Innovation and Commercialization

This assignment explores the significance of innovation and commercialization in companies, with a focus on F-Drones. It explains how organizational culture, vision, leadership, and teamwork shape innovation and commercialization. The assignment also analyzes varied sources of innovation and the use of the innovation funnel to shape innovative ideas. It justifies the development of frugal innovation and its usage in the organizational context. Additionally, it examines the application of the innovation funnel in F-Drones company.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Explaining innovation and its significance to companies in comparison with invention..........3
Explaining how organizational culture, vision, leadership and teamwork shape
commercialization and innovation..............................................................................................4
Analysing varied sources of innovation and acts of fostering & developing environment of
innovation....................................................................................................................................5
Explaining 4Ps of innovation and use of innovation funnel to analyse and shape innovative
ideas.............................................................................................................................................6
Justifying development in frugal innovation and its usage in organizational context................9
Analysing application of innovation funnel in F-Drones company..........................................10
Appraising role of frugal innovation in F-Drones.....................................................................10
PART 2..........................................................................................................................................10
Explaining importance of commercial funnel and application of NPD processing for
commercialisation of innovation...............................................................................................10
Building an innovation business case in context of F-Drones company, including ways to
access funding...........................................................................................................................11
Ways used to measure overall effectiveness of business case using appropriate techniques
accessible to test, improve and iterate.......................................................................................14
Evaluation of IP tools in wider business environment context.................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is defined as a procedure by which service or product is renewed by applying
new procedures and establishing creative ideas. While commercialization is described as act of
launching new goods and services into firms for making it accessible in front of buyers to earn
profit. The current assignment will be based on F-Drones company, which is known as the first
transition drone manufacturer in the world. The study will explain innovation and its value to
company in comparison with invention. It will define how leadership, organizational vision,
culture and teamwork shape innovation & commercialization.
This assignment will justify 4Ps of innovation and use of innovation funnel in context of
shaping creative ideas. Furthermore, it will explain development of frugal innovation and its use
in regard to chosen company. The report will clarify importance of commercial funnel and
application of new product development (NDP). Moreover, through innovation business case
study will provide procedure of innovate a new product along with its funding sources. Lastly,
assignment will evaluate different tools that firm can use to develop, protect and retain IP
knowledge.
PART 1
Explaining innovation and its significance to companies in comparison with invention
Innovation is one of the most essential and beneficial forces as it drives the efforts and
activities of companies towards producing creating new value for target consumers (Lüdeke‐
Freund, 2020). It usually defines as the act of making changes and adding new value in existing
products that satisfy the needs of customers.
Importance of innovation in context of F-Drones as compare to invention-
Innovation is connected with creativity, which provides benefits to the chosen company.
It is quite important for firm because innovation help to increase customer satisfactory level and
maximize the productivity of its venture.
Innovation is very important for F-Drones as compare to invention, it helps to save time
and efforts of company in the context of manufacturing a drone which they used to conduct
transition act. It assists increasing its competitivenesses and maximizing profitability.

Invention is defined as method, process and composition of developing new service or
good. This procedure encompasses techniques and methods that used to invent something new &
attractive.
Comparison-
Innovation Invention
Innovation is essential for company because it
helps firm to introduce those products that its
consumers like the most.
On the other hand, the invention is less
beneficial for the organization as it allows
management to create a new item that many
people do not like.
Innovation is usually an invention that causes
modification in interactions.
While invention is a process of manufacturing
a new product.
For F-Drones, innovation is much more
essential than invention as it make them able to
change products according to what consumers
like.
On the other side, invention permit firm to
create something new that has not existed
before.
Explaining how organizational culture, vision, leadership and teamwork shape
commercialization and innovation
There are different factors accessible in the corporate world that contributes to shape up
innovation & commercialization. For example;-
Organizational culture-
A Company's culture always play a vital role in context of shaping innovation and
commercial (Gürlek and Tuna, 2018). For example, collaborative and coordinative culture within
F-Drones, drive the attention of its workers to be innovative and creative. It enables individual
worker to shape commercialization in form of introducing a new drone which in return increase
profitability of firm.
Vision-
Each company set a specific vision and mission statement, which defined workers to
which service or item is needed to innovate and in what manner commercialization of creative
item is done. For example, the vision of F-drones is to be a leader of heavy payload drone. It

