Unit 8 - Innovation and Commercialisation

This unit focuses on innovation and commercialisation. It covers the concept of innovation, sources of innovation, frugal innovation, and the application of the innovation funnel. Get study material and solved assignments on Desklib.

Unit 8 - Innovation and Commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SCENARIO 1...................................................................................................................................1
1. Concept of innovation and importance....................................................................................1
2. Explain how organizational vision, leadership, culture and teamwork can shape innovative
idea...............................................................................................................................................1
3. Sources of innovation in Big-belly .........................................................................................3
4. 4Ps of innovation ....................................................................................................................3
5. Explaining developments in the frugal innovation. ................................................................4
6. Analysing and application of the innovation funnel................................................................4
7. Evaluating the role of frugal innovation..................................................................................5
8. Evaluating how an innovation is developed, measured and embedded. .................................6
SCENARIO 2...................................................................................................................................6
Background..................................................................................................................................6
Importance of commercial funnel and the new product development process for innovation....7
New Innovation case of Big-belly with the use of commercial funnel. ......................................9
Protecting intellectual rights of new innovations.......................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is referred to as the implication of creative thoughts, new ideas and
imagination which helps in better application of the solution in order to meet new range of
requirements within the existing market (Weyrauch and Herstatt, 2017). Commercialization is an
effective procedure which is useful in transforming various ideas, inventions and knowledge in
order to attain high degree of wealth for business, individuals and society at a large. This study
will highlight on determining the key difference between innovation and invention. It also helps
in determining different range of innovation. This study also explain development of the frugal
innovation and also determine the application of New product development for processing
innovation and commercialization.
Bigbelly is one of the leading smart waste and recycling solution across the globe. It is
useful in providing right of way platform to the public in order to deliver host communication
infrastructure and smart waste management.
SCENARIO 1
1. Concept of innovation and importance.
Innovation is defined as the process involving development of new products and
processes to make the workings easier. It can be understood as the idea involving modification of
goods or services that are existing in company or market. This enables company in gaining the
competitive advantage. New modifications in the existing products will help organisation in
achieving the success and growth meeting its vision. It add values to the existing products of
company. Innovation for instance developments and evolution of new versions of mobile phones.
Invention on the other hand is referred as the process involving evolution of new idea
that is entirely new. The idea is completely unique and is not existing in the market. It is
concerned with development of new products and services (Mazzucato and Penna, 2016).
Invention requires to have technical and scientific skills. For example invention of mobile
phones.
2. Explain how organizational vision, leadership, culture and teamwork can shape innovative
idea.
An organization vision gives a clear image of working as well as about the goals of the
firms. These clarifications boosts the staff members for the effective performance on time. With
respect of Bigbelly , managers provides the clear vision regarding attain the future goals. Second
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leadership power faces various challenges and try to resolve the problems. They are the one who
tries to understand the culture of the firm as well as treat the people according to boosting the
employees to work smoothly within a team. There are several aspects discussed below
Organization vision –
It can focus on all the futuristic goals as well as objectives to each and every people that
are working within a firm. Bigbelly has a solid vision that can be based on the deep learning
algorithms as well as techniques that are computerized. There are also new sensor fusion
techniques that can be introduced to the new consumers and also the current people.
Organization must well aware regarding consumer preferences as well as demands so that they
are easily think regarding the change that could occur in services in future context.
Leadership-
It is considered as the power that comes through their personality ,experiences as well as
knowledge in a firm. The good team players of the Bigbelly contributes in learning
support,counselling,conflict resolving and so on. The leaders and managers of Bigbelly
understands the needs of the consumers conveniences and also at the same time makes several
strategies to improves the services. These techniques allows to gain high profitability within a
market and also creates a positive image.
Culture-
Bigbelly follows the better working environment where there is no space of
discrimination among the staff members. An environment which is free from discrimination aids
in increasing enthusiasm within workplace (Lundvall, 2016). So workers of Bigbelly gives
their best through supporting each other. Positivity in environment and collaborative behaviour
leads to a creative ideas during the performance of employees in an organization.
