Unit 8 - Innovation and Commercialisation

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Concept of Innovation and its importance in the organisation...................................................1
Organisational vision, leadership, culture and teamwork shape the innovative ideas in
business.......................................................................................................................................2
Different sources of innovation...................................................................................................3
4 P's of Innovation.......................................................................................................................3
Frugal innovation in context of Big-belly’s................................................................................4
Innovation funnel in organizational context...............................................................................5
Role of frugal innovation in an organization .............................................................................6
Critical evaluation how innovation is developed, embedded and measured...............................6
PART 2............................................................................................................................................7
Explanation of commercial funnel and New product development in organizational context . .7
Innovative business case study....................................................................................................8
Different way to protect intellectual property right....................................................................9
Evaluate different tools used to retain and protect intellectual property...................................10
Nature of innovation and ways big-belly’s used to overcome challenges................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation refers to the forming new and innovative ideas in the business which is not
existed before or amending the existing products with the new concepts (Innovation, 2019). In
respect of the term's commercialization refer to transforming such ideas to enhances the wealth
of the company. Present report is based upon the Bigbelly company which engaged their
business in respect of providing the smart and recycling of the waste solution to protect the
nature and environment in better way. In this report, the matter which are covered is relating to
the concept of innovation and its difference with the inventions. It also includes the four P's of
innovation and use of innovation funnel. It further carries the matters relating to the importance
of the innovation funnel and also its applied on new product's development. At last, it carries
various tool adapted by organization in relation to considering the right of the intellectual
property.
PART 1
Concept of Innovation and its importance in the organisation
Innovation is the concept related to the adapting new ideas and thoughts which is
attained in the business to change their marketing strategies and overall production techniques
(Archibald and Archibald, 2016). The importances of innovation in organization refers to:
Bringing creativity: In respect of increasing productivity in the business, it related to bringing
new ideas or creative thought in the products.
Competitor strategy: Through adapting innovation in the products, it helps in examining the
competitor's strategy through distracting the customer and enhances their interest towards the
products for longer term (Bertoni and Tykvová, 2016).
Online marketing: Through innovating the products in business, they can launch or promote the
products through the platform of advertisement. Through these aspects, they gain the interest of
lot of people to choose their products and services.
Various factors are to be undertaken which reflect the comparison between innovation
and invention are:
Factors Innovation Invention
Meaning It can be result in improving
the existing products or also
It refers to the invention of the
products for the first time in
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can innovate new products in
the market.
market.
Security Innovation are not generally
secured or carry any
intellectual rights until they are
new or different from others
(Coleman and MacNicol,
2016)
Invention are protected under
the particular intellectual rights
such as patents, copyrights,
trade mark, trade design etc.
Examples I phone is the innovation in the
filed of the mobile sector
Electricity, telephone, car,
internet are few inventions
In context of attaining the innovation in the Big belly, they bring the water saving
mechanism in which the water management products is adapted to save water and reduce the
wastage of water.
Organisational vision, leadership, culture and teamwork shape the innovative ideas in business
In respect of shaping the Bigbelly through the following factors, it can be presented
under the following manner such as:
Organization vision: The main vision which the big belly carries is relating to recycling the
waste products in the business, so that they can save the environment from the unwanted
diseases and also bring innovative ideas in the business. In respect of adapting the innovation, it
results in reducing the waste and also save the water through applying the new water saving
mechanism (Cooper, 2018).
Leadership: In the business, it is necessary to motivate the team to set the common objectives
which helps business in sustaining position in market. In context of motivating team, leaders use
the democratic leadership style, in which they provide flexibility to share ideas with the team
and also motivate them to bring changes or provide new ideas to implement such work.
Culture: In relation to managing the business of the Bigbelly, they adapt the Handy culture
model in which the role is mainly preferable by the company regarding assigning work as per
the person capability and skills. Through this manner, the productive work is stipulated and also
task is to be completed within the set time period (Coleman and MacNicol, 2016).
