Unit 8 – Innovation and Commercialisation

Unit 8 – Innovation &
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation............................................................................................................6
TASK 2............................................................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................8
TASK 3..........................................................................................................................................10
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation................................10
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
..............................................................................................................................................13
TASK 4..........................................................................................................................................18
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................18
CONCLUSION .............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
In modern era, there are various reasons for the growth and success of any business.
Every organisation or a company is known for its distinguished products or services. The one
thing similar in all companies is the leadership which helps company is achieving its goals,
embracing innovations and make it stand out form other and its competitors. Innovation is a
process in which new or modified idea related to any product is being implemented by the
companies and launched to the reality (Harel, Schwartz and Kaufmann, 2020).
Commercialisation is also one of the process which helps in the introduction of either a new
product or production in the world of commerce.
The company chosen in this report is “F Drones company”. The company was established
in Singapore and it is specialised in marine deliveries. This report explains the innovation and its
importance along with its comparison with the invention. It explains about the vision, culture of
the company, leadership, etc. this report also discuss about the 4Ps of the innovation and also the
frugal innovation process. The report explains about the new product development process and
also about the business innovation case.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention
Innovation mainly is an idea which is transformed to a practical reality. In a business
organisation, an innovation includes: business concept, product, process , etc. Innovation is
developing and then implementing ideas into business organisation so as to improve the ways in
which things are done or to achieve certain goals by the company. Innovation helps organisation
to improve its productivity and efficiency. Innovations helps business to be innovative and
compete in the market by responding to the necessary changes.
Invention can be defined as some unique device or a method. It can also be a
combination of various other inventions or of process. It is a creation of new ideas which when
created they come into reality. The process of invention is commonly referred as a process which
involves engineering and also the development of the product (Hamada, 2017). It may also
include improving of an existing product or process for creating something unique, novel or
different.

F- Drones Company, an organisation which is now focusing on aerial deliveries to the
ships and to offshore platforms. There are many importance of the innovation on which F-
drones are currently focusing on. They are mentioned below: Growth of an organisation: It is very important for an organisation to focus on its goal to
achieve success. It is examined many a times that company often reject the idea of
innovation as it takes lots of time and the process is slow. But when a company wants to
grow, even the slow process proves to be beneficial for the company (Harel, Schwartz
and Kaufmann, 2020). F drones is a very large organisation and due to its unique
innovations it has given hard competition in the market. This is a strength of the company
as it helps in attracting more customers. It defines uniqueness of a company: Innovating something and introducing that in the
market gives option to the customers to try and buy something new. This attracts
customers as customers like different things. F drones are continuously trying to focus on
the innovations which have unique concepts and no other competitor of its has taught
about it yet. The company likes to stand out alone from others and given competition to
its competitors. This is the main reason behind its success. Innovation helps in keeping companies relevant: The world is changing continuously as
so are the demands. To cope up with the changing trends it is important that companies
too adopt new realities and stay relevant and profitable. F drones is continuously working
to make changes with innovation in their technologies which is also keeping them
relevant and earning profit in a competitive world (Sathler, 2020).
Difference between Innovation with Invention
Basis Innovation Invention
Meaning It is implementing ideas for
either process or product for
first time.
It is occurring of new idea
either for a product or process
which has not occurred before.
Skills Required Skill required are: marketing,
technical, strategic, etc.
The main skill needed is
scientific skill as it is invention
of something new.
Occurrence An innovation is made when Invention is made when any

need of it is realised by the
company.
new idea strike the mind of a
scientist.
Concept It is implementations of new
ideas.
It is termed as an original idea
which is already worked in the
theories.
Overlapping of innovation and invention
Innovation and Invention both are introduced or launched for the betterment of the
society and also to increase the growth of the company by earning more profit. Both the
innovation and invention are done focusing on the technologies and need of modern society.
Inventions and innovation are both an idea for a business which will help it to improve
the world in some or the other way and they are also be in accordance to the needs of the society.
What factors force company to innovate?
The factors that force any company to innovate are PESTEL, competition, customers and
globalisation. All the factors are explained below: PESTEL: This factor is the analysis of another six factors i.e. political, economical,
social, technological, environmental and legal. Considering all these factors by F drones
will help the company to take effective decision. These factors helps company in making
decision related to the innovation by analysing all the external factors that might affect
the new or improved innovation so made. Competition: This is another main factor which force a company to innovate. The
companies are always trying to get ahead of their enemies and competitors and therefore
it is needed by them to innovate new products to sustain the competition in the market.
The innovation of the F drones company is also affecting the competition by its
introduction of aerial transportation drone into the market. Customers: This is the major factor as customers are the only ones that helps a company
grow more and succeed. Innovating new products by the company helps in attracting
more customers which eventually leads to the growth and success of the company. F
drones by making new innovation of the aerial drone is also attracting more customers as
it is the first company to introduce such an innovation.
 Globalisation: The business activities these days are not only confines to the local
markets but with globalisation it has spread through out the world. Globalisation is also

