Innovation and Commercialisation in F-drones

This report discusses innovation and commercialisation aspects of F-drones, including the importance of innovation to business, the impact of leadership, teamwork, culture, and vision on innovation and commercialisation, the 4Ps of innovation, and the use of the innovation funnel. It also explores frugal innovation and its use in F-drones, the importance of the commercial funnel, and tools for developing, retaining, and protecting knowledge and intellectual property.

Unit 8–Innovation and
Commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
1 Innovation and its importance to business in comparison with invention................................3
2 Impact of leadership, vision, teamwork and culture on innovation and commercialisation....5
LO2..................................................................................................................................................6
3 4P’s of innovation and use of innovation funnel......................................................................6
4 Developments in frugal innovation and its use in an organisation...........................................8
LO3..................................................................................................................................................8
P5 Importance of commercial funnel..........................................................................................8
P6 Innovation business case......................................................................................................10
LO4................................................................................................................................................11
P7 Tools that can be used to develop, retain and protect knowledge and intellectual property 11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation and commercialisation are two different topics which the management of a
business has highly required to consider in its workplace, because they provide better growth
opportunities in market place (Tsakalidis and Thiel, 2018). This report discusses innovation and
commercialisation aspects of F-drones. This F-drone is basically a Singapore based drone
manufacturing company that innovate, design and develop world’s first transition drone for
enabling aerial deliveries for shipping and offshore platforms. There is difference between
innovation and invention, impact of leadership, teamwork, culture and vision on innovation, 4Ps
of innovation, frugal innovation etc. also has been discussed in this report. There are NDP,
innovation business case and tools of protecting and developing knowledge and intellectual
property also has been discussed in this report.
LO1
1 Innovation and its importance to business in comparison with invention
There are innovation and invention two different aspects for an organisation, and not
business can systematically grow its business operations in market place without considering
innovation and invention in its workplace. Basically, invention contributes in a business by
introducing a new product or service for the first time. On the other hand, there is innovation is a
way to business for improving or changing existing products and services of the business with
additional developments. This is the main reason that, no can gain better outcomes in currently
highly competitive market place without innovation and invention aspects. F-drone is fully
depended in the innovation and invention aspects, because it is a drone manufacturing company,
and there is already has very high competition in the marker place of drone industry (Lubberink
and et.al., 2017). In this situation, innovation and invention are very better aspects to F-drone for
developing that types drone which is very effective by durability, quality and design wise.
In this dynamic and modern world, there is no business can boost its performance and
productivity in market place without innovating or inventing different products and services.
This is the main reason that, upper management of F-drone has always required to use invention
aspect for inventing or developing a fully new type of drones that has very extra-ordinary

features, specifications and attributes. On the other side, the management of business can
develop specifications and attributes of its existing drones as well by considering innovation
aspect in own workplace. Invention and innovation both are very essential to a business in
market place, and that’s why upper management at F-drone should always be focused in hiring
those people in its workplace who has excellent or well-developed skills of innovation. Still,
many businesses exist in marker place which not considers both aspects in own workplace, and
due to this reason, they are not gaining appropriate outcomes in marker place. According to
different business experts, a business has always required to present a new and exclusive range
of products and services in market place for gaining huge competitive advantage, in which
invention is the best way to that business to do this (Expósito, Fernández-Serrano and Liñán,
2019). On the other side, adding more effective specifications in existing products and services
by using innovation skill is also very effective way to a business for easily generating excellent
outcomes in market place.
On the basis of this analysis, invention and innovation both aspects are very essential to
F-Drone in market place, because both will be able to business for developing new hi-tech range
of drones which can provide excellent and exclusive logistics services to the business. That’s
why upper management at this organisation need to make a specific plan for innovating and
inventing new range of products and services
Sources of innovation
Currently there are many sources of innovation presents in marker place, in which upper
management of F-drone should also have proper knowledge about these sources, because
innovation aspect is very essential to this business (Kanda and et.al., 2018). There are some
major or key sources of innovation has been discussed above.
New knowledge: New knowledge is considered as the best source of innovation, and this is very
essential to this business for innovating new services relating to hi-tech drones. Basically, upper
management of business have to hire some effective and skilled employees in its workplace who
has better knowledge about how to innovate new products and services, because this is very
productive way to this business for retaining new knowledge source in own workplace.

