Innovation and Commercialisation in Xiomi

This report discusses the innovation and commercialisation process in Xiomi. It covers the importance of commercial funnels and the new product development process. It also explores the difference between innovation and invention, the sources of innovation in Xiomi, and the link between innovativeness and leadership, organisational culture, and teamwork. The report provides insights into the 4Ps of innovation and the value of innovation funnel and frugal innovation to the organisation.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Background of Xiomi and the commercial potential...................................................................1
Importance of commercial funnel and the new product development process for the
innovation....................................................................................................................................1
Building the case of innovation using commercial funnel...........................................................2
Protecting the intellectual property rights of new product...........................................................3
TASK 2............................................................................................................................................4
Difference between innovation and invention ............................................................................4
Sources of innovation as core process in Xiaomi.......................................................................5
Link between innovativeness of the organisation and the leadership, organisational culture and
teamwork......................................................................................................................................7
4 Ps of innovation .......................................................................................................................8
Value of innovation funnel and frugal innovation to the organisation........................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation can be defined as method of making the idea or the inventions of new
products or services. Due to the technological advancements companies are required to enhance
their processes and are required to bring new and innovative to the market. Innovation has
became the focus of most of the small, medium and large enterprises. It plays vital role in
organisation and its growth and success. Commercialisation on other hand can be defined as
extended process of the innovations (Rasmussen and Eliason, 2017). It consists of various factors
who are performing the functions for commercializing the ideas and producing substantial scale
for the financial gains. Present report is based on innovation and commercialisation process in
Xiomi. Report will be providing about the importance of commercial funnels and product
development process. It will also be covering the intellectual property rights of the new product.
The report will be providing the difference between innovation and inventions. It will also cover
the sources and process of innovation processes. It will also be explaining the 4ps in innovation
with the examples. Project report will enhance the understanding of innovation and
commercialisation and its importance in the organisational context.
TASK 1
Background of Xiomi and the commercial potential.
Xiaomi was founded in 2010, April and was listed in main board of Hong Kong Stock
Exchange in 2018. It's an internet company having the smart hardware and smart phones
connected by IoT platform as the core. It has the vision of becoming friend with the users and to
be coolest company of world in heart of its customers. Company is committed with continuous
innovations, and with unwavering focus over quality & efficiency. It manufactures good quality
products at the reasonable and honest prices, so that everyone is having the opportunity of
enjoying a better life using innovative technology. It is having the potential in commercialisation
it has made possible the idea to reach to its potential customers around the world. The
innovations and ideas of company spreading across the world and are getting high acceptance.
Importance of commercial funnel and the new product development process for the innovation.
Commercial funnel is also known as sales funnel. It is used by the business organisations
for leading generations and the sales disclosures. It is important for analysing what business
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models or the marketing tools are needed for helping the business to succeed in market.
Marketers also focus over clients that are existing already in decisions section of sales funnel.
Commercial funnel helps company in driving the customers to action portions (Stankosky and
Baldanza, 2018). The funnel consists of 4 stages that are awareness, interests, decisions and
actions for defining the customer's perspective. The stages requires different approaches for the
marketers for attracting customers.
Awareness : This refers to moment where company attracts the attention of customers for the
prospects of firm. It leads the customers to be aware about products offered by firm.
Interest : Company is is required to publish the products for enabling the customers for making
informed decisions.
Decisions : At this, consumers are ready for buying and over this time a company should give
best offers to the customers.
Action : This refers to stage where the customers make the actual purchase and become crucial
part of business ecosystem.
Commercialisation – It could be defined as a process related to specific are for launching new
products in the market.
Business Analysis – While conducting analysis for new product developments Xiaomi is
required to assume cost of products, profit margins & the ROI
New Process Development
It refers as driving force of company which is an effective tool for accomplishing the
organisational goals. Worldwide strong competition, dynamic behaviours of customers,
technology and investing in new product for its survival. This process is engaged at time of
launching new products.
 NPD helps in long term growth by assessing the competition and developing new
products.
 It also helps its consumers in getting improvements in the lifestyle (Kim and Park, 2018).
Company achieves this target by assessing the needs and demand of customers.
Building the case of innovation using commercial funnel.
''Wireless Chargers by Xiaomi''
Xiaomi is a mobile company and is serving people efficiently from last few years.