one of the major factor that force a company to innovate. By innovating F drones will be
recognised globally and will gain more profit from all over the world. This will also help
in increasing the economy of the country.
P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.
An organisation is considered to be an entity which are involved in various functions and
activities so that they can achieve the goals of the company. The company to grow more and be
more successful have to innovate and develop different ideas so that they can stand out and gain
more success (Santoro, Ferraris and Winteler, 2019). F drones is a very large company which is
building drones that can be used in making aerial deliveries. There are various factors that affects
and helps company with making an innovation come to reality. They are: culture, teamwork,
leadership, etc. these elements are discussed below with reference to the F drones which are
helping the company in its innovation and commercialisation.
Organisational vision: A company's vision statement is to achieve long term goals. The
functions carried out by the company are based upon the operations decided by the company at
the company's initial settings. The main agenda of the F drones company is represented in its
vision statement. The vision statement of the company is that they are making innovations to the
drones which can carry heavy load order and fly so as to fulfil the orders of large scale on the
demand of the goods through aerial transportation.
Organisational leadership: leaders of the company are responsible for the carrying out
activities which helps a company to achieve its goals by looking after the management and
motivating employees to work efficiently. F Drones is a large company which believes in
innovating new ideas every time so that they stand out of others. The leaders of the F drones
company follows participative leadership style, so that they can engage its workforce in debates
and in discussions to get creative ideas from them.
Organisational Culture: Belief's, background, values, etc. of any organisation represents
its culture which company company in guiding workforce (Parham, Vrettos and Levinson,
2021). F Drones company always try to motivate its employees so that they are satisfied and give
good productivity. The company also engage employees while making decisions so that they feel
values. This helps in the increase of their performance.

Teamwork: Innovating something is possible only with a great skilled team (Stefoska-
Needham and Tapsell, 2020). At F Drones, all the employees are engaged in work so that they all
work together providing their specialised skills and knowledge like: project management,
financial control, etc. so that the company achieve its goals on time.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.
Process of innovation is an introduction of something new. To adopt and implement
innovation, 4Ps of innovation can be used by the F drones company. They are explained below:
Product Innovation: In this, a new process or method is featured, which is either
improved or is original. The product innovation taking place at F drones company is transitional
drone that helps in making aerial deliveries to the ships and offshore platforms. Many company
make drones but this is the first company introducing drones that carry heavy logistics.
Process Innovation: This includes process and procedure on how the product was
created. The F drones company must implement all the reliable standards and consider those
which can carry heavy load by the drones. The process must be in consideration with high
standards of safety.
Position Innovation: This is the process in which the company target the market places
for the new innovation made. The company F drones will target those companies that are already
engaged in offshore and marine logistics.
Paradigm Innovation: This includes all the answers to the changes or innovations like:
what, where, why and how will the work be done. This explains various theories and principles .
The management at the F drones can also make use of such theories and implement them to
increase efficiency. The company can also use systematic innovations so as to enhance
knowledge of the small components that will be required at various levels of innovation.
Innovation Funnel
This is one of the mechanism that helps in providing with the steps that are useful in
development of a process or product. It helps in determining the stages required in bringing the
change. F drones can also use this mechanism to develop its product. The process is discussed
below:

Illustration 1: Innovation Funnel, 2016
 Investigation: It is the stage where department of research and development gathers ideas
for the F drones company by referring to its internal and external sources. According to
the demand and the conditions of the market the company selects its innovation. Development: Once all the ideas are gathered it is scrutinised and then the idea is
developed with reference to company's vision, mission and objectives. Likewise,
transitional drones are made by the F drones company to deliver goods to ships and to
make offshores delivery.
 Shipping Product: This is the last stage in which a product developed is launched. This is
the most important stage which helps in determining the success rate of an innovation
(Buenechea-Elberdin, Sáenz and Kianto, 2018). Therefore it is important that F drones
while laughing its innovation to the market make such marketing strategies which attracts
customers.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal Innovation is that process which helps in the reduction of the cost required by the
company in carrying out its activities. This process helps in removal of the features which are not
essential from the goods so that they can be sold to the developing countries. This also discovers
new business models and also value chain that is helpful in designing of the products and
services so that the company retain its quality and render its best services to the people for whom
its difficult to afford. In an area where the demand is high and the resources and minimum, the

