Innovation and Commercialization

This study material explores the concepts of innovation and commercialization. It explains the importance of innovation and compares it with invention. It also discusses how organizational vision, leadership, and culture shape innovation. The material presents the 4P's of innovation and the use of the innovative funnel. It highlights the significance of frugal innovation and new product development for commercialization. Additionally, it examines the tools used by companies to develop, retain, and protect knowledge and intellectual property.

Unit 08: Innovation and
Commercialization

TABLE OF CONTENT
INTRODUCTION......................................................................................................................2
P1Explaining innovation and its importance by comparing with invention..........................2
P2Explaining how organizational vision, leadership and culture shape innovation..............3
LO2............................................................................................................................................5
P3 Presenting 4P’s of innovation and use innovative funnel.................................................5
P4 Frugal innovation and its use............................................................................................6
LO3............................................................................................................................................7
P5 Importance of commrecial funnel and New Product development processing(NPD) for
commercialisation of innovation............................................................................................7
P6 Innovation business case...................................................................................................8
LO4..........................................................................................................................................10
P7 Tools used by companies to develop, retain and protect knowledge and intellectual
property................................................................................................................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................13

INTRODUCTION
Innovation is all about adding new values to existing products and services. In the
same way, the current study will help to provide deep knowledge of using innovation within a
business. The report will be based upon the F-drone which is the world’s first transition drone
that enables aerial deliveries to ship. Further, the study will explain innovation and
comparing the same with the invention and then provide 4P’s of innovation along with
innovation funnel. Moreover, it describes the importance of frugal innovation and new
product development for commercialization. Lastly, it provides an innovative business case
and evaluates the different tools that assist to retain intellectual property.
P1Explaining innovation and its importance by comparing with the invention
Innovation is the creation and development of a product from existing articles with an
aim to improve the performance of a business. That is why innovation assists to increase
productivity and increases the profitability of F-drones. Moreover, it effectively responding
to disrupters and also increase the market share within the market (Kahn, 2018). Also, with
the help of innovation company responding immediately to external challenges by complying
with technological aspects. So, it is reflected that innovation plays an important role in the
success of a business.
Inventing is the process through which a new product is invented within an
organization. During this stage, a small company faces different challenges such that low
funding, intellectual property which cannot be overlooked. Hence, it is examined that with
the help of effective strategy a company may overcome these challenges and offer a new
product in the market as well.
Importance of innovation
 It helps to keep organization relevant and it is constantly changing in order to remain
relevant and profitable.
 In the same way, through innovation it will eventually need to adapt in order to meet
new realities.
 Through innovation company meet the demand of customer and also technology
proves to be driving factor in need for change that is why, innovation plays an
important role.

Comparing with invention
Particulars Invention Innovation
Concept It is an original idea and based upon a
theory
It is a practical implementation of a
new idea.
Concern area It is related to a single product and a
process
It is used for different purpose
Skills needed It required scientific skills for performing
the invention
The set of effective marketing
skills, technical and different
strategic skills (Difference between
innovation and invention,2020).
Significance It is the creation of a new product It is adding the value of already
existing products
P2Explaining how organizational vision, leadership and culture shape innovation
Vision: The vision of F-drones is to provide the best variety of services to their
customers and the company provides innovative products to their customers. Also, it keeps
comply with technology and also make sure that it enables the large scale aerial
transportation of goods with innovative drones. Thus, innovation within F-drones shapes the
company’s vision along with meeting customer needs.
Leadership: The leader of quoted firm uses a democratic leadership style in which all
the members present their views in order to get the best results. Also, the leader of the firm
also uses innovative skills which in turn assist to improve the performance of the company.
Therefore, best leadership will also assist the firm to improve the results and take a business
to a further level of success by shape innovation.
Culture: The culture of a firm is a combination of values, norms, and attitudes of
employees that keep retaining workers (Rajapathirana and Hui, 2018). So the leader of F-
drones makes sure that there will be no cultural differences that have an impact on the
process of innovation and commercialization. Like the manager of quoted firm aggressive
and agile that assist to meet the defined goals and also shape the innovation which in turn
improve the results.

