is related with the
process in which any processor
product is implemented or
introduced for the first time.
While invention is related with the
occurrence of any idea for the
product or service that does not
exist.
Skills required Various skills such as technical
skills, marketing skills, strategic
skills are required for innovation.
For invention scientific skills are
required as for this the significant
research and experiments need to be
undertaken.
Concerned with Innovation is concerned with entire
process or range of products/
services that are offered by the
organisation.
Invention is concerned with single
process or product.
Sources of innovation: The requirement of the innovation can arise due to various
factors such as:
 Unexpected occurrences: Occurrence of any event which is not expected can lead to
innovation as for meeting up with the implications of such events innovation need to be
introduced.
 Need of the processes: Due to requirement of changes in processes of manufacturing the
company such as Samsung need to bring innovation.
4

P2) Organisational vision, leadership, culture and teamwork that shape innovation
Commercialisation: Commercialisation is a process with which new product can be
introduced or production methods can be changed. With this the customers can be attracted
successfully so that the profitability of the organisation can be improved (Jahn, 2016).
Various elements that facilitate in shaping innovation the organisation are given below:
Organisational vision: The vision of Samsung is to provide innovative products and
designs that can enrich the life of the people by adding value to the industry and customers. This
encourages organisation to introduce attractive features that can add value to the products. Vision
of the company can be made that of the employees which will encourage them to adapt such
innovation.
Leadership: Leadership is the ability to motivate and encourage the employees with the
help of which they can establish coordination among employees so that they can achieve the
goals and objectives. With the help of effective leadership styles such as democratic, autocratic
etc. the leaders influence the people working in the organisation to accept the innovation and
even to provide suggestions with which effective innovation can into introduced. Leaders in
Samsung use different style as per prevailing situation which enables their employees to provide
their recommendation with the help of which they can bring innovation.
Culture: The culture of the organisation has impact on the innovation as culture guides
the behaviour of the employees working in the organisation. At the workplace if the employees
are provided freedom effective communication can take place which can leads to shared belief.
With the help of Handy's model, kind of culture that is being followed is identified which can be
power culture, task culture etc. Task culture is being followed by the Samsung with which
specific purpose and powers can be shifted to other members (Kerschke and et. al., 2015).
Teamwork: With the help of effective team goals can be achieved easily as all the
members will have competence that will enable them in understanding the requirement of the
changes by way of innovation. Tuckman's theory of leadership focuses upon ways with which
teams can tackle the task. This theory is relevant for building challenges for the team which can
motivate them to perform better. This forces innovation so that the customers can be satisfied.
With the help of these elements the organisation introduces innovation effectively. The
vision, leadership and teamwork motivate the employees to perform consistently and to accept
5

the need of changes as per the requirement of the business. The understanding among the
employees leads to collaborative working and coordination among the teams and this shapes
innovation as they will better understand the benefits of such change.
TASK 2
P3) 4Ps of innovation and explain the use of the innovation funnel
The 4P’s of innovation can effectively be used by the organisation as it helps them in
determining the area where improvements are required. Such 4P’s of innovation includes:
 Paradigm: With the help of this the ways can be identified with which the innovation can
be introduced. It enables in making changes in underlying mental modes that facilitates
with how and what can be done by the organisation. Samsung can identify various
processes that they have to undertake so that they can launch phone with 5G technology
(Molnar, 2018).
 Process: Process is related with the way with the help of which organisation delivery
their services to the customers. With the improvement in such process the values to the
customers can be enhanced as with this the cost can be reduced. Samsung by managing
the cost can improve the benefits to the customers.
 Positioning: Positioning strategy determines the improvement in the way they position
their product in the market. With efficiency in positioning Samsung can reach to the
customers easily and can serve them with new innovative technology.
 Product: Products are offering in which the innovation is to be done. Innovation is done
in the existing products and services as per the needs and wants of the employees.
Samsung is planning to launch smart phone with 5G technology which will enable the
customers to use new latest technology in their preferred brand.
Types of innovation: For the organisation it is important to understand type of
innovation that they need to focus upon as on the basis of this they need to arrange funds,
analyse the market etc. Various such types include:
 Disruptive Innovation: Disruptive innovation is the one in which new technology is
being adopted in the existing market. Samsung is planning for disruptive innovation in
which is quite expensive. But this innovation provides the first mover advantage to the
organisation (Parker and Van Alstyne, 2018).
6

