Innovation and Commercialisation in F-Drones

This assignment explores the importance of innovation and commercialisation in F-Drones, the sources of innovation, and ways to foster an atmosphere of innovation. It also discusses the 4Ps of innovation and the usage of the innovation funnel. Additionally, it highlights the role of frugal innovation in F-Drones and its application to the innovation funnel.

Unit 8–Innovation And
Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Importance of innovation for companies as compare with invention....................................3
Team work, vision, culture and leadership can shape innovation & commercialisation.......4
Sources of innovation and ways through which companies can foster an atmosphere and
culture of innovation...............................................................................................................5
4Ps of innovation and usage of innovation funnel.................................................................6
Developments in frugal innovation and its use in business context.......................................9
Application to innovation funnels in context of company...................................................10
Role of frugal innovation in regard to F-Drones..................................................................10
PART 2..........................................................................................................................................10
Significance of commercial funnel and application of NPD for commercialization of
innovation.............................................................................................................................10
Innovation business case for F-Drones including modes to access funding........................11
Suitable techniques to measure effectiveness of business plan............................................13
Varied tools that companies can use to develop & retain knowledge and protect intellectual
property.................................................................................................................................13
Evaluation base on different tools in wider organization context........................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Innovation and commercialization are two key elements that can help companies in
recent time to grow and get great success. Innovation can be defined as carry out of new
combinations or set of attractive things that include introduction of unique product or service
which can add value for customers. While commercialisation can be consider as procedure of
transforming knowledge and ideas into good growth for ventures. The current assignment will be
based on F-drones, which known as world's first transition drone manufacturer. Its experienced
team and skilled applicants has contributed to design innovative drones. This study will explain
value of innovation as compare with invention, ways via vision, culture; leadership and team
work will shape innovation and commercialization and will also define key sources of
innovation.
Furthermore, this report will define development of innovation culture and environment
by firms, 4ps of innovation and will also explain use of innovation funnel. It will describe
development of frugal innovation, its role in company and importance of commercial funnel.
This assignment will justify commercial funnel importance, application of NPD and innovative
business case, all in context of chosen firm. It will simplify varied tools that can use to protect,
retain and develop knowledge & intellectual property.
PART 1
Importance of innovation for companies as compare with invention
Innovation can be described as an idea or innovative concept that can be converted into
practical reality; it is actually mean about respond to change in an innovative manner (Ortiz-
Villajos and Sotoca, 2018). It is one of the most appropriate manners through which companies
can change, update and improves its manufacturing procedure, internal business practices etc.
Invention is a process within an entire product and service development procedure; it can
be an improvement upon exiting things or practices for creating a desire outcome.
Importance and comparison-
Innovation is actually very important as compare to invention for companies in world of
business. When a firm use this term on its existing practices, it is because of that management
can save time and money as well as other assets (Bag, Gupta and Telukdarie, 2018). With
innovation concept, in recent time organizations get several benefits for example it can help to
gain competitive edge and allow driving the attention of profitable buyers and retaining them for
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longer period of time. It can be analysed that innovation can aid companies differentiate itself
from other brand, operated in similar industry (Fernández, Triguero and Alfaro-Cortés, 2019). As
compare to invention, all above things could not be happen because invention gives less
confidence to firms in term of products success and its higher sales beyond expectations. It gives
whole new structure and shape to product, which some people cannot like to purchase, while
innovation is quite better because it can be done via current products that already has been used
and liked by customers. As it add more value for people which turn into increased sales.
Innovation is the best concept in regard to businesses growth as compare to invention
because it helps to grow companies in order to become more profitable and successful. Firms
should focus on this term because it aid to improve customer relation with brands in effective
and ethical manner. It can support to improve sales even better which is less possible with
invention procedure as it can lead to gain less attention of buyers. With innovation, a company
can add more value for its business as it contributes maintains degree of consumer’s satisfaction.
It can reduce costs and waste of resources which is actually not possible with invention when
organizations plan to use it.
Team work, vision, culture and leadership can shape innovation & commercialisation
There are varied elements or factors accessible in the world of corporate that has been
utilized to shape commercialisation & innovation in effective manner, which bring varied
benefits to F-Drones.
Organizational vision-
This element shapes commercialization and innovation appropriately because applicants
drive towards working and performing according to set vision of companies (Scott and et.al.,
2020). For example, F-Drones vision is to make its business able to deliver aerial on demand and
in wide scale. It describe that which item or service it needed to be created or innovated, which
in return shape innovation and then turn into commercialization in form of increasing
profitability. It can be said that every firm has its vision which help to decided venture progress
within specific industry.