Teamwork: It is the dynamic concept that assists to cope up with difficulties. Hence
to meet the specific task, teams are assigned. Also, the leader of F-drone has a team who
make sure to provide innovative products to their customers that assist to meet the defined
goal as well. So, it is analysed that teamwork will help the company to meet the defined aim
and provide innovative product to their customers.
By using the model of Drucker 7 sources of innovation it is analyzed that innovation
assists to improve the culture of the company. Such as:
 Unexpected: Innovation mostly performs unexpectedly. In the same way, the
company also tries to offer innovation facilities to their customers with an aim to
attract a customer through innovation.
 Incongruity: It means innovation is born when a need is incongruent with supply.
Such that there are many companies that manufacture drones but F-drones tries to
provide aerial deliverables that meet the difficulties of cost and space (Drucker7
sources of innovation,2020).
 Market structure: Increasing need of customers and market force company to
perform a range of innovative products and in the same way, the quoted firm also tries
to comply with advanced technology to meet the demand.
 Necessity: The necessity varies from person to people and that is why it will assist to
lead innovation.
 Demographics: The lifestyle of people is a source of innovation and to fulfill the
same, companies try to innovate their products which in turn find better
opportunities.
 Changing perception: with the change of market, the perception of the customers is
also changed. Thus this also leads to increase innovation that is why companies keep
providing innovative products by meet the demand of users.
 New knowledge: It means complying with technology and make the products as per
the demand of the market. In the same way, F-drone also keeps changing its offering
services in order to meet the demand.
LO2
P3 Presenting 4P’s of innovation and use innovative funnel
4P’s of innovation

 Product: It refers to the main item which a company offers to its customers in order to
increase the goodwill of a product. In the same way, F-drone also offers a range of
aerial product that adds value to the organization by adding a competitive advantage
(Acemoglu, Akcigit and Kerr, 2016).
 Paradigm: It is the planned process by which a firm complies with the changes by
considering innovative ideas. Thus, F-drone is also looking to offer aerial drones for
transportation purposes which in turn comply with the need of customers.
 Process: It means how the company offers the product to its customers and for the
quoted firm it is a major concern. Such that offering aerial drones to customers and
ensuring them to deliver the things on time is a major concern (Smith and
et.al.,2016).
 Position: The firm wanted to attain the top positive in the industry and for that, it
keeps complying with an innovative product that assists to attract a range of
customers towards it.
An innovative funnel is used to describe the steps that are used to develop a product. Hence
its main purpose is to create a process and product which in turn meet the need of companies.
The idea of an innovative funnel is generated from sales and to implement the same, the
company has to develop a range of ideas which in turn attract the customers and also
evaluating whether the product is profitable or not (Yun, 2017). So, most of the firm uses the
same in order to attract the range of audience by offering different products to their
customers. For example, F-drones first investigate new ideas and find out that offering the
aerial product is the best product which will be offered by the company to customers. Then in
order to develop the product, it performs a market analysis that assists to identify the need
and further quoted firm ship the product in order to improve the results.

