Unit 8: Innovation and Commercialisation

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of innovation compared to invention.............................................................1
P2 Importance of company's vision, teamwork and culture in forming innovation...............3
TASK 2............................................................................................................................................5
P3 Explanation of 4Ps of innovation and use of innovation of funnel...................................5
P4 Explanation of Frugal Innovation.....................................................................................7
TASK 3............................................................................................................................................7
P5 Explanation of importance of commercial funnel.............................................................7
P6 Innovation business case for company..............................................................................8
TASK 4..........................................................................................................................................10
P7 Evaluation of tools to protect Intellectual property.........................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is the creation and discovery of novel idea and methods which are being
implemented in order to ease the working of customers and satisfying the underserved needs of
society. This report is based on Samsung private limited. Samsung is the largest conglomerate of
south Korea. It manufactures electronics items such as smartphones, televisions, air conditioners,
and many more. Initially this report include how innovation is important for an organisation as
compared to invention. Secondly the report explains the role of vision, leadership, culture and
teamwork in shaping innovation and commercialization. Further the report explains the 4Ps of
innovation and use of innovation funnel in assessing and formulating innovating ideas. Moreover
the report also cover the explanation of developments of frugal innovation and examples of its
implementation in company's perspectives. The assignment also explicate the significance of
commercial funnel and application of new product development processing for
commercialisation and innovation. Further the report also include an innovation business caselet
and methods of raising funds. Finally the report end with evaluation of tools to protect
intellectual property .
TASK 1
P1 Importance of innovation compared to invention
Invention
Invention is a phenomenon of emergence absolutely new e equipment in the market.
Invention is usually performed by scientist with high intellectual mind.
Innovation
Innovation is a method implementation of original idea for the first time. Innovation is of
two types- evolutionary innovation and revolutionary innovation. Evolutionary innovation
emerge from various subsequent advancement in technologies and applications. Revolutionary
innovation are absolutely novel (Ke, and et. al., 2016).
Commercialisation
It is a procedure of introducing newly invented or innovated product in the marketplace.
It is a event of launching absolutely novel and useful product in the market for purchase by
common people. Business case refers to an written and oral presentation that is made on the basis
of decision making. In context of Samsung, it is develops for the innovative product.
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After analysing the situation of the needs, preferences and comfort of the customers Samsung
innovate “Samsung- FH” phone in this they easily fold and it is made up with 3D glass. Where
operational activities of the company evaluate the monetary value in making the phones. Here
the managers use various promotional tool to recognise their product by their customers. They
examine the source of fund that was used in manufacturing the products or promote the product.
At least manager monitor and evaluate all the circumstances that was present in the delivering
and launching the products (Yu, and et. Al., 2016).
Importance of Innovation
 Solve the existing problems in highly efficient manner.
 It enhance the productivity of the respective substance.
 It helps organisation in cut down the competition.
 It lower the need for marketing effort (Song, and et. al., 2016)
Basis Innovation Invention
Meaning Innovation refers to creating
something original in nature
by implementing an idea for
the very first time.
Invention is an event on
creation of a tangible product
for the first time with an
original idea which give value
to people.
What it is A new valuable physical
product.
Addition of features in existing
product.
Skills required Deep knowledge of science High order thinking skills
Responsible Department Research and development
department
Whole organisation
Example Creation of Televisions was
invention
Emergence of LED and 4K
televisions is innovation
Challenges to innovation
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 Distraction from core responsibility: Many manager have an ideology that
employees must focus on their work. They have a concern that engaging
employees in bringing out innovation will disrupt their basic responsibility.
Employees are not authorised to engaged themselves in formulate new ideas and
for implementation of innovation process. Innovation within the industry needs
adequate support from managers and leaders (Wang, and et. al., 2017).
 No motivation for innovation: Even if employer give employees authorisation for
innovation they does not boost confidence and morale of employees. Employees
needs motivation in the form of rewards, perks, flexible working time.
 No innovation strategy: Organisations is required to devise a strategy for
innovation. Companies usually ignore this activity and create innovation in a
haphazard way. This can leads to failure of innovation. A short and clear strategy
is required to direct creation and implementation of innovation in an well
organised form (Ge, and et. al., 2017).
 No formation of cross functional team: In many companies, all the work of
innovation is assigned to one department usually research and development
department. Forming a cross functional teams for innovation is crucial for
organisation. Every department has diverse perspective with respect to the
customer acceptance. Taking into consideration diversified opinion is important
for creation of successful innovation.