Industry and market changes: There are changes of industry and market also known as the
source of innovation. Basically, a busines has always required to do changes in its products and
services according to industry and market changes. In this situation, upper management of F-
drone need to always consider different changes of industry and market, because these changes
will motivate to innovate new types of drones which can make logistics industry very excellent
to different customers or people.
2 Impact of leadership, vision, teamwork and culture on innovation and commercialisation
Different factors like; leadership, teamwork, culture and innovation always shape and
influences to innovation and commercialisation aspects of a business (Özbolat and Harrap,
2018). In this situation, upper management of the business has highly required to make a specific
plan for perfectly managing these all factors in own workplace. In this situation, impacts of
different factors on innovation and commercialisation aspects of F-drone has been discussed
below;
Organisational vision
An organisational vision always shapes its aspects, like; innovation as well as
commercialisation. Basically, when a business has a string vision that can provide great growth
in market place, then this type of strong reason will shape to that business’ different factors
including innovation and commercialisation. For example; currently F-drone has a vision to gain
huge profit margins in global drone industry by offering hi-tech and heavy payload drones in
market place with very favourable pricing. In this situation, existing vision of company will
influence to upper management of F-drone to order to its research and development team for
innovating a very durable drone for customers which has very higher range capabilities, because
many times customers reject drone just because of their low range capabilities. These all factors
are enough to show that, innovation and commercialisation aspects of company has highly
affected by organisation vision.
Leadership
Leadership factor also always influence to influence to different aspects of an
organisation, in which this is very important task existing management of F-drone to
systematically manage the impact of leadership for positively affecting its aspects like;

commercialisation and innovation. Basically, a leader within a business always puts its huge
efforts for positively influencing performance and productivity of its employees as well as team
members (Liu, Cook and Roux, 2020). In this situation, currently most leaders of F-drone try to
provide different effective training and development sessions to its employees in order to
develop their different skills and abilities including innovation skill. Basically, this is the way in
which leadership shape innovation aspect of company. On the other side, when most employees
will have well-developed skill of innovation, then these employees can contribute in gaining
huge profit margins in market place. That’s why leader factor of F-drone will indirectly influence
to commercialisation aspect of business as well, and that’s why upper management of business
have to be very active and energetic in existing job role to positively affect innovation and
commercialisation aspects.
Culture
There are organisational culture also equally shapes to different aspects of an
organisation or company, in which upper management of F-drone need to make its work culture
very effective as well as ethical. Basically, when any business healthy and happy work culture,
then it can simply gain better workforce in the workplace, because most people like to work only
that types of workplaces that has healthy and happy to work. A healthy workplace generally
motivates to different employees and people for improving their different employability skills
including innovation. That’s why upper management at F-drone need to formulate an effective
and healthy work culture in own workplace, because after taking this step it can simply gain
employees with well-developed skill of innovation (Read, 2018). At the end, these employees
will innovate new and exclusive range of drones by using own skill of innovation. That’s why
culture factor also highly matters in the workplace of F-drone.
Teamwork
Teamwork factor also plays a very important role to a business, in which currently top-
level management within most businesses put own huge efforts for turning their ordinary teams
into effective teams, because this is very necessary to business for promoting higher levels of
innovation and commercialisation in the workplace.

LO2
3 4P’s of innovation and use of innovation funnel
Upper management of each business has always required to conduct the 4Ps of
innovation its workplace for effectively innovating new products and services in workplace.
Basically, upper management at F-drone has decided to implement its innovative idea in order to
develop a hi-tech drone that has high range and heavy payload capabilities (Ayoubi, 2019). This
new product will provide better outcomes to business, if existing management of business will
successfully conduct the strategy of 4Ps of innovation in its workplace. There are all four Ps of
innovation has been discussed below;
Product
Recently upper management of F-drone has decided to develop a hi-tech drone with high
range and heavy payload capabilities. According to the management of this drone manufacturing
company, this new product will provide an excellent experience to it’s all consumers, because
after using drones of F-drone company, different users or customers will simply achieve better
outcomes in market place (Morabito, 2017). The management has claimed that this new type of
drones has great battery life and excellent build quality. Basically, research and development
department and IT department of company has installed such electronic gadgets and equipment
in this product that will promote durability within the new hi-tech drone.
Process
The process of turning innovation idea into final product is very simple in the workplace
of F-drone. Basically, upper management believes in producing quality products and services, in
which it has used those all approaches of operations management in the production process
which can contribute in developing the new hi-tech drone with proper durability and battery life.
According to existing management, F-drone completely aware about the consumer behaviour,
and that’s why company knows that most customers always like to consume quality products and
services in marker place (Amis and Lugogo, 2018). In this situation, it has followed those all
strategies in its production processes for maintaining an excellent quality of new product. For
example; it has used TQM (total quality management), JIT (just in time) and Lean production
strategies in its production processes. On the other side, upper management at F-drone has

