Unit 8: Innovation and Commercialisation

INNOVATION AND
COMMERCIALISATION

Table of Contents
Introduction......................................................................................................................................3
P 1 Importance of Innovating and Invention...............................................................................3
P 2 Significance of Innovation In Samsung................................................................................5
P3 4 Ps of innovation..................................................................................................................1
P4 Frugal innovation...................................................................................................................2
P5 Development of New Product for Commercialization of Innovation ...................................3
P6 Business innovation case and Reason for assessing funding.................................................4
P7 Different tools for developing and protecting, retaining and intellectual property...............4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

Introduction
Innovation is an action towards newness in the existence like any new method any new
idea to develop or to grow business, as innovation is the process of improvement in the current
idea with the new and addition in any business which take a business and give the ladder to go
higher in there respective sectors are innovations (Naughton. and Foss, 2019). Translation of an
idea or any invention to create something new which gives new values or add values to the good
and services is called as innovation. New idea and creative thoughts are generated in the form of
device and method. Innovation often knows for the betterment for the application and also
provide solutions to the problems. Innovation is the practices which is generated from the
humans mind and also breaks the analog of whatever is in the market or in the existing market.
Commercialization is the process of generating the new and fresh way marketing and
producing the good and services in the market (Kate. and Poirot, 2019). Commercialization helps
and guide the innovative idea which can bring profits in the market, commercialization create an
accurate analyze of product and service and then all factors which are already present in the
market. Commercial marketing product will target more customer in the market and also increase
the potential customer of the market. Right efforts into the right direction from manufacturing of
the product to ending the product market in the best way. It also provides a better strategies and
also grow the organization in the market.
Samsung is one the largest and biggest electronic company selling its product and
services all around the world. Samsung is South Korean multinational company in electronics
sharing a large market share in the market In this report there is a detailed brief about Samsung's
innovation and commercialization techniques and what barriers do the company face to establish
all the factors and favor the company in return.
P 1 Importance of Innovating and Invention
Innovation-
1. Innovation is only worth when it helps business to grow. Innovation is
the basic requirement for any business. New method, New idea and creative thoughts are
generated in the form of device and method (Pynnönen, Hallikas. and Immonen, 2019).
Innovation often knows for the betterment for the application and also provide solutions to the
problems. Innovation is the practices which is generated from the humans mind and also breaks
the analog of whatever is in the market or in the existing market.

2. Innovative person can only bring innovation in his or her work unless and until all are
doing the functional work. Innovation is that idea which comes out from the box and only
that person can become innovative who have creative ideas and different perspective
towards every situation. Innovation increases the knowledge and make a personality who
can be efficient in the decision making.
3. Innovation provides new way of using tools and techniques to improve the strategies of
marketing and attract the user and cover more potential market & here Samsung is the
perfect example of innovation and know its importance very well (Davis, Tzanidis. and
Saltzman, 2018). With the innovation in there products and services they change there
marketing style which bring them more customers preferences in there products and
services.
4. By taking the competency in the basis of innovation importance where innovation plays a
terrific role in the increase its productivity and marketing strategy that means innovation
have successfully helped Samsung to have a competent advantage in the market as the
company is investing in innovative technology's ans methods to increase the satisfaction
of the customers and have also innovated many products' ans services.
5. Innovation increases the efficiency of the product and services and it also increases the
strength and customers as well.
Invention
1. Invention are done to fulfill the unsatisfied need as invention is generated due to need.
Invention helped Samsung to move forward with a new technological advantage but it took time
for the company to solve the current problem as invention is a long term process and takes time.
Invention also need much capital investment.
2. Invention increases the efficiency after creation of the product or the services. Invention
cannot be done rapidly (Bilandzic, Foth. and Hearn, 2018). And it will increase the
efficiency of the company as the company will decrease the cost efficiency by
discovering the alternative and better quality materials to produce the products.
3. Invention increases the scale of opportunity for the organization and the product and
services which are invented as in the better version of the products and the present
version of the products , Here Samsung as a multinational company innovated lots of

