Innovation and Commercialisation in Desklib

This document discusses the importance of innovation and commercialisation in organisations, specifically focusing on Desklib. It explains the 4Ps of innovation and how the innovation funnel is used to shape innovative ideas. It also explores the developments in frugal innovation and provides examples of how it is used in Desklib's organisational context.

Unit 8–Innovation and
Commercialisation
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................5
Task 2...............................................................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................8
Task 3...............................................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.......................................9
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................11
Task 4.......................................................................................................................................12
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................12
CONCLUSION..............................................................................................................................13
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INTRODUCTION
Innovation is determined as implementation of new ideas, device and methods in an
organisation for the purpose of introducing new products and services. A business can only grow
when it is filling all needs and wants of their customers and bring innovation in their company
which can help to attracts and organise the business activities (Rakthai, Aujirapongpan and
Suanpong, 2019). In competitive business environment it is necessary for companies to use new
ideas, technology and devices that can be uses to produce new things and maintain the high
performance. This report is discussing about Heinz company that is a American food
processing company which was founded in January 1869. This is a food processing company
that is making different types of products. Now the management of such organisation are
planning to bring a new innovative product that is fruits custard as customers are more demand
a cool and healthy products that will attracts customers and increase the sales. This report covers
difference between innovation and invention, types of innovation, process which is required to
commercialise innovation and range of methods for protecting ideas that will help to increase the
competitive advantages.
Task 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation - This is defined as activity which is uses by organisation in order to introduce
new products and services by using new methods and devices is innovation. In small and large
businesses innovation is important that helps to attracts the people by providing them products
and services so sustainable advantages can be taken. For instance, Heinz is using innovation for
providing new products that is fruits custard that will help to keep healthy and cool in summers.
This custard will be prepared by all fruits and milk power with new taste. This type of products
are not available in market yet so Heinz’s management has decided to introduce this products
(Sime Kidane, 2019).
Invention – This means a process which is uses by organisation at the time of inventing
new products and services that helps to increase the business performance. In other words,
specific breakthrough which states transforming of new ideas in order to producing new products
and services. This does not involves any modification in existing products. If Heinz uses
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invention process then it needed to introduce totally new products which can influence customers
to make the buying decisions (Zarghami, Amrollahi and Jafari, 2020).
Difference between innovation and invention
Basis Innovation Invention
This means a process in which
existing products and services can
be modified and change in new
products that can attracts customers.
This means a process which is uses
to introduce totally new products
and se4rvices without modifying
that is not available in market.
Scope In competitive business environment
and organisation the scope of
innovation is narrow as it mainly
focuses on changes in existing
products and services.
The scope of invention is broad
that helps to introduce new product
and services that helps to increase
the organisational brand jimage4
and productivity.
Activities This process of done by
management of organisation by
brining new ideas and implement
them in business.
This process is related to R&D
which is important to bring new
products and services (Baru and
Nundy, 2019).
Types of products by using innovation
Radical innovation – This innovation is related to bring new products by creating value
that causes customers to breakway from traditions. In this organisation try to overcome from
traditional ways and bring new products.
Substantial innovation – This innovation is related introducing new products by
creating significant value for customers. Heinz is adopting substantial innovation which helps to
bring new products such as fruit custard by creating value for customer and satisfy them.
Incremental innovation – This innovation is brining changes in existing products and
services that helps to create the attributes and brand image (Milan, Ulrich, Faria and Li-Ying,
2020).
Cosmetic innovation – This innovation is uses to introduce the products and services
after modifying its attributes that support to run the business and increase profitability.
Importance of innovation in organisation
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Increases in sales and profitability – Innovation is important for any organisation as it
helps to increase the sales turn over and profitability ratio in competitive environment. Heinz is
brining innovation as fruits custard which is made of all fresh fruits such as mango, strawbaerry,
apple etc. will help to create the significant value of products.
Increasing brad image and market share: Innovation helps Heinz company to increase
the brand image by providing better quality, taste and healthy products to customers that helps to
maintain the high performance by capturing market share and increasing brand image (Blakely
and Hu, 2019).
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Innovation is main process of introducing new products and services by using
transformation activities which helps to bring new ideas and thoughts so customer get attracted
and employees are retaining for completing vision, leadership, culture and team work. This can
help to increase the organisational brand image in competitive business environment so all
working can be maintained effectively.
Commercialisation is the activity which is related to increase the selling activities and
performance of organisation by enhancing the sales. Whenever organisation introduces new
products and services then it is require a market where it can attracts the customers by providing
information and selling the products at relevant cost which helps to increase the organisational
productivity is called as commercialisation.
