Unit 8 – Innovation and Commercialisation

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................1
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................3
TASK 2............................................................................................................................................4
P3 Explain 4Ps of innovation and explain use of innovation funnel to examine and shape
innovative ideas...........................................................................................................................4
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................5
TASK 3............................................................................................................................................6
P5 Explain importance of commercial funnel and application of new product development
(NPD) processing for commercialisation of innovation.............................................................6
P6 Build an innovation business case for an organisation, including ways to access funding.. .8
TASK 4............................................................................................................................................9
P7 Evaluate different tools that organisations can use to develop, retain and protect knowledge
and intellectual property..............................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is defined as a process of designing and developing something new,
implementing and applying a new method to pursue something. It does not consist only a way of
introducing elements but it also said to enhancing previous ones. Innovation basically includes
various components like improvement, creation, designing and enhancement(Chen, Liu and
Zhu, 2018). Whereas commercialisation is defined as a process of initiating new products and
services in corporate markets. Innovation generally involves account production, marketing,
customer support as well as sales to accomplish success for their new products and services. This
report is based on on innovation and commercialisation on F drones, which provides aerial
transportation services and provides supplies to ships and offshore platforms. This report
includes importance of innovation , that provides vision, leadership, culture and teamwork, 4Ps
of innovation and use of funnel, development in frugal innovations, importance of new
developed products and commercial funnel, innovation business case, evaluation of tools which
is used to develop, retain, protect and intellectual property along with its conclusion.
MAIN BODY
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation is defined as a process of designing and introducing new products,
implementing and applying new methods of production. It refers to an idea that gets changed into
functional reality of businesses (Clayton, Feldman and Lowe, 2018). In any kind of business
development which is done on regular basis so that they are able to lead and have better work
and productivity effectively. Creation and designing is important as it there are various
competitors and in order to compete with them, development of products and services which is
important. Innovation is necessary as it leads to have growth, attract skilled individuals as well as
fulfils demands. As when businesses have innovation in their products and services, launch
something new then it leads to help in growing their business. As compared to invention, it deals
with creating and designing new elements but innovation consists enhancing old products. A
product cannot be invented without having innovation and its importance are as follows:
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 Attract skilled individuals: As when any company is an innovative in their operations.
And for that they keep their focus on attracting only those individuals who are skilled in
their specialised area (Oderanti, . and Li, 2018). When company generally innovates a
products then they give their efforts to hire those employees that have efficient skills to
perform their job roles effectively in company. While in invention, companies basically
focus on hiring employees as they want to manufacture a new product.
 Business growth: When any makes an innovation in their products or make
enhancement in their existing product that leads to have growth of company. When any
company innovates any new products they accomplish their desired growth as due to
enhancements which has been done in their existing product but in invention company
do not accomplish growth as a complete new product which is invented and they are in
their initial stage.
Comparison of innovation and invention is as follows:
Basis Invention Innovation
Occurrence Invention basically occurs when
management team finds a new and
creative idea and according to that
invent a new product or a service.
Innovation basically occurs in
company when management team of
company feels that there is a
requirement of enhancing existing
product and new implementation
should be made.
Skills needed When performing any invention in
product there is need of scientific
skills. It relates to observing
product which should be launched
in order to accomplish customer
satisfaction.
In carrying innovation technical and
marketing are needed that consists
implementing something new and
enhancing existing products
according needs and wants of
customers.
Concern Invention is generally is carried
and concerned with a single
product (Lai, 2018).
Innovation is generally concerned
with different products and services
as there could be many products that
requires to be improved.
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P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.
Innovation and commercialisation provides a vision, leadership, culture and teamwork to
companies that help them in carrying a good marketing value and generating customers. In terms
of F Drone, company could use these factors in having that are a follows: Vision: By taking up a company vision is considered to be most essential and important
element to accomplish its various objectives and goals (Stojcic, Hashi and Orlic, 2018) .
