Importance of Innovation and Commercialisation in Organizations

This document discusses the importance of innovation and commercialisation in organizations. It explains the difference between invention and innovation and how organizational vision, leadership, culture, and teamwork can shape innovation and commercialisation. It also explores the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. Additionally, it discusses the concept of frugal innovation and provides examples of its application in an organizational context. Lastly, it explains the importance of the commercial funnel and the application of the New Product Development (NPD) process for commercialisation of innovation.

Innovation &
Commercialisation

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
LO1............................................................................................................................................3
P1 explain the innovation and determine its importance in the organisations in comparison
with invention.........................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.........................................................................................4
LO2............................................................................................................................................6
P3 explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.....................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context............................................................................................................7
LO3............................................................................................................................................8
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation..................................8
P6 Build an Innovation Business Case for an organisation, including ways to access
funding...................................................................................................................................9
LO4..........................................................................................................................................10
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Innovation is the way to introduce the new idea and concept for the growth of the
business. It is an application where a company can see the different solutions for the
upcoming challenges and issues in a better way. Innovation can fill the gap of the knowledge
regarding to the project, products, design and marketing (Abd Hamid and Atan, 2018). These
changes are demanded by the market and customers, which a company has to complete to
gain the competitive advantage. For this assignment the chosen company is F-drones,
building the first transition drone which enable the aerial deliveries to the ships and offshore
platforms. The company was founded in March, 2019 in Singapore. And in May 2019, the
company flew its first prototype. And their aim is to become a leader of heavy payload drone
in the next 5 years. This assignment included meaning of innovation and their types and
differentiate the invention and innovation. Also evaluate the process of commercialisation
and describing the range of methods for protecting the idea of the company.
MAIN BODY
LO1
P1 explain the innovation and determine its importance in the organisations in comparison
with invention
When we talk about the invention can be understood by the development of the
products or discover the new element whereas innovation can be explained by improving or
updating the existing product along with their particular significant (Arrese, 2016).
Innovation help to run the business and make an entrepreneur become a successful. But
invention and innovation are two different aspect and it can be related to the products, service
and technological process.
Basis Invention Innovation
Meaning Invention has been about the
inventing new and
innovative products or
making new services.
Innovation is all about to
upgrading the products and
producing unique materials.
Concept It is an original and unique
ideas.
It is an idea related to the
development of the existing
projects.

Skills required In the invention process
scientific skills are required.
Here, marketing,
management and strategic
skills are required.
Starting time When a fresh and new idea
is coming in the mind
(Baharudin, 2017).
When a need is developed in
the company.
Concerned with Invention is related to the
individual product or any
services.
Innovation is related to the
merger of the products and
services according to the
need and demand.
Activities In the invention process the
activities are related to the
research and development.
Innovation related to the all
over the company. Its
procedure can be happened
in the any department of the
company.
Main motive Its means to development of
new idea of the customers.
Its main motive is to make
the development in the
products for completing the
market demand.
In the F-drones company faces various issues related to the customers and market
demand. So to overcome that challenges F-drones are planning to invent new and upgrading
drones to their suppliers so that they can compete in the market and make their customers
satisfied. They are planning to expand their business in the next financial year and upgrade
the drone services by providing drone that can be fly further with heavier goods. These
innovation help the company to enlarge the scale in the market and make their transportation
services more demanding (Bican, Guderian and Ringbeck, 2017). And they are developing
their drone’s capacity to load approx. 100kg over 100km by launching heavy hyper launch
and introducing commercial flights with hyper launching facilities.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
In the company their vision, leadership quality of management, culture and teamwork
style can easily help the company to work easily and attained the desired objective in the
company. In the f-drone, commercialisation help the company to make an image in the