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Team work: In context of managing the interest of employee, Big belly use the Belbin theory, in
which they motivates the individual to work as a team. By these aspects, they can reduce risk in
the business and also bring innovative ideas at work place.
Different sources of innovation
In respect of examining different sources of innovation it is stated as: Incongruities: In this aspect, the innovation is to be done on the bases of viewing the
limitation which is occurring at the particular place, in such manner, innovation is
committed regarding recovering such incongruities. Market structure: In context of business, the changes are undertaken regarding viewing
the existing market situation. The major example is of google.
 Demographics: In these aspects, the changes in lifestyle or adapting modern trends
which is unique, is also refers to the innovation (CORTIMIGLIA and et.al., 2016).
Bigbelly can foster or develop the environment and culture of innovation through
motivating the team members to bring innovative ideas in the business. This can majorly help
employees if the company provide the outside training or giving liberty to the employees to
interact with the person and examined the changes. Through this manner, they can personally
innovate new ideas or incongruities the change in better way.
4 P's of Innovation
In relation to examining the stability of the innovation in market, it can be undertaken
through the 4 P's of innovation:
Products: In this innovation is to be undertaken by identifying the products and then examine
the changes which are to be made.
Process: After examining the changes, the process is to be initiated regarding delivering the
products which are unique.
Position: As it is necessary to set the accurate position regarding promoting the products such as
targeting the right customer or choosing the particular segment to promote the products in
market (Costello, 2016).
Paradigm: In this, changes is to be undertaken regarding adapting the unique concept and
products which is different from others.
Innovation funnel: It refers to the particular step which is undertaken by the company regarding
developing a process or products. In this, step is to be taken by the mangers regarding examining
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the people demand, needs of the customer preferring the particular products and then applying
such ideas to produce the products (Bertoni and Tykvová, 2016). This is useful for the Bigbelly
in respect of targeting the customer towards the innovative concepts.
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Frugal innovation in context of Big-belly’s
Frugal innovation is referred to the procedure of reducing complexness and cost of
services and products as well as production (Tran and Ravaud, 2016). It is the process of
removing unessential things and unnecessary features from exiting goods such as phone,
electronic products and other things in order to sell it in developing market that will increase
profit margin and generate more revenue. Frugal innovation in context of Big-belly’s company
play vital role as it help to deliver valuable and cost effective products to consumers in exchange
for money. It is frugal because management need to adopt a mindset of complexity and highly
low cost without sacrificing products quality and user experience. It associated with emerging
and developing market situations where buying power is low there is also potential for such
innovative ideas to share back to industrialized markets. Frugal innovation is beneficial for
company, by using this technique organization identify unessential things and provide solutions
to its consumers that help to reduce waste and recycle products.
Frugal innovation is the key elements company can utilize and comply within their
business operations functions that enhance practices and make them able to provide better
recycling solutions to public areas (Morimura, Tiwari and Buse, 2020). It is used in firm
because environmental constraints around climate, water and other resources will increase
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Illustration 1: Frugal Innovation
(Source: What is Frugal Innovation, 2019)

demand for more frugal concepts. Today's fastest developing markets are in emerging nations
where demand for frugal goods and services that is high. By complying it, company can provide
quality goods to complete efficiently and effectively with cheaper production as it makes a better
services more affordable. It is not a code word for outsourcing or cheap, it is all about learning
how to innovate under assets constrains adversely into progress and success opportunities by
providing solutions that will be termed affordable excellence.
Innovation funnel in organizational context
Innovation funnel is a mechanism which used to constantly streams the different type of
viable idea which can be undertaken by the organization. Innovation funnel, is the funnel
management process which is used by the organization to create innovative and action plan at
workplace. Bigbelly also uses Innovation funnel as a operation of business to check viability of
different plan in cited firm. Innovation funnel takes organization from three different stages in
the firm. Usage of innovation funnel in Bigbelly is as follows:
Investigation: It is the stage which looks at gathering and collecting variety of different
idea in the forum of opportunity which is available in front of Bigbelly in market area. Bigbelly
generally used to widen up its knowledge and availability of different information at the market
place. Company used to collect different information from variety of the sources such as
competitor, partners, institute, market research etc. Thing which is consider by organization at
time of collecting different viable idea is objective of organization behind collecting idea.
