Innovation and Commercialisation

This report discusses the importance of innovation and commercialisation in organizations, using the case of Bigbelly, a solar powered rubbish compacting bin manufacturer. It explores the difference between invention and innovation, sources of innovation, 4Ps of innovation, and the frugal funnel. The report also covers the stages of new product development and commercialisation, and how innovation can be protected.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1).................................................................................................................................................3
2).................................................................................................................................................4
3).................................................................................................................................................5
4) ................................................................................................................................................5
5).................................................................................................................................................8
6).................................................................................................................................................9
7) ................................................................................................................................................9
PART 2............................................................................................................................................9
1) ................................................................................................................................................9
2)...............................................................................................................................................11
3)...............................................................................................................................................12
4)...............................................................................................................................................13
5) ..............................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation relates to new ideas or thoughts or imaginations which help in improving the
devices, processes or methods of doing work which help in meeting the new requirements,
unarticulated needs and existing market needs. Innovation is important for organisations to
survive in the ever-changing market which help it in meeting the needs and wants of customers
and gain a competitive advantage. Commercialisation of innovation is also important so that the
innovative ideas, research or prototypes can be converted into viable products and launched in
the market to be sold profitably. This report is based on Bigbelly which is a solar powered,
rubbish compacting bin manufacturer located in US. The company designs smart waste and
recycling solutions for large public spaces so that solid waster can be efficiently managed in a
more energy-efficient and sustainable manner both economically and environmentally. In this
report difference between innovation and invention, types of innovations, 4Ps of innovation,
innovation funnel, frugal funnel etc. related to innovation in BigBelly will be extensively
discussed. Further the stages of new product development and its commercialisation along with
the ways in which innovation can be protected are also discussed.
PART 1
1)
Invention: It relates to the conception of something new which has never existed in the
market in the form of a device, process or product which help in increasing the convenience of
people. For example: The creation of smart, solar powered, sensor equipped waste and recycling
bins by Bigbelly which helps in reducing waste in an energy-efficient manner. Significance of
invention: It assists businesses in introducing completely new offerings in the market through
which both the customers and company can be benefited (Aloini and et. al., 2015).
Innovation: Through this process the already existing products and services are improved
by adding some special features which increase value for customers in a more profitable manner.
For example: BigBelly is aiming at introducing a feature in its bins through which the organic
waste which includes food leftovers, vegetables etc. can be converted into fertilizers which can
help in increasing soil productivity. Importance of innovation: It helps the companies in
improving their own products by adding more valuable feature in them (Bagno and et. al., 2017).

Also through innovation companies can gain a competitive advantage within the marketplace
over their rivalries which increases its sales.
Difference between invention & innovation
Basis Innovation Invention
Concept Through innovation existing company
goods and services can be improved so
that customer satisfaction can be
enhanced.
It aids in introducing a completely new
product or service so that new demands
of customers can be met.
Skills Research and development, technological
skills, analytical skills etc. are required
for innovation.
Research and development, market
analysis, potential thoughts which can
help in designing new products.
Innovation and commercialisation are both important for companies so that they can
grow and develop in market by introducing new and innovative products that can help in
satisfying the changing needs of customers. Through invention BigBelly has been able to
produce smart dustbins so as to deal with the problem of waste management while through
innovation the company is able to improve and innovate its dustbins to convert organic waste
into fertilizers.
2)
For shaping innovative ideas and promoting them it is important that the organisational
vision, leadership, culture and teamwork encourages innovation: Leadership: It is the ability of leaders which help in guiding, influencing and
encouraging the employees so that they can business in a particular way which assist in
benefiting the organisation (Cui and Wu, 2016). Democratic leadership style used in
Bigbelly helps in promoting integrated working environment where the new and
innovative ideas of employees are valued which help in bringing innovation. Culture: It is the aggregation of shared values, beliefs as well as assumptions that directs
the way in which work is done in company and delegation of tasks among employees
take place. Bigbelly has an organisational culture which help in promotion of new and
innovative thoughts so that improved products can be brought in the market.