Company is planning to bring new smartphone with wireless chargers. These new smartphones
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will be available at reasonable prices. Company is known for providing quality products at
affordable prices.
Key Risks
Company has to face tough competition from the big and strong competitors like Apple
and Samsung. The other competitors are having big market share and it would be difficult task to
make new market attracting the same customers. However products of these available at very
high prices. Trust over Samsung and apple may impact the innovation of Xiaomi.
Sources of Funding
Company will be using its own reserved capital for the innovation of new smart phones.
However, the project will involve deployment of funds in the following areas.
Resource Price (UK)
Skilled labour workforce 150
Equipments 175
Commodities to manufacture new Smartphone 200
Advertisement 90
Total 615
Key Performance Indicators
The KPI may be assessed as the accomplishments of the company objectives.
 Increase in growth rate by 10 % by launch of new innovation.
 To have a addition in market share of 40%.
 To have the sales of around 50000 smartphones in 8 months.
Protecting the intellectual property rights of new product.
Intellectual property refers to the idea and knowledge applied in the innovation of new product.
Company is required to have these right of innovation and invention reserved so that the
competitors or other competitors do not copy them. The given tools can be used for protecting
the intellectual property rights of new product.
Patents – It grants the company right to protect its invention. Patent is granted by the
government authority on registering its innovation and payment of defined fees (Haron and et.al.,
2018). Companies having patent right also gain competitive advantage in market.
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Trade Marks – This is the mark on the products of company. Trademark is granted by the
government department where no other company can sell the product with the same sign as that
of company.
Copyrights – This is the mainly used by companies and individuals for their innovations. It
reserves all the rights of copying the product by any other person or company. No cpompany can
manufacture the same product in its own name.
TASK 2
Difference between innovation and invention
Innovation refers to process where a new product or process is developed making the
work easier and faster. It also gives new experience to its users. This could also be defines as
new idea for modifying the existing good and services for making them more better and
effective. Innovation helps companies in gaining competitive advantages in the business
environment. By effective creations in existing products and services would be leading to
improved organisational goals and performance for achieving the mission and vision of
company.
High Quality Goods – It helps organisations in evolving new commodities with enhanced
quality. Innovation provides company assistance and target new customers which leads to
enhancing the profitability and new productivity.
Building Future – Corporations constantly strive for innovating new products or
processes for achieving growth and success in future. Innovation after analysing the needs and
wants of its customers helps companies in shaping future of company. Organisation adopt the
NPD process for achieving the profitability and productivity for company. Xiaomi is taking
constant steps for innovating new products and services to the customers for enhancing their
experience at reasonable prices (Hameed, Von Staden and Kwon, 2018).
Provides Modern Tool – It helps in enhancing the creativity of company and its
employees. It enables the people in doing things in more advanced manner. Innovation in the
present time is difficult without using the technological advancement. Organisations are required
to provide trainings and development programs for enhancing their knowledge and experiences
and getting new and creative ideas.
Basis Innovation Invention
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Meaning Innovation could be defines as
process where the inventions
or ideas are converted into the
finished goods or services
creating value for the
customers, for which they will
be paying.
It could be defines as novel
idea that requires to be
patented. Characteristics of the
invented idea should be
unique, having utility and is
non obvious. Idea only
requires to be proved as viable
& workable before going
public.
What is it? It refers to adding value to
existing products or services
by modifying them (Brenner
and Adamovic, 2018).
It involves creation and
development of new product or
service
Concept It refers to practical
implication of the the idea of
inventions.
It leads to originating
completely new ideas and
creation.
Skills required It needs to have set of
marketing, technical and
strategic skill.
This required to have scientific
and technical skills.
Concerned with This linked with combination
of varied product and services.
Single commodity or
processes.
Activities It is spread at all over the
enterprise.
This is limited to Research and
development department.
Sources of innovation as core process in Xiaomi.
Successful Innovations develop from the conscious and purposeful research of the
innovation opportunities available. This means that Xiaomi can present and develop successful
innovative ideas by a purposeful and dedicated search of innovations by efficiently and
intentionally allocating the resources & knowledge in this sector. These are the sources of
innovation :
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Unexpected Occurrence
Unexpected failures, unexpected success or the unexpected outside event that only occurs
where the outcomes of products or services are against anticipated results expected by
management. Unexpected results are afterwards, used by management for innovating the existing
products for shaping them according to market requirements.
