Importance of Innovation for Organisations

This report explores the importance of innovation for organisations and compares it to invention. It discusses how organisational leadership, vision, culture, and teamwork can manage innovation and commercialisation. The report also analyzes the 4P's of innovation and the use of the innovation funnel in shaping innovative ideas. Additionally, it covers frugal innovation development and the new product development process for commercialisation. Finally, it evaluates various tools for protecting intellectual property.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Importance of innovation for the organisation in comparison with invention. .....................3
P2 Define how organisational leadership, vision, culture and teamwork can manage
innovation and commercialisation..............................................................................................5
P3 Analysis of 4P's of innovation and Define the use of innovation Funnel in shaping the
innovative ideas...........................................................................................................................6
P4 Frugal Innovation Development across the company............................................................8
TASK 3............................................................................................................................................9
P5 New Product development processing for commercialisation of innovation........................9
P6 Innovative business case......................................................................................................11
TASK 4..........................................................................................................................................12
P7 Evaluation of various tools for protecting intellectual property..........................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and Journals...................................................................................................................14

INTRODUCTION
Innovation is described as the the process of introducing news ideas to implement in the
development of the products for the company. Innovation is a driving force that involves
multiple activities which are performed in a new way. The innovation can be realised through the
development of new thoughts. Innovation introduces the new opportunities and the marketer
analyses these opportunities in order to develop the latest trends for the industry. Besides this,
commercialisation is considered as the launching of new effective products in the industry. the
company should maintain the innovation and commercialisation to sustain a position in the
industry (Arthur, 2017). This report is in context with Marks and Spencer which is British
multinational retailer headquartered in London. The company specialises in clothing, home
products and many more. the company has diversified its operation in different sectors to
maintain their efficiency. This report deals with the implementation of innovation and
commercialisation across the company. Also, the report explains the use of innovation in the
product development of the company. Lastly, this report covers the commercialisation concepts
of the company in order to maintain a leading market position.
MAIN BODY
TASK 1
P1 Importance of innovation for the organisation in comparison with invention.
Innovation: Innovation is a process which deals with the elements to be applied to make
improvements in the current products of the company. The innovative ideas plays a significant
role in the development of the products and services. It is the duty of the marketer to introduce
the innovative ideas for maintaining the effectiveness of the company. In relation with Marks
and Spencer, the company mainly focuses on latest trends in the industry with the customers
preferences prevailing in the current scenario.
Invention: Invention is process which help in converting the innovative ideas into action. The
invention is a though process of an individual which reflects the perception of the individual
regarding the development. The products offers to the customers are invented by the individual
who have different level of thinking process and it is the result of the research of the individual.
marks and Spencer company has the aim to conduct the food research and drive technical
innovation to maintain their competitive edge in the industry. Also, the company focuses on the

latest trends and analyse them effectively in order to use that information for the research and
development process.
Comparison Between Innovation ans Invention.
Basis Innovation Invention
Purpose The main purpose of this is to
generate more revenue and
enhance the profitability of the
company.
The main motive is to launch
new innovative products
which will attract the potential
customers and enhance their
customer base.
Occurrence The innovation occurs when
there is absence of competitors
in the market which ultimately
minimises the competition
level in the industry.
This occurs when the ideas
comes in the minds of the
effective workforce which
implements in the product
development process which
ultimately attracts the potential
customers.
Innovation plays a significant role in developing the standards of the products offering of
the company (Fernandes, Ferreira and Peris-Ortiz, 2019). The main aim of the company is to
align their core values with the innovation which will maintain their integrity in the industry. In
order to maintain the innovation, the marketer of the company has to face a lots of challenges
which can be explained as follows:
 Unique Selling Point: The company is working in an competitive industry. therefore its
is important to maintain unique selling point which will make the company different from
other organisations. In context with Marks and Spencer, the company has a USP of
understanding the customers preferences and applying it in their products offerings. this
will also help in reduction of wastage and utilising the resources of the company
effectively.
 Continuous Improvement: The products and services of the company requires
continuous improvement which ensures the smooth working operations. Also, this will be

