Innovation and Commercialisation: Exploring the Value and Process

This report explores the importance of innovation and commercialisation, comparing them to invention. It discusses the 4Ps of innovation and the usage of the innovation funnel to examine and shape innovative ideas. It also covers the value of the commercial funnel and the application of new product development (NPD) for commercialisation. The report includes a case study of F-drones, a company constructing transition drones for aerial deliveries.

Innovation
and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explanation regarding innovation and finding its value for enterprises in comparison with
invention......................................................................................................................................3
P2. Explain how entities vision, leadership, culture and teamwork can shape innovation and
commercialisation .......................................................................................................................5
TASK 2............................................................................................................................................6
P3. Explain the 4Ps of innovation and explain the usage of the innovation funnel to examine
and shape innovative ideas...........................................................................................................6
PART 2............................................................................................................................................7
TASK 3............................................................................................................................................7
P5. Explain the value of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation........................................7
TASK 4..........................................................................................................................................11
P7. Evaluate the various tools that enterprises can use to create, retain and protect knowledge
and intellectual property............................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
In innovation and commercialisation, innovation implies to a process by which a product,
service, a domain are renewed by applying new process, techniques or may be establishing
successful ideas to generate new value (Ali and et.al, 2017). Whereas commercialisation refers to
procedure which transforms ideas, inventions, knowledge into wealth. It brings goods and
services to the market as well as entails distribution, marketing, production, sales and other key
functions which are critical in accomplishing commercial success of new merchandise or
services. For this report F-drones is consider, which is constructing world's first transition drones
that enables aerial deliveries to offshore platforms and to the ships. They have their headquarters
in Singapore and F-drones is planning to rule the industry in next 5 years.
This report covers importance of invention and innovation along with their comparison. It
also includes 4Ps of innovation as well as utilisation of innovation funnel to study and shape
ideas. Further it includes importance of commercial funnel for NPD and various tools that
entities use to retain, create and protect intellectual property and knowledge. Business case along
with access funding and how enterprise vision, culture, teamwork, leadership modify innovation
and commercialisation are also included in this report.
PART 1
TASK 1
P1. Explanation regarding innovation and finding its value for enterprises in comparison with
invention
Innovation implies coming up with the new ways through which things can be done. It
helps entities to save their money and time as well as it cater competitive advantage which assist
in the growth of enterprises (Bock, Landau and et.al, 2018). It is usually refers to products, ideas,
changing current process or creating new process. It helps organisations to adapt their
businesses in the market place. F-drones with the help of innovation can improve their
productivity, build brand image, can reduce cost of production and can increase competitiveness.

Invention on the hand, can be define as action through something can be invented, it is
can be a procedure or device. The process of invention is a process which is inside the overall
application and development of product process. In context to F-drones, invention will bring
newness in their operations and make them more flexible. Comparison between the values of
innovation and invention is discussed below-
Basis Innovation Invention
Competitive advantage F-drones innovation of new
ideas, goods services will
ultimately generate
competitive advantage in the
challenging market conditions.
Invention will actualise the
competitive advantage for F-
drones in action.
Activities It will be spread across the
entire F-drones organisation.
It will limit the activities of F-
drones to only research and
development department.
Concerned with It will give importance to both
product and process of It will
emphasis only on single
product or process of F-
drones.
It will emphasis only on single
product or process of F-
drones.
Concept It will assist F-drones to
practically implement these
new ideas
It will bring original ideas and
working theories for It will
emphasis only on single
product or process of F-
drones.
From the above discussion it can be easily said that both innovation and invention are not
the same thing but both require huge capital. Further, innovation is mainly about introduction of
new ways of producing, using something and invention is something which is totally new to the
world is discovered.