Incongruities
Sources of innovation will be becoming more active if innovators measures incongruity
between the actual and expected results. Company can gain competitive advantage by
successfully pointing out gap of the missing information about how the customers will be
utilizing the products.
Process Needs
New opportunities are are opened on improvements in the processes. For example
invention of fit band made it much easier for the people to keep track over their workout in a
day, by counting their steps in km, pulse rate and like other features (Kun, 2017).
Industry or market changes
When industries grow along with the market there are number of opportunities emerging
with the same. This is because as the growing segment do not meet the target traditional business
leaders. There is great demand of innovation in such markets and company should innovate
products or services analysing the needs and demands of customers.
Changes in Demographic
It refers to the changes in population, education, age segmentations and the geographic
locations. The attributes are used for forcing top leaders and the management for moulding the
products accordingly, for increasing the product life cycle. These factors also give ideas for
innovation meeting their demands and requirements.
Change in perception.
It is an important source driving the innovation in an organisation. Public perception is to
be analysed very effectively for getting the ideas for new opportunities for innovations. The
changing preferences, trends and the buying behaviours are falling under the category. Today
the people are becoming more conscious about the products that are more easing their works.
This forces the company to get its focus towards developing innovations that add value to the
customer's experience also ease their process.
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New Knowledge
Knowledge could be defined as the ultimate source of innovations. Every invention in
history took place completely based on their scientific, technical and social knowledge.
Innovations that are brought be new knowledge and insight helps in bringing immediate
popularity and attention of the customers. In the present time newest innovations are
teleportation. Xiaomi can provide training and developments programmes for enhancing the
knowledge and skills of their workers (Kun, 2017). This helps them in creation of new ideas and
innovating new process using their knowledge and experience.
Link between innovativeness of the organisation and the leadership, organisational culture and
teamwork.
Innovation are very important every business organisation for achieving growth and
success. Innovation are required for building the positive culture which will helps the business in
running its activities successfully. Innovations are termed out as bringing changes in the existing
techniques, modifying the products or services for improving the quality and efficiency of
products. This could be defined as process which takes long time for ensuring and maintaining
the culture. The innovation thus helps in shaping the enterprise using various elements like
culture, vision and the team work. A better action plan is required to be developed for carrying
out the innovation process successfully.
There are number of sources available in the context of innovation such as changing
perceptions, knowledge and the necessities etc. The ideas related with the innovation must be
created and the needs for implementing them practically. It is all concerned with shaping the
organisations with the leadership, vision and culture. For the innovation to be in right direction th
vision of organisation must be clear to its workers. This is made clear by the leaders who ar
monitoring and controlling the organisations. When there is effective leadership, it motivates the
employees to innovate new ideas and thoughts for making the task easier for the company.
Leaders sets directions to the goals and success of organisation by innovations. Leadership is
also dependent on the culture being followed in the organisation. To have a properly structured
process leaders are required to effectively implement new strategies for the business using new
leadership styles for undertaking the challenges of innovation effectively (Li and et.al., 2019).
Leaders have the role of assigning roles , providing guidance and encouraging new and
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innovative ideas for having better action plan. They motivate the employees in developing new
products or processes that will be helping the organisation in achieving its goals and success.
Organisational culture and teamwork is built by the senior leaders and top level
management. Organisations having free and healthy environment can be seen as having more
innovative ideas and creativity as compared with other organisations. A healthy work
environment is built by the leaders and this creates interest of employees to work within the
organisation. Knowledge and experience of the employees are to be brought together for
innovating new products or services. This is possible in company having effective teamwork
where the members are given equal opportunities and importance. Most successful innovations
are not the work of a single person it is a combination of ideas and knowledge of the entire team.
Teamwork is having a very important role in innovations in any organisation. Organisational
culture shapes the innovation process. Change in roles, process duties, rewards incentives and
various factors could be used for motivating the innovations in company (Wang and et.al.,
2017). It is the responsibility of leaders to identify the skills and talents of its team members for
using them at most appropriate places. Therefore, it could be said that there is strong link
between the innovativeness in an organisation and its culture, leadership and teamwork.
4 Ps of innovation
The four ps in innovation are the product, process, position and paradigm. It is used for
understanding and assisting for building the innovation strategy. The tool enables the company in
discovering new ideas which will help in carrying out the innovation process. It is essential for
the business enterprise to built capability for organising and managing the innovations. 4 ps of
innovation are defined below.
