Innovation and Commercialisation

This document explores the importance of innovation in organizations compared to invention. It discusses how organizational culture, teamwork, and leadership can shape innovative ideas. It also covers the sources of innovation, the 4Ps of innovation, and the use of the innovation funnel. Additionally, it examines the application of new product development and frugal innovation in an organizational context.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Innovation and its importance to organizations in comparison with invention...........................1
Ways in which organisational vision, leadership, culture and teamwork can shape innovative
ideas.............................................................................................................................................2
Different sources of innovation and ways in which organisations can foster and develop an
environment and culture of innovation (M)-50...........................................................................3
4Ps of innovation, use of the innovation funnel to examine and shape innovation ideas............3
Developments in frugal innovation and ways in which it is used in an organisation context.....5
Innovation funnel in an organizational context (M)....................................................................5
Frugal innovation in an organizational context (M)....................................................................5
PART 2 ...........................................................................................................................................6
Description on the significance of commercial funnel and application of new product
development.................................................................................................................................6
Big-belly innovation case............................................................................................................7
Herein, the estimates budget for undertaking the innovation will be as £1000. .........................8
Define tools to retain and protect knowledge..............................................................................8
Define support evidence based on evaluation on different tools relates with business
environment.................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is predominately the procedure of creating and formulating the new ideas,
products, process as well as services. In the nutshell, Innovation is one of the major aspect
through which organization is able to build the new creative ideas, products for gaining
competitive advantage. The main purpose of the report is to study the importance of innovation
in Bigbelly and its uses for organization.
Bigbelly is basically the solar-powered, rubbish-compacting bin. This bin was actually
designed by Seahorse Power in Needham, Massachusetts with main objective of decreasing
consumption of fossil fuel.
This report gives a brief about importance of innovation and invention, ways in which
organisational culture, teamwork and leadership can shape innovation, innovation 4P's and
importance of the innovation funnel and developments within frugal innovation,
PART 1
Innovation and its importance to organizations in comparison with invention
Innovation can be defined as a process of creating, implementing and developing a new
product, process or service in order to bring improvement within them, enhance their
effectiveness and gain competitive advantage. Innovation is a kind of new idea, imagination,
thought in form of a method or a device. Whereas is simply a unique method or a process of
inventing something.
Innovation is one of the most important factors that every organization should focus on in
order to satisfy customer’s needs, enhance their satisfaction and increase their overall customer
base in order to gain competitive advantage. There are two main types of innovations that can
help an organization to enhance their customer base and gain competitive advantage. First type
of innovation is evolutionary innovation that focuses on bringing positive changes or
improvement within current product, service or process. Second is revolutionary innovation, it is
also known as discontinuous innovation. This innovation can either help the organization to
achieve their target or sometime it can also be disruptive. There are various kinds of market risk
that are associated with this innovation that an organization need to focus on in order to satisfy
their target market needs and requirements in an effective manner (Purchase, Kum and Olaru,
2017).
Importance of innovation for organization as compared to invention
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If innovation is compared to invention then it can be said that invention is
something about developing ideas. It is not important that invention is replicable but it is
extremely important for innovation to be replicable as well as feasible as it helps in
adding value to customer’s life. It is not important that an invention will be useful or
beneficial for the customers or will be useful in future but invention is extremely
important for the organizations more than invention as it not only helps in gaining
advantage but it also helps in fulfilling customers needs, demands and desires in an
appropriate manner. In terms of cost as well innovation is much beneficial and it is not
important that an inventio done will be useful for people so it might be waste of money
but innovation is done as per the needs of people so in terms of cost it is much useful and
profitable.
Bigbelly is a US based organization and world leader in smart waste & recycling system
through innovation. Bigbelly’s product innovation are quite accessible, robust and is
customizable. Innovating thinking and bringing innovation within their products has not only
help them to become world leader in recycling and smart waste system but has also helped the
organization to enhance their customer base as well as has also helped in fulfilling needs of their
customers. By provision of these smart bins, many cities have been able to reduce waste in a
better manner. It is important for Bigbelly to bring continuous improvement or innovation within
their current products in order to expands their business. So, it can be said that innovation is
extremely important for Bigbelly in organizational point of view as it would help them to bring
creative development within their current products and services, reinforce their brand and many
more (Libaers, Hicks and Porter, 2016).