drives the thinking and efforts of employees towards innovation, and then they work hard to
manufacture the world's best heavy payload drone.
Leadership-
Just like above factors, leadership can also support to shape above two elements. For
example, by providing right guidance, suggestions and conducting collaborative practices with
employees, leader drive people attention towards innovation. It shapes commercialization by
supporting staff members to innovate new drone, which provides benefits to company in term of
generating revenue and increasing market shares.
Teamwork-
Group-work benefit F-Drones in form of increasing its productivity and performance
level. By working in a team, worker easily share innovative ideas with each other and focus on
producing a new heavy payload drone in form of innovation (Schuh and et.al., 2018). Teamwork
can contribute to the commercialization of this new item, by introducing it in a market where
potential buyers are seeking to purchase it for a longer period of time.
Analysing varied sources of innovation and acts of fostering & developing environment of
innovation
7 Sources of innovation-
Unexpected occurrences-
Unexpected things like intense competition, project failure and success drive the attention
of companies like F-drones towards innovation and in form of outcome, it plans to manufacture
world's first heavy payload drones.
Congruities-
By making sense to fit innovation system in production process, company may grab the
opportunity to innovate a new drone (Philipson, 2020).
Process needs-
It includes process of determining firm's weak spots and correcting them. For example, F-
Drones weak point is lack of creativity. In order to overcome this weakness firm work hard and
now focused on designing and producing innovative drone.
Market and industry changes-

Changes in context of technologies that used in a market for marketing purpose may
allow company to be innovative. It permits firm to update their existing systems and develop
unique marketing plan.
Demographic changes-
It includes change occur in income levels, populations, and human capital. Smart
companies like F-Drones are constantly paying attention to these, which enable them to identify
what changes need to do in the form of innovation within existing goods.
Change in perception of buyers-
Over time people and population changes. In recent time, instead of using human capital,
people like to use advance technologies for moving one objective to another place. By focusing
of this thing, F-Drones has taken decision to manufacture heavy payload drone, which is able to
deliver heavy goods from specific place to off shore platforms.
New knowledge-
It is all above act of finding new ways of doing thing and boosting processes. New
knowledge relate to high tech systems and advance technologies, drive the attention of F-Drones
towards producing a drone which is quite different from the previous one.
Way to foster a culture of innovation within F-Drones company-
Leaders and Human resource management within chosen company contributes creating
culture of innovation. For example, by using effective and appropriate leadership style, leader
work with staff to enhance their productivity and drive their thinking towards creativity. HRM
also support in this procedure by developing a training session through which each worker may
learn new things and gain knowledge about how to manufacture a drone. It helps to create
innovative culture in company and boost productivity level.
Explaining 4Ps of innovation and use of innovation funnel to analyse and shape innovative ideas
4Ps of innovation-
Paradigm-
This element of innovation establishes what organization must do to make current and
further changes in the form of creativity in their existing drone structures and functions (Gao,
2021). It is a way of looking and considering some new product, situation or service. For
example, in order to minimize the stress of companies that want to make product transition
process easier, F-Drone manufacture a new drone which carry Heavy load.

Product-
It exhibited that how a firm make its services and goods better by using creative methods
and techniques. For example, by using advanced surveillance systems, thermal sensors, HD live
feel video cameras and different forms of equipments, company produce a unique and new
drone, which no one can produce.
Process-
In order to produce new heavy pay load drone, F-drone focused on this component of
innovation. According to that, company by hiring new people that have creative skills and
knowledge about drone production, shape innovation.
Position-
With this P of innovation, F-Drone present its product such as new drone in front of
buyers and companies, who need it for transition purpose.
Innovation funnel application in regard to shape innovative ideas-
Innovation funnel is the way that mostly all large companies used to manage their
innovation process in effective and systematic manner (Anzola-Román and et.al., 2019). It
clearly describes 6 stages that take place in manufacturing a new drone. In organizational
context, this concept is used to examine and shape innovative ideas by following and applying all
the phases.
Stage 1- Idea generation
According to this stage of innovation funnel, company may examine and shape
innovative idea, through collaboration and communication with their employees (Meierhofer and
Herrmann, 2018). Use of these two elements at the workplace, help to generate idea which firm
may implement to increase profit in term of commercialization.
Stage 2- Idea management
After generating innovative idea, F-Drone may shape it by managing successfully. It
includes capturing, generation, evaluation and selection of new idea relate to new drone
production. Management by selecting the best idea among many, effectively manage entire act.
Stage 3- Development of innovation projects
After passing above two stages, organization move to the third one, which enables them
to shape chosen innovation idea like producing new heavy payload drone. According to this

phase, company by developing detailed project plan with clear mission, aim and objectives,
successfully contribute to shape above chose idea.
Stage 4- Product development (protection & exploitation)
The outcomes of project planning in context of innovation may shape chosen innovative
idea of F-Drones, which they implement in practical manner in term of manufacturing new
heavy payload drone (Abramov and et.al., 2019).
Stage 5-Market introduction
An innovation idea is shaped systematically by conducting marketing activities, which in
return increase profits margin and generate revenue. This stage allow firm to launch new drone
in market by developing the best marketing plan and using the most influencing platform.
Stage 6- Outcomes
After launching new drone in market, firm may gain all the benefits in form of gaining
competitive edges, increasing profitability, revenues etc. in term of commercialization.
Illustration 1: Innovation Funnel
(Source: Innovation Funnel Management, 2021)