As when company has and carries a clear vision, then it will become easy for them to
accomplish success. In terms of F Drones, it helps company in designing and shaping
innovation and commercialisation as businesses designs and creates an environment
where all individuals belongs form various different backgrounds and they are provided
with a chance to share their ideas in to carry innovation practice effectively. Leadership: In recent times without carrying a effective leadership, company will not be
able to accomplish success. Leadership is said to be a way of managing a company
according to its objectives and goals. There are different types of leadership like
autocratic, democratic and participative that could be used by company in order to
accomplish its objectives. In terms of F Drones, company is following democratic
leadership style in their operations to carry innovation practices effectively. Culture: organisational culture can be defined as a way of getting things dine in
company. It generally consists of elements like rituals, structure, symbols and power. In
terms of F Drones, innovation and commercialisation creates an impact because of its
culture. As it defines innovation to getting things done and expressions of people, their
behaviour and their ideas(Csedő, and Zavarkó, 2020). When any kind of innovation is
done then it gets influenced by culture also. In context with commercialisation, all
procedure which is been followed is shaped by culture because process is made according
to what kind of rituals, ideas, structure is accepted.
 Team work: In a company efficient and effective teamwork is important as it helps in
solving all types of problems and challenges and in finishing a task and activity according
to planning which is being done. There should be a particular and specialised team that
performs activities and task in order to innovate and commercialize various product and
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services. In terms of F Drones teamwork is performed by carrying tasks and activities
together in order to increase effectiveness and according to that objectives are provided
by new ideas that could accomplish their goals effectively.
TASK 2
P3 Explain 4Ps of innovation and explain use of innovation funnel to examine and shape
innovative ideas.
There 4Ps of innovation which could be used in having innovation funnel which helps in
shaping new ideas. In terms of F Drones, 4Ps of innovation are as follows: Process innovation: This P of innovation is referred as a implementation and applying
of complete enhanced production. It consists of changes that are done in technologies,
products and even software. Businesses generally applies process innovation in order
that support companies to align their processes in a specific and systematic manner that
assure that their business will accomplish success (Dunn, 2020). According to view point
of Ajay, 2020, company has completed their first commercial BVLOS drone delivery
that provided 2 KG of vitamins in around 2.7 KM. There main objective is to take use of
proprietary drones that would be able to send 100 KM to offshore platforms and ships. Paradigm innovation: This P of innovation states that there is a transformation in a
complete variant technology. It generally consists different theories, beliefs and
principles. It is also referred as mental model. In terms of F Drones, company is using
their drones in oils and gas company and also by they are applying new methods and
approaches in accordance through subsurface geophysical acquisition. Product innovation: This P of innovation is defined to a development and designing of
new innovative products enhancements and changes which has been done is existing
products(Hameed, Von Staden and Kwon, 2018). It is performed because companies
want to enhance their quality as well as improve products that are already in use. In
terms of F-drones, company planned to innovate drones which can deliver 100 kilos over
distances of 100 kilometres and offshore platforms also.
 Position innovation: This P of innovation deals in designing changes in a method that
products are produced and innovated. Changes are carried as individual's perception
towards a specific product gets change. In terms of F Drones, company is still at an
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infancy stage but change was made by breaking their drones into rigid traditional barriers
in industries. It is also analysed that workload as well as production costs got decreased
while customer relations and accuracy got enhanced.
Concept of innovation funnel and its uses
innovation funnel is referred as an execution that consists and involve timely stream of
enhanced ideas and paradigm. Innovation funnel is used by various time that determine that
ideas and strategies that they should use and which not to use. There are basically 3 steps that are
involved in innovation funnel and it consists mouth of funnel (Kim, and Kim, 2018.) . As when
company gets more ideas , it becomes easy for them to come up with solutions and at same time
enhancing solutions. Information could be get from competitors and from institutes. In terms of
narrowing funnel all ideas that gets selected effective kind of resources which should be
allocated according to planned opportunities. Innovation funnel is used so that all ideas that are
generated leads to successful execution. In terms of F Drones innovation funnel that company
takes is use of drone technology that helps in providing different types of applications to
technology. Major innovative idea that they are using in term of delivery programs that is
allowed then to save shipping costs.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal Innovation is referred as commercialisation in case of limited resources, quality
products and services that are affordable in nature. It basically monitors full new entrepreneurial
landscape where small companies which includes limited quantity of resources is to develop and
design innovation in those countries who have low income(Audretsch and Link, 2018). Frugal
innovation focus on carrying better innovation and searching out specific methods to decrease
difficulty in business.
Developments that frugal innovation states increasing demand for frugal products and
development in their own processes. Companies could also render extra environmental and
social benefits that helps to deal with certain challenges. Principles of frugal innovation is as
follows: Including margins: As customers are required change at various points of time. So they
should focus on solving all challenges and problems as management team could ask that
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what exactly they want so that they could carry innovation with respect of all
requirements. Finding opportunity in adversity: Companies basically faces various kinds of problems
that sometimes create and designs a effective solutions to resolve all challenges (Sutopo,
Astuti and Suryandari, 2019) .