market and expand their business. Clear vision and pre-determined objectives of the company
can be achieved by the leader’s direction, proper culture and with an amazing team work
quality. In the development, new and innovative products & services the company must have
to follow the proper steps and make sure about the vision and leadership.
Commercialisation: It is the process of funding financial services which are
determined at the time of launching the products and services in the market (Calik and
Bardudeen, 2016). It help the company to deal with the marketing status regarding the
concept of new plan which are launching in the market.
Vision Of the company: The main focus of the company to enlarging the scale of the
market and implementing aerial transportation of the goods, with innovative drone that can be
fly with high loaded goods and products. And with the help of proper commercialisation
techniques the vision and mission of the company can be achieve easily.
Leadership Style: In the F-drone, the top management are express to deals in the
good leadership qualities they are able to manage the company’s other staff. An amazing
leader may be able to get the company’s at high position and make always the other
employees motivated. A leader must be communicate and get awareness in the employees
about the products and new offering services by the company.
Culture: Culture is very important for the growth of the company and every company
have different and some specified culture which are followed by their all the employees.
Some companies have strict and formal culture while some have the open and friendly
culture. In the F-drone adopted the mix structure where every employees feel free to
communicate with the other staff but also follow the formal rules in the company.
Teamwork: For the development and innovation in the company teamwork is very
important and it help in increase in the productivity of the company. Team workers help the
company to commercialised their products and achieve the objective in the company.
There are certain elements which are needed to be focused at the time of planning of
the company’s success and objectives (Cornier and et.al., 2017). The leaders of the company
help the team workers to complete the targets and the culture of the company give the
motivation to the employees for doing work effectively. Innovation means to change the
individual, team and organisation that help the company to find out the problems of the
company.

LO2
P3 explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
Innovation deals with the company’s unproductive methods which decline the
company’s growth. There are four marketing P’s which are helpful for the company to make
the product in the market and help in strategies the marketing technique. Same as that P’s
there are four another P’s of the innovation which help the company to make the innovation
in the product line of the company (Ding, Eliashberg and Stremersch, 2016). These four P’s
are explaining below:
Paradigm: This is related to the activities of the planning in the company. Planning
related to the company’s innovative and creative ideas. In this step’s where company
identified the need and changes in their products according to the customers demand. Like in
the F-drone the company is planning to invent the new drones for their customers which can
load the high weighted good to the shipment and aerial way.
Products: After getting the proper plan company should design the products, and
their products must be unique and different from the other competitors in the market so that
the company can get the advantage of less competitors. And it will also help the company to
make the better position in the market and their new products must be fulfil the customers
need.
Process: Process means that steps which are apart from the products like distribution
of the products, manufacturing of the products and presenting the products in the market with
the proper techniques.
Position: The position of the market segment from where the company is going to
sale their products. In the F-drone the main and selected target audience are the companies
which are related to the airline and shipment. As this step is harshly affect the innovation
process of the company.
Innovation Funnel: In the case of F-drone, the innovation funnel will work of the
actions which will take place in the market for compiling all the steps which are needed in
specific products. This will help the company to get the ideas of innovative ideas and
examine the process of the innovative new products and service in the market (Esakkimuthu,
2015). The steps involved in the innovation funnel will help the company to commercialised

easily in the market and make it easy for the staff of the company also. And get the company
a new way to get out from the burden and make new solutions.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation can be called as the procedure of reducing the complexity of the
goods and services and minimize their prices. In other words, it can be said that the use of
commercialization, in the context of limited resources, quality of the products and the
services which are affordable to the customers (Ezell, Nager and Atkinson, 2016). Also it will
help the company to reduce the production cost and increase the cost of the product in the
market which will help the company to increase their revenue. It can be divided in the
circular economy, open market innovation, maker’s movement in the market, social
innovations and shared economy. This innovation help the company to reduce its complexity
comes in the production. There are the six principles of the frugal innovation; first one is
engage and iterate which means that first R&D department of the will complete the research,
on the basis of customer’s involvement and reviews on the others products of the company.
Second principle is flex the assets; which means a detail analysis on the equipment needed
and available in the company. Third principle is to create a sustainable solution for the
company; like waste to wealth motive, work in circular economy and using multipurpose
products and many more things that can be done by the company. Next principle is shape the
customers behaviour; means what a customer is needed supply them to that product by doing
social visualisation, self-controlling and social comparison. Fifth principle is co-create the
values with producers and in last make the innovative friends who can help the company.
In the context of the F-drone company, their top management employees can cut
down the extra production or unnecessary cost so that they can do better with the comparison
to the market and contribute in the economy (Molnar, 2018). They are start using updated
technologies and make new innovation in their drones for completing the increasing demand
of the customers. They also change the delivery style of their services and products so that it
will cut the cost of other expenses and increase the profit of the company to expand their
business in the future. As F-drone is a newly established company so if they are using the
frugal innovation than it would be helpful for them to make a strong position in the market.