Justifying development in frugal innovation and its usage in organizational context
Frugal innovation is an innovation that encompasses process of designing and
manufacturing products, services, business models and systems to reduce overall life cycle costs
and difficulties (Albert, 2019). It enables company to sell affordable product with better
functionality and value to consumers. It is developed and used in F-Drone context, by
considering its five important and useful attributes.
Cautious resource utilization-
Organization uses frugal innovation concept at workplace by minimizing use of
unnecessary resources. As it encompass usage of less financial resources, raw materials and
other things to produce better and unique drone.
Helps in cost reduction-
Frugal innovation is defined as an act of substantial cost reduction, which means that
company should include different tactics to reduce wastage and maintenance cost of unessential
things. This act is used to make drone affordable and available for companies that need it the
most.
Robust goods-
Furthermore, F-Drones may use frugal innovation by using robust items, which enable
firm to produce new drone without using skills and knowledge in context of many workers.
Robust products reduce the requirement for extra workforce and make organization able to
manufacture the best heavy payload drones.
Adaptability and Flexibility:
Frugal innovation consists adaptability and flexibility features of mind set, outcomes and
process. By using this concept, company may use these two elements which make it more
powerful in term of adapting new technologies that management may use to produce new drone.
Particular customer base-
Low income producers or consumers are primary targets of frugal innovation.
Organization produces new drone by considering this factor and focusing on needs of its target
customer.
The entire process of frugal innovation is important for F-Drones as it allow its
administration to save money and efforts of workers in regard to new drone production. By
reducing extra and unnecessary cost of production and items, firm may save money and balance

its financial performance. TATA nano is the best examples of frugal innovation, which in return
provide many benefits to company in term of increasing its sales and profitability.
Analysing application of innovation funnel in F-Drones company
Innovation funnel is systematically and effectively applied in F-Drone by following its
key stages, which enables firm to shape innovation successfully and gain its benefits in varied
terms.
Appraising role of frugal innovation in F-Drones
Frugal innovation play a vital role in regard to F-Drones by making its business able to
save money investment upon unessential things and producing a valuable drone. Its role is to
make firm stronger in term of delivering value added products at affordable cost to target
customers.
PART 2
Explaining importance of commercial funnel and application of NPD processing for
commercialisation of innovation
Importance-
Commercial funnel is actually very important for F-Drones because it brings opportunity
for company to deal with maximum consumers through single innovation of its drones (Sergeev
and Kirillova, 2019). It is essential for firm in different terms, for example, commercial funnel is
significant because it caters a helpful framework through which organization may analysed its
venture and determine areas for further improvement.
Application of New product development stages in regard to company-
NPD concept is used to produce a new product and that is new heavy payload drone,
which is capable to handle transition operations of companies.
Idea generation-
This stage support company to innovate a new product and commercialize it in effective
manner. In order to generate unique and creative idea, leader conduct a group discussion.
Idea screening-
Management screen all the ideas generated from group discussion activity and chose the
best one which they may use to innovate and commercialize drone.
Concept testing-

After passing above stages, F-Drone move to next one, where selected idea goes under
testing process in order to determine its feasibility and effectiveness.
Business analysis-
In this phase of NPD, company analysed chosen idea to determine whether it fit into
developed plan in context of innovation. It includes analysis of cost of manufacturing new heavy
payload drone based on idea, market demand, expected sales, revenue and profitability.
Product development-
After analysing above acts, company decided to produce a new heavy payload drone,
which enable it to gain competitive advantages. Firm produce two to three kinds of prototype
drones, among which one will be selected for commercialization purpose.
Test marketing-
All the prototype goods that made by F-Drones are not being tested which is important to
do. Once these items are produced, firm provided to a few manufactures, consumers and
companies for getting essential feedbacks. By taking reviews, firm improve manufactured drone
before launching it into market.
Commercialization-
After collecting feedbacks and making changes in drones. It time when firm take action
to launch the final drone in market in form of commercialization, which increase customer base
and generate revenue even better than other drone manufacturers.
Building an innovation business case in context of F-Drones company, including ways to access
funding
Executive summary-
F-Drones is a leading drone manufacturing companies in the world, they want to gain
competitive edge and become a global leader. Because of these two reasons, innovation business
plan is developed in organizational context, which make firm able to produce and advertise new
drone.
Mission-
The mission of F-drone is to build and manufacture aviation grade drones that will set
great safety and reliable standards.
Vision-
Organization vision is to be a market leader by producing and selling top grade drones.