 Keeping it simple: In companies, it is more difficult that activities that will lead to have
challenges and problems and if team would design more variants then it will be difficult
situation for them so that they might keep all things simple in order to avoid such
problems.
In terms of F Drones, company implement and applied frugal innovation over different
use of technology they are engaged with. Cargo drones are being used that are ensured which all
products and services are been provided at that place where it vis required .
TASK 3
P5 Explain importance of commercial funnel and application of new product development
(NPD) processing for commercialisation of innovation.
Commercialisation funnel is defined as a buying process which companies leads to
customers while purchasing products(MIRGHAFOORI, MOROVATI and ZAHEDI, 2018) . It is
essential for companies as marketing becomes easier by taking use sales funnel, that forecasts
that are been done are accurate, conversion rates also gets increased and revenues could be
generated with help of commercial funnel. According to report it has been analysed that F
Drones is using commercial funnel to improve their sales and earn better revenue from
developed products.
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Applications of New Product Development
New product development is referred as a multi disciplinary process that changes market
opportunity in a complete marketable new product to generate customer satisfaction. Various
stages of process development process are as follows: Generation of idea: It generally refers to proper investigation for new product ideas.
There are two sources of new ideas which include internal idea sources and external idea
sources. In terms with internal sources, company search new ideas while performing
research internally only but in case of external sources, ideas are generated from
suppliers, distributors and competitors. Screening of idea: It basically refers to taking up a better ideas from various kinds of
ideas that has been generated as fast possible(Altaf, Hassan and Batool,2019). In stage of
idea generation it refers to implementation and designing various ideas and one ideas has
been selected. Development and testing: In this process, effective ideas must be developed. While
developing product and testing it, a more specific and physical representation should be
done in order to create customer value. Development of marketing strategy: As when a product starts getting developed this
stages carried its development of various marketing strategies that is used for inventing
products in markets. Analysis of business: This stage basically consists reviewing of all costs, profit and sales
predictions to search out as customer will be satisfied or not.
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 Product of development: This stage of new product development carries development of
product in its physical existence. Test marketing: This stage states about testing and evaluation of products and services in
markets.
 Commercialisation: It generally states about introducing new product in market. This
stage involves high amount of costs that are incurred and company that has to spend on
advertising sales promotion.
In terms of F Drones, company is carrying out first commercial drone delivery at night to
a vessel. Drone has navigated an anchorage that helped in delivering a critical component. And
with this company's drone system could carry 5KG to a distance of 50KM.
P6 Build an innovation business case for an organisation, including ways to access funding.
Business case:
It is basically stated as an organised structure document that consists activities and tasks.
In terms of F Drones, company is developing and designing innovation business case so that they
could accomplish success and establish their product and could commercialise it. Company is
basically planning to develop 100kg-100km drone that is named as hyper launch and which will
be able to deliver 5kg loads to a distance of 50km to ships.
Background of F Drones:
Company is generally developing and designing world's first transition drone that could
perform aerial deliveries to ships and offshore platforms. Product that will be established consists
combination of heavy payload and long range capabilities.
Vision:
Company's vision is to be leader in terms of payload.
Mission:
Company's mission is to modify it to large scale and on demand aerial transportation of
products and building drones that could fly further with heavier loads.
Opportunities in markets:
There are various opportunities for company as they could serve and save 80% of their
costs, carbon emissions and time in marine and offshore logistics.
Funding:
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Company's source of fund is from drone revolution fund which is in partnership with
Government. They also got funds from Singapore government who are bringing foreign
investments and helped them in shaping development of their company.
Ways of access funding: Bank loans: It is refers to a way to access all funds that means to pay a specific amount
of money of every moth that is considered as a way of interest. It is money that bank
provides money to other party and they have to give back with interest. Internal source: There are various internal sources of funds in finance that means that
they are operated in business with usage of all present activities.
 Crowd funding: It is stated as a process of raising money from large number of audience
so that individuals could fund a project or company for any basic reason. It is also stated
as a part of crowdsourcing and alternative finance (Gong and Peng, 2018).
TASK 4
P7 Evaluate different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
Intellectual property could said as a element of property that include intangible creations
of human intellect. It generally consists copyrights, trade secrets, trademarks and patents.