the products and in many products they invented new function and new software and new
technology which bring them more strength in the market for their products and services.
Samsung has many consumers who are using their products and enjoying the products.
6. Samsung invented many new technologies like super slow-mo in their smartphone,
curved LED with different price ranges and the inventions provide them to segment the
market in any possible way. Samsung became the attraction point and its products are so
abductive and efficient for the users (Grace, 2019). They also gained more competitive
advantage by their invention and created new options for the consumers with different
price rang they have different products with the help of effective invention.
7. Invention is much broader aspect then innovating as invention needs much more
knowledge. Invention also has a disadvantage of getting obsolete where the urgency of
innovation arises.
P 2 Significance of Innovation In Samsung
Samsung adopted the market environment strategies and market innovation they adapt
according to the environment which result them growth The company have also analyzed the
importance of adopting innovation in various aspects of the company.
Vision
vision is the perspective which help and give company a guidance and aimed them
towards the goal The vision statement of Samsung is very clear in presenting about what the
company viewing for the future (Kergroach, Meissner. and Vonortas, 2018). As Samsung have
stated that innovation will be the primary aspect of growing the company further as innovating
the products will also increase the profits of the company and which help the company to invest
in other aspects of the company which the company have stated. Samsung also views to increase
in innovation will make the people live more comfortably and can connect to the company better.
The vision of Samsung also included to encourage the world to use the technology to make their
lifestyle easier and efficient.
Culture
With the help of innovative employees the company is also successful to determine and
establish a healthy environment to increase the motivation and efficiency of the company and the
employees as well.

1. Power Culture- the company have implemented this style of culture to increase the
efficiency and decrease the workloads. In power culture employees are supposed to
participate in the task with new ideas and techniques to increase the efficiency of
completing the task. This culture was not successful in the company as the employees of
the company felt unauthorized and discouraged which increased the turnover ratio of the
company and decrease the productivity.
2. Person culture- this culture is been rejected by the Samsung as this company always
focuses on the interaction with employees so they want there employees to take their
ideas and innovation whichever company feels and rate the best them they will let this
ideas help and they can innovate the methods and also gives their own suggestions with
the new creative ideas to complete the task of the company.
3. Task culture- Samsung company is the most famous electronic and gadgets making
company in the world they are very famous of there products and according to their task
culture where they face many problems in the context of the employees and customers o
they invented the work culture where employees feel safe and happy and work with ease.
Improving techniques in task culture was hard and tough to describe so by eliminate the
task culture techniques of work culture built them and make them high performance
workforce.
4. Role culture- output by employees will enhance there role in the organization. Maximum
output of the employees in this culture according to this authority and responsibility is
divided and delegated to the acceptable employee, through this delegation of authority
rise issues in the organization in Samsung, by lack of motivation among employees
through the indecisive between employees and superiors will also lead them towards
inefficiency. Samsung generated the strategy to motivate their employees by different
theories and form effective teams eventually it will lead them towards success.

