Unit 9 Innovation and Commercialization Assignment Sample

UNIT 9: INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Innovation and its significance........................................................................................3
P2. Vision, leadership, culture and teamwork for shaping innovation and commercialisation. .4
M1 Analysing the several sources of innovation and the way an organisation can foster and
develop
an environment and
culture of
innovation..............................................................................................................................5
The Incongruity -This is a fundamental technique to develop wildly successful businesses.
...........................................................................................................................................6
Demographics- Changes occur in populations, income levels, human capital .................6
LO2 .................................................................................................................................................6
P3. 4 P's of innovation ...........................................................................................................6
M2 Analysing as well as applying innovation funnel in context of an organisation ...........7
P4 Analysing the development in frugal innovation and provide examples of how it is used in
an organisational context........................................................................................................8
M3 Evaluating the function of frugal innovation in context of business..............................9
P5 Importance of commercial funnel the application of new product development processing
for commercialisation of innovation......................................................................................9
Application of new product development processing for commercialisation of innovation11
P6 Innovation business case ................................................................................................12
M 4 Detailed innovation business case...............................................................................12
Lo4 ................................................................................................................................................13
P7 Identifying tools which Mr Green can utilise for developing, retaining and protecting
knowledge.............................................................................................................................13
and intellectual property......................................................................................................13
M5 Evaluation of different tools in the
context of the wider

business
environment
..............................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
INTRODUCTION
Innovation is defined as a multi faced and complex procedure which assists an
organisation in gaining the competitive advantages of market. It also supports an entity in
differentiating themselves from other companies in any industry.
Innovation is the activity which is conducted by an enterprise with a purpose of attracting
more number of customers. Commercialisation as well as innovation is considered to be as
important part of business . Another purpose of facilitating innovation and commercialisation is
to fulfil demands of customers and delivering clients with high level of satisfaction.
The purpose of assignment is to develop an understanding about the differences between
invention and innovation. It will highlight different types of innovation. Project also focuses on
identifying the procedures required for commercialising innovation.
TASK 1
P1. Innovation and its significance
Innovation is defined as the procedure of implementing as well translating ideas into
reality. It also includes converting thoughts or ideas into products or services with objectives of
creating value for customers. It is also considered as an application of unique solutions to
problems in order to cater unarticulated needs of market.
Healthy drink organisation offers the milkshakes and other healthy drinks to customers.
This factor helped a business entity in gaining the customer’s loyalty. It has also supported
business venture in developing as well as maintaining strong relationship with clients. In context
of healthy drink, an organisation can make the packing of juice more attractive (Makri and
Scandura,2010). Business owner can plan to add more flavours in milk shakes in order to make it
healthier as well as tasty.

The company can use traditional methods or techniques for preparing drinks. In addition
to this, business can use the latest technology for producing healthy drinks. It has been identified
that now a day’s customers in market has become aware of health implications associated with
soft drinks.
Healthy drink organisation can use hyper-targeted waters as ingredient in their drinks. As
this will assist an enterprise in maintaining the nutrition as well as taste of healthy drink. An
organisation can also use aroma-releasing technology, as this will provide taste and good smell
to it. This will support firm in influencing people to buy healthy drinks.
Ayurvedic ingredients can be utilised to make it healthier and tastier. Unique
Combination of Fresh fruit juices can be included as an ingredient in such drinks (Therrien,
Doloreux and Chamberlin,2011). It will assist an enterprise in attracting more number of
customers, increase sales and profitability.
Innovation is defined as a process in which an organisation makes investment in
developing new products or making improvements in existing goods. In context of healthy drinks
company, instead of creating new drinks, business entity can make improvement in taste of
existing healthy drinks by adding new flavours.
Difference between Innovation and Invention
Invention is refers to launch of goods or procedures for the first time. On the other hand,
innovation includes making improvements in existing products or services.
Invention is primarily concerned with findings or development of new ideas.
For conducting an invention, an individual is required to possess scientific knowledge as
well as abilities. On the other hand, a person who facilitates innovation must have technical
knowledge, marketing strategies as well as strategic abilities.
P2. Vision, leadership, culture and teamwork for shaping innovation and commercialisation
Leaders, culture, business structure, and teamwork are components that are important in
facilitating innovation in an organisation. New ideas can be generated only when people in an
enterprise works together and share their values, ideas, beliefs with each other. Leadership is
essential, as they encourage people to develop critical thinking and share their ideas. Leaders
provide the suitable direction supports other people in implementing the thoughts or ideas in
systematic manner (van Hemert, Nijkamp and Masurel,2013). They also help employees in
making proper arrangement and arranging resources which are required for executing ideas.