P2. Explain how entities vision, leadership, culture and teamwork can shape innovation and
commercialisation
The main aim of innovation is to cater new idea and invention is the key which assist in
actualising the innovation (Cunningham, Harney and Fitzgerald, 2020). The objective of
invention and innovation is to commercialise the merchandise. Leadership, culture, teamwork an
organisation vision can modify both commercialisation and innovation which is mention
underneath-
Organisation vision: It cover all those areas which are comprises of future goals and
objectives of an enterprise (Donegan, 2019). In reference to F-drones, they have a vision of
providing first transition drone worldwide for this they discover new new ideas and then finalise
the commercialization of their drones in the market. By doing so they will now enter the market
with their new type of drones and this will influence invention and innovation process.
Leadership: It can be define as an art, through people can be motivated towards
accomplishing a common goal. It organises entities working according to their plans to ensure
success. Their are various methods of leadership such as democratic, autocratic, participative and
laisses-faire. In reference to F-drones, they can go for autocratic as their leaders are agile to
maintain quality of their drones and it will help them to sustain in market.
Culture: Organisation culture is aggregate of norms, values and employees attitudes.
They may be modify by countries attitudes and values. It can be easily understood that culture
which is valid for one country that might be void for the other one. So it can be said that
differences in culture affect the procedure of innovation and commercialisation. F-drones is
aggressive and active so that they can meet their goals, in this regard culture will assist the
company to shape the process of commercialization and innovation.
Teamwork: Team is the dynamic concept which helps enterprises to solve any problem
and ensures that tasks are completed according to plan (Hirose, 2018) . For doing any type of
job, F-drones should have a team of skilful people, who will perform the entire given task
relating to commercialization and innovation of their drones. If this team work according to
company goals they can easily accomplish their objective in effective and easy way. Their team
will assist them in the formulation of their transition drones.

TASK 2
P3. Explain the 4Ps of innovation and explain the usage of the innovation funnel to examine and
shape innovative ideas
Innovation implies how to deal with the process, which helps in creating thinking, new
idea, new product and services. The 4Ps of innovation, represents innovation mix which helps
entities to fulfil their objectives. In context to F-drones, these mix helps them to formula6te their
strategies in an effective manner. These 4Ps are explained below-
Paradigm: Paradigm can be define as process or framework which provide a road map
to entities so that they can work in challenging circumstances and make changes in their
innovative ideas accordingly (Huster, Petrillo, and et.al, 2017) . F-drones in this regard, should
plan how they should work according to the changing conditions and situations. This will assist
them to cater appropriate strategy and systematic planning to reduce their threats. Paradigm will
also help to fit themselves in any situation in order to maintain their reliability and safety
standards.
Product: Product refers to the main item which is served or offered to customers. It will
be precious for the enterprises, if it is capable in enhancing value to the organisations. In relation
to F-drones, if they launch these drones and will be able to provide best services to their
customers, this will add value to their name. Further, these drones will add competitive
advantage for them, so in this regard product is the main element of 4Ps through which
innovation and commercialisation can be done.
Process: Process can be define as a way by which merchandise are provided or deliver to
the customers. It is the very important issue, as long process of delivery reduces the possibility of
success (Logan, 2017) . On the other hand, short delivery process increases the chances of
success. F-drones in this regard, should deliver their drones on time and they should also find
various process which will help them in doing so. It can be said, that delivery of drone is the
main criteria of F-drones success.
Position: Position is the aim of specific process of innovation and commercialization. It
is related to entities perceptions. It depends on different factors such as what customers think
about them, what their subcontractors, employees and business partners have perceived about
them. It profitably status of an enterprise entirely depend on how much satisfied customers they

have. In this context, F-drones should come with new innovation so as to build an brand image
and this factor will also motivate them to develop worldwide first transition drone.
P4. Explain developments in frugal innovation and render examples of how it is utilized in an
organisational context
Frugal innovation is related to cost reduction and any development in this aspect will help
organisations to keep an check on each and every factor that increase the cost of their goods and
services (Yang and et.al., 2018). In relation to F-drones, development in frugal innovation will
assist to cut down their extra costs. The development in frugal innovation in relation to company
are mention underneath-
Utilisation of resources: The main belief of this innovation is to minimise the use of
available resources. It mainly give importance to less use materials and funds while producing
more products. As this is driven by inadequacy of resources, it becomes difficult for the entities
to produce quality products. In reference to F-drones, accurate use of resources will assist the
company to filter all those resources which increases the cost of their drones. They can make
wise decisions each which also consider the quality of their drones.
Cost reduction: With frugal innovation organisations exactly know what they require
and what they should do, both these two factors help companies to cut down their unnecessary
activities (von Geibler and et.al, 2018). F-drones from select which type of material they require
to manufacture their drones and from this they can reduce their cost. Selection of resource will
help them to generate more effective drones with less cost.
Adaptability and flexibility: Frugal innovation helps entities to adjust themselves
according to the changing requirements changing marketing conditions. F-drones with this can
easily adopt all the new methods or technology which will assist them to build more and better
drones. This will also add advantage for them over their competitors.
PART 2
TASK 3
P5. Explain the value of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnel also known as sales funnel implies the process of buying which
entities lead customers in their product purchasing process. It is the procedure which assist