Team work- It is the most vital part of the business that boosts the people to work together by
gibing best contribution in all the situations . As the managers of the Bigbelly follows all the
strategies regarding teamwork acquired the desired results that can directly gives contribution
for invention.
Thus all the above function can gives their contribution into commercialization as well
as innovation by different outcomes. Bigbelly should consider all of these activities for
enhancing the market growth as well as innovation in their firm and aids in developing the
potential markets.
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3. Sources of innovation in Big-belly
Innovations take place by the continuous and focused research over the innovation
opportunities that are available. Successful ideas could be developed for innovations from the
existing sources.
Incongruities
This is important source of innovation as they are concerned with identifying the
differences between the actual and expected outcomes.
Unexpected happenings
Unexpected success and failures define the events occurring in the existing processes.
Company can use these unexpected results for making better innovations.
Process needs
The opportunities for improvements are always existing in the existing processes. The
innovations take place for making the processes better. Therefore the research for making
processes better is essential to be carried out by business.
Market Changes
This refers to identifying the trends followed in the market (Katz, 2016). This is an
essential source for identifying the areas in which innovation is required to be made.
Knowledge
It is the most important source of innovation. This refers to getting new knowledge and
insights for identifying the requirements and the ways in which successful innovations could be
made by company.
4. 4Ps of innovation
Product – It involves innovation of new products and processes for consumers. This is used
mainly to ensure growth & development in the field served by company. Development of new
products bring new challenges for the business.
Process – This refers to changing and enhancing existing products and procedures in operations.
It is done to bring operational efficiency in the working practices of company.
Position – This p is concerned with having the attention of customers. The objective is to expand
the existing business practices of company and having higher demands of products.
Paradigm – It gives insights for development of innovation process. It involves use of business
models and different strategies for making new innovations in the existing processes.
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The key importance of the innovation funnel is that is very useful in describing the key
procedure which is very useful in developing a specific product. It is considered to be very useful
in creating process which in turn is considered to be useful in meeting the needs and shaping the
innovation idea of the organization.
5. Explaining developments in the frugal innovation.
Frugal innovation is also referred to as the frugal engineering which is one of the
prominent procedure of reducing cost of the goods, complexity and the production of the
organization. It is an appropriate measure which is useful in removing non- essential features
durable sets of goods and services (Pisoni Michelini and Martignoni, 2018). Frugal innovation is
one of the most effective procedure which helps in redesigning various sets of products and
services and it also helps in rediscovering various set of new business models and effective value
chain to attain greater heights. It is useful for business to effectively respond to the various set of
limitations to the resources within Bigbelly company. This is one of the effective measure in
order to reduce the operational cost of the organization by effectively reducing waste. Frugal
innovation is useful in re-framing the problems by finding the best possible solutions. Bigbelly
company tends to focus on providing improvisational approach which eventually helps in
carrying various set of operations. Frugal innovation helps in providing good quality solutions
which is useful in making the various solutions accessible. It is also one of the most innovative
procedure which helps in adopting to the various effective business strategies which is very
useful in gaining competitive advantage within the market. Big belly company focuses on
improving there business operations by focusing on to reduce the waste management and also
manage gallons of waste by recycling the products in an effective and efficient manner. Frugal
innovation helps Bigbelly company to streamline their operations by optimally utilizing the
resources and reducing the carbon footprint (Winterhalter and et.al., 2017). They also engage in
the smart waste stations in order to deploy various set of other technologies.
6. Analysing and application of the innovation funnel.
Innovation funnel is referred to as one of the most effective mechanism which is useful in
enabling constant stream of the ideas that can be screened for the improvement and viability of
the project (Hossain, 2018). The innovation funnel focuses on managing the waste in a more
energy efficient manner. Bigbelly company focuses on using an effective system to manage the
pollution in an economically and environmentally sustainable manner (Innovation Funnel, 2020).
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Bigbelly company tends to focus on modernizing the core city service by optimally hosting
various set of additional technologies.
Mouth of Funnel
This phase of the innovation is useful in gathering various new sets of ideas. This is
useful in the expansion of the availability and various knowledge sets of information. Clear
perspective of the objective is established which eventually helps in carefully streamlining
various set of ideas with the key intention to actualise the idea.