Development: In the second stage of innovation funnel, organization used to screened
different idea which are gather by Bigbelly in the investigating stage. This idea are screened at
the workplace by matching the different idea of the company with the end motive of achieving
the organizational efficiency.
Shipping Product: Shipping product is the last stage of Innovation funnel, in this stage
Bigbelly make sure that the idea which is finally selected by the company is converted into the
service or product of the company, to be offered in the market. This is the stage where
organization make sure that service or product of company matches the objective of company.
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Role of frugal innovation in an organization
There are many various type of role which is played by frugal innovation in Bigbelly. Some of
the role are as follows:
Frugal innovation provides low cost operating benefit to Bigbelly, this prove crucial for
company in attracting better number of consumer toward organization. As company in the
market always look to invest as low as possible amount of money in their wastage management
operation. Implementing frugal innovation help company in offering same to the consumer, as
frugal innovation used to concentrate on the costing system more than any other aspect of
product development.
Also, it play a very crucial role in improving the level of resources utilization in the firm,
which eventually used to promote the idea of enhancing level of efficiency of business in long
run. This help company in producing more unit of product in the firm with the available
minimum resources. This also has a very positive impact on the quality of the organizational
product in the market.
Frugal innovation also, play a very vital role at the time of defending the different
challenges which are thrown by the competition in market place. As frugal innovation help
company in enhancing product line of Bigbelly which helps the company in offering better
amount of product in the market. This helps Bigbelly in defending variety of different issue
related to competition in market.
Critical evaluation how innovation is developed, embedded and measured
Innovation developed
Innovation is generally developed in an organization to meet the different requirement of
consumer of the company. Organization used to collect different information regarding need of
consumer in market and on the basis of the same used to evaluate different need of customer and
come out with the variant product and service of company to satisfy different need which is
possess by the consumer in market place. Generally, Bigbelly takes help of innovation funnel to
develop innovation at the workplace.
Innovation embedded
Innovation is embedded in the firm by inspiring all the employee to bring good sort of
the idea related to the different sort of innovation in the organization. Also employee are
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rewarded in Bigbelly for bringing something new into the market to satisfy need of the
consumer in market. Reward generally help employee in building good sort of morale among
employee.
Innovation measure
There are many ways through which impact of innovation can be measure at the
workplace. Bigbelly uses KPI as the tool to measure innovation in organization. Bigbelly used to
set key performance indicator in an organization and ask the employee to follow the same. After
that they analyze different between result of bringing innovation with actual set KPI of
organization. This provide organization with deviation between both. On the same basis
organization used to take different decision to enhance level of innovation at the work-place.
PART 2
Explanation of commercial funnel and New product development in organizational context
Commercial funnel refers to the different process through which company used to lead different
customer at the time of purchasing different sort of product in market. It can be also refers as the
different process in which company used to finds, qualifies and sell different product of the
company at the market place.
 Commercial funnel help company in promoting the awareness among the consumer
about existence of the company in an market.
 Commercial funnel help organization in getting competitive advantage in the market, as
commercial funnel help company in understanding the consumer in the market in better
way with the help of commercial funnel (Bhatti and et.al., 2018).
 Commercial funnel also provide good support to the company in generating better sales
of the company, as compare to the past.
 Commercial funnel also help company in selecting the targeted customer from wide open
group of customer in the market.
New product development process is the 7 step process which is followed in the organization
to develop new product and enhance product line of the company.
Idea generation: From researching and analyzing the market, it has been find out by
Bigbelly that price of water consumption in the market is increasing (Basu, Barron and
Ventresca, 2018). This is increasing cost of the company.