P4 Frugal innovation and its use
Frugal innovation is a process of reducing the complexity as well as the cost incurred
during production. Hence, it is all about removing non-essential features from the product in
order to sell the products within different countries. For example, Samsung offers different
smartphones and it also uses frugal innovation because people have a different perspective as
they belong to a different country (Albert, 2019). Such that in the UK, the company starts
offering advanced features product while in India it offers the product with complex features.
Thus frugal innovation is the best method for Samsung that attract customers and invest in
different countries.
On the other side, Frugal innovation will also be used by F-drones in order to increase
the ability and develop technological products at low cost with an aim to meet the market
condition. That is why the quoted firm has to use this in order to stay ahead in the
competition and sustain its brand image as well.
In order to apply the innovation funnel, F-drone has to comply with three stages such
that during the investigation stage, the company has to determine different options available
for a firm and by identify the market need, the company implements the best product. Next is
development, in which the company starts developing the product within the stages with an
aim to improve its abilities (Bogers, Chesbrough and Moedas, 2018). Last is shipping
products in which the new product is all set to offer within the market.
The frugal innovation is considered as one of the most dynamically growing aspects
where there are varied new paradigms functionally working as large paradigms, to year focus
towards strong marketing and product innovation in businesses. F Drones will be able to
yearn to focus widely towards new competitive domains by using frugal innovation and also
determining large paradigms where industry demands have to be focused on.
Innovation is developed by focusing on meeting the requirement of customers as well
as market needs. Also, it is a practical aspect and all about creating new ideas in order to
generate the best products by meeting the demand of customers. The innovation is also
affected by two factors such that concepts and culture where it works on both times in order
to deliver the best product. Moreover, the innovation is measured by past and current
innovation performance which in turn assist to determine the future or expected innovation
potential.

LO3
P5 Importance of commrecial funnel and New Product development processing(NPD) for
commercialisation of innovation
The commercial funnel is one of the most innovative marketing tool sued by
companies in competitive business scenarios for analysing quality, quantity factors and how
it aim to focus on merchandising its consumers with various innovative commercial factors
for larger goals efficacy. It is also understood as chronological process of attracting target
consumers within various products and also focusing on trying to target on new horizons for
larger products services enhancement. F Drones by implementing commercial funnel will be
able to visualize every stage in customer journey and form varied time perspectives
customers learn about brands to moment they make purchases.
The commercial funnel is also actively known for generating new functional
advancement, higher work efficiency within working horizons and also to potentially focus
towards changing competitive domains, which will make purchasing experiences higher
advanced for consumers. The commercial funnel is also productively important for gaining
larger work enforced synergy and wider new goals formed as per new quest horizons, largely
to also enforce vision and wider revenue targets within goodwill among consumers (Jajja,
Kannanand Hassan, 2017).

New Product Development can be understood as the complete process of bringing
new innovation within company product in market and also the aspects of NPD is products
design along with strong innovative marketing factors. The product can be tangible and also
intangible in from of effective advanced services which energises new competitive
environment for larger working goals and new working synergy. The NPD has become lately
one of the most important aspect for communicating new vision for larger consumer goodwill
commercially and also for keeping high factored innovation in long time run where there are
various parameters worked on. F Drones have strong leverage focus to generate larger
functional scope segments onto varied arenas, for competitive market scenarios and larger
new productive goals. The company will be also promoting new functional motivation
paradigms where there is larger new scenarios potentiality, keen growth paradigms worked
on and also wider new functional scope as per target consumermarket. Through New product
development F Drone will be able to keenly grow in new quest horizons by specifically
working on consumers target parameters and also to pertain wide domains expertise by
implementing wide innovation. The procedures of F Drone New products development can
be understood as follows where concept ideation is first, second comes feasibility study and
design planning, third step is focused on design and development. Next step is testing and
verification of all accuracy parameters of larger quality aspects and validation procedures
where manufactures and launching is focused on. L ast step is to focus on improvement
factors by monitoring and analysing work growth goals onto larger arenas, for stringent
innovation (Abdelkafi and Pero, 2018).
P6 Innovation business case
The business case is one of the most informative plan where all aspects are analysed
within company vision and formation of new innovative strategies, by also forming focus on
resources and analysis towards developing monitoring plans within longer run.
Executive summary: The innovation case will be analyzing vision and objectives where
company will be heading towards gaining functional focus on working operations and how
varied new goals shall be worked on.
Vision: F Drones has vision to build worlds first transition drone to focus on innovative
supply with high unique long range capabilities and put focus towards serving consumers, by
best marketing and new promotional strategies.

