Innovation and Commercialization in Samsung

This document discusses the importance of innovation and commercialization in Samsung. It compares invention and innovation, explores how innovation shapes vision, leadership, culture, and teamwork, discusses the 4P's of innovation, and examines developments in frugal innovation. The document also covers the commercial funnel and the application of new product development in Samsung.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Comparison of invention and innovation...............................................................................3
P2 Innovation shapes vision, leadership, culture and teamwork.................................................5
LO 2.................................................................................................................................................6
P3 The 4P’s of innovation............................................................................................................6
P4 Developments in frugal innovation........................................................................................7
LO 3.................................................................................................................................................8
P5 Commercial funnel and the application of new product development (NDP).......................8
P6 Innovation business case.........................................................................................................9
LO 4...............................................................................................................................................11
P7 Tools that organization can use to develop, retain and protect knowledge..........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation can be defined as a new imagination, new idea which is in a form of device or
method and with creative thoughts. Innovation can help organizations in market to unarticulated
their needs, existing market needs and new requirements. Innovation and invention are very
different from one another there is an involvement which is practical in innovation so that the
impact on the market and society is much better.
Commercialization involves the new products and production methods which are being
introduced in the market which is going to make the companies have a competitive advantage.
Here are a lot of inventions which are being done by the research and development which is not
being launched b the companies. The products which are being launched or introduced in the
market have to be customer friendly so that the product can make a place for them in the market.
Samsung is a Korean company with its headquarters in Seoul which is a private company
and is a multinational company which is spread worldwide. There are more than 320,671
employees working in the organization which is making the workforce for the organization better
and the organization has a competitive advantage.
The report would be focusing on the changes which are taking place in the company due
to innovation and commercialization. The company has come out with wireless data transfer for
mostly business class which is a great idea for the company. There are a lot of ideas, methods,
thinking and processing which are coming up getting this product in the market which would be
discussed in the further report.
LO 1
P1 Comparison of invention and innovation
Innovation is very important in any organization because the world is constantly
changing and so does the company’s in market have to get those changes so that they can
continue to have a competitive advantage over the other companies (Farid, 2016). There are a lot
of products which Samsung is dealing with but the company have to innovate the existing
products so that they can capture more customers in the company. The company is coming up
with this new product so that they can provide more verity to the customers and they want to
contribute to the society for a long term. Samsung is doing their best so that they can satisfy the
customer needs and demands and satisfy them completely. Samsung is making sure that they are

not providing the customers with default or defected technology which is why the company has a
strong portfolio for themselves.
Innovation Invention
There are changes which take place in the
existing product in the market of the
organization are innovation. This is done so
that the company can attract more customers in
the company and satisfy them completely. It is
very important for the organization to innovate
according to the customers so that the needs
and demands are met of customers and the
retention of the customers is present in
organization.
Inventions are the new products which the
companies come up with so that they can
attract more customers and give variety in the
company. This will make customers be loyal
with the organization which is going to make
the organization have a competitive advantage
for a long run in market (Cheah, 2016).
There is a requirement of right skills and
strategies to make this process take place
within the organization so that the customers
can get the best. There is a need which is felt in
the organization to get the change therefore
these changes are made in the company's
products.
There are a lot of experiences which is
involved to get an invention in market which
requires science. The research and
development department is which is reliable on
so that the changes in the organization can be
done. Invention will give the company a
competitive advantage and a uniqueness in
market.
There are a lot of unique features which
Samsung is providing to the customers which
are slim in look and lightweight, cheaper and
affordable, Available in three colours which
are silver, gold, black, S bike mode is the best
feature in Samsung, etc (Fuller, 2017). This is
a very good factor for the company because
there are going to be more customers who are
going to see this innovation in products and
The invention which Samsung is doing is use
of wireless data transfer which is very
important in today's world. This is going to
make the company get a lot of customers and
specially the business class because that
requires a safe and faster way to transfer data.
This is not like blue booth but when the
devices are touched the data can transfer from
one phone to the other.

come to the company. It is very important for
the company to get more customers which will
make the organization increase their sales and
make more profits.
P2 Innovation shapes vision, leadership, culture and teamwork
There are factors which can effect the company's innovation of products like leadership,
culture, vision and teamwork (Žižka and et.al., 2018). With the help of Charles Handy's culture
model we can have a better understanding of the organization. There are four stages in this
model which are as follows.
 Power
The power in the organization is in few hands but in Samsung all the employees are given
equal importance so that the best result can be taken out. This way there are a lot of creative
ideas which can entire the decision making of the organization.
 Task
It is very important in Samsung to give all the employees the equal treatment and must be
delegated the right amount of work so that the organization can function better (Skea and et.al.,
2019). Training must be given in Samsung to all the employees so that the best performance can
be given by the employees in the company which will make the organization have a high
productivity level.
 Person
The people working in the organization feel unique and superior to others which will not
make the productivity of Samsung increase. Sharing experience and skills will take out the best
from the organization.
 Role
The roles and responsibilities in Samsung are distributed so that the functioning of the
organization is better and clear. The roles are being followed strictly so that the organization gets
a competitive advantage because the competition level in market is high.
Team work theory by Bruce Tuckman is used by Samsung so that there is a better
understanding of the organization which will help the company to make the innovations take