P3 4 Ps of innovation.
The four Ps of innovation are as follows:
Product
In Samsung the product innovation includes development of a product which is
completely new and innovative approach is being used in the product. Innovation is used in the
improving the quality of the product and also productivity of the product (Rus, and et,al., 2019).
For example if Samsung launches it new product having 4000 MAH battery and the product is
new to the market then it will help the company to give better competition in the market.
Paradigm
It include the pattern of the technology used in Samsung. Evolution is the best example of
paradigm which help Samsung in keep improving the performance of the company on consistent
basis.
Process
It is a way to achieve end result following particular steps. For Samsung the process was
in two steps including learning and implementing the learning. The process radical process is
included in Samsung which means the company will keep the basis concept of the product same
while adopting the change.
Position
The position is a area where particular product is positioned in order to increase the sale.
It is also necessary for Samsung to let know the customer what innovation is and how can the
same change the lives of the people.
Innovation Funnel
Innovation funnel is a mechanism which the funnel of innovation of Samsung is
managed. The company will create a innovation plan in the funnel in which the cost effective
items will be given encouragement (Ukwuoma, and et.al., 2019). Shaping of innovative ideas
will done under the plan in which how the company can shape innovate ideas with the resource
available will be discussed. The four Ps of innovation will be applied in which innovative
product will be used. In process Kaizen strategy will be used in which change for better
treatment will be given. Process the employees of Samsung will be given proper training of the
innovation and then in position the young generation of UK will be targeted.
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P4 Frugal innovation.
It is a process of reducing the cost of the product and also complexity in the product,
during production. The quality of the product must not be compromised and the cost of the
product of Samsung must be kept low (Read, 2018). The unnecessary steps or process is
removed in frugal innovation which help it to sell the product in developing nation.
Samsung can use Frugal marketing in order to be Frugal in which digital marketing can
be used as the same will reduce the cost of the product and this will ultimately increase the
profitability. The other way Samsung can be frugal is the packaging cost instead of using metal
items of packaging the company can use plastic items which are cost effective. For example if
the company wants to capture market of Asia then it will work only if the cost of the product is
low because there will be high competition. Examples for reducing cost under marketing are
SEO, SMM, SEM etc.
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P5 Development of New Product for Commercialization of Innovation
Commercial funnel is stream which is chosen by the consumers of company. It is the
process where company optimize the behavior of consumer for the products and services which
are rendered by company and execute further strategies and policies according to that so that
they can attract wide number of customers for their products and services and thus the sale of the
company can directly raised. The importance of the commercial funnel for Samsung are as
follows -
 It is very helpful for the company to understand the complete consumer behavior along
with they can seek out the problems which are faced by consumer while accessing to the
products and services of the company (Valtakari, and et.al., 2019).
 With the help of these report company can cope up with the factors which influence the
fall in the sale of the company's product and services.
Process of New Product Development -
 New product strategies – Management of the Samsung is responsible for forming new
different strategies which can be helpful for the company to compete with other rivals in
the market.
 Idea generation – It is the step where innovative ideas are to be explored by the
company so that they can further develop their products according to that and attract new
consumers.
 Screening – In this step analysation of opportunities and threats for the new product
which can be faced by the new product in the market.
 Concept testing – At this stage new idea of the product have been tested according to the
market research.
 Business analysis – In this step the financial controller and marketers are responsible for
reporting business the costing and investment of new product which can be needed.
 Product development – The product will be developed at this stage after all the steps and
thus cost efficiency is to be used for lower costing of product.
 Market testing – In this step the product is tested by providing the sample of product in
market and thus to be tested that the product is feasible for the company to gain profit or
not.
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Commercialization – It is the last step where the surety is given by the company that the
product they decide to market with effective marketing strategies.
P6 Business innovation case and Reason for assessing funding.
Innovative business case
Innovative business case for Samsung is the LED case in which the company first time
launched the TV which was very new to the market. In 1962 LED was launched and there were
big companies for the competition. Samsung used there own concept of adding there own flavor
in the video and graphics along with the shape of the TV (DUTTA. and ROUSSEAU, 2019).
This case transformed the lives of the users.
Measuring effectiveness.
The old and extra stuff was removed from the TV. The TV is now more long-lasting,
edge lighting was there, more clear and bright images were there and the TV was more energy
efficient.
Challenges and actions for the improvement.
There were many challenges which were faced while launching the new product such as
marketing challenges, cost recovery challenges, Establishing initial price, etc. All these
challenges were addressed by taking actions for the improvement such as of marketing challenge
digital marketing strategies such as SEO, SMM were used (Wonglimpiyarat. and Billington,
2018). For recovering the cost the technique used is penetrating method in which at initial phase
lower cost is recovered and gradually it increased. For establishing is the price skimming
technique in which initially the price charge will be lower and gradually the price will be
increased.
P7 Different tools for developing and protecting, retaining and intellectual property.
Different tools are as follows:
Trade secrets
Trade secrets are used by the company in order to protect the information of the
innovation. Samsung must focus on securing the information which have caused the launching of
new product which is first of its kind (Al Hinai, 2018). Trade secrets will include the secrets of
the product and how the product was made. Trade secrets must be kept at the position which is
safe and secure and must be protected by strong password or lock which is not easily accessible.
This will increase the secret and safety of business.
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Patents
It include the right to use the product for a specified period. Patents will help in retaining
the technology by renewing the patent in which the Samsung must have to focus on keep using
the technology which is playing a substitute role but crucial role in the development of
innovation and protection of the innovation. The value of the product increases due to patent in
which the charges of the product
Trademarks
Samsung must focus on creating an identity overt the product which will make sure that
the product is of the company who have made it and is not duplicate. Trademark will help in
protecting the intellectual right of the product and will also help the company in keep developing
as well protecting the product for long period. (Davies, Roderick. and Huxtable-Thomas, 2019)
Trademark helps in building trust as well as goodwill of the product which ensures the
originality of the product. Trademark also protects against the infringement of the product.
Exclusive rights are there for the inventor of the product which leads to protection of product and
the owner can sue the one who have copied the product when the cheater is being found.
CONCLUSION
From the above study it is concluded that the innovation and commercialization plays and
major role in the growth of the IT company. The company can upgrade their innovation in the
products and services time to time so that they can grow their business effectively.
Commercialization is also important while introducing new product in the market. It is helpful
for the company to access all market situation and consumer behavior, needs and demands so
that they can implement marketing strategies and product development according to that which
can be further fruitful for the company this is helpful in company to increase their sale and thus
revenue of company can also be raised.
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DUTTA, D.K. and ROUSSEAU, M.B., 2019. ALLIANCE EXPERIENCE, INDUSTRY
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