Mission: F Drones mission is focused on building best advanced drones and services with
high innovative drones.
Objective:
 The F Drone company business objectives are focused on forming new functional
work synergy with high innovation parameters and diversity aspects for gaining larger
revenue standards. Objective is also to potentially develop new growth scenarios for
competitive excellence and for larger performance with high diversity growth goals.
 The objective of F Drone is also to competitively focus on enriching diversity
standards of larger goals for generating digital marketing performance growth
operations, and also to keep innovation determined for forming higher evocative
potentialities (Ortiz-Villajos and Sotoca, 2018).
Analysis
 The analysis of various objectives for gaining stronger working synergy within
operations is highly important for company to pertain large new innovation diversity
standards and also to avail larger profits in future. F Drones have been widely
focusing on effective new goals formulation within businesses and also to potentially
also develop new workforce efficiency.
Source of funding option: Angel Investors is one of the optimum funding source which will
be used for gaining funds and also to form new working scope in future goals for larger
business innovations within competitive industry paradigms. Source of funding is highly
important to gain analysis of varied specialisation and larger new scope among larger
audiences where there are high keen goals of revenue targets to be completed.\
Crowd funding: F drones will be able to enhance its working vision and promotion scenarios
with crowd funding and operational innovation, where developed working efficacy governs
high innovation, for gaining funds from customers based on varied aspects which will also
enable to promote widely.
Recommendations:
 F Drones shall widely focus on keeping trained staff and new functional advanced
investments within wider parameters where resources shall be used, by determining
new paradigms and also to yield focus on keeping new working innovation.

 There are also new growth opportunities within wide competitive industry goals by
using digital marketing standards and operational fundamentals which will also
develop higher effective targets by keeping focus on monitoring all resources (Yun, ,
Yang, and Park, 2016).
Budget
Particulars Amount
Technology expenses 15000
Training and development expenses 12000
Digital marketing expenses 13000
LO4
P7 Tools used by companies to develop, retain and protect knowledge and intellectual
property
There are various innovative tools with high advanced technical growth among
companies within business scenarios for growing with competitive excellence and to retain,
protect knowledge and varied intellectual property aspects where there are varied scenarios
worked on. Intellectuals property are the assets which companies have widely invested in for
gaining effective consumers services within revenue targets and also to potentially grow on
varied determinants within competitive industry. Tools used by businesses for protecting
knowledge and wider strength towards intellectual property paradigms not only will enable us
to develop focus on F Drone operations.
 Patents: The patents are granting of property rights by the signed authority to an
inventor and grand is highly important for keeping exclusive rights to patented
process , design , invention and also varied designated period for comprehensive
disclosure of invention. Patents are used to keep assets invented by innovation within
country safe and also for promoting new work growth with high class growth
development within competitive industry aspects (Visnjic, Wiengarten. and Neely,
2016). Limitation of patent is based on fact that it is often hard for getting patents
done in company name, where long time taking factor peeks in.

 Trademarks: The trademark is type of intellectual property consisting of various
recognizable sign, design and expression which enables to identify products and
services of particular source. Trademarks are used to identify services which are
usually called service marks. F Drones will be able to gain efficiency for longer
competitive paradigms use various innovation goals to keep assets safely and the
trademarks are four types which are fanciful, Suggestive, descriptive and generic
which will enable business assets safe. Limitation of trademark is based on fact that
there is larger informative efficacy governed on for keeping up larger growth efficacy
goals, new creative domains functional strength and also for working horizons
advancement.
The business case has included measures with high effectiveness and new measures
for gaining advanced overall effectiveness where there are various goals analysed , to yearn
focus on larger new strategies to gain larger revenues. The business case an analyses
mission, objectives analysis and also to potentially gain new fundamental scope within wide
working efficiency among profitable scenarios for gaining new goodwill among customers.
The specified budget and resources will be focusing to work on new domains specialised
working aspects to form new quest horizons and also to target new working efficiencies
within larger domains.
Demand and supply analysis tool is one of the most important model used for wider
business environment analysis and for gaining focus on larger scenarios within competitive
arenas and also to implement strategies as per larger new working horizons. Swot and pestle
analysis tools are other internal and external factors tools used for evaluation of business
factors for higher active growth based on diverse creativity paradigms (Vorbach, Wipfler, and
Schimpf, 2017).
The frugal innovation is considered as one of the most dynamically growing aspects
where there are varied new paradigms functionally working as large paradigms, to year focus
towards strong marketing and production innovation in businesses. F Drones will be able to
yearn focus widely towards new competitive domains by using frugal innovation and also
determining large paradigms where industry demands have to be focused on.
Open source open innovation: The open innovation can be understood to be widely analysed
as one of the new fundamental aspect where there various aspects of larger goal productive
diversity formed among employees working scenarios for keeping up with efficacy aspects.