In context of Healthy juice organisation, it is required by the leader to develop a creative
environment at workplace. As strategy related to developing the creative environment will help
in encouraging people to develop new ideas. Open communication channel should be provided to
all employees. As this communication strategy will assist management in getting the new ideas
which can be utilised for accomplishment of vision and missions of company.
Innovation also requires an effective management which is very important in terms of
ensuring success. Management of procedures is done by leaders.
Teamwork is also important for successful inventing things or making modifications in
existing goods, procedures or system. It is required by leaders or managers in an organisation to
facilitate regular discussion as well as communication with followers. As this strategy will assist
management in eliminating barriers which might occur in accomplishing business objectives.
Teamwork also supports business entity in delivering effective services to customers in
professional manner (Joshi, Chi, Datta and Han,2010). It also allows sharing of resources which
is very important for executing invention and facilitating innovation. Effective teamwork that
can turn ideas into products and services, and a clear vision assists an individual in identifying
their roles as well as responsibilities.
Culture has a direct as well as significant impact on the behaviour as well as performance
of an individual. Effective culture enables a person to improve their performance at workplace
and also allows them to concentrate on their task. Diversity can be beneficial for innovation by
bringing together different viewpoints
Vision of healthy juice organisation is to become the leading company in an industry.
Broad vision, innovation as well as commercialisation assist business entity in accomplishing
target. In context of healthy juice company, innovation assists entity in attracting more number
of customers. It also helps a firm in increasing sales as well as profitability.
M1 Analysing the several sources of innovation and the way an organisation can foster and
develop an environment and culture of innovation
There are various sources of information these are :
Sense of Incongruity – It motivates the individual to assess the present product and the
need for introducing something innovative that can improve the present scenario. This is a
fundamental technique to develop wildly successful businesses.

Procedures- Product is a result of many activities that are involved in production. It is
very necessary for identifying procedures in business that are weak spots and need a change,
correcting or redesign. It motivates the individual for introducing innovation in performing those
activities for production.
Dynamic nature of market- Atmosphere of market never remains same. There are other
competitors that always comes up with new ideas and have more chances for capturing
maximum shares. It can be a threat for the company. Therefore, being innovative is considered
to be an urge for every firm in order to successfully sustain in market.
Demands of Customers – It is very necessary to satisfy every customer. But demands of
buyers gets influenced due to several external as well as internal factors. In order to cope with
those expectation, innovation in product is considered to be very essential.
LO2
P3. 4 P's of innovation
Innovation mix is defined as an effective tool which assists manager in developing an
understanding about the innovation process. It also supports management in identifying
techniques or methods which can be utilised for improving business or innovation procedures.
Product, Paradigm, position and process are the 4 Ps of innovation.
Paradigm- this type of innovation helps manager in identifying techniques or strategies
which can be utilised by management for changing the way of doing business. In context of
healthy juice organisation, business can use technology for taking orders and will help in
increasing sales and profitability.
Product- Such types of innovation are done by an organisation for bringing improvement
in existing goods. Purpose of facilitating the product innovation is to add value to products and
delivers high level of satisfaction to customers. This type of innovation strategy assists business
in retaining profitable customers for longer time. It also supports in attracting more number of
customers. In context of healthy juice organisation, it is required by company to add more new
flavours in drink and make improvement in packaging (Wong,ed., 2011). The packaging strategy
will help firm in differentiating its products from that of competitors.

Process - This type of innovation is executed to bring improvement in procedures for
enhancing and maintaining the quality of products. It is very crucial to make changes in process
of increasing productivity as well as working efficiency.
Position- Such type of innovation includes unique types of strategies adopted by firm for
achieving as well as maintaining position in the market or in an industry. It is also considered to
be an effective idea which is implemented by the company for changing perception of customer
about specific goods (Buenstorf and Geissler,2012). It is required by the healthy juice
organisation to implement advance technology for producing drinks.
There are different phases included in developing a innovation funnel. At the first phase,
it is required by business owner to get the ideas from different sources. In the next stage ,
refinery system is utilised by the manager for analysing the ideas. Among the various solution
the best ideas are selected and implemented which is known as innovation. This method is
effectively used by an entrepreneur of healthy juice organisation.
M2 Analysing as well as applying innovation funnel in context of an organisation
It can be defined as a path that accumulates all ideas and provides the effective one
among all choices . Also, considered as a model for evaluating ideas as well as conceptualising
products.
Illustration 1: Innovation Funnel
Source:(Innovation & Quality
-Allies or Enemies, 2009)