Narrowing Funnel
At this phase, screening process tends to take place (Yun, 2017). The process of
screening encompass the idea of matching the various sets of goals within the organization which
is useful in adding value to the growth of the company. It helps in selecting one of the most
prominent ideas which in turn is useful in higher growth to the Bigbelly company.
Narrowed part
This stage is very useful in establishing if the selected idea is tuned with the goals and
objectives of the Bigbelly company. This is useful in execution of the plan by testing the set
ideas. Bigbelly company focuses on using the specific set of idea by gaining crucial set of
information related with the market (Anzola Román and et.al., 2019). This way it helps Bigbelly
company to enhance there customer experience which eventually increases the productivity of
the business.
7. Evaluating the role of frugal innovation.
The key role of the frugal innovation within the organization is that, it tends to focus on
emphasizing on the ability of the Bigbelly firm to develop high end technology products which is
useful in managing waste and lowering the cost in order to meet the various market condition of
the economy (Wang, 2017). It also very useful in effectively utilizing the key resources which in
turn has been increasing the way an organization must carry out work. It is very useful in
improving the quality of work without sacrificing the quality of the experience. The fugal
innovation is very useful in developing the economy of the various multinational corporations.
One of the key role associated with the frugal innovation is to capture and create value to the
emerging markets which helps in improvising and innovating within the Bigbelly organisation.
Key role of the frugal innovation is to have high degree of advantage to speed up the process to
effectively carry out the business. The key role associated with the frugal innovation is to
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effectively create a competitive advantage in the market which in turn leads to higher operational
growth and sustainability of the business (Abramova and et.al., 2019). The key role of the frugal
innovation is to develop an innovative idea which is useful in working in compliance with the
various market conditions. This is useful in managing the waste and recycle the products for
efficient utilization of the resources. Frugal innovation helps in complying with various
innovative technologies in order to carry out various set of business operations. It is useful in
engaging with the low cost resource oriented products to add value to the company and attain
key business goals and objectives.
8. Evaluating how an innovation is developed, measured and embedded.
Innovation is one of the best measure as it helps in effectively managing the long term
perspective of the company (Weyrauch and Herstatt, 2017). It is useful in the completion of the
target goals executing and measuring the performance of the innovation. The company must
focus on using one of the best metrics which is very useful in evaluating the efficiency of the
innovation. Completing various set of activities helps in ultimately enhancing the brand image
and productivity of the organization. An innovation is developed within Bigbelly company by
effectively determining the key goals and objectives and also the set of strategic approach to the
innovation. Knowing the markets and defining the value proposition are considered to be one of
the effective way to develop an innovation plan (Pisoni Michelini and Martignoni, 2018). The
company also tends to focus on developing the core capabilities and establish the innovation
system and techniques. The innovation is measured by using various set of performance
measures like key performance indicators. It helps in comparing the past and current
performance of the business by determining return on investment associated with the innovation
activities. Innovation within the Bigbelly company is embedded by bringing up the best set of
high potential within the organization. The company eventually tends to focus on embedding an
effective culture of innovation with the engagement of management and leadership. The big
belly company tends to embed innovation by developing an effective organizational culture
(Winterhalter and et.al., 2017). There has been integration of high degree of advanced
technology helps in effectively embedding innovation within the organization. Innovation is
effectively managed by the company by busting out the barriers and finding appropriate idea in
order to find the best possible solution to the problem.
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SCENARIO 2
Background
Big-belly is the leader in providing smart wastes and recycling solutions to public spaces.
Facilities and communities deploy smart , sensor equipped and solar powered waste and
recycling stations which communicates the real time status to the collection crews for enabling
efficiencies. Web based and cloud connected platforms delivers the actionable insights to the
waste operations. Big-belly's suite of station covers compact and smart models for capturing
waste volumes in the high traffic areas and standard capacity models for less rushed areas.
Company provides integrated solutions with the intelligent fleets 100% smarter having high
capacity. It offers turnkey platforms, where each fleet is modular and customizable on the basis
of capacity, accessory models and waste streams. Connect customers deploy the platforms as
subscription that includes services & support needed for succeeding. The innovations provide
better resources and technology and commercialisation makes it available for the use of public.