Need for innovation-
New heavy payload drone is the key innovation of company, which it wants to innovate
for commercial purpose such as to gain competitive advantages.
Opportunities in market for new drones-
In technological world, there is the great success and growth opportunities accessible in
regard to new drone. For example, in order to move heavy product from outlets to shipment
areas, many organization seek to use advanced technologies and heavy pay load drone is the best
one.
Competitive advantages-
A lot of competitive benefits are available in the market for company, such as low threat
of substitute goods or services. Without this type of threat, firm will achieve what it wants like
increase profits margin.
Target segment-
Target customer of F-drones segmented into defense and commercial category. Defense
sector is expected to grow at high CAGR while forecast duration from 2021 to 2025
Marketing tactic-
Organization through effective marketing tactic will launch its new drone in market,
which in return gain the attention of advanced drone seekers.
Ways of fundings-
Bank loans-
It the most common form of funding, which firm will use to manufacture a new drone.
According to this source, by filling an application form, organization apply for loan to get
specific amount.
Benefits-
 The best thing about this option is that is provided benefit to company in term of
providing the cheapest interest rates.
 It offers flexibility to organization in form of providing money without setting rules in
context of how it spends money.
Drawbacks-
 It consumes time of company and management in context of fulfil money requirement
through loan.

 Due economic factors, high interest rates affect the way firm pay for loan to any bank.
Angel investors-
This source of funding is quite effective, because it allows firm to get require amount
from those people who have excellent net income and willing to make an investment in
profitable projects (Rai, 2021).
Benefits-
 This way of funding is much less risky than other sources to funding.
 Investment capital does not have to be paid return even when project is failed.
Drawbacks-
 Angel investor option is not much beneficial because it requires a share of company
exchange of money.
 It takes long time to find an appropriate angel investor.
Venture capitalist-
It is a way of non-banking financing, which F-Drone will use to get funds or money to
manufacture the best drone in the whole world, by adding valuable and innovative features.
Benefits-
 It helps to build network a connection with other brands.
 The best thing about venture capitalist is that they are trustable.
Drawbacks-
 It may need high return on actual investment, which is not possible for company to pay
back.
 It may lead to under valuation.
Budget-
Particulars Amount (£)
Production expenses 1100
Collecting key resources 1300
Salaries of employees 1500
Conduct Market research 800
Marketing 900
Selling 1700
Total 7300

Ways used to measure overall effectiveness of business case using appropriate techniques
accessible to test, improve and iterate
The effectiveness and success of above business case is measured by using benchmark
and KPI, which enable firm to make changes in existing plan when it needed any improvement.
Evaluation of IP tools in wider business environment context
Copyright:
It is one of the best and most commonly use IP tools that F-Drone used to protect and
prevent its innovative ideas from others. It provided exclusive distribution, publication and used
rights to company.
Benefit and disadvantage-
 It privileges to organization to freely work with copyrighted act in other nations.
 While, it affect negatively upon company success by protection idea not product.
Trade secret-
It is intellectual property rights on confidential data or info which may be licensed. With
this tool, organization prevent and protect its venture as well as new product from being stolen
by other brands.
Benefit and disadvantage-
 It does not require high registration costs.
 It has limited remedies which may not protect or prevent as well as retain knowledge of
firm relate to new drone.
Patents-
It is a right granted to an innovator that permit to exclude all others from using and
selling their innovation. Company with this tool, protect new drone idea and share with people
which they trust the most.
 It protects, prevent and retain things from longer period of time.
 In term of registration cost it is quite expensive.
Benefit and disadvantage-
CONCLUSION
By summing up above discussion, it has been concluded that by using innovation
concept, organization has obtained a lot of advantages in form of increased customer base and

gained competitive edge. It has been determined that the contribution of leader, teamwork and
culture successfully shaped innovation, which in return introduced a new heavy pay load drone.
By using innovation funnel stages, organization systematically shaped its innovative idea and
launched in market. Furthermore, from above analysis it has been summarized that by following
the new product development phases, firm has managed process of drone innovation. Patent and
trade mark as IP tools has protects company from any illegal act.

REFERENCES
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Six Major Stages of Innovation Funnel Management. 2021. [ONLINE]. Available through:
<https://www.innoedge.com.hk/innovation-funnel-management/>