 Vision: Vision of the company helps it in aligning all its tasks in such a way that the
objectives and goals of company are achieved (Datta, Mukherjee and Jessup, 2015). The
vision of Bigbelly is to reduce waste to minimum while increasing the recycling of waste
products so that reuse can be promoted. This helps it in promoting innovative thoughts of
its employees and trying new experiments.
 Teamwork: It is important that effective teams are formed in a company so that the tasks
allocated to them can be achieved within a set deadline. Bigbelly delegates task to
employees based on their capabilities, skills and talents which help it in forming effective
teams so that similar thoughts people can work together which help in promoting
innovation.
3)
Sources of innovation are the factors which help the company in innovating its products
and services so that the company can increase its market share and increase its customer base: Demographics: It relates to changing demographics of population like age ranges,
changing income levels, sex ratio, changing tastes and preferences of customers etc.
which need to be satisfied by company by bringing innovation in their offerings so that it
can survive competitively in the market (Jahn, 2016). Change in industrial structure: It relates to changes in the industry due to changing rules
and regulations due to which some industries expand and some shrink. To deal with this
situation in a positive manner it is important that innovation is brought by company so
that it can survive and continue to grow in market.
 New knowledge: With the changing technological advancements it is crucial for
companies to innovate its products as well as services so as to stay competitive within the
marketplace. Technology must be efficiently utilised so as to reach a huge number of
customers and increase company sales.
4)
The 4Ps of innovation is a model which was given by John Bessant and Joe Tidd which
help the businesses in examining the areas where innovation can be brought: Paradigm: It relates to changing the underlying mental model on which organisations
function which will lead to change in what it do and how it functions. Bigbelly can
identify all the business processes so that improvements can be made in its products so

that it can increase the efficiency with which it manufactures its products (Kerschke and
et. al., 2015). Process: It associates to changing the processes in which company operates in the
market. In this improvements are made in the production as well as delivery methods that
reduce company costs. Bigbelly can improve the way in which it manufacture bins so that
costs can be reduced and better products can be launched in market. Positioning: This defines to innovating the ways in which firm positions its goods and
services within the market so that a huge range of customers can be approached and
company sales can increase. Bigbelly can reach to its customers through the way of
online marketing so as to increase its approach in the market.
 Product: This relates to bringing innovation in the business product so that the changing
customer demands can be successfully satisfied. Bigbelly is trying to improve its smart
bins by introducing a technology which will convert organic waste into organic fertilizer
which can be used in fields.
Innovation funnel describes the steps through which the company can develop its
processes or products in order to meet the market needs in profitable way (Koirala and et. al.,
2016). This funnel helps in collecting all the ideas and selecting the best idea which will be used
by company to bring innovation. Following are the steps that can be followed by Bigbelly:

Illustration 1: Innovation Funnel. 2019
Source:Innovation Funnel. 2019 Idea generation: At this stage various potential ideas regarding innovation are generated
by the R&D department of company after analysing the opportunities and threats in the
market so that the innovation can help in increasing company profits. Feasibility study: At this stage a prototype of innovative product is done so that its
viability and feasibility in market can be determined. Capability: At this stage the ability of product to produce desired outcomes are tested so
that its mass production can be done which will help in increasing company profits
through improvised products.
 Launch : This is the stage at which products are finally commercially launched in the
markets so as to be available to customers which can help in increasing their convenience
and satisfying them in a positive manner.

5)
Frugal innovation is brought in the company's offerings so that their production cots can
be reduced by minimising the waste or non-value adding attributes from goods so that costs can
be reduced (Laihonen and et. al., 2015).
Illustration 2: Frugal Innovation. 2019
Source: Frugal Innovation. 2019 Seek opportunity in adversity: It means that when an adverse situation is faced by
company it innovates its products and services so that the company sales can continue to
increase. Bigbelly is bringing innovation in its products so that technolgy can be ued in
an efficient manner. Do more with less: It relates to utilising the limited resources of company are used in the
most efficient manner to bring innovation. Bigbelly manufactures bins which are smart
and can increase up-to 5 times of its capacity. Think & act flexibly: It means company must promote innovative thought so that
changes can be brought in company goods and services with the changing needs of
customers. Keep it simple: It defines that the plan and process of innovation must be easy to interpret
so that the teams involved can successfully implement innovation in the company
products and services.