Importance of commercial funnel and the new product development process for innovation.
Other name for commercial funnel is sales funnel. This is used by companies for leading
the generations and making sales disclosures. This is essential for analysing the business models
and the marketing tools that are required by the managers for helping them to succeed in the
market. Marketers in the business model focus over the customers existing currently in the
decision taking area of the sales funnel (Turner and et.al., 2016). Commercial funnel has four
stages in the model. These four stages are interests, awareness, decisions and the actions to
define the perspective of customers. All these stages have different approaches available to the
marketers to attract the customers.
Interest
This refers to the stages where Bigbelly has to publish the new innovative products for
waste and recycling. This will allow the clients of company in making much more informed
decision of the case and further steps.
Awareness
The stage is concerned with attracting the focus and attention of its customers for the
company prospects. This enables the clients of company in becoming aware of the products that
are offered in the market.
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Decisions
This is the stage where customers agree to buy the products offered by company.
Company should retain its customers by giving them the best offers and deals. This influences
the decision of customers, therefore it has to use effective marketing strategies for making the
customers to buy the product.
Actions
The stage where actual purchases are made by the company and this becomes
considerable part in the business ecosystem (Huang and et.al., 2016). This defines the success of
company achieved in applying the commercial funnel for its innovation.
Commercialisation
Commercialisation could be defined as cycle or process for introducing new products or
methods of production in new market in which success is measured on the basis of extent up-to
which the product gets acceptance in the market. Commercialisation as a broader act entailing
the production, marketing, distribution, customers support and key functions for achieving
commercial success in new products or services. Commercialisation requires carefully developed
3 tiered products roll out & marketing strategies, which encompasses ideation phase, business
process stage and stakeholder stage. There are many people who believes ideation stage as
mouth of funnel. There are many ideas entering the top of funnel but only few are successful in
making the ways for implementation. The stage is focused over generating products & services
meeting the unanswered demand of consumers.
Business analysis
In conducting the analysis of new product developments Big-belly has to make estimates
for the cost of product, return on investments and profit margins.
New Process Development
It is defined as the process to bring original product idea in market. This thing differs
from industry to industry and is required to be broken down into different stages. This is a
effective tool that is known as driving force that helps organisations in achieving their targets
and objectives. There is strong global competition, changing customer behaviours , technological
advancements and the investments in new products for survival and growth (Maloney, 2017).
Process of NPD is involved in developing and launching new products and services.
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 NPD helps business in long tern success and growth analysing the competitive
environment and developing new product or services.
 NPD is helpful to customers in getting the improvements in lifestyle of people. Target is
achieved after assessing the needs and demands of the clients.
New Innovation case of Big-belly with the use of commercial funnel.
Mission and vision: Big-belly is company providing solutions for waste management and
recycling. It takes initiatives for waste management and recycling in the areas of New York and
various other cities.
Objectives:
 To increase the sale of new product by 20% till the end of year 2021.
 To increase the profit by 10% in upcoming six months.
Situational analysis
Strength
Recycling of waste management
Smarter clean solutions
Weakness
Inadequate resources
Opportunity
Extend market in new areas
Threat
Competitors
Segmentation, targeting, positioning: It undertook new solutions named CLEAN for
recycling and waste management in the selected areas of cities. Company is known for its
initiatives for recycling of the wastes. The solution of the company is aimed in making the cities
clean and clear. It also deals in capacity compactors for enabling the users in compressing
significant number of the waste which is generated every day.
Key Risks
The solutions are aimed at helping the cities and organisations in reducing the wastage
and using the waste through recycling. The resources are scarce and are required to be utilised
accordingly. The waste equipments costs high to the companies and also to the governments.
These waste management and recycling equipments require regular maintenance. This is the
factor which may influence the solutions.
Sources of Funding
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The adoption of new innovation scheme requires the company to have enough capital.
Funds are the most important part for the success of any innovation and commercialisation.
Funds will also be received from government as it is dealing with the environment protection
activities.
Budget
Resource Price (UK)
Skilled labour workforce 150
Equipments 175
Commodities to manufacture new recyclable
machines
200
Advertisement 90
Total 615
Monitoring and controlling:
Key performance Indicators
KPI's are used by Big-belly for assessing the level of target achieved by the company in
the new products. They are important for identifying the set targets are being achieved or not.