Open innovation comes in as one of the most advanced asset for company business scenarios,
among varied dynamic competitive goals for larger productive standards and services which
form new advanced working efficiency.
The disruptive innovation is understood as nature of innovation that creates new
market structure and value market within networks which creates exiting market structure
with strong competitive paradigms an value within existing market industry paradigms.
Training and development of all employees are highly important for successful innovation
implementation among operational factors within F drones where, company has to focus on
bringing new synergy of larger vision and also technical innovation strategically framed.
CONCLUSION
By summing up above report it has been concluded that innovation play an important
role in the success of a business and it is completely different from the invention. Also study
summarized that company’s leadership and vision also assist to shape the innovation. Also
study concluded that company involves both innovation funnel as well as frugal innovation
with an aim to deliver the best variety of product to their customers. Also, the report will
concluded that F-drones uses new product development stages in order to provide aerial
drones to users with an aim of maximizing the financial performance. In addition to this,
study concluded new product by using innovative business for F-drones which attract
customers and also provide use of intellectualproperties as well.

REFERENCES
Books and Journals
Abdelkafi, N. and Pero, M., 2018. Supply chain innovation-driven business models. Business
Process Management Journal.
Acemoglu, D., Akcigit, U. and Kerr, W.R., 2016. Innovation network. Proceedings of the
National Academy of Sciences. 113(41).pp.11483-11488.
Albert, M., 2019. Sustainable Frugal Innovation-The connection between frugal innovation
and sustainability. Journal of Cleaner Production. 237.p.117747.
Bogers, M., Chesbrough, H. and Moedas, C., 2018. Open innovation: research, practices, and
policies. California management review. 60(2).pp.5-16.
Jajja, M.S.S., Kannan, V.R., and Hassan, S.Z., 2017. Linkages between firm innovation
strategy, suppliers, product innovation, and business
performance. International Journal of Operations & Production Management.
Kahn, K.B., 2018. Understanding innovation. Business Horizons. 61(3).pp.453-460.
Ortiz-Villajos, J.M. and Sotoca, S., 2018. Innovation and business survival: A long-term
approach. Research Policy. 47(8). pp.1418-1436.
Rajapathirana, R.J. and Hui, Y., 2018. Relationship between innovation capability,
innovation type, and firm performance. Journal of Innovation &
Knowledge. 3(1).pp.44-55.
Smith, A. and et.al.,2016. Grassroots innovation movements. Taylor & Francis.
Visnjic, I., Wiengarten, F. and Neely, A., 2016. Only the brave: Product innovation, service
business model innovation, and their impact on performance. Journal of
Product Innovation Management, 33(1). pp.36-52.
Vorbach, S., Wipfler, H. and Schimpf, S., 2017. Business model innovation vs. business
model inertia: The role of disruptive technologies. BHM Berg-und
HüttenmännischeMonatshefte, 162(9). pp.382-385.
Yun, J.J., 2017. Business Model Design Compass: Open Innovation Funnel to Schumpeterian
New Combination Business Model Developing Circle. Springer.
Yun, J.J., Yang, J. and Park, K., 2016. Open innovation to business model: New perspective
to connect between technology and market. Science, Technology and Society.
21(3). pp.324-348.
Online

Difference between innovation and invention.2020. [Online]. Available through:
<https://keydifferences.com/difference-between-invention-and-innovation.html>.
Drucker7 sources of innovation. 2020. [Online]. Available through:
<https://notesmatic.com/2016/09/sources-of-innovation/>.