place in the business smoothly (Schot and Steinmueller, 2016). There are five stages in this
theory which are forming, storming, performing, adjourning and norming.
 Forming
All the members of Samsung come together and discussion of the task takes place so that the
organization can have a sense of transparency and the direction of all the employees is one. This
is done so that all the members are aware of the roles and responsibilities of the task.
 Storming
There is challenging of managers and team members with one another which can create
conflicts in people. This is done so that the productivity level of the employee’s increases and the
objective of Samsung can be met faster.
 Norming
In this stage the conflicts are resolved if there are any regarding the tasks which have been
allotted to the employees so that the productivity level of Samsung can be maintained.
 Performing
Team members accept each other’s norms and then support each other so that the task can be
completed faster. This will get the team performance higher and the organization will be able to
get a better out come from it.
 Adjourning
There is a sense of loss in team when there is an end of a task therefore it is very
important for the team to celebrate the victory. This will reinforce them to make the same efforts
they did this time for the coming tasks in Samsung.
This is done so that Samsung can have the maximum profit from the market and have a
competitive advantage (Stoianoff, Chilton and Monotti, 2019). Innovations will attract more
customers in the company and getting this wireless data transfer is going to be very useful for the
organization.
LO 2
P3 The 4P’s of innovation
This 4P’s of mix model was introduced by Joe Tidd and John Bessant. This model is used
in organization so that there is an improvement in the process of innovation which is taking place
in companies. The 4P’s in this model are product, paradigm, position and process. This model

will help the organization to understand the present and future stand of them in market. This will
help Samsung get a clear direction to work in so that the organization can function smoothly and
maintain their standards.
 Product
The company will have to question themselves that as how they can make their product
more attractive and appealing so that they can compete with the competition in the market.
Group discussion would be very helpful in this situation because there will be more options
which will come in front of Samsung. Wireless data transfer is done so that customers are
satisfied and can get a faster and attractive way of doing things.
 Position
There has to be a communication between the customers and the company and find out if
their idea is being appreciated in the market and then position the product accordingly in market
(Tranekjer, 2017). This product will take time to capture the market because of the security
reasons but after that improvement is also done in the product then the customers will increase in
number which is going to be very beneficial for the organization.
 Paradigm
There has to be an improvement in the organization as to how they are doing work. It is very
difficult to get changes in the company but there have to be with the change in the customer’s
needs and demands. Changes in the portfolio will be required so that there is an awareness in the
customers which will increase which is going to be very beneficial for Samsung.
 Process
In this stage there is a beginning of the process of preparation of the services and product
which the company is getting in market. Company must start finding the right candidates for this
change which is coming in the company so that the productivity is maintained. Training has to be
given to the candidates so that there is a better functioning and cope with the trends which are
coming in the company.
P4 Developments in frugal innovation
Frugal innovation is used for reducing the cost while manufacturing the good and the
complexity of nature while it is being produced. This process is usually used for the parts which
are not useful in the durable goods such as a phone or car. Being a multinational company there

are several operation market with Samsung and the products of the company must be priced low
so that they can capture customers (Mazurkiewicz, 2018). The demand of this product is
increasing because there are a lot of data which has to be transferred in offices which Samsung is
providing its customers a faster way of doing that process. Technology is an expensive way of
doing things which will increase the price of the product eventually which is why it is very
important for Samsung to use frugal innovation method. This will remove the unnecessary parts
in the process of manufacturing the product which Samsung is coming up with. For example,
Mercedes came up with introducing trucks in the market but it did not turn out to be so
successful therefore they gave it to their Indian partner Tata. Tata used frugal innovation method
and make that truck a success worldwide.
It is very important for Samsung that from the very beginning they understand the market
needs so that they can process accordingly so that the customer’s needs and demands can be met.
There are a lot of technology use to make this a success which is why experienced and motivated
employees would be required who can give ideas to make this product be able to get a success in
market. This can make Samsung get a competitive advantage which is good for the company for
a long and successful future in market. The purchasing power will increase because they are the
only company which will be giving this product and the satisfaction of the customers will
increase which will make Samsung has a competitive advantage (Nabulsi, 2017). On the bright
side of this product being launched is that the company can increase the high demand which is
going to come. This will increase the portfolio and standards of the company in market.
LO 3
P5 Commercial funnel and the application of new product development (NDP)
Importance of Commercial Funnel
 Helps in relating to customers
Samsung has a protocol to operate in their own language which most of the people are
not aware of and there are many other companies in market which do that. There is the use of
their own content for describing the product while talking to the customers so that Samsung can
find it easier for making the product penetrate through the market. This will be easier for the
company because they would have understood the customers and will be able to fulfil the needs
and demands faster.