 Increase in growth rate of company by 10%
 To have addition in the existing customers by 40%.
 To become leading company providing waste management and recycling solutions for
the public places.
Protecting intellectual rights of new innovations.
It refers to idea and knowledge which is applied for innovating new products. The tools
used for protecting the intellectual property rights are
Trademarks
Trademark refers to symbol of trade. This is affixed on the products traded by company.
Trademarks are issued by government department to company so that others cannot trade similar
product under same trademark. The main disadvantage of trademark registration is that you have
to pay fees in every 10 years in order to maintain it.
Patents
This is taken for protecting the rights of inventions. Government patents the innovation
and registers it in the name of company (Jenson and et.al., 2016). This restricts other companies
to produce same product. The disadvantage of patent The application process can be lengthy and
time-consuming
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Copyrights
Copyrights protects the rights of company. The innovation having copyrights cannot be
copied by the other companies. Company is required to register its innovation with the
government.
CONCLUSION
From the above conducted study it has been summarized that, invention is referred to as
the creation of specific product and process for the very first time. On the contrary, innovation is
an implication of new ideas which helps in better application of the solution in order to meet new
range of requirements and contribution within the existing market. This study outline 4 P's of
innovation which includes, Product, Price, Place and promotion. Frugal innovation is useful in
redesigning various sets of products by effectively utilizing the resources in cost efficient and
reliable manner. Innovation funnel enabling constant stream of the ideas which helps in meeting
the goals and objectives of the study. Key role of the frugal innovation is to have high degree of
advantage to speed up the process and also focuses on creating competitive advantage. It has
been concluded that, the organization can measure the innovation with the help of key
performance indicators. This way it helps in attaining higher sustainable growth and
productivity.
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REFERENCES
Books and Journals
Abramova, O.Y and et.al., 2019. Innovation funnel of modern TRIZ: experimental study to show
the efficacy of the TRIZ-assisted Stage-Gate process. Journal of the International TRIZ
Association–MATRIZ, p.79.
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.
Hossain, M., 2018. Frugal innovation: A review and research agenda. Journal of cleaner
production.182. pp.926-936.
Huang, P. and et.al., 2016. How China became a leader in solar PV: An innovation system
analysis. Renewable and Sustainable Energy Reviews.64.pp.777-789.
Jenson, I. and et.al., 2016. Innovation system problems: Causal configurations of innovation
failure. Journal of Business Research.69(11), pp.5408-5412.
Katz, J.S., 2016. What is a complex innovation system?. PloS one.11(6).
Lundvall, B.Å., 2016, May. Innovation System Research and Policy Where it came from and
where it might go. Paper to be presented at CAS Seminar, Oslo, December 4, 2007.
Maloney, W.F., 2017. Revisiting the national innovation system in developing countries. The
World Bank.
Mazzucato, M. and Penna, C., 2016. The Brazilian innovation system: a mission-oriented policy
proposal.
Pisoni, A., Michelini, L. and Martignoni, G., 2018. Frugal approach to innovation: State of the
art and future perspectives. Journal of Cleaner Production.171. pp.107-126.
Turner, J.A. and et.al., 2016. Systemic problems affecting co-innovation in the New Zealand
Agricultural Innovation System: Identification of blocking mechanisms and underlying
institutional logics. NJAS-Wageningen Journal of Life Sciences. 76. pp.99-112.
Wang, J., 2017. Structuring innovation funnels for R & D projects under uncertainty. R&D
Management.47(1). pp.127-140.
Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining criteria. Journal
of frugal innovation.2(1). p.1.
Winterhalter, S. and et.al., 2017. Business models for frugal innovation in emerging markets: the
case of the medical device and laboratory equipment industry. Technovation. 66. pp.3-13.
Yun, J.J., 2017. Business Model Design Compass: Open Innovation Funnel to Schumpeterian
New Combination Business Model Developing Circle. Springer.
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Online
Innovation Funnel. 2020. [ONLINE]. Available
through:<https://www.toolshero.com/innovation/innovation-funnel/>
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