Innovation and Commercialization in F-Drones

This document discusses the importance of innovation and commercialization in F-Drones. It explains the 4ps of innovation and the use of the innovation funnel to shape innovative ideas. It examines the developments in frugal innovation and provides examples of how it is utilized in F-Drones. The document also highlights the importance of the commercial funnel and the application of the new product development process for the commercialization of innovation. Additionally, it guides the reader in building an innovation business case for F-Drones and explores ways to access funding.

Unit 8 – Innovation and
Commercialization

Table of Contents
INTRODUCTION................................................................................................................................3
LO 1......................................................................................................................................................3
P1 Explaining innovation and its importance to organizations in comparison with invention...3
P2 Explaining how organizational vision, leadership, culture and teamwork can shape innovation
& commercialization...................................................................................................................4
LO 2......................................................................................................................................................6
P3 Explaining 4ps of innovation and utilize of innovation funnel to examine & shape innovative
ideas............................................................................................................................................6
P4 Examining developments in frugal innovation and providing examples of how it is utilized in
F-Drones......................................................................................................................................7
LO 3......................................................................................................................................................8
P5 Explaining importance of commercial funnel and application of new product development
processing for commercialization of innovation.........................................................................8
P6 Building an innovation business case for f-Drones, including ways to access funding........9
LO 4......................................................................................................................................................9
P7 Evaluation different tools that companies can utilize to develop, retain and protect IP and
knowledge...................................................................................................................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................12

INTRODUCTION
Innovation and commercialization are the key forces that contribute to enhance productivity,
sales, and profits margin of any company. Innovation is defined as creative idea that has
transformed into practical reality, while commercialization describe as process of converting ideas
and inventions into greater wealth for companies, etc. The current study is based on F-Drones,
which known as world's first transition drone manufacturer. The assignment will explain innovation
and its importance in context of company in comparison with invention. It will define how
organizational vision, culture, leadership & team work shape commercialization and innovation.
Furthermore, the report will justify 4ps of innovation and use of innovation funnel to examine &
shape creative ideas. It will describe the development in frugal innovation and example relate to
how it is used in company context.
The assignment will clarify importance of commercial funnel and application of NPD for
commercialization of innovation. Moreover, the study will explain innovation business case and
varied tools that companies can utilize to retain, develop and protect knowledge as well as
intellectual property.
LO 1
P1 Explaining innovation and its importance to organizations in comparison with invention
Innovation can be understood as actions required to create new ideas, procedures and
products implemented which leads on positive effective change with high scale ideas imperatively
on longer scale operations. It also implies value system which derives positive outcome from
competitive efficiency, on which innovation plays crucial role to evolve towards new revenue
targets actively.
Invention is unique or novel experience where procedures and overall well-being product
development process, for improving products and services creatively. This factor explains
invention achieves completely unique function to create the best radical breakthrough, for improved
developed connectivity towards new productive domains.
Comparison between innovation and invention
 Invention refers to occurrence of idea for products or procedures that have not been used till
now, also there is vast level of extended functional parameters to improve productive usage.
For invention scientific skills are required, where new idea strikes enables to bu id smart
progressive efficacy among working scenarios. Invention is often linked with single product

and process which is also one step procedure, where scientific application brings on varied
growth towards varied productive efficacy operational scenarios. Invention may be success
or failure, on longer scale usage where there needs to be analysis developed towards
functional horizons actively.
 Innovation on other hand is bringing advancement in already invented methods, products
and services where set of creative marketing, technical and strategic efficacy diversity is
demanded. The procedures of innovation is occurred when need is felt for improving
functional capabilities in already invented products. Innovation occurs to whole company
operations for bringing on varied range of diversity among competencies, rise on new
advanced scale domains and expand towards the best revenue targets. Innovation adds brand
value to product, for raising informative functional work reach actively, enhance keen
domains actively towards new directive domains for varied scale growth. It can be
understood innovation has shaped business productive diversity effectively and generate
larger scale technical growth, to yield on specific rise on performance parameters
competitively.
P2 Explaining how organizational vision, leadership, culture and teamwork can shape innovation &
commercialization
F-drone may shape its innovative idea and commercialization by using key resources that
are mention below-
Organizational culture-
Positive culture at the workplace always enhance the productivity of workers and drive them
towards creating an innovative idea, which management after evaluating may implement into
practical manner (Wang, Phillips and Yang, 2021). In term of work collaboration and coordination,
the culture of F-drones motivate and encourage applicants to bring creativeness in their
performance. Furthermore, by changing the way they direct a team, a leader in firm drive attention
of employees towards doing creative and innovative practices.
Teamwork-
Just like above component, team work also shape innovation & commercialization in term
of conducting collaborative practices and sharing new ideas that help to promote new drone in
market. Team work enhance innovation in two manners, first it changes cognition, effective
experience and competence of individual worker, which in return boost their creativity and attitudes
to solve issues effectively (Hadjielias and et.al., 2021). Furthermore, group work also contribute to