helpful in maintaining the competitive edge by clearing out the deviations of the products
and services process. Therefore, Marks and Spencer works towards the achieving the
targets of improvements in their processing and workforce which will modify their
products according to the needs of the customers.
P2 Define how organisational leadership, vision, culture and teamwork can manage innovation
and commercialisation.
Leader is a person who manages and leads the workforce and their tasks effectively. The
leader focuses on making effective teams which will perform efficiently towards the attainment
of goals of the company (Kanda, Hjelm and Bienkowska, 2018). Innovation helps the company
in altering their products offering continuously towards the betterment of the company. The
reason behind opting for innovation is the changing demands of the customers and this will help
the company in achieving the success and growth prospects. for managing innovation there are
certain factors which are to be considered:
Organisation Vision: It depicts the goals and objectives of the company for which the company
is running its operations in the external environment. The employees of Marks and Spencer plays
a very important role in achieving the success for the company. Marks and Spencer defines its
vision statement on the basis of four elements namely; quality, trust, service and innovation. the
innovation is the key driving force which has made the brand successful.
Leadership: The leader is the reflector of the working environment of the company as leader is
one of the employee of the company. the leader has lots of duties to perform effectively to
ensure the success of the company (Kitson, 2019). In context with Marks and Spencer, the
company opts for democratic leadership styles. There are another leadership styles namely;
autocratic and democratic. the democratic leadership style is opted by the company in order to
encourage the participation level of the workforce. In the company, the manager delegates the
work to the employees to enhance their motivation and work performance in the company. Also,
a good leader possess the positive attitude which can be seen in their working style. This positive
attitude will benefit the company in an effective by enhancing their opportunities.
Culture: The culture of the the company can be seen in the workforce of the company. the
diverse workforce of the company reflect the image of culture and traditional values of the
company. In context with Marks and Spencer, the company encourages the diverse workforce
which will enhance the chances of getting innovative ideas from different segments of the

employees group. This will help in developing the image of the company and creates an effective
brand image of the company in the minds of the customer. This cultural tool will help in
achieving the competitive advantage for the company and also enhances the workers
participation in the decision making process.
Teamwork: Team is formed with different employees of the company. It will help in
determining the working environment of the company. Also, Marks and Spencer promotes the
team building activities which encourages workforce participation and enhance their working
relationships (Leone and Belingheri, 2017). Coordination plays a very important role in
performance of activities and operations of the company. Communication will connect the
employees and will coordinate their activities in a smooth floe which will avoid confusions in the
working environment. Conflicts can affect the performance of the employees and will slow down
the operational performance of the company. also, the teamwork is also helpful in handling the
grievances.
P3 Analysis of 4P's of innovation and Define the use of innovation Funnel in shaping the
innovative ideas.
For the purpose of product development the company adopts different innovative
methods which satisfies the need of the customers. Launching a new product involves a lots of
research and development from the side of marketer. The marketing manager of the company
adopts seven different components for bringing the innovative products in the marketplace. The
company emphasise on providing unique and specific products to their customers which will
enhance their strong base. also, the company offer effective products and services to sustain their
level of productivity and profitability. The use of innovation funnel and implementation of 4P's
of innovation is discussed below: Product: The products are the factor which is offered to the customer in exchange of
money. The company launches innovative products to target the customer groups in order
to sustain competitiveness in the industry. the company tries to satisfy the needs and
wants of the customer by introducing value added products to them (Li, Chen and Vinig,
2020). In context with Marks and Spencer, the company offers different range of
products to the customer in order to enter in the global market at a leading position. Position: In this technique the product is positioned in the minds of the customers
effectively. The company develop different set of strategies for to build an effective

image of the product in the minds of the customer. substitute product reduce the market
share of the company as competitors are also selling the same product but at a lower price
to the customers. The Marks and Spencer company keeps their focus on building the CSR
policy as to create effective connection with the potential customers. Process: It refers to the process of supplying the quality products to the customers which
will enhance the customer base of the company. The company faces a lots of challenges
in reaching their target audience (Liu, 2017). For this, the company has developed plan
and strategies to implement the innovative ideas in the external environment of the
industry.
 Paradigm: For this the company have introduced certain benchmarks against which the
company will compare their actual performance. Due to which the company will be able
find the deviation and make necessary improvement to remove those deviations from the
working environment. The main motive of the company is to generate revenues by
supplying high quality products which will create their valuable brand image in the
competitive environment.
Innovation Funnel: The innovation Funnel can be described as the set of frameworks opted by
the company in order to achieve the organisational goals and objectives effectively. It is
important for the company to introduce innovative products in the external environment to