Ways in which organisational culture, teamwork and leadership can shape innovative ideas
In order to archive success most of the organizations depends upon their organisational
vision, leadership, culture and teamwork. Organization’s mission helps in understanding
existence of a company but their vision helps their employees to understand their roles within the
organizations, responsibilities they need to fulfil and goals or objectives they need to achieve.
Organizational vision: Organizational vision helps in explaining what the company wants
to become in future which further helps them to direct their employees towards their desired
goals and objectives. In order to become an innovative organization, it is extremely important for
the company to develop an innovation vision which will further help them as well as their
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employees to understand and reach their targets. Main vision of Bigbelly is to focus on resolving
waste problem and develop smarter cities and focus on improving quality of life. They want to
develop products that would help cities to reduce their waste, reduce wasting fuels and reduce
emission of Carbon dioxide. Their vision clearly explains that purpose and helps their employees
in explaining their future target or goal (Audretsch and Link, 2018).
Leadership and team work: Other than vision an organization most importantly depends
upon their employees, their team work and leadership. It is one of the most important tasks of an
effective leader to encourage their employees, so that they can bring innovation within their
work. A good leader focuses on supporting their employees so that they can work in teams and
bring any kind of new innovation within their current products and services. For this, an efficient
leader sets some realistic goals or objectives that are required to be achieved in front of their
employees, this help them to develop an innovative culture and encourages their employees to
focus on bringing innovation within their current products and services. Positive organizational
culture helps employees to feel motivated and encouraged so that they can work on their skills
and become more innovative in nature.
Various sources of the innovation (M)
There are various sources of the innovation like Incongruities, process needs,
demographic change etc. which basically helps the organization to bring a well-through
innovation in its products. Organization can develop the culture of innovation in its organization
by increasing teamwork in its organization and integrating vision of organization into various
aspects of innovation (Shakeel, Takala and Zhu, 2017).
4Ps of innovation, use of the innovation funnel to examine and shape innovation ideas
4Ps of innovation
4 P’s of innovation is also known as innovation mix. It is a kind of tool that can help in
understanding ways in which innovation process can improve a business. 4 P’s of innovation are
product, process, position and paradigm. It helps an organization understand and examine
enhancement in each business area. Bigbelly focuses on this innovation mix as it has helped
them to develop and manufacture innovative product that has helped them to become world’s
leaders (Nambisan and et.al.,2017). Paradigm: This focuses on bringing changes within the way in which things are done within
an organization. Innovation can be used to bring improvement within the way an
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organization does business. These changes can be radical but it is not important that these
changes would always be positive. For example BIC was known as a market leader for ball
point pen but soon they brought change within their paradigm and started manufacturing
disposable plastic products as well.
Product: In this, ways in which innovation within a product can be brought in order to bring
improvement within the product can be brought, way in which product can be made more
appealing as compared to other products. BIC started to expand their product range where they
could reuse some materials that provide a good grip on their pens. Process: In this, ways in which changes within current processes can be brought is focused
so that overall profit can be increased. BIC innovated their manufacturing and production
process and added new product line at cheapest prices.
 Position: it focuses on changing the context in which product or a service is framed. BIC did
target a specific age group for their products.
Innovation funnel
Innovation funnel can be defined as a kind of mechanism that helps in enabling a
constant stream of ideas that can be screened further for viability. It is one of the most common
tools which is used by organizations to innovate successfully. It helps in fulfilling main aim of an
organization which is to fulfil their customers needs, wants and desires. Innovation funnel
consist of three main steps that helps them to bring innovation within their current products and
services. It helps in shaping innovative ideas. Bigbelly also uses innovation funnel to bring
innovation within their current product offering.