Heinz is focusing on several elements in relation to a business that are shaping in to
innovation and commercialisation that are defined below:
Vision:- Visions are defined as long term goals of organisation that is decided by
management and owners by conducting research and development programme that helps to
increase the brand image and attaining the business goals. The vision of Heniz organisation is
shaping innovation and commercialisation such as vision of chosen is to increase the sales and
brand image in competitive business environment0. For completing vision management are
brining innovation as fruit custard that will help to attracts the customers and add new one which
helps to maintain high profitability and shaping commercialisation. This will help to maintain the
good performance and activities by modifying all attributes (OLUSEGUN, AKPOVIRORO and
ADEBOWALE, 2019).
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Leadership:- This is a process which is performing by leaders in order to attain the common
goals and objectives in relation to organisation. This helps to bring changes and challenges in
existing activities and create new one which helps to maintain the high performance. In context
to Heniz, leaders are performing important role as they bring innovation by taking new process
which can help to complete the common goals as increment in market share and brand image
which is shaping the innovation and commercialisation. The leaders of company inspire people
by applying their innovative and creative skills which helps to share the common goals.
Culture: Culture is defined as shared values, tradition, taste and preference of customers
which are filling by business organisation in order to attracts the customers and maintain good
performance. Heniz is adopting flexible and positive culture that helps employees accept the
challenges and changes by introducing new products as fruits custard that is supporting the
innovation and commercialisation. By launching new products customers will help to create the
value and sustainable advantages (Gancarczyk, Najda-Janoszka and Gancarczyk, 2020).
Teamwork: In organisation, number of people are working collectively and maintaining
coordination which helps to increase the performance. For companies it is required to have all
employees collectively and proper communicatively so all task can be completed at right time.
Heniz is food processing company that is selling tomato catchup, cream of tomato soup etc. that
can help to increase the brand image. Now management are planning to introduce fruit custard
by using new food processing by using leadership which can help to increase the performance. in
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innovation, team work is important as it give permission to Heniz management to share the ideas
with employees and get their views that helps to solve the problems and complete the
performance (Spescha and Woerter, 2019).
Task 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
In challenging business environment it is difficult for organisation to reach the potential
customers and access the opportunities so they are using innovation process which can help to
inform and attracts the customers by introducing new products. The present case of Heniz
company is brining innovation for increasing market share and satisfying more customers by
using 4 p’s of innovation that are helpful as:
Product Innovation:- This referring the development of new product and services or
modifying the existing product that can help to fill the customer’s wants and increase the sales.
For achieving good brand image and wider product range organisation Heniz is using product
innovation by introducing the Fruit Custard that will be more feasible and usable for customers.
Positioning innovation:- This factor of 4P’s in innovation states that organisation are
brining innovation for fostering the better position in competitive market place. The management
and leaders of Heniz company are formulating and implementing the business strategies that
support to maintain good position. Moreover, management is targeting potential customers that
helps to increase sale and customer satisfaction (Mukherjee and Saravanan, 2019).
Process innovation:- This process is related to brining new process and equipment for the
purpose of manufacturing products and services that can help to increase production in less time.
Heniz can use this process innovation in order to make fruit custard in less time that can help to
increase the production and fill the demand of customers. In other words, process innovation is
related to critical thinking where management need to think deeply how production can be
increase in less time.
Paradigm Innovation:- This is reflecting the marketplace that should be more suitable
and relevant for introducing the products and help to access the customers easily. In Heniz,
management and leadership are involving in this innovation by handling all problems and
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challenges that support to attain the business goals. Such as Heniz is introducing Fruit Custard in
defined market place that develop the business performance and profitability (Jin and Lee, 2020).
Innovation Funnel:
Innovation funnel is a framework in relation to product development by using different
steps that helps to increase the business activities and good performance. This model is
supporting the organisation for developing and converting their new ideas in to reality so new
products can provided to customers. The steps of Innovation funnel are investigation,
development and shipping the products. The first steps is uses by Heniz organisation for
gathering the information what people wants and how it can increase the market share. This step
support to investigate about interested customers for Fruits Custard that helps to show the
positive results. The second steps is development which is performed by management by
providing the graphic structure that uses to generate and screen the alternative options. The
management of Heniz are developing effective plans by using food processing activity and
preparing the products. At last, produced and manufactured products should be delivered to
customers for testing and getting the feedback. This step is uses by management to deliver the
fruits custard in different packaging that can be assessable to customers and helps to increase the
sale turnover (Egyir and Ampadu-Ameyaw, 2019).