satisfy the needs and wants of the customers. But before that its is necessary to evaluate the
customer preference precisely in order to minimise the wastage of resources.
P4 Frugal Innovation Development across the company.
Frugal innovation is an important part of commercialisation which involves utilising the
resources effectively towards the attainment of organisational goals and objectives. The
resources of the company are limited and it is important to use frugal innovation for the mass
population (Methula, 2017). This involves four different stages which can be explained as
follows: Identification of Frugal Innovation: The first step is identify the need of frugal
innovation in Marks and Spencer. The company can use this method when they have
limited resources available and have incurred high operating cost for the project. Deduction of Problem: In this method Marks and Spencer, compare their resources with
the current requirement for the innovation. Then they collect and save them to facilitate
innovation. Deduction of Pattern: In this step the Marks and Spencer eliminates the ideas which are
not resourceful for the company after evaluating the resources of the company.
 Pattern System: This step will explains the effective working of frugal system by
implementation of effective strategies and resources towards the attainment of goals of
the company.
Frugal Innovation and organisation
There are many aspects in which the frugal innovation supports the companies operations in the
long run. This method provides the following advantage to the company: Product Development: This frugal innovation will help the company in the product
development as it enables Marks and Spencer in identifying the effective methods of
product which will minimise the overall operating cost of the company. Market Analysis: It involves the analysis of the external environment of the company.
The company invest huge amount of their capital in this process which will be utilised in
the implementation of the innovative ideas. In context with Marks and Spencer, the
company analyses the customers effectively to ensure development of SMART
innovative ideas.

 Idea Generation: This also helps in generating the idea for the innovation
implementation across the company.
 Use of Resources: This ensures that the resources of the company are effectively utilised
by the efficient workforce (Newsham, Kohnstamm and Atela, 2018). Marks and Spencer
have an effective workforce which utilise their scare resources precisely to avoid the
duplication of efforts.
Frugal Innovation helps in achieving the success by maintaining the competitive edge of the
company through adoption of innovation techniques.
TASK 3
P5 New Product development processing for commercialisation of innovation.
New Product development
New product development is the process of using new techniques in processing the
products for the final use. this will help the company in connecting with he customers and
sustain the profitability level.
Process of NPD
The new product development involves the following stages: Idea generation: this step involves the generation of idea for the launching of new
product in the market. Concept Definition: This defines the concept related to product like in Marks and
Spencer the company have developed healthy food range to enhance the customer base. Market Analysis: The company analyse the situation prevailing in the market before
launching the product (Özbolat and Harrap, 2018). For Marks and Spencer, the company
analyses the environment of London which will be a base for the ideas generation. Product Development: In this stage the product is developed of the requirements of the
market study. In case of Marks and Spencer, the company develops the products
according to the current trends in the market.
 Commercialisation: This is the last step which involves the launching and introducing
the product in the market.
Commercial Funnel: It is a process of identifying the factors to be considered before launching
the product of the company. Marks and Spencer analyses the customers preferences, needs and

requirements, lifestyles and trends before launching a product. There are five stages involved in
this process: Idea Generation: In Marks and Spencer, the company has developed an idea of
introducing range of healthy food products. Idea Screening: In this step the company screen the idea developed to evaluate its
effectiveness and possibility of application (Phadke and Vyakarnam, 2017). Testing Concepts: The testing is done by Marks and Spencer by offering the healthy
products to the youth to record their response. Analyse the need of Product development: The step check that if their is requirement of
product development after evaluating the customers response about the healthy range of
products.
 Commercialisation: In this step Marks and Spencer introduces the products in the
market. the company applies effective professional techniques to attract customer base.
Ansoff Matrix: This matrix is used when the company wan to introduce a new product in the
market. In the existing market, the firm launches the products with the help of following: Market Penetration: This stage involves the penetration of target audience in the existing
market. in this the company provides discounts to the customers which will retain them
for longer duration. Product Development: This stage shifts the focus of the company on the development of
the new product for the company in the existing market which will help in the attainment
of organisational goals. Market Development: The company has the choice of expanding its operations in
different markets. Marks and Spencer has the option to target the different segments of
the market groups.
 Diversification: This involves the lots of risk as the company aims at introducing the new
product in the new market.
Implementation: Ansoff Matrix is the best framework which evaluates the marketing strategies
for launching a new product in the market. or this Marks and Spencer can use high promotional
techniques which will attract large customer base (Quimba, Albert and Llanto, 2017).