Figure 1 Innovation Funnel
Three main steps of innovation funnel are:
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 Ideas: First step is to gather as many ideas as possible. Bigbelly focuses on expanding their
current knowledge and available information which helps them to find better and appropriate
solution for innovative product to come up with.
 Criteria: In next stage criteria on the basis of which ideas are selected is done. These
criteria’s help Bigbelly to select good ideas that help them to focus on future projects in order
to bring improvement or innovation within their products.
 Testing: At this stage selected ideas are tested so that appropriate idea can be selected that
can help the organization to select appropriate idea in order to bring development within their
product.
Developments in frugal innovation and ways in which it is used in an organisation context
Frugal innovation can be defined as a process that helps an organization to reduce their
manufacturing cost, avoid any kind of production complexities. This process can be used by any
kind of organization and is quite suitable for technology company. For example: TATA Nano car
was one of the Frugal innovation as Ratan Tata introduced cheapest four wheeler car for their
customers. It can be used by Bigbelly for manufacturing of smart waste & recycling system. It
can help them to reduce unnecessary production cost of their smart waste system. They have
used this method to reduce their design cost, enhance efficiency of product development,
simplify manufacturing procedures. With the help of this process they can identify features that
are required to be added in future without complexing overall manufacturing process (Biemans,
2018). Frugal innovation focuses on three main factors that are market affordability,
complexities and resource constraints. Thus, frugal innovation can prove to be one of the best
solution for Bigbelly to gain competitive advantage by optimizing its overall cost. This frugal
innovation can help the company to reduce their overall production cost. For example- while
manufacturing the new recycling system, company will make use of the natural resources like
old scrape, waste products thus this will eventually reduce the production cost as there will low
utilization of the machines. Besides this, the use of natural resources will also increase the
overall efficiency of the product and will help Bigbelly to survive through this cut-throat
competition. Besides this, it will also reduce the complexity within the manufacturing process.
Innovation funnel within organizational context (M)
Innovation funnel basically helps the organization to generate new streams of the ideas
for bringing creativity in its products and services. For example- Bigbelly for bringing
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innovation in its products will first gather information from various sources, next will assess
viability of ideas. In the last stage, it will analyse that which idea would be feasible for the
innovation (Kahn, 2018).
Frugal innovation within organizational context (M)
Frugal innovation plays a great role within organization and thus helps to reduce their
overall cost of manufacturing and production. For example- developing an effective recycling
system will help Bigbelly to reduce its overall manufacturing cost as this innovation will mainly
make use of natural resources. Thus, in this way frugal innovation helps to reduce overall cost of
organization (Acemoglu and et.al.,2018).
PART 2
Application of new product development.
Commercial funnel termed out as the sales funnel (Hartmann, Mainka and Stock, 2019).
This is termed out as the buying process in which entity leads customer’s with help of purchasing
commodities. It is term that is inclusive of plan of action such as awareness, interest, decision
and actions that helps to define the prospective of customer’s. In addition to this, the each stage
has varied approaches from marketers to attract the visitors. These are outlined as-:
 Awareness- This is defined as the moment in which entity capture attention of
customer’s then firm prospect. It leads to be aware of products that firm offers.
 Interest- In this, the entity must publish its products to assist customers in terms to make
informed decision.
 Decision- Customers within the enterprise are ready to buy and firm provides best offer
to customers (Lim and Fujimoto, 2019).
 Action- In this, customer’s act at time when consumers makes the purchase and becomes
the essential enterprise.
Therefore, Big-belly is the enterprise that has undertaken the approaches to undertake product
innovation in terms to deliver the robust, accessible and customized solution. It is an enterprise
that is using the pivot clean 5.0, an upgraded software platform that aids to build integrated
platform for enterprise smart waste management.
Commercialisation- This is termed out as procedure relates with targeting the particular area
that aids to launch new products within the market (Ramadurai and Bhatia, 2019).
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Business analysis- By undertaking the analysis in terms to bring new product development, the
chosen entity must assumes the cost of products, earnings margins and Rate of investment etc.