 Include the margin: It mean that creation must be brought in such a manner that the
innovated offerings can aid in creating value for customers that can help the company in
including margin on sales of its products.
 Follow your heart: It relates to following the passion by management of company if they
are of the view that innovated products can help in increasing company profits and
satisfying customer needs.
6)
Bigbelly can use innovation funnel so as to develop new processes or products so that the
needs as well as desires of customers can be satisfied in an efficient way. Through this funnel the
company can encourage generation of innovative ideas and selecting the best idea which can
help it in improving its products and increasing company profits by increasing the efficiency of
its products (Innovation Funnel, 2019). Innovation funnel has helped the company in improving
its products by using technology in such a way that organic waste of houses of cities can be
converted into organic fertilizer. Through the funnel company can encourage employees to
generate innovative ideas by participative leadership so their ideas can also be considered and
out of the pool of ideas best suitable idea is selected. The feasibility of idea is also determined by
testing the prototype of dustbin in a selected market. The capability of dustbin in achieving
desired result for company is also studied then the dustbins can be launched in market by
BigBelly.
7)
The frugal funnel assists in manufacturing low cost highly efficient products and services
that are designed and developed in accordance with the emerging market needs and
requirements. This helps the company in delivering more value to their customers through low
cost products and services while maintaining high quality. This funnel helps Bigbelly in
improving its products such that costs of production decrease while value to customers increase.
Bigbelly is innovating its bins such that the domestic organic waste can be recycled into organic
fertilizers which help in increasing soil productivity (Frugal Innovation, 2019). This will increase
customer value and also increase the efficiency with which it deals with waste products.

PART 2
1)
Commercial funnel: This can be defined as a sales funnel that is based on the conversion
of target prospects into potential customers which will help in increasing the company's sales and
create leads for that prospects who may be converted into potential clients. This will help Big-
Belly's to formulate pricing strategies through which company can be capable to get attention
and interest of huge customers in order to make purchases of offerings (Rosca, Arnold and
Bendul, 2017). Within the context of BB commercial funnel can be used to brings innovative
features in their bins that can be used to convert organic wastes into fertilizers that can aid in
raising the soil productivity.
New product development: In this, company can easily launch their innovative features
in their offerings within the marketplace and it is essential for the firm because changes or
betterment can be developed in accordance of consumers preferences. Whole process of NPD are
as follows: Generation of ideas: It is termed as an initial stage of new product development as per
the R&D department of BB, they brings innovative feature in their smart bins which the
organic waste like vegetables, food leftovers etc. can be automatically converted into
fertilizers that leads to raise in the soil productivity. Screening ideas: After that, the company Big Belly can screened their idea appropriately
in which they search about their implementation and processes in order to choose better
alternative for attaining future goals. Development concept: In this, the selected idea will be developed in a conceptual form so
as they can be able to do successful development (Wang, 2017). Marketing strategy: At that level, company should be focused on analysing marketing
mix, target market, pricing as well as promotional strategies which will aid in effectively
marketing of their bins with innovative features. Through this, Big-Belly can able to get
huge number of customers. Business analysis: It is closely associated with the analysis of feasibility and
effectiveness of innovative features within the open market place which will give huge
profitability to the BB.

 Product development: At that level, new bins will be developed by including innovative
features and ensures that the innovative features can be appropriately converted into the
workable bins. Test marketing: The new feature will be tested in the real market conditions so as they
can design appropriate marketing plan and strategies which will related to the target,
distribution, positioning and many more.
 Commercialisation: After completing all steps till testing lastly Big Belly needs to
commercialise their innovative features where new product or bin brought within the
marketplace so that huge attention of clients can be achieved.
Significance of commercial funnel:
 Commercial funnel is necessary to use by the Big-Belly's manager as it helps in
providing awareness about the activities in order to perform them as well as reduces the
entire cost along with high profits.
 It is necessary for implementing changes in organisational working or choosing right
option for innovation so that Big-Belly can able to gain positive results.
2)
Business case refers to the well organised and systematic document which provides a
clear idea towards the innovative initiative (Wieczorek and et. al., 2015). It is considered as a
most effective document that should be done in written form which facilitates effective
justification with the commercial benefits of tasks. The company Big Belly can formulate this
document in order to estimate their costs of implementation along with the risk identification.
This can be discussed in detail that as follows: Executive summary of business case: It includes a brief introduction of entire plan of
business which describes several details such as overview, strategies, vision, mission,
financial plan and so forth things. This will assist company Big-Belly to attract large
number of investors for getting best investment. Company overview: The company BB was established in 2003 with the aim of
minimising the fossil fuel consumption. It is a solar powered as well as rubbish
compacting bins which are produced for using in public spaces such as beaches, parks
etc. The bins of company are manufactured in Needham, Massachusetts by Seahourse
power.