Leadership-
Just like above factor, it can also contribute to shape innovation and commercialization as
well in systematic manner (Naqshbandi, Tabche and Choudhary, 2019). For instance, leader with
appropriate leadership can guide workers to adopt innovative ideas into practical work, which
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can shape innovation successfully and then turn into commercialization that means firm can
increase profits even better. It is one of the simplest and easiest procedures that companies like
F-Drones can utilize to lead their teams and direct them for making innovative product or
services.
Culture-
Organizational culture combined attitudes of applicants, values and principles of
businesses. All these things move F-drones towards shaping commercialization and innovation,
for example, collaborative nature and environment at workplace allow each worker to create an
innovative idea which brings different benefits to company in term of permitting gaining
competitive advantages (Csedő and Zavarkó, 2020). The culture of a firm defines that in what
manner people do his or her work and think innovatively. It also useful in form of
commercialization as innovative and collaborative culture in workplace can allow leaders and
managers to manage each practice systematically.
Teamwork-
Groups of people at workplace play vital role as they help to successfully conduct
innovative practices and shape commercialization (Fini and et.al., 2019). For instance, while
working in a team employee can think creatively and can develop innovative idea by sharing
different point of views, thoughts and imagination that can be implemented practically. Team
work in today’s ear leads firms like F-drones business progress and maximizes its productivity
level which in return shapes commercialization.
Sources of innovation and ways through which companies can foster an atmosphere and culture
of innovation
Unexpected-
The first source of innovation defines that company can innovate new idea or concept
when it is unexpected which means provide or share by anyone without thinking about it
suddenly during group discussion.
Congruity-
This element means how firm can make sense to match innovation procedure in its
existing practices.
Market structure-
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It defines commercialization procedure that allow firm to innovate and develop
innovative idea.
Demographics-
Target customer is one of the most common sources of innovation because demand and
needs of consumer drives management towards think innovatively and creatively.
Necessity-
Importance like gain competitive advantages can bring innovative ideas in mind of
individual.
Changing perception-
When perception of workers towards business growth and success can change it drive
them in context of innovation.
New knowledge-
Increasing level of knowledge can allow people to think creatively and then produce
innovative idea.
Development of innovation culture-
F-drones and other companies can foster environment of innovation at workplace by
providing clear vision to workers and motivate them to work hard by offering valuable facilities
to them.
4Ps of innovation and usage of innovation funnel
Product-
The main P of innovation is this one because it helps companies to sell its innovative idea
in form of goods which turn into increasing consumer base and generate market share. It
exhibited that how F-Drones can make its drones and services better for target market by using
creative approaches (Najafi-Tavani and et.al., 2018).
Procedure-
This P of innovation refers to overall modification in way things can be produced and
delivered. It context of F-Drones, management can use this p by utilizing innovative and creative
techniques which make teams able to manufacture unique drone that will carry out heavy load
and transfer it from one place to another.
Position-
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It can be related to business perception; position innovation is psychological category that
can impact innovation aspect of company in positive manner. By delivering quality products and
services, firm can set positive and perfect image or position in mind of its buyers which can help
to gain attention of new customers as well. Organization can set its venture and product image in
market by improving quality or making changes within existing items that can add value.
Paradigm-
This kind of innovation is a change that underlying mental concepts that can frame what
a company does or optionally how it can frames what it does in form of innovation. For example,
F-drones firm while manufacturing simple drones; suddenly plan to develop an effective one
which can be considered as innovation. It is type of shifting to whole different form of
technology which helps to increase profitability and productivity of firm in effective manner.
Use of innovation funnel to observe and shape innovative ideas-
Innovation funnel is one of the best approaches that can be utilized to narrow down ideas
for an innovation procedure into a realistic and feasible plan of action (Anzola-Román and et.al.,
2019). It can be used in context of F-Drones company by implementing its 6 stages that are;
Stage 1: According to first phase, firm can move towards innovation when management bring
innovative idea at workplace that drives each worker toward manufacture unique and effective
drone. Before making things into practical practice, company can stuck with procedure or act of
manufacturing innovative product.
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Figure 1Innovation Funnel
(Source: Six Major Stages of Innovation Funnel Management, 2020)
Stage 2: After creating innovative ideas and thinking about new drone firm move to next level
where idea management is require. According to this stage, top authority needs to choose
specific idea among list of many and then take action to present in form of practical. The idea of
new drone will be managed by conducting meeting and making discussion about how to do
things practically.
Stage 3: After cross above two phases, F-Drones can switch to third one and that is development
of idea through which they can achieve business objectives and aim in effective manner and also
gain competitive edge. At this stage, workers can take step to develop a drone that is much
effective and even better.
Stage 4: F-Drones can protect and exploited outcomes of innovation practices by using the best
options of protection in each phase.
Stage 5: Second last stage define market introduction that means firm need to launch product in
front of target customers.