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Idea screening: It is the stage where Bigbelly has find out that there is good opportunity
for the company to develop water management mechanism in the organization. This will help
the organization in getting best result out of the market.
Development and testing: It is the stage where Bigbelly will be developing the product
and testing the same to check the viability of the same.
Marketing strategy: It is the stage where organization has to develop variety of different
marketing strategy to promote the product of the company in the market.
Business Analysis: It is the stage where Bigbelly will be making different efforts to
understand the economic feasibility of the business in the market.
Product development: In this stage the end product will be developed by considering all
the above steps which are being taken by the organization. Also different test are conducted for
the same in organization.
Commercialization: It is the stage in which product of the company will be offered in
the market, so that consumer can purchase the product of the company to satisfy their need.
Innovative business case study
Innovation business case study
Bigbelly is looking to bring innovation in the already made software of organization,
Organization is looking to introduce the the water management facility in the software of the
organization. Reason behind the same is that there is hue rise in price of water in UK. This used
to enhance cost of company process. As a result this software will help the company in having
proper eye upon different usage of the water in the organization (Franken and et.al., 2020). This
eventually will also prove crucial for the company to understand the different aspect of the
water. This software will also help company with different aspect of water harvesting in the
organization. This will help the company in maintaining the water for longer period of time in
the organization.
Risk related to the innovation
Lack of sufficient finance: It is one of the biggest risk associated with above innovation
case study. As it will demand good sort of finance to carry out operation of the business. This
will impact the efficiency of the business in long run.
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Legal permission: It is another risk associated with this project. As it has been find out
that it will be difficult for the company to have a legal permission to carry out different activity
in an organization. This may delay the project in long run (Anzola Román and et.al., 2019).
Budget
Requirement Amount
Raw material 20000
Wages 15000
Rent and conveyance charge 10000
Warehouse charge 8000
overhead 7000
Total 60000
Source of fund
There are many different sources of the funding through which organization can tape
fund to bring different sort of innovation in an organization. Some of the different source are as
follows:
 Owner fund: Bigbelly can look to have owners fund to bring innovation in an
organization. As organization is operating successfully in the market, they can look to
use capital reserve of organization.
 Capital share: Bigbelly can look to have the fund from the capital market by inviting
shares allotment from the investor.
 Bank loan: Bigbelly can also tape fund for bringing innovation in the market by the way
of taking loan from different bank. This will ask organization to pay interest in return of
the same.
Different way to protect intellectual property right
There are many different way through which organization can safeguard the intellectual property
right of an organization. Some of the tool are as follows:
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Patent: It is the license which used to confirm the total right of the owner over the
product of the company for set period of time. This right used to help the organization in saving
the product of the company from other competitor in the market. Organization has to make sure
that they has to renew the patent after expiry of patent. This intellectual property right used to
safeguard the innovation or something new which has been brought by the company which was
not brought by any other in the past .
Trademark: Trademark is the type of intellectual property saving right which consist of
recognizable sign, design and expression. This used to provide a safeguard to the organization to
save their logo and name of the company, to be not used by any other organization in market
place (Garas and et.al., 2017).
Evaluate different tools used to retain and protect intellectual property
Patent-
It is a right granted to idea innovator or organization by federal authority that permits
them to exclude others from using, selling and making invention for a period. It is designed to
encourage inventions that are different and useful to people. Big-belly’s firm can use patent in
order to protect that innovative idea regarding recycling solutions from its competitors within
marketplace (Entezarkheir, 2017). It helps company by catering an essential source of profit and
revenue for its business. It gives them a right to stop some other person from manufacturing as
well as copying their own innovation or new idea without approval.
Copyrights
A assignable and exclusive legal right, given to business for a fixed number of period, to
perform, print and use material is known as copyrights. When big-belly’s comply this tool
within their business functions and practices, they can protect its firm in form of economic
rights.