 Vision: The vision of BB is to norms sustainable smart waste management strategies and
introduce innovation through the communities as well as technologies in order to live in
that world where no waste are found. Mission: The mission of BB is to create techniques, solutions of waste management as
well as product channels to create significant changes in order to made smart and clean
cities. Need satisfied: The company Big-Belly developed innovative feature in order to generate
soil productivity will satisfy customers especially women's need appropriately as they get
benefits of minimising wastages and get fertilizers along with the high soil productivity
from their organic wastages. Stakeholder expectation: The stakeholders of BigBelly are customers, government,
suppliers, shareholders etc. and their expectations from the company is that the company
innovates its products in such a manner that highest interest can be ensured for all its
stakeholders. Innovation opportunities: The entire population of UK is well educated and more
conscious towards health so the demand of waste management system along with the
benefits is more needed in the market. How will service meet that requirements: Through the new innovative bins organic
wastages can be converted into fertilizers that will further used in the fields which results
in soil productivity. Competitive edge: Innovative bins will provides high competitive advantages over other
sellers because customers can give more preference to that idea because they provided
with effective and recycle waste management bins. Competitors: There are various competitors in market due to which it is important that
BigBelly increases innovation in its products and services like MOBICYCLE, Recy
Systems etc. Size and growth possibilities: Innovative bins can lead BB in raising its sales with 30%
and market shares by 32%. Marketing: For marketing new bins company will be used television as well as digital
media platform for promoting their innovative concepts.

 Pricing strategy: For selling innovative dustbins company Big Belly can use premium
pricing strategy because of their premium products. Targeting: Big-Belly target market will be remain same as they target parks, beaches and
other public places. Positioning: The product of BigBelly is positioned in market by setting the price of
Dustbins at reasonable rates so that all the people can afford them.
 Financing: In order to generate funds company can use bank loan only because company
have good financial position so they manage their new operations with that profits and
use bank loan as a option of financing their business. The various sources of finance are
bank loans, angel brokers, shareholders etc. which can help the company in arranging for
funds for company so that innovation in its products can be successfully brought.
3)
Intellectual property: It is defined as a unique identity of innovative ideas that assists in
initiating to invent new which has never existed within the market earlier. It is necessary to
protect their intellectual property rights so their concepts, techniques as well as methods can be
protected properly from their competitors (Yin And et. al., 2015). It is required for the Big-
Belly's in order to protect or secure their innovative features or idea that are used in making bins
along with the generating fertilizers by doing effective waste management. Some of these tools
are considered as follows:
Patent: It is considered as a legal consideration that is provided to the business who
planned to launch innovative products in the open marketplace. It defines exclusive rights
towards using innovative concepts along with the original firm and which can not be copied by
others. The patent right is valid for certain period of time then expires over that time after that
this needs to be renewed.
Advantages Disadvantages
It can aid to protect the original concepts of
businesses from getting intimated by other
market players.
It charges huge cost of renewal that directly
result in raising entire cost of business.

Trademark: Several designs, signs or symbols are used by businesses to make identity of
their offerings which distinct their offerings with other competitors. As trademark provides clear
identity to the company that is unique in itself and related to the company's brand value or image.
Advantages Disadvantages
Through the use of trademark company can
able to differentiates their offerings with their
rivals.
It also charges heavy amount for getting
trademark of company and it charge fees in
every 10 years for continuing it uses.
4)
There are several tools with which Big Belly can able to reduce the possibilities of
copying their concept by others. Among all patent is considered as an effective tool in order to
protect their idea from intimated by others and through which BB can creates monopoly markets
for selling their innovative bins which will help in capturing their market shares and increase
profitability and sustainability.
5)
Innovation assist BB to grow and creates positive picture in the marketplace so company
can formulate specific and attractive policies which is helpful in the growth. At the same time,
changes or innovation termed as a challenging because it needs more funds as well as resources
to implement modifications effectively.
CONCLUSION
It can be summarised form the above discussion that for the successfully survivability in
the ever-changing market it is essential that company innovates its offerings that will help it in
dealing with the needs and desires of customers. Also a competitive edge can be gained in the
market by accomplishing huge customer satisfaction. Also innovation can help in protecting the
environment by reducing waste and recycling it by introducing innovative ideas in market. 4Ps
of innovation can be used to determine the area where innovation can be brought. With the use of
innovation funnel various innovative ideas can be analysed so that innovation can be brought in
company offerings. Also various tools can be used by company so that intellectual property of
business can be protected.

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Online
Innovation Funnel. 2019. [Online]. Available Through:
<https://www.toolshero.com/innovation/innovation-funnel/>

Frugal Innovation. 2019. [Online]. Available Through:
<https://zlearningjourney.wordpress.com/2015/05/09/jugaad-innovation-a-powerful-
growth-model-for-complex-times-part-2-of-3/>