How Samsung can implement innovation
Samsung has been maintaining good relations with Russian Academy of Science.
Company enjoys early benefit of low priced elementary scientific contribution from Russia. Firm
buy patented technology from Russian Academy of Science.
P2 Importance of company's vision, teamwork and culture in forming innovation
Vision
Samsung corporate vision is to become an inspiration for the world and enhance the
standard of living of people by delivering worthy products and prospering the society by shaping
a new future.
Vision role in innovation
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The vision define a clear path towards generation of innovative ideas and measure for
successful execution of idea. It act an origin of goals, metrics and plan of actions. An innovation
vision aid organisation in travelling from current state to a better position in future. A company
become outdated and obscure if there is no existence of innovation vision. As Samsung's vision
is to enrich the life of people by giving exceptional products therefore company feels motivated
to bring out innovative feature in their product. Continuous improvement and innovation is the
key reason behind the success of the company (Liao, and et. al., 2016).
Culture
Samsung corporate culture emphasis of exploitation of highest level of technological
advancement. It has an innovation oriented work culture.
Culture role in innovation
Culture plays a crucial role in innovation in the organisation. Companies in which
communication upward and downward is very fast and relations between employees and
employers, employees are motivated with rewards, performance of employees has been
monitored regularly give a conducive environment for innovation. Samsung corporate culture is
an ideal culture for innovation. Company focus on efficient utilization of employee' s calibre,
skills,knowledge and expertise. Firm's culture is conducive to innovation. Organisation follow
their vision and mission that concentrate on improving living standard of people by continuously
taking out innovation and improvement in the core product such as Smartphones, Televisions
and tablets. Work culture of Samsung set on the foundation of customs, ethical values and
traditions (Yin, and et. al., 2015).
Teamwork
When company employees work individually than their efficiency and effectiveness
get dispersed which have severe impact on the outcomes of the task. If employees work
collectively in a team than there there would be collective implementation of skills and
expertise on the set of tasks which leads to desired outcomes. Teamwork plays an important in
innovation. When all employees of a company work as a team there a sharing of skills, sharing
of knowledge and sharing of expertise in a single project which optimize the functioning of
work and organisation accomplish desired outcome easily in comparison with individual
work. Samsung electronics works in a team. Firm employs diverse workforce for single task.
Cross functional teams work on innovation with diversified ideas and opinions. Evaluate all
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the ideas and aggregate all the best ideas in such a way that results in emergence of ultimate
solution a problem.
Leadership
It is a trait of influencing other by being an respectful and exceptional entity. Leaders
are accountable for the changing the trends. Leaders motivate employees to give their best
with full effort and enthusiasm. Leaders are responsible for formation of team and motivate
them to give their best performance. A good leader identify the significance of diversity in a
team and extraction of best combined effort in order to generate the optimal result. Samsung is
one of the company in best leaders are present to lead the team in a best manner. Leaders in
the company follow an approach of combining three leadership style that are autocratic,
deliberative and participations which boost the motivation and morale of employees. It also
increases employee's self-confidence which ultimately leads to best innovation (Xiao, and et.
al., 2016).
TASK 2
P3 Explanation of 4Ps of innovation and use of innovation of funnel
4Ps of innovation
It is a model which comprises of all major components of creativity that drives the
innovation. The 4Ps of innovation are product, process, person and press. The detailed
description of all the elements of this model are given below:-
Product: It is a final outcome of all processes and effort of a person. It is the desired
innovation. Researchers focus very less on this factor of creativity. They usually saw product as
the result of all the other factors especially procedure and the person. There is a conflict among
researchers towards accurate definition of product. The product emerge must be new and
valuable (Li, and et. al., 2019).
Process: It refers to the method used by innovator in creating a new product. In
innovation context, process indicate the though process and mindset instead of procedure. It
define the perception of a person while initiating to create a new solution to the specific issue. It
determine the motivation level of innovator while performing a task.
Position: It describes that state of condition in which product lies between the
comparisons of its rivals that provides identical commodities within the market. In terms of
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Samsung want to launch new product with advanced technology in order to achieve competitive
advantage with the help of its products as because of this, its competitors did not become barrier
in its growth and success (Aryal and et. al., 2016).
Paradigm: It depicts the procedure by which company face prominent changes because
of acquiring prominent innovative ideas in order to describe the overall performance and
functions of company considering the new arriving challenges (Henttonen and Lehtimäki, 2017).