Product –
It is referred to the process for innovating new products and services to consumers. The
innovation is used mainly for ensuring the growth and development in market served by
organisation. When organisations offer new products and developments in market it also brings
new challenges in roles and processes etc. Xiaomi by building new and effective strategies can
offer new and innovative products in the market. Company is bringing initiatives for bringing the
modifications in the existing products and services for having substantial growth in market.
Process –
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It is related with bringing changes or modifying the techniques or procedures of
operation. The innovation in processes is done for bringing operational efficiency to the working
of a company. The process involves identifying the drawback of the processes and innovating
new processes covering the drawbacks as the benefits of new processes. Everyone in the society
strives for making the work efficient and faster. Xiaomi uses modern tools and technology for
enhancing the existing process through innovations making them more effective and reliable.
Position –
It refers to searching out new markets for seeking the attention of the people. This p is
related with the motive of expanding the existing business into new potential markets.
Companies are required to carry out research about the market, including the needs and demands
of the market. Xiaomi will be expanding its products to new markets in different countries.
Company will be carrying out thorough research about the markets in which it is planning to
expand. Like the products they are using, what are their preferences and the what are their
requirements. After analysing these factors company will be promoting its product in the market
by innovating special features of their preference in its product (Song and et.al., 2016). It can
promote its product applying effective marketing strategies attracting the attention of customers.
Paradigm –
The process of innovation is different and it should be included in both short and long
term business objectives. It gives useful insights about how the innovation process is required to
be developed. The details about the strategies and business models are also included in this.
Company is also required to make changes in the business model for innovation. This is essential
for bringing the modification in the operational methods of the enterprise.
Value of innovation funnel and frugal innovation to the organisation.
Innovation Funnel
Innovation funnel refers to the frameworks that is used for generating the ideas. It could
be defined as process where the ideas could be successfully implemented by the enterprise. The
innovation funnel includes various steps which are defined in the following manner ;
Mouth of Funnel
This could be referred as the first step where the different ideas are collected or gathered.
This is an effective tool as it provides the insights about the kind of information required in the
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market. Xiaomi is required to gather various informations regarding the the needs and
requirements of its customers for also providing them with enhanced features in its smart phones
and wireless charger.
Narrowing Funnel
Over this area, organisations by screening select the best ideas that will help in
accomplishing its goals & objectives. The innovation process must be seen by company, that it is
aligned with the goals and objectives of organisation (Haron and et.al., 2018). Xiaomi will be
designing its new products serving the need of customers.
Narrowed part
It refers to the stage where the innovation process is required to be executed as per
defined plans and ideas. It involves testing of the ideas and innovating new products or
commodities. It is an effective term for accomplishing the goals & objectives of business.
Xiaomi could use the approach for gathering crucial information from the markets. This
is essential for evaluating effectively the process. New ideas will be used for assisting the
developments in the services and commodities of company.
Frugal Innovation
Frugal innovations are defined as the process of bringing reduction within complexity
and the prices of the commodities and the manufacturing activity. This helps in removing the non
essential features from the existing products like phone or car in the developing countries. This is
a process discovering new business models, redesigning the products and reconfiguring the
value chains. Xiaomi is a business enterprise selling smartphones and the frugal innovation will
be helping company in reducing its cost. The process is mainly related to removing the
inefficient and non essential characteristics in the products of enterprise and in improving the
longevity of the products. The phone market is very dynamic and company is required to bring
continuous innovations in its product to remain competitive in market (Hameed, Von Staden and
Kwon, 2018).
Companies are also required of taking effective activities which involves adoption of
various strategies that will help the company in gaining competitive advancement in the market.
The method lays focus over creating good quality products and services for enhancing the
experience of customers at reasonable and affordable prices. Successful innovation is bringing
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not only the cost reductions but will also be performing the activities that are available to
enterprise over the large scale.
CONCLUSION
The above report states that the innovation and commercialisation are very important for
the business enterprise. This refers to the process involving continuous developments of new
products and services. The companies to remain competitive in market are required to bring new
products and processes to the market that adds value to their experience. It has laid emphasis on
value and significance of innovation to organisation and how this embedded within organisation
leadership and culture.
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