innovation etc, as it associated with structural modifications to firm such that flow of knowledge
and creative ideas is enhanced & company become more flexible.
Vision-
F-Drone vision statement contribute to shape commercialization and innovation in term of
guiding and directing workers to be a creative person that supports business to achieve set aims and
promote new heavy payload drone in market (Ardiansari and et.al., 2020). Organizational vision is
the main source that guide workers how to work and what need to do, for making venture and its
products more popular at international level.
Leadership-
By using current source along with above three, F-Drones may shape innovation, which is
essential as well as commercialization in term of advertising new drone all over the world, which in
return increase profitability of company (Scott, and et.al., 2020). Leadership styles allow leader to
motivate and inspire workers through their behaviors, actions and words, which influence the mind
of each applicant the most.
Sources of innovation-
Unexpected- innovation occur unexpectedly or by chance, for example a group discussion is
the key source of creation as it allow workers to share normal information with each and drive their
attendion towards creating new things in term of products (Philipson, 2020).
Market structure- An current market format may also provide a company chance to
innovate some new item or services.
Incongrity- When requirement is incongruity with supply, innovation may be brought on.
For example, in order to satisfy the needs of customers, company may innovate new drone that may
carry new items and transfer it from one place to another.
Necessity- it is one of the most useful source that help F-drone to innovate new heavy-pay
load drone, which no one may produce in overall sector.
Changing perception- A change in context of buyers perception regarding products/service
also give birth to innovation.
New Knowledge- After obtaining knowledge about using advance technologies in context
of producing new drone, F-drones drive its attention towards innovation concept.
Demographic changes- the lifestyle of people may also consider as source of innovation, as
it drive the work and practices of individual person towards creativeness.

Activities that may foster and develop an environment of innovation in organization-
Each company may foster and develop a culture or environment of innovation at workplace
where number of applicants are working. It may create by using appropriate form of leadership,
which help to boost the performance and morale of staff members and drive their thinking towards
conducting creative things to achieve common aim.
LO 2
P3 Explaining 4ps of innovation and utilize of innovation funnel to examine & shape innovative
ideas
Paradigm-
It concerns modification in the way something is done in F-drone such as product
manufacture operation, as it help to manufacture a new heavy pay load drone (Kim, 2020).
Product-
It exhibited that how F-drones make its drone better than rivals by using creative machines,
technologies and tools. Incremental in items successfully added value in term of productivity of
firm in innovative goods.
Process-
After dealing with above two ps of innovation, here company may deal with current one
where hiring, selection, supplying, training etc. activities are included.
Position-
To influence customers and gain their attention towards purchase, F-drone firstly set its
brand image in mind of each buyer, which is possible when it may use social media and other
positioning approaches.
Innovation funnel-
It considered as mechanism which means a continuous stream of creative thoughts and
prototypes may be screened for viability. Innovation funnel concept encompasses five phases that
help F-drones to shape innovation after examining it in effective manner (Franken and et.al., 2020).
Stage 1-Idea generation
F-Drone may examine innovative idea by driving the attention of workers towards
conducting work activity and then shape it in effective manner. It enables firm to obtain a hundred
of ideas.
Stage 2- Rough concept