Stage 6: Furthermore, after pass all above phase, it’s time to analyse and determine final
outcomes in form of increase sales level and demand of drones in market (Lehner, Koldewey and
Gausemeier, 2018).
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Developments in frugal innovation and its use in business context
As a procedure frugal innovation can discovers new concepts, redesigns items and
reconfigures value chains, which is quite beneficial for companies in term of building strong
brand image in specific market for longer period of time (Rosca, Reedy and Bendul, 2018). It is
all about delivering or offering more value to customers at lower costs. Frugal innovation can
change tactic of development, to offer more with less. Developments in this concept can be done
by considering needs and demand of market. Nisa is one of the best examples of frugal
innovation because it reduces cost of its items after determining target customers needs.
This term can be used in regard to F-drones firm by following principles and adopting
into practical activities.
Find out chance in adversity-
Frugal innovation can be used by company when they identify issues as adversity and
then develop plan to solve it as soon as possible. For instance, when F-Drones invest more for
innovating drones they can serve its best and drive people towards business, which is very
beneficial.
Optimum use of assets-
According to this norm, organization can use frugal innovation when its management use
exiting machines, workers, electronic tools and other resources to manufacture the very first
drone that will carry out heavy load. Usage of current resources defines ability and capability of
firm to present innovation.
Keep it easy-
Along with above principles, firm can use this one as well in effective manner by keeping
different activities and practices relate to innovation quite simple and easy at workplace. As it
allow people to produce product which is attractive and unique in feature and help to satisfy
individual buyer.
Be flexible-
Frugal innovations simply change the plan of developing innovative idea, which means
its needs flexibility because without this element change could not be happen. F-drone to use
frugal innovation require conduct flexible practice that can permit workers to add more value
through creative design and by add new feature in new drone.
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Application to innovation funnels in context of company
From above discussion, it has been identified that F-Drones Company has successfully
apply innovation funnel by following its stages in appropriate manner, which allow firm to
obtain desire outcomes.
Role of frugal innovation in regard to F-Drones
Frugal innovation play important and beneficial role in success and progress of F-Drones
Company as it permit management to manufacture low cost and good quality drone that can
often initially produce for emerging market buyers. It can play role in term of satisfying
consumers and increasing sales of chosen brand even better. It can help company to provide
excellent experience and satisfaction to people who use its drone after purchase.
PART 2
Significance of commercial funnel and application of NPD for commercialization of innovation
Importance-
Commercial funnel refer to procedure of buying that firms lead target market through
when purchasing services and products (Li, Zheng and Huang, 2020). It can be divided into
different phases, which differ depend on specific sales concept. It is important for F-Drone
because it help firm to find, qualify and trade its business to consumers. Commercial funnel is
essential for company as it help to break down buyer journey from awareness to buy level.
New product development-
Idea generation-
First stages of new product development define efforts of F-Drone and its management
towards making innovative idea and generate it for commercialization of innovation which is
really very essential to do in term of gaining competitive edge.
Idea screening-
Firm moves to second stage of NPD where they can screen list of generated idea and
choose the best one among it. It drives manager towards commercialization of innovation that
mean managing new idea for increasing sales.
Concept development & testing-
When management and top authority select the best idea then it will allow them to reach
at third stage and that is idea testing where experienced people test idea and then develop plan to
present in actual form.
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Marketing tactic development-
When firm decide which idea they can implement into practical manner, marketing team
work hard to make its item more profitable by creating attractive marketing content. It can help
to increase profitability that defines use of NPD for commercialization of innovation.
Product development-
Under this phase, engineers attempt to produce new drone with existing resources and
can purchase new one when it needed. Product development helps company to obtain its desire
outcomes and beat competitors in market place.
Commercialization-
After passing above phases, the most important stage of new product development comes
that help firm in term of reaching at global level and gaining attention of new customers who
seek to purchase new drones that carry out heavy load.
Post launches review-
Here, manager can successfully end up new product development procedure that helps in
term of commercialization of innovation. They can review product promotion tactic after
launching via digital marketing channels.
Innovation business case for F-Drones including modes to access funding
Executive summary-
F-drones is well known drone manufactures in the world; they sell quality items to target
market which satisfy them successfully. In order to become competitive, firm has used
innovation concept through which, it plan to produce new drone that carry out heavy load as
compare to previous one. Company has protected this idea by using appropriate intellectual
property tool.
Situational Analysis-
It can be analysed that different factors are available in business world which directly
impact sales, productivity, performance and profitability of F-Drones as well as also affect its
tactic like new drone development in positive and negative manner. For example, technology
advancement is one of the factors that can impact success factor and current idea of company
positively as it help firm to use advanced tools that can aid to produce drone in unique form
which no one can develop.