companies get motivated to fulfil the demands using less resources in sustainable manner. There
are many principles that are provided by the experts to use the frugal innovation. Few of them
are mentioned below.
Principle 1: Engage and Iterate
Under this principle a company is expected to do research and development using new
techniques rather than using the old methods so as to save cost and time (Marcolin, Vezzetti and
Montagna, 2017). The management at the F Drones to do marketing make use of social media
and take helps from the websites so as to promote its product. This will save the cost and time of
the company.
Principle 2: Flexibility
This is also one of the principle of frugal innovation which also applies to the wider asset
chains. By using frugal innovation, F drones can held minimise its cost and maximise
profitability of the company.
Principle 3: Development of sustainable solution
The resources are constantly being used by many which is making them diminish.
Therefore it is needed that companies used sustainable methods. F drones can also use
sustainable solutions by recycling and reusing its resources.
Principle 4: Shape customer's behaviour
It may be difficult for the company to sometimes shape the behaviour of customers. F
drones can do this by making people aware and educating them with the relevant information
needed to0 be known by them.
Principle 5: Make innovative trends
Trends can be highlighted by the F drones company if they collaborate with the
government or with any of its suppliers so that the company attract audiences in a very less time
(Baskaran, Chandran and Ng, 2019). This way the company may increase its customer base.

TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial Funnel is one of the marketing tool that helps a company in finding, trading
and also qualifying its merchandise to customers. This is the tool which breaks the journey of
customer starting from awareness and ending to purchase stage (Barlatier and Mention, 2019). It
is chronological process that helps in attracting customers and also convince them to buy
products. By using commercial funnel by F drones, company will be spreading awareness in the
market about the product which will help company in attracting more customers. This will
increase the sales of the company and also the company will earn more profit.
In context to the F drones company, the stages involved in the commercial funnel are
explained below. They are:
 Awareness: This stage includes those people who knows about the product. The
company F drones will use social media platform and various websites to spread
awareness in very less time to attract more consumers. For this, company can also engage
itself in marketing campaigns.
Illustration 2: The AIDA Model, 2017

 Interest: This is the stage in which company can know number of people who have
shown their interest on the websites or who have contacted them. This way F drones will
attract more customers. Decision: This is the stage in which the customers who are interested make decisions
related to the purchase of the product (Galiakhmetov, Giuri and Munari, 2018). The
company F drones shall announce offer and discounts in order to promote and enhance its
sales.
 Action: This is the phase in which customers actually buy the product. The F drones
company shall make sure that the needs and requirements of its customers are fulfilled so
that they can retain them for longer duration.
New Product Development Process
This is an important process which helps company to bring new products into the market.
This process makes sure that the product idea is created and launched in the market. The product
being launched can be new, modifies or an improvement of an existing product. With reference
to the F drones company, the following steps shall be taken while launching its new aerial
delivery drone in the market.

 Idea generation: This is the stage in which an idea is generated by the company through
systematic research and development (Alunni, 2019). The company F drones generate its
ideas by performing R&D in both its internal and external sources.
Illustration 3: New Product development Process, 2021

 Idea screening: This is the stage in which the ideas selected by the R&D are filtered and
the best one is picked which will give more benefit to the society and profit to the
company. Concept development: this is the process in which an idea is converted into some shape
of a product. This detail helps customers to understand the product. Marketing Strategy: This is the stage in which marketing of the products is decided. The
company F drones prepare various strategies to market the product made so that more
customers can be attracted. Business Analysis: This is the step in which cost is reviewed along with sales and profit
of the product. By this it is found by the company that the needs and requirements of the
customers are being satisfied. F drones company can also evaluate this by using various
of its sources. Product development: This is the step in which F drones implement its innovative idea
which is then tested. Market Test: This is the process in which F drones will test its product with its marketing
strategies in the real and competitive market. The company will analyse whether the
products is matching the standards or not.
 Commercialisation: This is the last stage of this process in which the product is launched
in the market as per the planning done by the company.
P6 Build an Innovation Business Case for an organisation, including ways to access
funding.
The new innovation which F drones company is planning to introduce in the market is
aerial deliveries of heavy goods to offshore platforms and ships. It is an innovative idea in which
a company is making drone which will carry heavy load in the air and can take off flying with it
vertically similar to the fixed wing aircraft. This novel idea will help company to increase its
profit and sales.
Steps Description
Idea This is the idea which will show in an effective manner, the development
of drones in F drones company. The innovation is the result of the
analysis done of the market condition along with the needs to the

Steps Description
customers. This innovations will help in delivering goods offshore ships
in an effective manner.
Objectives The main objectives of F Drones company is to become the heavy
payload logistics leader in the next 5 years.
Opportunity The innovation will provide F drones company with an opportunity to
increase the competition in the market and also increasing the profits for
the company. This will help company to grow more and achieve success.
Mission The mission statement is to allow the aerial transportation at very large
scale of the goods with its new invention which helps in carrying heavy
loads.
Vision Company's vision statement is to become the leader in the industry of
drones.
Innovation In
Product
The innovation with which F drones company is planning to introduce is
aerial deliveries of the heavy load goods or products to off shore and
ships. This innovation will help the company in creating opportunities and
making it easy for buyers to make offshore deliveries possible.
Resources There are mainly four important resources that is needed by the F drones
company. They are: Capital, people, time and the equipments.
Project Plan The F drone company after its completion of the innovation will focus on
its marketing strategies and will target those companies which are already
dealing in the offshore and marine logistics.