P6 Innovative business case
Business case:
Steps Description
Executive summary This explains that the company aims to use
innovative methods for the development of
their products in the existing as well as in new
market.
Objectives The main objective of the company is to
change the perception of the customers
regarding healthy food as they presumes that
healthy food is not tasty.
Mission Company have a mission to increase the level
of sales by 30% in the external environment.
Source of innovation and solution The main source of innovation is to use
innovative techniques to prepare healthy
products for the customers (Rahe, 2018).
Innovation in product Innovation in product is that it will generate a
range of healthy and tasty food to enhance their
customer base effectively.
Target market The main target market of this product is the
youth and older generation.
Sources of funds Marks and Spencer can use sources of funds
like bank loan and issue of equity shares.
Benefits This will benefit Marks and Spencer i
enhancing their profitability and productivity.
Monitoring and controlling In this step the company monitors the
performance of the product and use controlling

methods to avoid deviations.
Sources of Funding
These sources defines the ways through which the company can get finance for the product
development. some of the sources that can be used by the company are as follows: Bank Loan: In this source the loan is provided by the commercial bank for the
organisation in exchange of mortgage asset provided by the company. This is the
cheapest source of funding and it involves minimal risk.
 Government assistance: It includes the funding from the nation of the government in
which the firm is operating its functions effectively. this type of loan have minimum rates
of interest with different tax benefits.
Hence, these are the sources of finance for the company in the external environment.
TASK 4
P7 Evaluation of various tools for protecting intellectual property
Intellectual property rights: These are the rights that saves the content and information of the
company from the external third party. These rights ensure that there will not be any duplication
of work of the organisation. This also saves the ideas of the company from its competitors to get
copied which ultimately reduces the chance of plagiarism. Marks and Spencer have a range of
rights which are discussed below: Patents: These rights save the innovation of the firm by registering it with the
government official authorities. This will stop the third party from further copy of the
ideas of the company. Trademarks: These rights facilitate differentiation among the external environment.
Trademark is a symbol, sign which makes a business unique in compare to other
organisations(Yordanova, 2018).

 Copyrights: These are used in literature books which ensure that the ideas of the writers
gets not copied by the third party. These also includes the writing books, publicans and
many more. The right provides the authority to the writer to sell their product when they
required.
In context with Marks and Spencer , company must use patent rights to ensure the
protection of their innovative ideas from the competitors in the external environment. this will
save the idea from plagiarism, importing and selling.
CONCLUSION
From the above report it can be concluded that innovation is an essential and driving
force for the success of the company. For the product development process, the innovation tool
will help in sustaining the competitive edge for the company. Also, it defines the 4P's of
innovation which will defines the implementation of idea across the company. Along with this,
there is new product development and commercial funnel which helps in launching a new
product in the market. apart from this, there are intellectual property rights which will protect the
innovative idea of the company.

REFERENCES
Books and Journals
Arthur, K .N. A., 2017. Financial innovation and its governance: Cases of two major innovations
in the financial sector.Financial innovation,3(1), p.10.
Fernandes, C., Ferreira, J. and Peris-Ortiz, M., 2019. Open innovation: past, present and future
trends.Journal of Organizational Change Management.
Kanda, W., Hjelm, O., and Bienkowska, D., 2018. Roles of intermediaries in supporting eco-
innovation.Journal of Cleaner Production,205, pp.1006-1016.
Kitson, M., 2019. Innovation policy and place: a critical assessment.Cambridge Journal of
Regions, Economy and Society,12(2), pp.293-315.
Leone, M .I. and Belingheri, P., 2017. The relevance of Innovation for Ethics, Responsibility and
Sustainability.
Li, Z., Chen, J. and Vinig, T., 2020. Innovation with Chinese characteristics: theory and
practice.Chinese Management Studies.
Liu, J., 2017. Big Data Strategies in an Open Innovation Context.
Methula, D. W., 2017. Decolonising the commercialisation and commodification of the
university and theological education in South Africa.HTS Theological Studies,73(3),
pp.1-7.
Newsham, A. J., Kohnstamm, S., and Atela, J., 2018. Agricultural Commercialisation Pathways:
Climate Change and Agriculture.
Özbolat, N. K. and Harrap, N., 2018. Addressing the innovation gap: Lessons from the Stairway
to Excellence (S2E) project.Luxembourg: Publications Office of the European Union.
Phadke, U. and Vyakarnam, S., 2017.Camels, Tigers & Unicorns: Re-Thinking Science And
Technology-Enabled Innovation. World Scientific.
Quimba, F. M. A., Albert, J. R. G. and Llanto, G.M., 2017. Innovation activity of firms in the
Philippines.
Rahe, M., 2018. Innovation and Competence. InFrench and Other Perspectives in Praxiology(pp.
213-232). Routledge.
Yordanova, Z. B., 2018. Innovation project tool for outlining innovation projects.International
Journal of Business Innovation and Research,16(1), pp.63-78.