According to viewpoint of Alyson Behr, 2019, there are some of components that retain
and prevent intellectual property. In case of trademarks, they are some of some symbols and
names that are associated with company. It designs a creation of connection through brand
quality through that generate and built up reputation. In case of patents, it refers to a legal right
that does not authorise other individuals to perform manufacturing in same method which
company is carrying. In case of copyrights, it refers to have authority to copy. It basically
identifies a permission that is to be copied. In terms of F Drones, patents are proved to useful to
them as their new developed product is considered to be very effective. As it is required that
product should be protected and no other drone companies could copy them.
CONCLUSION
From above report it has been concluded that innovation and commercialisation is
considered as to be an important element which is to carried in business practices. Innovation
and commercialisation is essential for every kind of business. As when innovation is carried by
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businesses it could helps in leading and generating competitive advantage and revenues.
Businesses should keep its focus on having innovation in their provided products and services
rather than inventing them. This report carries a brief explanation about importance of
innovation and modes that provides vision and purpose to innovation. It is a explanation of
innovation and commercialisation that gets shaped with company' vision. It carries a brief
explanation of 4Ps of innovation in new developed product with a business case in order to
generate funding and capital along with funnel an frugal development.
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REFERENCES
Books and Journals
Altaf, A., e Hassan, I. and Batool, S., 2019. The role of ORIC in the evolution of the triple helix
culture of innovation: The case of Pakistan. Technology in Society . 56. pp.157-166.
Audretsch, D.B. and Link, A.N., 2018. Innovation capital. The Journal of Technology
Transfer.43 (6). pp.1760-1767.
Chen, X., Liu, Z. and Zhu, Q., 2018. Performance evaluation of China's high-tech innovation
process: Analysis based on the innovation value chain. Technovation .74. pp.42-53.
Clayton, P., Feldman, M. and Lowe, N., 2018. Behind the scenes: Intermediary organizations
that facilitate science commercialization through entrepreneurship. Academy of
Management Perspectives.32(1). pp.104-124.
Csedő, Z. and Zavarkó, M., 2020. The role of inter-organizational innovation networks as
change drivers in commercialization of disruptive technologies. International Journal of
Sustainable Energy Planning and Management .28. pp.53-70.
Dunn, K.E., 2020. The business of DNA nanotechnology: Commercialization of origami and
other technologies. Molecules .25 (2). p.377.
Gong, H. and Peng, S., 2018. Effects of patent policy on innovation outputs and
commercialization: evidence from universities in China. Scientometrics .117(2). pp.687-
703.
Hameed, T., Von Staden, P. and Kwon, K.S., 2018. Sustainable economic growth and the
adaptability of a national system of innovation: A socio-cognitive explanation for South
Korea’s mired technology transfer and commercialization process. Sustainability, 10(5),
p.1397.
Kim, H. and Kim, E., 2018. How an open innovation strategy for commercialization affects the
firm performance of Korean healthcare IT SMEs. Sustainability, 10(7), p.2476.
Lai, P.C., 2018. Research, innovation and development strategic planning for intellectual
property management. Economic Alternatives, (3), pp.303-310.
MIRGHAFOORI, S.H., MOROVATI, S.A. and ZAHEDI, A.E., 2018. Designing an Integrated
Model for Developing the Innovation and Commercialization Level of Iran's Knowledge-
based Companies.
Oderanti, F.O. and Li, F., 2018. Commercialization of eHealth innovations in the market of the
UK healthcare sector: A framework for a sustainable business model. Psychology &
Marketing .35(2). pp.120-137.
Stojcic, N., Hashi, I. and Orlic, E., 2018. Creativity, innovation effectiveness and productive
efficiency in the UK. European Journal of Innovation Management.
Sutopo, W., Astuti, R.W. and Suryandari, R.T., 2019. Accelerating a technology
commercialization; with a discussion on the relation between technology transfer
efficiency and open innovation. Journal of Open Innovation: Technology, Market, and
Complexity .5 (4). p.95.
Online
Ajay, 2020, F-drones completes first commercial beyond visual line of sight drone delivery in
Singapore [Online] Available Through:
<https://www.f-drones.com/post/f-drones-bvlos-singapore>
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Behr, 2019, Intellectual property protection: 10 tips to keep IP safe [Online] Available Through:
<https://www.csoonline.com/article/2138380/intellectual-property-protection-10-tips-to-keep-ip-
safe.html>
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