Steps Description

Steps Description
Risk The F drones company is introducing a unique and rare idea which carry
heavy logistics. There is always a risk which is associated with it of
failing of the product in the market and also the risk if drone could not
carry the expected heavy load.
Funding To create such innovation. Company will raise its funds from its external
sources like: its investors, loans from banks, crowd shareholders, angel
investors etc.
Benefits The benefit of innovating this innovation is that it will help the buyers of
the drones, offshore logistics or marine ships to carry heavy load of goods
or products very easily with the help of drone. It will help in enhancing
the aerial transportation. The innovative drone have a feature which helps
it to fly like a wing aircraft and which can also take off vertically. It can
also land on any moving target too very easily.

Steps Description
Cash flow work
Monitoring And
Controlling
As this is a unique concept therefore it is important that the company F
drones control and monitor the process of it. The tool which will be used
by the company will be the key performance indicator that will help
company in meeting its set standards.
Project Break Even It is used to determine the actual point where the company can achieve
higher profits. BEP analysis guide the managers to set appropriate prices
for the products that are manufactured by the company.
Managers may get the idea of such units that needs to be manufactured to
recover all the costs that are related to production process. From the
above image it can be analysed that when revenues and total costs meet

Steps Description
than it results in break even point. Fixed costs always remain same for the
production and variable costs always fluctuate according to production
units.
Ways to access funds
To raise the funds by the company for any innovation its dependency lies on its external
or internal sources. F drones company may raise its funds from investors or may take loans from
the bank to implement the idea of innovation, successfully. Bank loans: This is very secured form of funding. In this bank provide loan and also
charge interest on the principle amount given to the company (Napier-Munn, 2017).
 Investors: This is the way in which companies can attract more investors to invest on
their innovative ideas. This also benefit investors when the company earn profit.
TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
There are various measures which can be taken by the company to protect, develop and
retain their intellectual rights. The measure that protects such rights are: patents, copyright,
trademark, etc. Few of the measures related to the F drones are discussed below:

Patents: They are the rights which are given to the inventor of an invention. Such rights
are granted by the government and authorities which are authorised to grant (Daellenbach,
Davenport and Ruckstuhl, 2017). These right are given after an inventor discloses its invention.
Patents are provided to an inventor for a fixed duration of time. This right helps an inventor to
protect the work done by him and also this protects the process of such innovation. No other
person can copy such invention.
Advantage of patents is that the innovator is given protection till its statutory life and the
owner of it can file a case where any rights of him are infringed.
Disadvantage of patents is that they are very expensive to get. Also the life of any patent
is very less. The maximum years is 20 years of protection.
Copyright: It is not that different from patents. This is the right which is granted to the
writers or authors to protect their work. It helps in the protection of the ideas or the concept of an
individual.
Advantages of copyright is that this right is given to the owner for the maximum of 70
years which is for a very long time.
Disadvantage of copyright is that there is no ownership of an author. The rights of the
copyright can only be enjoyed by an owner of the work when such work of them is copyrighted.
Trademark: Its is a sign or an expression or design which is recognised and also helps in
identifying the products and services of a particular company from that of other.
Advantages of Trademark is that it helps in the prevention of taking advantage of the
goodwill of a particular company by some other company which was created by them under their
business name.
Disadvantages of Trademark is that it is to be registered and the timely renewal of it is
necessary to maintain the elusiveness of it. The cost of registration and renewal is also high.
From the above discussed intellectual rights it is examined that the company F drones can
protect their innovation made through patenting it as patents gives exclusive rights to the
inventors which are specifically for the innovative work done.

CONCLUSION
From the above report it is concluded that, for the success and growth of any company,
innovation plays a major role. Innovation is the creation of an idea into reality while invention is
a new and an original idea. The 4Ps of the innovation is very beneficial for the company as it
helps in the process of innovation. The company F drones is planning to launch a drone which
will help in making of the deliveries of heavy loads of goods and products to the offshore
platforms and the ships. With the innovation of such drone, company may use the innovation
funnel and its process which will help the company in developing its product. The company will
also get help from the NDP process i.e. new development process in the development and
launching of the innovation. To safeguard the process and the product, the company may get it
patent under their intellectual property rights.

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