enterprises to qualifies, find and sell their merchandise to their potential buyers. It covers various
stages like awareness, interest, decisions and action in order to launch a product or to improve
existing ones. It will provide track to F-drones so that they can easily reach out to their
customers. It is divided in multiple steps which are explained below-
Marketing Strategy: F-drones with the commercial funnel can effectively form strategies
which will assist them to survive in different market conditions and derive more profits.
Competitive advantage: It will provide full information of how sales work which will
help F-drones to attain competitive advantage over the other enterprises at their niche.
Decisions: It examine factors like price, packing and so on which will help F-drones to
take effective decisions based on these factors.
Growth of business: With the help of feedbacks F-drones can grow their enterprise by
selling more and improve drones. They will identify their roadblocks and generate more
customers.
New Product development (NPD) refers to those procedures through which development
and introduction of new product is done in the market. It is entirely depend on market conditions
and customers requirements. For commercialization of products, F-drones may adopt NPD
process for their drones which are mention underneath-
Idea generation: It is the first step in the process of new product development. It includes
group discussions and brainstorming for the generation of new idea. However, these new ideas
are formed for the improvement of existing products also. F-drones at this stage can come with
new thoughts and opinions in order to make their drone successful worldwide.
Idea screening: All the thoughts and opinions are screened or filter at this stage. F-
drones can opt for only that ideas which they think is best for their new type of drones in idea
screening stage.
Concept testing: In this technical practicability along with design of product and
potential of market are tested. F-drones can analyse weather their idea it practically possible at
this stage.
Business analysis: At this production cost, sales, demand, profit and so on are
considered. F-drones can evaluate all these factors to determine the margin of profit of their
drones.

Product development: Ideas that matches with the plan are converted into products at this
stage. F-drones can change over their thoughts into their drones according to the strategies.
Test marketing: It is related to feedbacks which are generated from distribution of
prototype goods to manufactures and customers. F-drones can distribute some of their drones to
customers as well as commercial enterprise to gather their feedbacks.
Commercialisation: At this stages entities determine price and marketing strategies for
their product. They will collect informations and feedbacks in order to improve as well as in
finalising their merchandise. F-drones at this step can correct all the errors relating to their
drones and decide effective marketing and pricing plan of action.
P6 Build an Innovation Business Case for an enterprise, considering ways to access funding
Innovation business case of F-drones in explained as under-
Executive summary F-drones is planning to come with first transitions drones in
the entire world who can transfer heavy loads to ships and
offshore platforms. F-drones with this also pay attention to
reliability and safety standards.
Vision Their vision is to survive in market for long run and bring more
innovate drone for future.
Mission To fulfil on-demand and large scale aerial transportation of
products, with advanced drones which can fly with massive
loads.
Objective Their objective is to rule the market in next 5 years in the
industry.
Strategies The use online marketing strategies for their promotions and
planning to go for skimming price to build more customers.
Finance required For their drones they need 50000$ of fund.
Monitoring and controlling They are very selective towards their resources and use
advance techniques to control their unnecessary functions.