focused on improving quality its supply chain as well, in which it has planned to provide its new
product to customers by using both platforms, online and offline.
Position
Perfect positing of a new product of service is very necessary task to a business in market
place for timely delivering its newly developed product or service. In the case of F-drone
company, there are upper management need to choose such market segments where demands of
drones is very higher, then it should supply its new product to its authorised dealer for delivering
this product on time.
Paradigm
Paradigm is another key aspect of innovation, in which upper management have to put its
huge efforts for increasing levels of paradigm of its new product. Effective levels of paradigm
for a product is very mandatory to increase sales ratio of that product, so this P of innovation will
also positively affect to F-drone’s new product.
Use of innovation funnel to examine and shape innovative ideas
The F-drone need to use an effective innovation funnel that will describe different steps
of developing the new product, named; hi-tech drone (Boycheva, 2017). Basically, this funnel
will contribute in creating new product that can meet needs of market in economic as well as
manufacturable forms. Innovation funnel will support company in positively shaping own
innovative idea.
4 Developments in frugal innovation and its use in an organisation
The management of F-drone is highly required to use the concept of frugal innovation,
and then try to turn its innovative idea into final product. The F-drone should try to develop its
new product in frugal innovation. Basically, this frugal innovation knows as the engineering
process that can contribute in reducing own costs, complexity and wastage in the production
process of a new product, and then helps in developing a new product with an excellent quality.
This is the main reason that, upper management of F-drone need to adopt and use this method in
its work place while producing its new innovative product, means; hi-tech drone (Dua, 2017).
This frugal innovation will help to company for removing wastage aspect from the workplace,
and this is really an effective thing the business. On the other side, by developing own new

product under the frugal innovation, then F-drone can be simply developed a very effective as
well productive product.
LO3
P5 Importance of commercial funnel
A commercial funnel is a technique and tool to bring your customer closer to the buying
decisions and it has four stages which are awareness, interest, decision and action. The following
are the importance of commercial funnel:
It is a very useful model which helps in visualizing the journey of the customer which
starts from awareness and goes all the way to taking action.
This funnel helps the business to know their strength and weakness and also they can
identify their areas of improvement. It is analysing the business from a broader perspective.
Commercial funnel also helps in improving the conversion rates as at each stage of the
funnel some customers are lost and the customers who go at the deepest part of the funnel have a
high chances that they purchase and even more which improves the conversion of F-drones.
The firm may also be able to identify the unsold products and services. Through this
technique the firm can improve and modify their designs and again promote it. The firm can also
replace of totally eliminate the existing items.
It also helps the firm in predicting the sales volume as the firm through this funnel will be
able to determine the number of possible customers and later take the information about the
customers who will purchase the products. Due to this the firm can prognosticate the amount of
money they can make with this funnel.
It gives the company an extra edge over other new entrepreneurs as proper knowledge of
commercial funnel helps to get an extra edge.
Application of New product development processing for commercialization of innovation
New product development includes all the stages and steps that is used to bring a new
product into the market which starts from idea generation and end to commercialization. A
central aspect of NPD is product design and transformation of an opportunities into a product.
Idea generation - This is the first stage of NDP and the company can do it through internal
sources like R&D as well as external sources like customers, competitors and distributors and