In terms of Samsung, they prominently set the benchmark for others in order make prominent
changes for their business model to come up with new unit of production.
Innovation Funnel
It is a description of life cycle of innovated product. It explain all the stages incurred in
development of new product. The purpose of innovation to create a product to satisfy the needs
of customers in commercially profitable manner.
Investigation: It is considered as the first stage which is useful in launching of new
product and for this, each and every organisation need proper investigation in order to target their
audience as per the need of their customers and also evaluate the performance of their
competitors in order to compete within the same market with different product (Song and et. al.,
2016).
Development: By analysing the condition of market it is considered as the second step in
order to develop product on the grounds of market demand. It describes the prominent features of
product which is useful in developing it in accordance with the requirements and want of
consumers (Li and et. al., 2019). For instance, Samsung need to develop new smart phone with
new and advanced technology considering advanced artificial intelligence and water proof
technology.
Shipment: It is considered as the last step which is useful in describing the shipping
procedure. In this context it defines the whole procedure which is useful in transferring the
commodity from one place to another place in order to reach them to their potential customers. It
also include various services including capacity of transport, climate and so on (Liao and et. al.,
2016).
Innovation funnel helps the businesses in finding, screening and creating best innovation
product that prove to be commercially viable.
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P4 Explanation of Frugal Innovation
Frugal Innovation
It is the procedure of decreasing the cost of manufacturing along with making the project
less complicated. It is a type of innovation in more output is expected from the least possible
input. This procedure consider the determination of various problems that are developed in order
to misbalance the structure of business as it consider the value chain of the innovated and
redesigned product in order to achieve the large market within the most affordable price (Wang
and et. al., 2017). Therefore, innovation is useful in order to target the customers that more
techno friendly and tech savvy and then move towards the offering of beneficial products. In this
context, the aim of this procedure is to develop market in order to maintain their decorum with
the market in terms of technology and also set standard for long term elasticity. Therefore, the
concept of frugal innovation depends on the idea of effective manufacturing of the procedure
which is useful in offering same benefits to their potential customers by identifying their needs
and requirements.
Application of Frugal Innovation in Organisation
 Frugal innovation is applied in the Samsung's context as company is using new
technology.
 Samsung FH is a folding phone which consume less space.
 Samsung HF have a hologram features that's why there is no need of certain elements of
Smartphone such as cheap and micro processor.
TASK 3
P5 Explanation of importance of commercial funnel
Commercial Funnel And Application
It is define as the stages from which a sales person go through in order to convert a
prospect into a final customer (Aryal, and et. al., 2016). A sales person demonstrate products to
lots of customer than only few prospect turn into customers.
Stages of Commercial funnel
Making Consumer aware: In this stage the company create awareness among customers
with help promotional and advertisement activities.
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Creating Interest: In this phase of commercial funnel marketers takes all efforts to make
customers exciting towards the product.
Purchase: In the last stage of commercial funnel customers finally decides to purchase
the goods and services.
New product development
The detail description of stages new product development are given below:-
Idea Generation: For the development of new product within the market it need proper
innovation which is depends of the requirements of their customers. Moreover it put emphasis on the
current need of the prominent customers of the Samsung on the grounds of the need of techno friendly
products and youth.
Concept definition: At this step company specify their new product in term of their
customers. In this context, Samsung use this step regarding showing the new product in front of
their customers. In this context, product differentiation can be opted by company in order to
describe the result of their unique product (Xiao and et. al., 2016).
Market analysis: It represents the launch of any prominent product within the market,
and for this, company need to determine the market conditions. In this context, all they need to
consider the prominent research which is useful in order to identify and eliminate the risk factor.
In this context, Samsung need to analyse their target market which depends on the requirement
and demand of their customers (Rasmussen and Eliason, 2017).
Product development: This stage comes after the determination of market and its
concerning situation that is depends on their suitable research which is useful in order to develop
prominent design of product. For this, the overall development is done on the grounds of
attracting customers in more easy way.
Testing Product: It depicts the testing of product that is done on the grounds of samples
which are used by users and launch after their feedbacks.
Commercialisation: It describes the representation of products within the market.
Moreover, it is done after the prominent testing of products in order to launch it within the
market to enhance the sales and growth of company (Yu and et. Al., 2016).
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P6 Innovation business case for company
New Business Case Of Organization
Steps Description
Summary SAMSUNG is one of the leading electronic
company which is famous for innovative
products. In this case Samsung introduce new
product “ Samsung- FH” where F stands for
foldable and H stands for holographic. It
creates a great impact on the technology sector
positively to attract more customers.