 Improve the ways through which business can grow
There is no model which is perfect in business therefore it is very important for Samsung
to keep changing their methods so that they can have a successful path for themselves. Success
does not come overnight therefore using different methods and strategies can help the
organization have a better functioning for them (Bagley and et.al., 2018). Customers shift from
one company to the other according to the price of the company which is why the pricing of the
products have to be placed accordingly.
 Generate sales
There are great strategies and techniques which are being used by Samsung which helps
the company to relate with their customer base. The use of commercial funnel is perfectly
understood by Samsung and which is helping the company have a great base for themselves in
market. This will help the organization to fulfil their desire and expectations from the market for
the benefit of the company which is a long and smooth run in market.
 Picking a market strategy for the company
When Samsung is out of strategies it is very important for them to use this funnel which
will give a direction to the company. This will help the company to decisions as to which
strategy they will be needed to use for the better and successful measure for the company. This
will also give a direction to the customers about the company because there are more companies
in the market which want to take away the customers.
 Edge against the companies in new market
There is a lack of direction which can be very dangerous for Samsung because they have
a reputation in market which they have to live up to (Mazzarol and Reboud, 2017). There are a
lot of ideas which Samsung has but they do not have the right ways of executive that idea into
practicality. Using learned and procedure of funnel will be very helpful for Samsung to make
their ideas come into practical use and make the company overcome the other companies in
market.
P6 Innovation business case
SWOT of Samsung
Strengths

Samsung has a strong brand image and there are millions of customers who trust the
company for quality products. There are a lot of customers who are loyal to the company which
is great advantage for the organization to introduce new innovations and inventions in their
market. There is global presence of the company and there is a huge profit for the company if
there are new innovations which are coming up in the company always.
Weaknesses
Samsung depends on android for the functioning in the device to take place which can be
a great weakness for the company which is having such a strong portfolio for themselves (Leone
and Belingheri, 2017). Getting hardware’s and software’s in the company is difficult because of
the lack of competition in the market which is why the company is being dependent on few
companies for this aspect as well so that they can make the device be accepted in the market.
Opportunities
There are a lot of innovations which are taking place in the research and development
department of the company which is a great advantage for the company. Samsung has
partnership with online services so that they can expand themselves in the market and get more
customers in the company. This is a great idea for the company because they will be able to
reach out the customers faster. New markets can be explored by the company because of the
strong portfolio Samsung has created for themselves.
Threat
There is a huge competition in market which has to be taken care of by the company
which is not possible till they do not use innovation so that they can have a better customer base
for themselves. The other companies are also using innovation to capture the market which is
very important of them. Legal restrictions on taking an idea from the other companies is also not
allowed which can make the company not have the strong customer and loyal customer base for
themselves.
4 P’s of Samsung
 Price
The pricing strategy which is being used by Samsung is skimming pricing which is they
have the products at a low price and with the increase in demand so does the prices rise.
Competitive pricing is also being used by the company so that the new products or innovations in
product can capture the market faster and the demands of the products can increase.

 Product
The product which Samsung is coming up with of wireless data transfer is going to
capture the market faster and better because there are a lot of changes which the competitors in
the market have not got and the company will be able to make a profit in the market (Ahn,
Minshall and Mortara, 2017).
 Place
There are a lot of channels which Samsung has discovered for itself to reach out to the
customers which is a great advantage for the company and the organization will be able to have a
great profit. There are a huge number of dealers in the countries the organization has spread and
there are physical stores as well so that the customers can find the services of the company more
satisfactory.
 Promotions
Samsung has been using a lot of methods to promote their products which is a great
advantage for them. They have attracted a lot of customers through radios and televisions and
some from the physical stores which the organization has started.
LO 4
P7 Tools that organization can use to develop, retain and protect knowledge
Copyright of Samsung
Rights like database right, copyright, website and content right are all owned by Samsung
and can not be used by anyone else (Bondy and Hamdullahpur, 2017). No one is allowed to
copy, reproduce, download, broadcast, transmits, images, graphics, icon, button, post, etc with
Samsung because it has a strict right for them. This is done so that the company can maintain
their reputation in the market which the company has to maintain so that they can have an
effective functioning for themselves. Permission has to be taken before doing anything related to
the company and if the company agrees only then others can do what they want to.
Trademark of Samsung
Trademark of Samsung is Samsung Electronics Co, Ltd. There are trademark which the
company has taken so that there is no other company in market which can copy them and they
are unique in their nature. It is very important for Samsung to have trademarked on the products
which they are innovating because there are a lot of companies which can copy that. The

uniqueness of the company will be lost and the loyal customers will shift to other companies
which are giving the same services and product.
Patent of Samsung
Patent number of Samsung is D876414 as filed on 3rd August 2017. Inventors of the
Mobile phone are Wooseung Han and Sangsik Park. Samsung has more than 75,594 valid
patents in UK and there are many more in the entire world. The competition in the market has
increased therefore it is very important for the organization to have a better functioning for
themselves and this patent so that no one can copy them (Svensson and Persson, 2016).
CONCLUSION
From the above report it can be concluded that innovation and invention is very important
for organizations which can help them make a new place for themselves in the market. The
competition in the market is increasing and it is very important for the organization to have a
better working and a unique identification in market.

REFERENCES
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