New product development termed out as the driving forces to the enterprise as this is very
effective in terms to recycle the wastage in most appropriate manner. In addition to this, the
changing behaviour of customers, strong world wide competition leads to invest within new
commodities so that business can be survival for longer period. Therefore, entity must engage
within the process that helps to bring modification within existing commodities.
Long term growth- Customer has unique demand and preferences within market. In addition to
this, the entity needs to face the immobile competition in market as this develops the new
commodities (Wikhamn, 2019). This is one of the effective term that helps to remain competitive
and also leads to accomplish higher sales.
Improved life style- NPD is termed out as the process as this assist the customer to carry out
improvement in lifestyles and also offers extra benefits to customer for the long term. In addition
to this, the entity is taking steps towards to undertake depth analysis in terms to need and wants
of customers.
So, this can be stated that NPD plan of action will be beneficial for entity in number of
ways as this offers the various benefits to customer’s for the longer period. This offers the
opportunities that assist to have improvement and this helps to gather the attraction of wide range
of customers.
Big-belly innovation case.
Big belly is the enterprise that develop new product by use of creation of smart network
waste and recycling the station that is made up of smart belly components that sends text
message about status through mobile network to web based software system. There are number
of rivalries that is avail to this firm and this is taking steps towards to producing the same
commodities. If an enterprise produce the same commodities can results into decline in sales of
enterprise. Herein, the process of NPD supports the enterprise to frame out strategies that brings
improvement within operational working and supply chain activities.
Therefore, business plan outlined as-:
Executive summary- Big belly is the enterprise that look over to recycling the wastage to
reduce harmful environmental impacts. This entity is taking steps towards to create self
contained trash compaction system that reduce the municipality annual collection of cost and to
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offer the truly green solution. It is enterprise that is taking steps towards to use solar powered
trash compaction system with culmination of extensive techniques optimization and system
integration.
Vision- The vision of this enterprise is “To transforming one of the least efficient and resource
intensive industry by reducing the wastage.
Mission- The mission is “To bring out the smart waste management, smart city and internet of
things to be recognised as climate leadership group practice.
Objectives-:
Corporate objectives Marketing objectives
To hire the skilled labour workforce to
undertake innovation effectively.
To have increment within market-share up to
50% in upcoming 6 months.
To line up training of staff with help of
improving the operational working of staff.
To be the favourite brand of the customers.
Source of funds-: The innovation needs to be carried out as per the demands within the market
and suitability of customers. In order to undertake the changes effectively, the entity needs to
develop the budget to carry out execution systematically. Therefore, these are outlined as-:
Resource Price (UK)
Skilled labour workforce 155
Equipments 175
Technological tools and equipment such as
solar smart network etc.
500
Advertisement 100
Total 1000
Herein, the estimates budget for undertaking the innovation will be as £1000.
Ways to access funding as are-:
Anger investor- An angel investor can be termed out as an individual who supports to offer
capital for business start up in exchange for convertible debt or ownership equality.
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Crowd funding- It is termed out as practice of funding project or venture by raising small sum
of amounts of money from large number of people. This is termed out as alternative finance.
Venture capitalism- This is termed out as private equity investor that offers capital to firm by
exhibiting high growth potential in the exchange of equity sake.
Tool to protect knowledge.
Intellectual property defined as to facilitating the process of taking innovative technical
advancement to market place (Wikhamn, 2019). For the enterprise that deals in technological
innovation, the successful invention aids to results within more efficient manner or helps to
develop commercially viable products. Therefore, these are outlined as-:
 Patent- This helps to grants right to an entity in respect of reserve and to protect any
invention. It restricts other entities in terms to sell, develop, commodities and services
etc. This helps to offer the competitive advancement in market. It offers legal right to
entity in terms to protect the IP.
 Trademark- This represent as unique symbol that aids to identifies the businesses and
products (Hartmann, Mainka and Stock, 2019). Henceforth, trademark is type of
intellectual property that is inclusive of recognizable sign, design, expression that
identifies the product and services of the particular sources. In addition to this, trademark
support to identify the services that are called out as service marks. With the use of logo,
symbol and tag line the commodities of the enterprise can be easily distinguished.
