Importance of Innovation and Commercialization

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Importance of innovation to an organization in comparison with invention...............................3
Explain how
organizational vision,
leadership, culture and
teamwork can shape
innovation and commercialization..............................................................................................4
P3 Burberry's 4Ps of innovation and the use of innovation funnel with respect to innovative
ideas ............................................................................................................................................6
Developments in frugal innovation and how it can be used in organizational context...............9
The
importance of commercial funnel and the
application of new product
development
(NPD) processing for
commercialization of
innovation.................................................................................................................................10
Innovation business case for an organization including ways to access funding......................12
Tools used by an organization to develop, retain protect intellectual property rights...............13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is the most important thing for a business if it wishes to succeed and grow in
the future(Prajogo, 2016). It refers to the creation of more effective products, services and ideas
in order to introduce something new into the market and it also contributes heavily towards the
success of the business. Burberry is a British fashion luxury company headquartered in London,
England that manufactures and sells clothes, fashion accessories. Sunglasses and cosmetics. The
company was established in the year 1856 by Thomas Burberry and has 498 stores in 51
countries. It also provides employment to 9,752 people worldwide and with an annual sales of
more than $3 billion, the luxury fashion company is also ranked as 73rd best global brand of all
time along with its competitors like Gucci, Louis Vitton and Prada. The current study will
highlight the importance of innovation to the organizations, 4 P'S of innovation and the process
to develop an innovative product(Ahram and et.al., 2017).
MAIN BODY
Importance of innovation to an organization in comparison with invention
Innovation:- It is way to translate any new idea on invention in form product and services that
organisation can offer to its respective customers(Burget, Bardone and Pedaste, 2017).
Invention:- It is generation of new idea or thought that previously one have never thought of and
that can be used further in innovating some new product, services or process for the
organization(Cowen and Shenton, 2017).
In this dynamic business environment, it is critical for every business to innovate
continuously or else the company will fail to survive in this high volatile competitive market.
Burberry company has always been a flag bearer of innovation and it has helped in creating a
brand image of the organization. Importance of innovation is:
 Competitive advantage: The main importance of innovation is that it helps an
organization in achieving competitive edge over other players in the market. It is
imperative for a business to identify the consumer needs and wants and accordingly
innovate the old product or service by adding some new features to it. Burberry company
uses its skills to manufacture innovative clothes and introduce new fashion into the
market. It has further helped the company in achieving competitive advantage as the
customers wish to adopt the latest trends every single time (Brem, Maier and
Wimschneider, 2016).

 Solving complex problems: The major motive behind innovating a product or service is
to solve complex problems that consumers are facing. It basically involves the process of
identifying consumer problems, developing an idea and then innovating the product or
service accordingly. Solving complex problems further increases the level of trust
between both consumers and producers. Also, innovation helps in improving the standard
of living of people which helps in increasing the profitability of the
organization(Gopalakrishnan and et.al., 2015).
 The Latest technology: Innovation helps in technological advancement which further
reduces the cost of the company and increases the overall profitability of the
organization. Burberry uses the latest technology like artificial intelligence in order to
forecast the demand and to improve the quality of products and services much faster.
Also, Burberry has spread its operations online that has helped the organization in
attracting large customer base and the company provides unique discounts and offers in
order to increase its sales and profitability (Ahram and et.al., 2017).
On the other hand, invention is concerned with the introduction of a new product line or service
by performing research and development. Invention involves scientific experiments and a lot of
market research as well. It is different from innovation because:
 Unexpected results: Unlike innovation, inventions have an unexpected result which
means that the newly launched product or service can become an instant success or a
gradual failure as well. Inventions are more risky as compared to innovation therefore it
is imperative for an organization to perform market research and identify consumer needs
and wants before developing and launching the product or service. Burberry group
introduced its new line of products like sunglasses and cosmetics by performing adequate
market research in order to ensure the viability of the products(Handoko and et.al., 2017).
 Building block for innovation: Invention has a wider scope as compared to innovation
because it is the first step in the process of developing a product or service. Invention of a
product involves identifying the problem, developing and idea then converting that idea
into an opportunity and finally manufacturing a product or service accordingly. Also,
invention requires huge scientific knowledge, funds and time unlike innovation. Burberry
company innovated the fashion and clothing lines according to the latest trends but it was
invented a long ago.