Description of the problem of the company –
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F-drones face challenge in term of intense competition which drives its management
towards development of innovative idea. In order to solve it issue firm will manufacture new
drone which in return build strong image of company in market placed and boost productivity
even better.
Reason behind innovative solution-
High competitive environment is the main reason behind idea development as it helps to
reach at global level.
Use of NDP model-
F-Drones will use overall procedure of new product development which is quite
beneficial for its business growth in form of manufacturing unique drone.
Financial analysis-
Basis Cost
Market analysis 400
Idea creation and implementation 1600
Hiring 700
Training 600
Automobile parts 2000
Marketing 700
Total 6000
Sources of funding-
To produce new thing and manufacture new product, companies needs to do high
investment which is possible when it have access amount of money. There are varied sources
accessible in the world that will help to collect money and then use to produce innovative idea
into tangible form. F-Drone will use suitable source of funding among list of many. Bank loan is
the most common form of funding, through which company can apply application for specific
amount of loan and then follow overall legal procedure (Doerr and Schaz, 2019). It allows
management to receive money and then use it for obtaining desire outcome.
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Other method is angel investors, it is a group of people or individual who are able to
make investment in profitable project in hope to getting better results in term of obtaining profits.
They will invest money in new product development idea of company when manager use it.
Angel investor can be high net income firm or team of individual who provide financial services
and facilities to other brands.
Suggestions-
F-Drones should consider bank loan as possible source of funding because fraud changes
with this approach is less than other methods.
Suitable techniques to measure effectiveness of business plan
Within above innovative business case different tools that can analyse and measure
success factor can be implemented in effective manner. For example, firm can use KPIs tools to
test and then improve success factor in systematic manner which in return allow management to
make further changes in current plan. Furthermore, F-drone can use benchmarking to test how
much its plan would work in practical form and provide benefits in several terms.
Varied tools that companies can use to develop & retain knowledge and protect intellectual
property
Copyright-
F-drones can use copyright to protect its idea from being taken by other brand or
companies have operated in similar market or industry. It can be considered as intellectual
property protection tool which provides usage rights and exclusive publication to firm.
Trade mark-
Another IP tool is trade mark that provides the best benefit to F-drone by protecting and
securing its knowledge and new drone idea from others. Firm can use this tool by applying for
trade market and make registration for it which is a legal procedure.
Patent-
This tool can help F-drone company to exclude other organizations to make, use and sell
their innovative drone idea. It helps firm to innovate new products that is beneficial for other and
business as well.
Critical evaluation base on above intellectual property tools-
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As discussed above F-Drone company could use specific tool among three such as
copyright, patent and trade mark in order to protect, data, innovative idea and other key resources
from rivals
Evaluation base on different tools in wider organization context
Intellectual property tools Advantages Disadvantages
Copy right  This tool is useful for
F-drone because it
helps to generate
intellectual property
which can be sells out
by owner freely.
 From above analysis, it
can evaluate that
Copyright as IP tool is
quite useful for
company as it assists to
sell and market
products produce by its
firm without taking
approval from others.
 On the other hand, its
drawback is that it only
protects and prevent
expression of
innovative idea not
idea itself.
 It affects in negative
manner by only
securing expression of
creativity not idea.
Patent  It gives firm right to
stop other brands from
copying its own idea.
 Just like above tool,
patent also have some
benefits and drawback
such as it helps to
secure innovative idea
from other market
players being copy
 It has some drawback
and that is it can be
expensive when firm
use it.
 The application
procedure of patent
could be time
consuming and very
lengthy.
Trade mark  Trade mark use can be  On other side, it
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beneficial for company
as it helps to build trust
and good will between
consumers and firm.
 It benefits F-Drone
firm by permitting
owner to licence utilize
of it to licences or
franchisees.
impacts negatively
because it descriptive
trademark is weaker.
 Trade mark
registration procedure
is much costly.
CONCLUSION
By summing up above discussion, it has been identified that F-drones Company by
innovating and developing unique drone has gained a lot of success and benefits in term of
increased profits margin and sales level. Innovation has played vital role in context of
organization growth as it help its business to reach at international level where by providing
innovative drones to market they has successfully become global leader. Furthermore, it has been
analysed that by motivation workers and guiding the appropriately, leaders has created culture
and environment of innovation. By using innovation funnel firm has effectively shaped
innovative idea in form of combination of heavy payload drones, which has been provide
benefits to company in term of build strong brand image. Moreover, it has been summarized that
F-drones by considering bank loan as source of funding has get right amount of money.
Moreover, by using patent and trade mark firm has successfully protected intellectual property
and important knowledge relate to innovative idea.
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REFERENCES
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Rosca, E., Reedy, J. and Bendul, J.C., 2018. Does frugal innovation enable sustainable
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