After above step, by selecting one idea among many in context of new heavy pay load
production, now firm shape it in productive manner.
Stage 3-Detailed concept
The innovation idea in term of new drone production has been selected in above stages,
which now may continue in practical manner. Now its time when workers focus on manufacturing
new heavy pay load drone that carries heavy products and transport to shipping area.
Stage 4-Market launch
After product production, F-Drone may focus on marketing strategies which help to
commercialize new drone in market and increase sales level of firm (Mamasioulas, Mourtzis and
Chryssolouris, 2020).
P4 Examining developments in frugal innovation and providing examples of how it is utilized in F-
Drones
Frugal innovation is developed when small companies with their limited assets attempt to
produce new services or products that help to satisfy customers needs and fulfill their expectations
(Hossain, 2020). F-drone company may use this concept in term of using all the available assets,
including machines, wires and other electronic items, which enable firm to produce a drone which
Illustration 1: Innovation Funnel
(Source: Stages of Innovation Funnel, 2021)

carry heavyweight items or other objects and transfer it from one location to another in speed.
In recent time, frugal innovation is used by many companies in term of Jugaad, which is
quite beneficial as it saves money and requirements relate to human resource. It emphasizes utilize
of less material and financial assets to product a new drone that add value for consumers and
contribute to achieve aim. It helps company to reduce unnecessary cost and production of essential
items in order to gain higher profits (Lu and et.al., 2020). Frugal innovation successfully used in F-
Drones with the support of leaders, as they contribute to innovate new item by using accessible
resources in term of guiding workers and directing a team at workplace. The approach works on
bottom to top method in contrary to top to bottom of standard innovation. It is so because frugal
innovation gives more reliability to firm in context of its drone and to attain attention of customers.
It is quite beneficial and useful process that help in varied terms such as help to generate revenue,
increase profits margin etc. It has named because of specific reason, for example it is not confined
with particular consumers, but pick up wide range of buyers from the lowest resources. The aim of
this concept is to offer valuable goods or service which may produce by using necessary and
available things.
Role of frugal innovation in company-
It plays vital role in F-drones in term of saving efforts and most importantly money. It helps
firm by reducing complexities of innovation and offering maximum profits from few resources to
attain sustainability. It contributes to save money by reducing the unnecessary requirements of non-
essential elements or features in drone. Frugal innovation enable organization to compete in market
by producing and launching new item which is quite different from other brands products.
LO 3
P5 Explaining importance of commercial funnel and application of new product development
processing for commercialization of innovation
Commercial funnel is defined as marketing tool through which many organizations in the
business world find, qualify and trade their products to target customers (Teixeira, Benedet and
Velasco, 2020). It is quite essential and beneficial for F-Drones in term of generating awareness
among buyers and determining issues which enable firm to solve it by producing quality items.
Commercial funnel is used in term of sales funnel, which takes organization target customers on
journey of purchasing procedure, which in return increase the profit's margin of firm.
New product production-
Idea generation-

NPD process begin with idea generation phase, where all the workers in F-Drone may
collaborate and coordinate to generate many ideas among which they may select the appropriate
one.
Idea screening-
Before commercializing innovation, organization may chose the specific idea and that is
new heavy pay load drone, which bring several benefits for its business.
Concept testing-
According to this stage, management may test the reliability and sustainability of chosen
idea before continuing it in term of producing a new heavy pay load drone.
Business analysis-
After passing above phases, organization may concentrate on analyzing selected idea in term
of determining its match with strategic aim and objective of firm. Overall analysis covered cost of
production, expect sale, profits and market demand.
Product development-
When the chosen idea is fit into strategic plan of company, management may think to
convert it into new item such as drone.
Test marketing-
After producing new drone, firm may take the most important action and conduct practice in
term of testing it before launch, which allow management to identify where improvement is needed.
Commercialization-
Above stage assure F-Drones that its new drone is ready to promote in market where many
firms seeks to purchase it for commercial purpose such as transfer heavy item from warehouse of
offshore platforms.
P6 Building an innovation business case for f-Drones, including ways to access funding
Executive summary-
Due to competitive environment, each company has taken attempts and one steps ahead in
context of gaining benefits and increasing sales, which is quite essential. F-Drone also do so in term
of producing a new heavy pay load drone, which is much stronger than earlier drones as it carry
heavyweight items and drop at decided location. By using venture capitalist option, company has
get success in term of launching the world's frist drone that has been used for transportation