Objective The aim of Samsung is to provide best and
unique electronic products to their customers
including digital media, semiconductors,
memory chips and integrated systems. They
belief in value the customers and give their
best efforts
Mission Samsung mission is to utilize their work force
and technology to create superior quality
offerings which contribute to a better global
society.
Source of Innovation Here, the innovation source is decided as per
the consumers suitability. In the present
scenario changes occurred in the phones in
terms of folding and using 3D glass in making
the phones.
Solution For this managers of Samsung has an effective
idea and strategies by which users are ready to
use it for this potential customers will be
targeted.
Innovation in product Foldable and holographic glass used to make a
phone that provide users a 3D images without
using any special glass. This is for premium
customers who are very conscious about the
new arrival. In this company spend more on
R&D team which results in more profits by
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developing the unique products (Henttonen,
and Lehtimäki, 2017).
Target Market In this they target those customers who are
very much addict to using new technology
products. Positioning can be done by using
retail counter or by using different promotional
tools like television, social media etc. which
create a great impact on the sale of the product.
Source of funds There are various source of funding that a
company use to innovate new products. These
includes bank loan, friends and
family ,government corporation etc.
bank loan- it refers to that loan which was
given by the banker to the borrower on behalf
of their execution of an effective plan. It covers
low interest rate and have secured type of
loan .
Government assistance- country like UK,
government provide funds in terms of small
business loan,grants etc. in this government
provide tax rebate to promote innovation in the
business.
In this company use government assistance to
promote their business in a wide area or
developing the product.
Benefits It can create more benefits in terms of good
brand image,maximising returns, satisfy
customers, and improves the productivity.
Monitoring and Controlling At the time of maintaining the actions and
functions in innovation and launching unique
products in market, manager can monitor and
control the customers actions regarding the
products and take effective action according to
that.
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TASK 4
P7 Evaluation of tools to protect Intellectual property.
Intellectual property rights
It refers to the fabrication of mind of an individual like invention, artistic work, symbols
images etc. that was used in commerce. It is protected by the government of the country to
encourage the innovators of Samsung to innovate new and unique ideas for the betterment of the
company without the fear of creeping the idea from other persons . It usually give to the creator
an special right over the use of innovation for a certain period of time. It also give the financial
benefits to Samsung who holds that rights. There are various types of right such as patent,
copyright, trademark etc. that are described below (Weng, and et. al., 2017).
Patent right- It refers to that right that was given to the innovator to prevent it from
using, producing, selling the innovative product without the permission of the creator for a
certain years approx 20 years. It is an essential tool to prevent the use of innovative idea from the
competitors this will help company to generate more profits and increase nation economy. This
right give Samsung the strong protection of the unique product and it forcibly stop the use of
creation by other person without permission (Rasmussen, and Eliason, 2017).
Trademark- It refers to an recognisable sign, design or expression that identifies the
product offerings of a particular source from those of others. Therefore it is generally used by
Samsung to identify the services and called service marks. It can be done on labels, packaging
and a product itself that is owned by an business enterprise or a legal entity. It is the weakest
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protection in terms of providing the protection of goods and services. It does not protect the
products but protect the marketing concepts that a company use.
Copyright- It refers to that right that protect the original work of the authors which
involves literary , dramatic, music and many creative work. The trump card of this legal law is
that it is only use by the owner of the work. It is the moderate in terms of preventing the use of
others. It also knowns as the work of authorship in this work can be automatically protected or
copyright, preventing from replicating it (Wang, and et. al., 2017).
The top management of the Samsung use the patent right to protect their innovation in
product, so that no one can copy it without the permission of the organisation for a certain
period of time. It will help the company to capture the large market and gaining the competitive
market from the marketplace. It this if rival firms use this innovation without the permission in
this case the Samsung sue the case on rival company. It affect the brand image of the
competitors. In this company use their innovation itself because they get the licence on patented
product which is an important source of earning the more revenue for the business.
CONCLUSION
From the above report it has been concluded that there is a notable difference between
innovation and invention. The report also conclude that company's culture, team work, vision
and leadership style plays a significant role in forming innovation and commercialisation. The
report reason out that innovation funnel is important for successful execution of innovation plan.
The report also find out that frugal innovation is very useful for the company. Samsung FH is the
phone with foldable edges and holographic projections seems to be perfect innovation for
Samsung. In the end, the report conclude that trademark, patent and copyright are tools for
protecting intellectual property of the company.
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