Trademark-
It is another tool used to protect intellectual property from being stolen by other person
without permission. It is used to determine services and products are usually called service
marks.
In order to protect and retain knowledge for longer company recommended adopting
copyrights as one of the best tools. It gives rights to firm to produce to of piece of their actual
work, it works as a prim face prof in court or legal matter. In case of infringement of
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copyrighted work, its registration cater legal power to owner which provide an upper hand in
legal matter.
Nature of innovation and ways big-belly’s used to overcome challenges
Innovation nature includes compatibility, trialability, relative benefits and complexity, it
s landscapes are characterized by well-developed categories such as procedures, marketing and
products. Innovation features provide many benefits of firm as it helps to increase profitability
and generate revenue.
Ways to overcome challenge-
 While planning for innovation, different type of challenge impact on this process, such as
lack of knowledge.
 To over come this challenge company provide all the information to its workers by
conducting meeting in which professionals give and explain the importance of
innovation and justified its benefits to them.
CONCLUSION
This report has concluded that there is very wide concept of innovation and they used to
differ with the concept of invention in the market. Than report concluded that vision, leadership
and innovative idea used to shape the innovation in both negative and positive way. After that
the report concluded that there are different sources of the innovation through which
organization used to get different idea and 4 ps of innovation help organization in shaping the
same innovation in better way. After that report conclude the development in the frugal
innovation and analysis of the innovation funnel and role of frugal innovation in an organization.
In the second section of report, report conclude the commercial funnel and application of
NPD in an organization. After that the report conclude the innovation business case study of an
organization and different tool to safeguard the intellectual right of the organization. In the end
report conclude the evidence based evaluation of tool and nature of innovation in developing
new product.
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REFERENCES
Books and Journals
Tran, V.T. and Ravaud, P., 2016. Frugal innovation in medicine for low resource settings. BMC
medicine. 14(1). p.102.
Morimura, F., Tiwari, R. and Buse, S., 2020. Potential role of frugal innovation for diffusing
energy management systems in Japan. In Managing Innovation in a Global and Digital
World (pp. 269-285). Springer Gabler, Wiesbaden.
Entezarkheir, M., 2017. Patent thickets, defensive patenting, and induced R&D: an empirical
analysis of the costs and potential benefits of fragmentation in patent
ownership. Empirical Economics. 52(2). pp.599-634.
Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Bertoni, F. and Tykvová, T., 2016. Does governmental venture capital spur invention and
innovation? Evidence from young European biotech companies. Research Policy. 44(4).
pp.925-935.
Coleman, S. and MacNicol, D., 2016. Project leadership. Routledge.
Cooper, R. G., 2018. 19. Best practices and success drivers in new product development.
Handbook of Research on New Product Development. 410.
CORTIMIGLIA, M.N. and et.al., 2016. A systematic literature review on firm-level innovation
management systems. International Association for Management of Technology,
pp.1698-1713.
Costello, G. J., 2016. innovation process frameworks.
Anzola Román, P and et.al., 2019. Technological proximity and the intensity of collaboration
along the innovation funnel: direct and joint effects on innovative performance. Journal
of Knowledge Management 23 (5). 931-952.
Franken, R and et.al., 2020. Ranking of human risk assessment models for manufactured
nanomaterials along the Cooper stage-gate innovation funnel using stakeholder criteria.
NanoImpact. 17. p.100191.
Garas, G and et.al., 2017. Network analysis of surgical innovation: measuring value and the
virality of diffusion in robotic surgery. PloS one. 12(8).
Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining criteria. Journal
of frugal innovation. 2(1). p.1.
Bhatti, Y and et.al., 2018. Frugal Innovation: Models, Means, Methods. Cambridge University
Press.
Online
What is Frugal Innovation. 2019. [Online]. Available through:<http://www.innovation-
portal.info/frugal-innovation/>
Innovation. 2019. [Online]. Available Through:
<http://www.businessdictionary.com/definition/innovation.html>.
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