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation – This means a process which is related to engineering uses to reduce the
complexity and cost of products which are producing by organisation. This is helpful activity for
business as it remove the unnecessary features from good which are levied. This uses to save the
earning by reducing cost and expenses of organisation so all working can be complete in right
time. Heniz should be uses frugal innovation at the time of producing products and fruit custard
that can help to remove the extra cost and increase the profitability.
Principles of frugal innovation
Principles of Frugal Innovation:
Engaging and iterating: This principle is uses to incorporating changes and engaging
the employees in work that helps to maintain the good by reducing cost. Heniz is engaging all
employees in frugal innovation that can help to maintain the good performance.
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Flex the assets: This principle is uses to evaluate the assets of organisation by
implementing strategy that helps to maintain the good performance and attain the business goals.
Heniz is food processing company that is analysing the market situation and organisation
situation by evaluating assets that supports to run the business.
Creation of sustainable solutions: This principle of frugal innovation is useful for
organisation as it helps to create the sustainable solution for organisation. Heniz is using this
principle for solving the problems and creating best solutions (Russo-Spena and Di Paola, 2019).
Shaping customer behaviour: The behaviour of consumers are different which is
diificult for organisation to understand the behaviour and provide products accordingly. Heniz’s
management is formulating policies and strategies for attracting the customers and creating value
that helps to maintain the good performance.
Innovation networking: This principle is uses by organisation in order to build good
relationship with societies and other people so they get information about products and make
right business decision. In Heniz, management are using innovation and growing the business in
marketplace which helps to maintain high profitability (Liu and et. al., 2019).
Example
Heniz is multinational company that is producing the different types of products and
delivering them for the purpose of running business. The management of such organisation are
using innovation and introduce Fruits Custard that is new product. For preparing this products
frugal innovation is uses by management and employees that helps to reduce the extra cost which
is arising while manufacturing such as wastages, eliminating non value adding features, capital
efficiency, product development efficiency and manufacturing simplicity that helps to attracts the
customers and increase the organisational performance by increasing profitability (Subramaniam
and Ramachandiran, 2020).
Task 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial Funnel – This funnel is defined as customer’s journey which is showing the
relation between customers and management through buying and selling activity. This is
important for organisation to use the commercial funnel that uses to attracts the people and
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encourage them to buy the products which can help to maintain the high productivity and
profitability. This process is uses by Heniz organisation for the purpose of running business and
taking the competitive advantages. The steps of commercial funnel are opinions, preference,
awareness, purchase and consideration that influences customers and make the right business
decisions.
New product development – This is a process which is uses by organisation in order to
introduce the new products and services, that helps to increase the organisational performance. In
other words, this highlights on a process of brining an original product ideas in to market place
and satisfying the customers. Heniz is using new product development process that are as
defined:
Idea generation:- In this stage an organisation comes up with new ideas in relation to
product and services which can help to increase the organisational productivity. In context to,
Heniz organisation, this step is generating ideas for launching new fruits custard that helps to
increase the customers base.
Idea evaluation:- This step is related to evaluating the ideas which is generated by
management in order to provide the new products and services. Heniz is evaluating ideas of
producing fruits custard that helps to attain the expected outcome.
Development of concept:- This is related to developing the concept of new products and
services which can help to perform all functions and introduce products effectively. Heniz is
developing the idea of Fruits Custard that helps to maintain the actual working and develop the
products.
Marketing strategy:- The step of new product development is uses by Heniz organisation
by adopting marketing strategy that will help to capture the high market share and attracts the
customers. The management of such organisation are formulating marketing strategy that will
help to attracts the customers and increase sales.
Business analysis:- This stage is related analysing the business and internal capability
that increases sales, profits and other activities. Heniz is analysing the business process which are
linked to development and helps to maintain the sustainable advantages (Expósito, -Serrano and
Liñán, 2019).
Product development:- Such process is uses to introduce and get developed of
manufacturing products and services which helps to increase the organisational capability and
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take competitive advantages. Heniz is developing the fruit custard as customers are demanding
products which increases capabilities.
Test marketing:- This process is uses to test the marketing and activities which can help
to maintain the good performance. Heniz is using test marketing that can help to evaluate the
idea and operating the business activities. This can help to increase the organisational
productivity and attaining the business goals.