 Incremental Innovation: It is very common innovation in which existing technology is
being used for increasing the values to the customers in the existing market. In this
requirement of the funds and risk is limited but the opportunity to increase market share
is not much.
Innovation funnel: It is a process that facilitates a new process and development of the
product as per the need and wants of the customers. With this plan for the innovation can be
formulated and the best idea can be identified out of various available options. This funnel can
be use by Samsung in the following manner:
 Idea generation: In this stage various ideas can be identified on the basis of analysis of
the opportunities and changes taking place in the market. In this stage the R&D
department of Samsung need to take part as they can determine the opportunities in the
market. Concept investigation: In this stage all the ideas will be examined and screened by the
management of the organisation. Such ideas are then tested on the customers and their
resource requirement is determined (Rosca, Arnold and Bendul, 2017).
7

 Feasibility study: In this stage the technical and economic feasibility of the ideas are
tested as with this they can determine the risk which is associated with the innovation.
 Development stage: The final idea is developed at this stage so that the product can
efficiently be launched in the market.
 Post release phase: This is the stage in which feedbacks will be taken from the customers
and on the basis of which further improvements can be planned.
P4) Developments in frugal innovation
Frugal innovation is a process that helps in reducing complexity in the process by
elimination various nonessential steps and features from the products and services so offered.
This facilitates reduction of the overall cost of the company which enables the organisation to
introduce valuable features to the products. Such process can be used by any organization
irrespective of their size and nature such as large organization, small organisation, medium
organisation etc. With this the SME can eliminate non-value added features from durable
goods or from their offerings (Seok, Han and Kim, 2018). It has various steps which need to
be followed by Samsung for using frugal innovation which includes: Seek opportunity in adversity: This suggests that the adverse situation must be taken as
opportunity so that its impact can be reduced. Samsung realised that with advancement of
the technology their product may become outdated so they planned for smart phones with
latest technology. Do more with less: This means that limited resources must be utilised efficiently so that
that innovation can be introduced. Samsung with the same process just launching phones
with new technology which is significant in mobile industry. Think and act flexibly: It suggest that the culture of the organisation and their structure
must be flexible so that changes can easily be incorporated. This will enable the Samsung
to make their customers satisfied as their employees will be capable of doing so. Keep it simple: This means that plans must be simple so that they can easily be
understood and executed with any complications. Include the margin: This suggests that innovations so introduced must focus the needs
and wants of the customers so that the profitability can be enhanced as it will easily be
accepted by them.
8

 Follow your heart: This facilitate in decision making as if the organisation feels that the
innovation will be beneficial they must undertake it which can enhance their profitability
as well as market share (Vanhaverbeke, 2017).
TASK 3
P5) Importance of the commercial funnel and the application of New Product Development
Commercial funnel: Commercial funnel is also known as sales funnel which helps in
increasing the sales of the company by converting prospects into customers. With the help of this
funnel the pricing strategies can also be identified as by prices plays crucial role in attracting the
customers.
New Product Development: With the help of process of new process development the
innovation can easily be implemented in the organisation. It includes various steps with which te
improvement can be made as per the preferences of the customers. The procedure includes
following steps:
 Idea generation: In this step, need for development is analysed and on the basis of that
various ideas are generated. The research and development department of Samsung
provided various ideas with which the customers’ expectations can be met.
 Idea screening: After generation of ideas, they are screened and the most suitable among
all is selected that can help in achieving their objective.
 Development concept: In this step the idea is developed so that it can be converted into a
product (Wang, 2017).
 Marketing strategy: On the basis of product various marketing strategy such marketing
mix etc. are formulated that can create awareness among customers about their product.
 Business analysis: Here, the feasibility and effectiveness of the product is analysed with
which Samsung can identify the profitability and increase in market share from such
development. Product development: In this step the products is being developed by Samsung which
converts the idea into a product that can be offered in the market.
 Test marketing: In this the product are tested in the market on the basis of which various
segmentation strategies can be formulated.
9

 Commercialisation: It is the final step with which the product is made available in the
market and the customers can be attracted towards it.
P6) Innovation Business Case for an organization
Business case: It is written document in which reasons are provided for introducing the
innovation or undertaking any task. With the help of this Samsung can determine the strategy
sources of funding etc. that will help them in undertaking the project (Wonglimpiyarat and
Chandrachai, 2016). The company is planning to launch 5G mobiles phones with various unique
specifications.
Executive summary: This plan includes various strategies with which new product can be
launched, which market segment need to be targeted, various sources of the funds and various
opportunities for the business. It enables them to attract significant investors to the business.
Background: Samsung offers is a multinational company that offers wide variety of
electronic for the customers such as TV’s, smart phones, wearable devices etc. They are
committed to improving the standard of living of the society with continuous improvement.
Vision: The vision of Samsung is to provide innovative products and designs so that the life
of the people can be enriched.
Needs satisfied by the innovation: The launch of 5G phones will enable Samsung to tap the
market segment which is highly tech-savvy.
Strategy: For this product, people from all the age group will be attracted as phone has
become necessary part of life. This new phone will be promoted through social media platform
and through television, newspaper advertising.
Funding: This is one of the most important factors which are to be considered as with this
funds are gathered from various sources. Such sources includes loan from financial institution,
equity capital, retained earnings of the company and many more. The Samsung can utilise some
part of their retained earning while part funding can be done through loans from the financial
institution. This will reduce the burden of interest on the company (Yeo, 2019).
10