 Trade secrets- It is inclusive of the formula, methods and process etc. of the specific
product and services. In addition to this, the formula, algorithms can be used by
enterprise to take initiative to bring development in commodities and services within
enterprise.
 IT tools- The number of the tools such as driving force, key loggers and anti-malware
software and hardware aids to protect the crucial information as well the data of the
company (Lim and Fujimoto, 2019). It can be helpful to have the faster and easy security
in terms to intellectual property. Also, this is susceptible to get pinned down or hacked.
 Legal acts- This is also termed out as the copyright act. It is one of the effective tool that
assist to foreclose malevolent use of intellectual property to the enterprise. In addition to
this, the legal measures aids to support the quality of commodities safe but this is also
difficult to maintained by smaller entities.
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Herein, it can be concluded that there are different techniques that can be used by entity
to protect the IP and knowledge. This offers the legal rights and also restrict rivals to copy
product features, process and formula etc.
Define support evidence based on evaluation on different tools relates with business
environment.
In order to protect the innovation and invention the entities are using the different tools
such as trademark, copyrights and patents etc. Without ant protection of ideas, business and
individuals the entity cannot able to reap the full advancement over inventions and also put less
focus on process of research and development (Ramadurai and Bhatia, 2019). This can be used
successfully in terms to facilitate the successful innovation in the enterprise as Big belly.
CONCLUSION
It has been summarized that innovation primarily plays a great role within an
organization. Invention and innovation are two different aspects where innovation helps to gain
competitive advantage by bringing modification in existing product while invention is basically
about generating the new ideas. The culture, vision, and culture of organization basically helps to
shape the innovation by collaboratively working and encouraging employees to contribute their
opinions and ideas. There are mainly 4 Ps of the innovation namely product, process, position
and paradigm which helps in generating new ideas of innovation. This is mainly linked to
innovation funnel. This funnel is the main tool that is being used by organizations for examining
as well as shaping the new ideas. At the end, frugal innovation is the another most important
aspect of the innovation which mainly helps the organizations to innovate by reducing their
overall cost of manufacturing.
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REFERENCES
Books & Journals
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Audretsch, D.B. and Link, A.N., 2018. Innovation capital. The Journal of Technology
Transfer.43(6). pp.1760-1767.
Biemans, W., 2018. Managing innovation within networks (Vol. 7). Routledge.
Kahn, K.B., 2018. Understanding innovation. Business Horizons.61(3). pp.453-460.
Libaers, D., Hicks, D. and Porter, A.L., 2016. A taxonomy of small firm technology
commercialization. Industrial and Corporate Change.25(3).pp.371-405.
Nambisan, S and et.al.,2017. Digital Innovation Management: Reinventing innovation
management research in a digital world. Mis Quarterly.41(1).
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paths for an innovation trajectory. Journal of Business & Industrial Marketing.
Shakeel, S.R., Takala, J. and Zhu, L.D., 2017. Commercialization of renewable energy
technologies: A ladder building approach. Renewable and Sustainable Energy
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Guo, B., Pérez-Castrillo, D. and Toldrà-Simats, A., 2019. Firms’ innovation strategy under the
shadow of analyst coverage. Journal of Financial Economics. 131(2). pp.456-483.
Hartmann, S., Mainka, A. and Stock, W.G., 2019. Opportunities and challenges for civic
engagement: A global investigation of innovation competitions. In Civic Engagement and
Politics: Concepts, Methodologies, Tools, and Applications (pp. 607-623). IGI Global.
Lim, C. and Fujimoto, T., 2019. Frugal innovation and design changes expanding the cost-
performance frontier: A Schumpeterian approach. Research Policy. 48(4). pp.1016-1029.
Ramadurai, K.W. and Bhatia, S.K., 2019. Frugal Medical Technologies and Adaptive Solutions:
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Wikhamn, W., 2019. Innovation, sustainable HRM and customer satisfaction. International
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