The organization is require to collect funds that be arrange from various resources:
Bank loan: It is a amount of money which is borrowed for a specific period of time
within an agreed payment plan . It might be secured by collateral like mortgage or may be
unsecured like credit card. F-drones can go for bank loans as their source of fund and its merits
and demerits are discussed below-
Merits Demerits
 Interest rates are fixed in bank loan
which will make easy for F-drones to
plan ahead
 It will be good option for F-drones as it
delivers both long term as well as for
short term borrowing choices.
 It requires securities which might
becomes difficult for F-drones.
 It may becomes costly for company as
interest will be paid on the entire
outstanding amount.
Venture capital: It is the kind of private equity and type of financing which render by
investor to small and start-up entities. These entities believe to have long term potential of
growth. It is made capitalist of venture purchase shares of these companies and become their
financial partners. F-drones can opt for this source of fund for their new project.
Merits Demerits
 It will provide expansion opportunity to
F-drones.
 It will help company to build
connection and networks.
 As F-drones is about to start their new
drone and this source of fund requires
time. It will delay their project.
 This require high return on investment
which will be a disadvantage for F-
drones.
Crowd funding: It requires small amount of capital from the large number of individuals
to finance a new entity. It utilises vast networks for easy approachability through websites of
crowdfunding and social media. In this context F-drones, may reach to many people for their
fund rise.
Merits Demerits

 It will help F-drones to raise funds
quickly.
 It will assist them to promote their
drones as investors keep a track on the
progress of the companies.
 It includes hidden cost about which F-
drones will not be informed.
 There is a risk of copying as there
drone idea will be displayed to public.
From the above it can be said that F-drones should opt for bank loans as their source of
fund as they can render huge at any time and for long as well as for short term.
TASK 4
P7. Evaluate the various tools that enterprises can use to create, retain and protect knowledge and
intellectual property
Intellectual property implies class of property which includes intangible creative activity
of the human mind (Mwema and Crewett, 2019). They cater exclusive rights to creators so that
they can make use for their inventions over a certain time period. They will be every helpful for
F-drones, as they are protected by law which will help to gain acknowledgement for their first
worldwide transition drone and their other inventions. Different tools that are used by enterprises
are mention as under-
Copyright: Copyrights does not protect ideas instead of this they only cover creations
that are in tangible form and works which are original. These creations include software codes,
music, arts, drawings relating to architecture. The owner of copyright has full right to sell , buy
and reproduce all those things which are created by creators. F-drones can protect their software
and codes with the help of copyrights. It also add to their prestige as this type of drones only
belongs to them.
Patents: Patents refers to prevention of inventions from being sold, created or utilise by
another party without the permission (Kalantaridis, 2019). With the help of this business
concerns have full right to sell, buy and commercialise their patents and they are done on the
basis of mutual agreement. F-drones can keep their competitors at a bay as well as they can
generate more revenue by selling their patents.
Trademarks: It implies to identifiable signs which allow customers to recognise the
companies merchandise easily. It may protect a class of goods and services instead of only one

process or product. They are often consider to be an assets for the entities as they render
recognition to the products that are produce by the companies. In reference to F-drones, they will
assist them to protect their company logo and provide identity for the quality of their drones.
Company can build brand image and enjoy goodwill with the help of trademarks.
Trade secrets: It refers to practice, formula, process, design, pattern and informations
through entities derive economical advantage over customers and competitors (Gupta, Thorpe,
Bhattacharyya and et.al, 2016). In this informations should be valuable, known to only few or
limited persons and rightful holders take reasonable steps in order to keep information secretly.
F-drones with the help of trade secrets can protect their drones secrets. It does not require any
cost of registration which make trade secrets cost effective for them. There is no time limit in
trade secrets which assist company to protect the valuable information for life long period.
CONCLUSION
From the above discussion, it can be concluded that innovation refers to all the activities
which renew any goods or services by using new process or techniques and with the help of
commercialisation these renewed products or services, ideas are converted into wealth.
Intellectual property like copyright, trade secrets, trademarks and patents are important for the
enterprises as they protect the rights for the invention holders. Entities need funding for the
operations and they can go for bank loans, crowdfunding and venture capital whichever suits
them. Further this is derived that 4Ps of innovation provide strategies to the enterprises and
development of new products will help entities to build an image and increase profit margin.
However, this report also adds that innovation is a process whereas invention implies to actions
which invent something.

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