Understanding Innovation Concepts

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Unit 8. Innovation and
Commercialization in an Organization
Student name:
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Table of Contents
Table of Contents...................................................................................................................................
Introduction............................................................................................................................................
LO1 Difference between Innovation and Invention................................................................................
P1. Importance of Innovation to organisations, in comparison with invention....................................
P2. The Ways in which Vision, leadership, culture and teamwork can shape
innovation and commercialization......................................................................................................
LO2. Different types of innovation.........................................................................................................
P3. 4P is of innovation and the use of the innovation funnel to examine and
share innovative ideas........................................................................................................................
P4. Developments in frugal innovation in the Context of Organization...............................................
LO3. Process required commercialising innovation................................................................................
P5. Importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialization of innovation.................................................
P6. Innovation Business Case for an organisation, including ways to access
funding................................................................................................................................................
LO4: Range of Methods for protecting ideas and understand their advantages and
disadvantages......................................................................................................................................
P7. Evaluate the different tools that organisations can use to develop, retain and
protect knowledge and intellectual property....................................................................................
Conclusion............................................................................................................................................
References...........................................................................................................................................
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Introduction
Commercialization, a process which was initially started thousands of years ago and is
still ongoing with new modifications each day along with the introduction of new ways so as to
develop the present scenario of global business. The common thing which is worth noticing in
each successful business is the concept of developing something new, something which the
world has not seen before, something that impresses and astonishes people. This concept of
developing a new idea is called innovation. Since the beginning of human civilisation,
innovation has been wholeheartedly accepted by the consumers, and a particular inclination is
also seen towards innovation (Shaginaw, 2011). Commercialization and innovation are closely
linked to each other. Innovation often results in the commercialization of the idea and innovation
in a business often results in excellent growth and expansion of the business and also attracts a
huge crowd of customers as everyone wants to try something new.
Innovation is the ultimate key in prospering of a business whether it is small or large
depending upon how perfectly it is applied advertised. Not only in manufacturing, but also in
marketing and management, any organisation cannot continue with old and traditional ways of
administrating its employees. Innovation is a must in every department of a company it always
turns out beneficial for everyone. Commercialization of innovation helps to bring out new out
new ideas and helps an idea to develop more and more ultimately resulting in better products
and services (A. Inzelt, 2013). Thus, if we talk in brief, the commercialization of innovation has
so far resulted in the greater good of human society, and this will continue bringing more and
more development and prosperity for all of us.
LO1 Difference between Innovation and Invention
Even though innovation, in its pure sense, is the process of making new something out of
an existing idea or a service, the concept of innovation goes well beyond that. When we talk
about innovation, we talk about new ideas; we talk about pushing the boundaries and making
something new out of whatever we have which is far better than the previous product or service
(Berkun, 2010). Innovation is not only about creating something new but is also by modifying or
changing the previous concept and as we notice repeated modifications often result in the
formation of an entirely new thing.
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Let us consider the example of Apple Inc., the “Apple II” one of the first computers
launched by Apple was one of its kinds at that time but that was not enough. They kept on
working and see where they stand today “The Mac book” one of the most developed computers
of the world. This was only possible through innovation; they kept on hunting for new ideas, and
as soon as they found one, they used it to create something new which would attract customers
and soon became a company with a large number of customers across the globe. This is what
innovation can do when we start pushing our boundaries, we not only explore but we also
discover new ways to success, and this is what happened with Apple exactly.
We often misunderstand invention with innovation and conceptualise innovation as
something else. The invention is when an entirely new product or service is formed which hasn’t
been witnessed by the world yet. It is based on the existing principal, but the final product is a
completely new thing, while in the case of innovation, an existing product or service is modified
with the help of a new idea which results in the betterment of the respective product or service
(D. Jones-Evans, 2016). Innovation may or may not give out an invention as it only works on
the principle of working with an existing concept, but an invention is impossible without
innovation, we need to have certain new ideas to bring out something new, and it all comes
through innovation. Therefore, we can say that innovation is a necessity along with proper skill
and management to prosper in any field.
P1. Importance of Innovation to organisations, in comparison with invention
Innovation, as explained earlier, is all about making something new of whatever we
have. Innovation is about ideas and ideas can shape whatever resources we have with us. As
discussed earlier, innovation is about pushing the boundaries and coming up with new possible
ideas which result in enhancement of quality and reliability of products and services giving way
to new and happy customers which ultimately results in the greater good of the organisation
(Hippel, 2005). In any organisation, when we compare the importance of innovation with
invention we find the difference of possibilities and limits. The invention has certain risks like
disliking of the entire new product or hazards posed by the product to certain natural and
artificial factors in any field. Innovation, on the other hand, is modifying a previously acceptable
product and making something new from it which is according to the needs and demands of the
current generation and that is why innovation in any organisation is widely accepted (Galindo,
2014).
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