LO3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation
Importance of the commercial funnel: It is can be as the visual presentation of the
products in the market which are developing their range and introducing new and innovative
products in the market, also known as the sales funnel (Nahm, 2017). Commercial funnel
gives a way to the respected company about how they are actually going to advertise their
products in the market. With the help of commercial funnel, they can attract their customers,
make a conversation with them and also convert a visitor into the valuable customers of their
company.
Attract: This part of the funnel provide the adequate sources which are helpful to the
company to attract the new client who are at present stranger to the company. To attract the
customers company should identify all there data, review them accordingly. All these steps
help the company to making more customers for the company.
Convert: Here the company convert the visitor into a customer by accomplishing
their demand. By providing different marketing techniques, company can make their
customers. F-drone Company can convert their visitors by providing them extra discount and
valuable services to them.
Close: After finding out the valuable customer to the company, they should review
that customers and completing their demand and needed with different techniques from the
competitors.
Delight: In last the customer’s satisfaction is recorded and giving them seamless
services so that they can become the loyal and valuable customers to the company and
increase the market area of the company.
New Development products (NDP): The application of the NDP Process will help
the company to commercialisation that can influence the market and affect the large segment
of the customers. NDP process involve the idea generation; where the idea for the
development of the new product is developed and their evaluation is done (Nelson, 2015).
Next step is finding the concept which shows the company that where they make the
difference in the market for the customers. Furthermore market analysing is done and identify
the need of the product in the market and after that the product is developed or services is
provided. And after this in the last commercialisation is done where the product and service

are exhibition is provided to the customers. And make the product is available to the
customers for their use.
P6 Build an Innovation Business Case for an organisation, including ways to access funding
For getting the working nature in the environment the workers of the company is
enlisting some business case. Which help the company to make the innovative business case.
With the innovative business case the company can easily get the success in the future and
get the deserving growth in the future. This is actually the toughest part for the innovation
aspect within the organisation. Many of the information is imperfect for the company which
may get the result of fuzzy and unclear nature (Park, 2018). This is the early stage in any
innovative business case. And to solve that fuzzy nature commercialisation process is
adopted by the companies.
F-drone Company, which is serving the servicing to their clients regarding the goods
delivery to their ships and yards whenever needed. They can develop the innovation business
case by adopting different strategies
 First step is to develop the new and innovative products to make the company and to
innovative strategy for the new products and new development in the pre-existing
product line.
 And the new product and services has main focusing on the young age customers who
are focusing on the ship and aeroplane.
 And the promotional activities help the company to expand their business at national
and local level. To create their own image and also helpful in making the generations
who are interested in new and innovative products.
Funding Options for the company:
 By welcoming more business partner, it will be helpful for the business to arrange
more and more funds.
 Taking loan from the financial and other institution, for arranging funds on urgent
basis and with no extra time (Roper and Hewitt-Dundas, 2015).
 Funding from the other people, also help the business to grow and expand their
business at international level.

