Importance of Innovation and Commercialisation in Business Organization

Unit 8 – Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
P1 What is innovation and what are its importance in the organisation in comparison with
innovation...............................................................................................................................3
P2 Discuss organisation vision, leadership, culture and teamwork which shape innovation and
commercialisation...................................................................................................................5
P3 Discuss 4ps of innovation and innovation funnel.............................................................6
P4 explain development of frugal innovation with the help of an example...........................9
P5 Discuss the importance of commercial funnel & application of development of new
products................................................................................................................................11
P6 Determining ways of funding by building innovation business case in organisational
context..................................................................................................................................14
TASK 2..........................................................................................................................................17
P7 Determining various tools organisation use to protect or retain knowledge and intellectual
property.................................................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
This report help in understanding the importance of innovation in a business organisation
in order to maximize business profitability. In a business organization Innovation is the process
of developing new and creative business ideas and commercialisation is the application of
different business strategies for presentation of that idea in market along with its establishment.
In an organisation, innovation can be processed in product, marketing, process, and organisation.
The organisation that is selected for the completion of this report is F- drone. The main purpose
for the selection of this particular organisation is only because of their innovative and creative
ideas This report is based on the selected organisation for, there is the consideration and
evaluation of innovation and commercialisation in context to organisation growth, development
and success (Rasmussen, T.E. and Eliason, J.L., 2017) .
.
MAIN BODY
Task 1
What is innovation and what are its importance in the organisation in comparison with
innovation
Innovation- This is used within business as the important skill or ability of the
entrepreneur or business man, through which they develop the new business plan and strategies
in order to achieve success. This can also help to overcome from the challenging issues
organization which can be short by innovative solutions.
Invention- This concept is about developing something new and unique so in context to
with a company invention is the approach to develop something creative and useful for the
success and the growth of the organisation. Such as the development of new techniques in the
drone for better services and product line for the target market. Unlike innovation, invention
tends to create something new from the scratch or from level zero.
Importance of Innovation over Invention
Innovation is creative skills of the individual’s which helps in the development of
inventive ideas thorough which the effective invention is can be accomplished. Innovation is the
key step of invention. Below is the brief explanation of the innovation and invention in context
to the business organization.

Provide direction for the invention- individual’s creative and out of the box thinking is
the part of their innovation skills which further helps in the invention of new business idea and
new unique products development. So, innovation is key directive step of the invention.
Innovation paves the foundation of invention.
Guidelines for invention- creative and innovative abilities and qualities of the
individual’s or group helps in the development of effective invention plan with the selective
guidelines of the innovative ideas. It works as the invention’s guidelines and formula for new
services and business strategy development (Haron, H., 2018 ).
.
Reinforce Brand: For each and every business organization image of their brand and its
value is influencing the changes in their share’s values, so in context to this organization
innovation approaches for offering the new unique services and products are the key factors
which helps in developing the strong base among the consumers. By meeting the comitative
edges.
Helping in growth of organisation- in relation to the F-Drone implementation of the
new innovative ideas in done in order to develop this effective tool with the benefits of resources
saving and time and money management. Products quality, facility and uniqueness will increase
the company profitability, and help to compete in the market with better product quality and
services.
Development of a unique selling point: UPS (unique selling point) means the unique feature of
the product or the company that differentiate the business services or products from the market
competitor. F-Drones is developed with the innovative idea of long range of capacity and
combination of the heavy payload, which develop the unique purchasing point for the
customers .
Pestle analysis
Political factors: This factor is very important in drone industry as there rae various
political issues that either allow drones such as unmanned aerial vehicles or ban their use through
transportation department. Therefore, f-drones have made sure there is proper mangemnt of
regulations set by American aviation. The weight of drones also varies its use for commercial use
at many places that is fifty five pounds maximum.

Economic factors: In a perfect competition market, organisation such as F-drones have
introduced a fast alternative way to carry out logistic activities including transportation of raw
material. The most efficient way of introducing drones in market is replacement of manual labor
with fast technology drones leading to better productivity.
Social factors: Main motive of innovation and invention of product is to commercialize
new product into the market. For success of F-drone vision they innovate new ideas like the
delivery drone and commercialize that product in market economy.
Technological factors:When a company provides new product with high quality it
enhances the value of organisation, as an innovative product provides competitive advantage to
company. Therefore, F-drones has use technological innovation for improving their process and
achieve growth in future. The parts for development of drone are taken from the old and the
unused drones. develops other drone which give more benefits to their customers as compare to
their competitors.
Legal factors: This factor signifies various rules and policies under which many
countries restrict
use of drones. Therefore it is important for chosen firm to follow laws of very country or region
they are operating their aerial drones technology.
Environmental factors: Respective organisation use this factor to do internal & external
environment analysis. One such factor is climate or werather of country usually that may broadly
affect or limit use of drones.
Competition, customer and globalisation effect on innovation & invention
Invention refers to generation of new idea for any product and serveries that never been
made before. These new ideas have no relation with the product and services already exist in
market. In context of F-Drone their research and development department are working on
inventing new ideas. Which helps in future growth of company. As per this, the concept defines
as invention is basically working on theories and on a new idea which is not exist in market. In
context of F-drone they use different segments of customers for successful invention. The skill
which is required for this is electrical and mechanical skills. Invention is basically for single
products and process. It provides a new product or service to market which helps in improving
economic growth. In context of selected firm invention is only limited to research &
development department (Henttonen, K. and Lehtimäki, H., 2017).

Innovation refers to a practical implementation of new ideas related to any product and
services for the first time. In context of F-Drone they innovate their existing products for facing
competition and creating USP for their products. Innovation helps organisation in making their
products more useful to their customers. Concept of innovations is related to practical
implementation of new ideas which is related to products and services. In context of F-Drone
their innovation helps in increasing profit through customer satisfaction. In context of company
they require a set of marketing, technical & strategic skills. Organisation have to deeply analysis
different needs, trends of market & financial capacity of organisation. It concerned with different
combination of product and process. All activities related to innovation of a production and
service is spread all over the organisation
Discuss organisation vision, leadership, culture and teamwork which shape innovation and
commercialisation.
In context of company, its long-term success is depending on different factors which help
organisation in achieving its goal. Innovation of new product helps organisation in facing
competitive market and increase profitability of organisation. The process of promoting,
advertising and selling the new innovative product is consider as the commercialisation. For
success of new developed innovative product this involves the different activities from the
management of new products, promotion and distribution, such as the various marketing process.
. some of another important factors of the innovation and commercialization are given below.
Organisation vision- In relevance with the F-Drone organization vision is to develop the drone
with further more services facilities, behind this product organization idea is very innovative to
facilitates the higher weight capacity for long distance place delivery services of drone. Heavy
weight transportation services by the drone to the distance place is the organization advantages
over the competitors. This innovative and unique property drone development innovation and
then final invention of that further helping the organization to commercialize the product and
achieve success in the market.
Leadership- this is the key function of the organization leaders and team manager which is
important in order to influence the workers for giving commitment and motivate them for the
productive work through which company can achieve their selective goals. F-Drone company is
using the autopilot leadership under which they lead team according to the new and innovative
means of talent and team development. Organization leader try to encourage the team members