purpose.
Mission-
The mission of F-Drone is to leave a mark of its company in market, where customers get
attracted towards their new products.
Vision-
The vision of firm is to gain competitive edge by providing top category drones to
customers.
Satisfaction of innovation-
The key elements that provide full satisfaction of innovation in term of new heavy pay load
drone with recording system is their look, power to hold product etc.
Opportunities in market for new item-
F-Drones have great opportunity in market in context of its new product because the number
of rivals are accessible who are unable to produce this kind of drone.
Competitive edge-
Firm have chance to grow its venture and get success in term of increasing profitability and
sales level after selling new drone in market.
Target market-
By using STP model, company may target those brands that seek to transport their products
from warehouse to shiping area successfully, without paying much for transportation vehicles. It
may use demographic and behavioural segmentation strategies to target these people as traget
customers. For positioning purpose, company may use digital marketing channels and tools, which
help management in trem of influencing mind of buyers.
Marketing strategies-
Social media marketing is the best because it help to spread any information with second at
global level, which is quite beneficial in term of saving time and money.
Ways of findings-
Equity financing-
It considered as procedure of rasiing capital via selling shares in market (Fu and et.al.,
2021). Most of the companies in recent time raise money because they may have a short term need
to innovate something new etc.
Venture capitalist-

It is one of the most commonly utilize and easiest form of fundings. Venture capitalist is
define as private equity investors that provides money to those firms that exhibiting high progress
potential in exchange for an equity stake.
Bank financing-
It is the most common and traditional finaning approach, where a company may take loan
after applying it and getting their approval.
From above discussion, it can be said that bank financing is the best option for F-Drones,
through which it may recive money to produce the best drone every.
Budget-
Resources Amount (£)
Employees salaries 2000
Collecting new electronic tools and
equipment's
2500
Conduct Market research 1200
Marketing tactics and usage of channels 1800
Selling 3000
Total 8700
LO 4
P7 Evaluation different tools that companies can utilize to develop, retain and protect IP and
knowledge
Patent-
It is an exclusive right provided for an invention, which is a service, process or product that
caters (Grzegorczyk, 2020). In general a new way of producing somethings of offer a unique item
that satisfy needs of customers and fulfill the expectations of business as well. This IP tool gives
companies legal right to exclude their rivals from making and selling an invention, which may
innovated by them.
Copyright-
Just like above, copyright is also included in list of IP tools that protect work and important
information of companies from their competitors (Chatterjee, 2020). Works covered by this tool
range from paintings, books, and sculpture to computer systems, advertisements, database, technical
drawings and maps. It helps to provide rights to exclusive publication, usage and distribution of

things. It usually originates with creator for a work, but may sold, or inherited by others.
Trademark-
It is a kind of intellectual property that consist a recognizable sign, expression or design
which determines goods/ services of specific source. Over duration, it becomes synonymous with a
firm name, so that customers do not even need to consider the name to recognize a specific firm.
Evaluating different tools in regard to wider business environment-
Basis Strengths Weaknesses
Patent The key strength of patent as IP tool is
that it protect for a pre-identiffied
period, permitting user to keep rivals
away from its valuable and presious
resources.
The negative thing about patent is that
it consum a lot of time and might be
lengthy while a person conduct it into
practical manner.
Trademark This tool help companies in term of
protecting them against infringement.
The most negative fact about
trademark is that its registration fee
and renewal fee is quite expensive,
which is not affordable for some
ventures.
Copyright The best thing about copyright is that
it protect a organization brouchers,
important documents and annual
reports for longer period of time.
The main drawback for this tool is
that it protect aspect of idea, not idea
itself.
CONCLUSION
By summing up above analysis, it has been inferred that innovation contribute to boost the
growth of company and increase its sale level even better than rivals. By supporting and motivating
workers, leaders has built effective workforce that contribute to increase the productivity and
performance level of venture. Furthermore, from above discussion, it has been concluded that by
using innovation funnel and frugal innovation, company has gained competitive edge and leading at
top position in market. By taking loan from bank and using the most appropriate IP tool,
organization has successfully protecting their knowledge and retaining workers for longer period of
time.

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