Commercialisation:- By using this step Heniz is selling its products which they are
producing and increasing the outcomes. By launching Fruit Custard, commercialisation is uses to
increasing sales and profitability in challenging environment that helps to attain the business
goals.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Business case is refer as written case that involves strategic planning, market analysis,
budget, evaluation and funds which are important to attain the goals. Whenever organisation is
introducing the new products and services then it should be prepare a business case which helps
to launch the products effectively that helps to increase the performance. In context to Heniz
company management is planning to launch innovative idea that is introducing an app for
helping people with their shopping Fruits custard that will help to increase the brand image and
number of customers. The business case for such innovative ideas are as defined:
Executive summary:- Heniz is multinational company that is producing the products
such as tomato catch up, cream of catch up, cheese macron etc. which attracts customers and
increase the organisational productivity. Number of employees are working who accept the new
technology and innovation process in their company that helps to capture the market share and
brand image. Now organisation is planning to introduce Healthy app that will help in shipping
Fruit custard made of fresh and healthy food as customers are demanding will help to capture
high market share and brand image.
Vision and Mission:- To increase the product range by using innovation and
commercialisation process so profits can be increases.
Objectives:- The SMART objectives of Heniz are defined as:
To increase brand image and profitability up 40% within 2022.
• To increase the market share by 10% throughout the world at the end of this year.
• To increase the sale of refrigerator by 25% within 9 months after its launch.
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Resources:- For innovating new products and services there is need to resources which
are important for organisation and help to maintain the activities. In Heniz human resources,
capital, technology, financial and other resources are important which help to produce the new
products and services by maintaining profits.
Technical feasibility – In Heniz, the technical person are very effective uses uses new
technology and system for brining changes. Such person have conduced a research and introduce
a healthy app that will help customers to buy the Juice and Fruit custard easily through a app and
make payment online that will help to increase the brand image.
Market analysis:- This is important for organisation to conduct the market analysis that
helps to understand how a business can launch its new Healthy app through online method. The
management of Heniz are conducting the market analysis by knowing which market and area is
suitable for launching Healthy app for providing fruit Custard so all workings can be maintain
affectively. Moreover, management are using marketing strategies which helps to make the right
business decisions.
Financial projection/ Budget:- The management has decided to set the prices of fruits
Custard is 200 GPB that is reasonable rate will attracts the customers. The cashflow statement of
organisation are as defined below:
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Funding:- For manufacturing products and launching Heniz’s management is required to
arrange the funds from different sources that are as defined:
• Banks:- This is defined as secured way of funding which can help to arrange the
funds by getting loans from bank and maintaining the activities. Heniz have option to
arrange the funds by taking loans from banks that can help to perform the activities.
• Fixed asset sale:- This is another option which can be use by Heniz to sale the fixed
assets and get the adequate amount of money so all activities can be performed.
• Family and friends – The chosen organisation also can arrange the funds by taken
from family and friends which can help to maintain then activities and performance.
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There is not need to pay high interest charges on fixed period so activities can be
maintained (Mazzarol and Reboud, 2020).
Evaluation and control – This activity is ending process of business case which is required
to be done by management of Heniz for launching Fruit custard will evaluating plans that can
help to run the business successfully. Moreover, KPI tool will help to measure performance and
bring improvements accordingly.
Task 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
Trademark – This refers as right which is taken by an organisation to protect their logo,
symbol and phrases from copying others. This helps to create the difference from products and
services than competitors so customers can make decision to buy the right products. Heniz can
use this tool by protecting their logo and symbol so no one can be copy it. This helps to increase
the market share and brand image (Mazzarol and Reboud, 2020).
Patents – These are defined as exclusive right which are important for organisation as they
are innovating and inventing something new. Whenever organisation is innovating something
knew ten it get patent of their products so their rights can be secure. This can sale to other
business sby charging the high amounts which is given for 20 years and then after need to take
again patent. Heniz have option to increase the sale and profitability by taking patent and giving
to right to use other by charging the amounts that can help to operate the business successfully.
Copy right – This is another tool which can be uses by organisation to protecting the right
and given permission to other for using the process. This can help to manage the and create a
difference between others. The managers of Heniz can get copyright of their logo and product
which can help to maintain the high performance.
CONCLUSION
From the above report it can be concluded innovation and commercialisation is the process
which is uses by organisation in order to produce something new. Commercialisation is the
activity uses to increase the sale and increase workings. New product development is states as
activities in relation to introducing new products by using different phases. Frugal innovation is
uses to reduce the cost and increase the saving by maintaining performance.
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