suppliers and the firm can also do it by brain storming like by scientists, engineers and marketing
people (Cooper, 2019).
Idea screening – The second stage is idea screening in which is filtering stage. In this stage the
ideas are evaluated and filtered and the best ideas are picked up and others are dropped. To
create a large number of ideas is the aim focus of the first stage while reducing the number is the
purpose of the second stage.
Concept development and Testing – It is a detailed version of the idea which is stated in more
meaningful way. At this stage it is important to distinguish between product idea, concept and
image. After development the company tests the new product concept with a group of customers,
the firm uses pictures, words and virtual reality for concept testing.
Marketing strategy development – The next step is strategy development which has three parts.
In the first part target market is described and also sales are positioned. In second part price,
distribution and marketing budget is planned. In third part the statement describes planned long
run sales, profit goals and marketing mix strategy.
Business analysis - Market attractiveness of the proposed new product is evaluated based on
sales and costs are reviewed and profit is projected.
Product development – In this stage large investments are needed and department of R&D
develops and tests one or more physical versions of the product.
Test marketing - In this stage the product and its proposed marketing programme are tested in
realistic marketing setting. There are various types of testing like standard testing, controlled
testing and simulated testing.
Commercialisation – This is the last stage of new product development in which finally the new
product is launched into the market. Two factors are considered in commercialization which is
time and place of launch.
P6 Innovation business case
F-drone are making the world’s first transition drone to enable aerial deliveries to ships
and offshore platforms. Their unique design will have a combination of heavy payload and long-
range capabilities that would put other existing delivery drones to shame. With such incredible
specs, that drone can still take-off vertically, fly like a fixed-wing aircraft, and land on a moving
target.
Marketing mix of the drone

Product mix - Their unique design will have a combination of heavy payload and long-range
capabilities that would put other existing delivery drones to shame (Išoraitė, 2016). With such
incredible specs, our drone can still take-off vertically, fly like a fixed-wing aircraft, and land on
a moving target.
Price mix – It is the amount which the consumer pays in exchange of the product. F-drone has
estimated £26223.02 for the drone. Price impacts the sales and demand of the drone.
Place mix – It is the third mix as important in terms that the drone should be made available at
the place where there are4 potential buyers of the drone and there should a proper distribution
channel for the same.
Promotion mix – This is the last mix and includes various ways by which the drone can be
promoted (Wu. and Li, 2018).
Sources of fund
There are various sources of funds which are :
Retained earnings – These are the net profit which is left after making all the payments
and that amount can be re-invested into the company without distributing the profits (Fischer.
and et.al., 2019). This is a source of fund which can be used by F-Drone.
Debt capital – It is the source of funds which is raised by taking loan and is repaid in the
future. It is also known as borrowed funds. It ranks higher in case of repayment of returns.
Risk associated with transition drone
The risk associated with transition drone are radio frequency interference which can result in loss
of control and fatalities. Other risks includes aerial surveillance, privacy etc.
Key performance indicators
Profitability - It is a type of financial metrics that is used to access business ability to
generate earnings from the product. F-drone measures the efficiency of transition drone to
measure the success and failure of the product.
Working capital – F-drone can calculate working capital to know its key performance
indicator. They can calculate their worki8ng capital by subtracting current liabilities from current
assets.

LO4
P7 Tools that can be used to develop, retain and protect knowledge and intellectual property
Intellectual property rights rights are the protections which the company get against
intangible property which are the creations of the human intellect. The following are the tool
that can be used to develop, retain and protect knowledge and intellectual property rights:
Patents
It is a form of exclusive right whi9ch is granted by the government for invention done by
F-drone. This protection means invention cannot be commercially made, used or distributed or
sold without the permission of the owner. It is a type of monopoly right granted.
Trademark
It is the protection the trader gets from the other trader in terms of words, logos, pictures
or even the combination of these. There are certain features of trademark which are:
the trademark must be a mark, label, signature or a numerical shape, it must be capable of being
represented and the product and service must be able to distinguish from others (Drahos, 2016).
It must be capable of graphical representation. It is the protection that ensures the exclusive
rights to use or authorize another to use it in return for payment.
Industrial design
It deals with shape, design and pattern of the product and deals with creativity activity.
The purpose of this law is to promote and protect the design element of the product. There is cost
involved in registering the design and it is somewhat similar to patents.
CONCLUSION
It can be concluded that innovation helps to an organisation for developing or producing
that product which still not provides by other businesses and companies in the market place. Day
to day there is competition in each market sector is increasing, in which upper management of
each business need to put its huge efforts in order to innovate new range of products and services
for gaining huge competition in market place.

REFERENCES
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