TASK 4
P7) Different tools that organizations can use to develop, retain and protect knowledge and
intellectual property
Intellectual property: Intellectual property is the creation of mind with the help of which
something unique can be offered to the customer in the market. It includes inventions, literary
and artistic work, designs and symbols that can be used in commerce. Such intellectual property
is protected by various laws and restrictions that are imposed by the government and the legal
system of the country. With the help of such various such laws Samsung can protect their
innovation from being copied by the competitors. Some of such rights include:
Patents: It is a right which has been provided to the organisation who has innovated some
technology for improving experience of the customers. Patents are provided for a specific period
of time which has to be renewed from time to time so that their innovation cannot be imitated.
The advantage of this right is that with this the right to use lasts with the company who has
innovated any process or the product. While its disadvantage includes fee that has to be paid for
securing the innovation. This has impact on the overall cost of the company
(Yun, 2017).
Trademarks: Such rights are provided to the organisation for distinctive and recognisable
designs, symbols, signs etc. With this the company can take distinctive identify for their products
and services by making themselves different from the competitors. Advantages of trademark are
that it makes the company different from their competitors by protection their designs, symbols
etc. from being copied. While its disadvantage includes fee that has to be paid for taking such
rights and for renewing it in every 10 years.
Samsung can use Patents for protecting the technology that they are planning to launch as
with this they can safeguard themselves from the competitors. Due to this they cannot imitate the
technology and thus it will enable them in taking the competitive edge over others.
CONCLUSION
It is concluded from the above report that innovation is important for the organisation as it
enables them to effectively meet the needs and wants of the customers. Also with this
competitive advantage can be taken over by introducing latest technology or by improving the
processes. Innovation can be successfully with the help of analysis of 4P’s of innovation,
11

innovation funnel etc. Further it is concluded that various steps of development of new product
makes the introduction of new product effective and profitable for the company.
REFERENCES
Books and Journals
Aloini, D. and et. al., 2015. Technological strategy, open innovation and innovation
performance: evidences on the basis of a structural-equation-model approach.
Measuring business excellence .19(3). pp.22-41.
Bain, D. and Kleinknecht, A. eds., 2016. New concepts in innovation output measurement.
Springer.
Jahn, B., 2016. The cultural construction of international relations: the invention of the state of
nature. Springer.
Kerschke, P. and et. al., 2015, July. Detecting funnel structures by means of exploratory
landscape analysis. In Proceedings of the 2015 Annual Conference on Genetic and
Evolutionary Computation(pp. 265-272). ACM.
Molnar, A., 2018. Giving kids the business: The commercialization of America's schools.
Routledge.
Parker, G. and Van Alstyne, M., 2018. Innovation, openness, and platform control. Management
Science. 64(7). pp.3015-3032.
Rosca, E., Arnold, M. and Bendul, J.C., 2017. Business models for sustainable innovation–an
empirical analysis of frugal products and services. Journal of Cleaner Production .162.
pp.S133-S145.
Seok, B.I., Han, M.P. and Kim, J.H., 2018. Knowledge and quality-management activities’
influences on technology communication and innovation with African foreign
investment experience. Journal of Psychology in Africa. 28(4). pp.310-315.
Vanhaverbeke, W., 2017. Broadening the concept of open innovation. The Elgar Companion to
Innovation and Knowledge Creation, Cheltenham, Northampton, MA: Edward Elgar
Publishing, pp.87-98.
Wang, J., 2017. Structuring innovation funnels for R & D projects under uncertainty. R&D
Management .47(1). pp.127-140.
Wonglimpiyarat, J. and Chandrachai, A., 2016. Cluster management and research
commercialisation. International Journal of Business Innovation and
Research. 11(3).pp.311-325.
Yeo, B., 2019. What Drives University Technological Innovation Outcomes? A Re-Vitalised
Investigation. Journal of Information & Knowledge Management. 18(03). p.1950035.
12

Yun, J.J., 2017. Business Model Design Compass: Open Innovation Funnel to Schumpeterian
New Combination Business Model Developing Circle. Springer.
Online
Innovation .2019. [Online]. Available Through: <https://www.toolshero.com/innovation/>
13