LO4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
F-drone may opt for the following measures to develop, retain and protect knowledge
and intellectual property:
 Trade secrets: A trade secret formula is may be a recipe, a list of potential customers,
primary information or a tech to develop some product and provides a competitive
edge to the company. These secrets provides the benefit to the company only till their
secrecy is maintained once they leak it may cost huge to the firm.
 Not filing patents: One of the most unique technique to protect the Intellectual
property is to not filing the patent. As patent put the whole information and method in
public domain. It publishes the whole recipe of the work (Shibayama, 2015).
 Innovating continuously: Tech sector is always prone to the plagiarism. To protect
the tech from plagiarism F-drone may choose to apply frequent changes in the
technology and put their competitors in continues catch.
 Division in teams: Teams can be separated geographically so that no single team has
the complete information about the product/tech. It reduces the possibility of leakage
of the recipe as no team has the whole recipe.
 Say no to joint ownerships: Joint ownerships often create the trouble in case of the
intellectual property and hurt the concerned. It may be cause of dispute at the time of
partition, realisation, winding up.
 Security matters: One should always protect the ideas, manuscripts in a safe place
that can be only accessed by the authorised persons. It is at least required that to
secure the system by two or more level of authentication.
 Non-Disclosure agreements: The concerned who are aware of the information,
system, recipe etc (Van Holm, Jung and Welch, 2020). Must be signed a written
agreement regarding leakage of any such data/information. Such agreement or
conditions may be mentioned in employment contracts, sales contract and others.
 Hide out of sight: One of the most effective measure to protect the intellectual
property is to place the information that is not noticeable and have a secret and limit
exposure. Systems should be designed to keep them hidden.

 Promote it as yours: The intellectual property may be published and promoted with
the name of F-drone so that most of the people become aware of its ownership and F-
drone has support against any plagiarism.
CONCLUSION
From the above report it is concluded that innovation and invention are different from
the other aspects but both are important for the successful business growth. But there are also
barriers which are faced by the entrepreneur to manage the business. There are 4 P’s of the
innovation are explained and there relation with the commercialisation is evaluate. Frugal
innovation is helpful for the cost cutting and commercial funnel help in to developing the
product through new development product strategy in the market. Different types of funding
is the option for the company to expand their business growth. And in last the different tools
like trade mark, patent rights are helpful for the business in protecting the knowledge and
innovation of the business. So this is how innovation and commercialisation will help the
business to expand it globally.

REFERENCES
Books and Journals
Abd Hamid, N. and Atan, S.A., 2018. Innovation commercialization: definition, process and
relationship to new product development (NPD).
Arrese, Á., 2016. From Gratis to Paywalls: A brief history of a retro-innovation in the press's
business. Journalism studies. 17(8). pp.1051-1067.
Baharudin, K., 2017. Case study approach to understanding the process of successful R and D
commercialization.
Bican, P.M., Guderian, C.C. and Ringbeck, A., 2017. Managing knowledge in open
innovation processes: an intellectual property perspective. Journal of Knowledge
Management.
Calik, E. and Bardudeen, F., 2016. A measurement scale to evaluate sustainable innovation
performance in manufacturing organizations. Procedia Cirp. 40. pp.449-454.
Cornier, J. and et.al., 2017. Pharmaceutical Nanotechnology, 2 Volumes: Innovation and
Production. John Wiley & Sons.
Ding, M., Eliashberg, J. and Stremersch, S., 2016. Innovation and marketing in the
pharmaceutical industry. Springer-Verlag New York.
Esakkimuthu, M., 2015. Innovation systems for sustainability of technology
commercialization in decentralized Kerala. International Journal of Basic and
Applied Agricultural Research. 13(1). pp.1-4.
Ezell, S.J., Nager, A. and Atkinson, R.D., 2016. Contributors and detractors: ranking
countries’ impact on global innovation. Information Technology & Innovation
Foundation, January.
Molnar, A., 2018. Giving kids the business: The commercialization of America's schools.
Routledge.
Nahm, J., 2017. Exploiting the implementation gap: policy divergence and industrial
upgrading in China's wind and solar sectors. The China Quarterly. 231. pp.705-727.
Nelson, A.J., 2015. The sound of innovation: Stanford and the computer music revolution.
MIT Press.
Park, S.C., 2018. The Fourth Industrial Revolution and implications for innovative cluster
policies. AI & SOCIETY. 33(3). pp.433-445.
Roper, S. and Hewitt-Dundas, N., 2015. Knowledge stocks, knowledge flows and innovation:
Evidence from matched patents and innovation panel data. Research Policy. 44(7).
pp.1327-1340.
Shibayama, S., 2015. Academic commercialization and changing nature of academic
cooperation. Journal of Evolutionary Economics. 25(2). pp.513-532.
van Holm, E.J., Jung, H. and Welch, E.W., 2020. The impacts of foreignness and cultural
distance on commercialization of patents. The Journal of Technology Transfer, pp.1-
33.