The purpose of application of innovation funnel is to support firm in creating a strategic
advantage in the marketplace. At the initial stage it is required by manager in an organisation to
formulate strategic plan. Then the furthers phases in the procedure are development of strategic
thinking, analysation of Concept , designing of strategies, setting quality standard , launch and
last stage is life cycle.
P4 Analysing the development in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is considered to be as an effective procedure which assist business
entity in minimising the cost of production. It is also defined as the ability of an enterprise to
generate considerably more business and social value while importantly minimising the
utilisation of insufficient resources. Frugal innovation is the concepts which encourage an
organisation to develop new products or process by utilising the limited resources. Lack of
growth and stinging funds to bring down debt in developed economies will increase demands for
frugal products or services and frugal innovation procedures (Teece,2010). The Fastest growing
market is the another root cause of development in frugal innovation.
Frugal innovation process also involves elimination of non essential characteristic from
durable commodity. In context of healthy juice organisation , it is required by manager in an
enterprise to concentrate on cost effective as well as easily accessible techniques or tools for
encouraging people to develop critical thinking (Aarikka-Stenroos and Sandberg, 2012). By
implementing the frugal innovation procedure , business entity can gain various benefits.
Pattern approach to the development of frugal has mainly three base concepts which is
based on several assumptions these are:
 Commodity developers might face same trouble when producing or developing market
services.
 If the difficulty are similar then in such situation the same solution can be applied to
different problems.
 By conceptional the relevant solutions to patterns, it can be used for creating marketing
services .
The frugal innovation can be utilised in organisational context in by making the informal
settings. The two most significant aspects of frugal innovation are local validity as well as

procedures. It is required by manager in healthy juice company to integrate several approachable
as well as strategies. The Frugal model can be develop by an enterprise as it can be utilized for
identifying the needs as well as expectation of customers in the market. Healthy juice company
can utilise this hypothesis for creating new value chain
In relation to the healthy juice organisation , business entity can decrease complexities
in business operation's by producing as well as selling small cans of healthy drink at reasonable
price to customers. Facilitating this activity will be easier for the firm , as organisation have
limited resources. This strategy will help an enterprise in increasing sales as well as profitability.
An organization should not make compromise with the quality of drink at any cost . As it might
have negative impact on the reputation of firm. It is required by an organisation to implement
advance technology. As this strategy of employing technology will help business entity in
reducing the cost associated with promotional activities.
M3 Evaluating the function of frugal innovation in context of business
The major role of frugal innovation is to reduce complexity as well as cost of production
and goods also. It eliminates all those features which are not considered to be essential in a
good. The role of frugal innovation is to promote social sustainability. Function of frugal
innovation is to support business entity in increasing competitiveness and help an organisation in
gaining competitive advantage. Role of frugal innovation is to support firm in proving the
suitable response to the issues. It also supports an enterprise in facilitating innovation with
limited resources.
LO3
P5 Importance of commercial funnel the application of new product development processing for
commercialisation of innovation
In context of business new product development process covers the different aspects
which is related to innovating goods and launching the same in the market. New product
development is refers to as the procedure of transformation of marketing opportunity into a
commodity for sale. It is required by the healthy juice organisation to utilise product
development strategy. As this tactic or plan will help business entity in attracting more number
of customers (Bogers and West,2012). It will also assist business venture in increasing sales as
well as profitability.

Commercial funnel assists an organisation in increasing the market share. The continuous
increased in demand for products put pressure on an organisation to develop the new products or
services for the customers. Commercial funnel defines the techniques utilised by an enterprise
for positioning their products or services into the market.
Sales funnel , it is considered to be as effective model or tool which assists an
organisation in analysing the journey which prospects undergo before making the purchase of
product.
Attract: It is required by the marketing manager in healthy juice organisation
to adopt effective marketing as well as advertisement techniques. As this strategy will assist
firm in attracting the customers and influencing them to buy specific products or services.
Covert : business entity can inspire client by developing as well as
implementing attractive policies.
Close :Attempt which are taken by an enterprise for promoting brand leads to
close and become paying customers.
Illustration 2: Sales Funnel
Sources :(Scott Pressimone, 2017)

Delight: it is required by the management in healthy drink organisation to
maintain their concentration on improving the quality of products. As this strategy will help firm
in developing the strong relationship with client and providing customer with high level of
satisfaction. Sales funnel also assists manager in identifying the reason for continuous decline in
sales.
Importance of sales funnel
Sales funnel have big implication in context of concentrating on enquiries,
reviewing business opportunities etc. It also supports stakeholders in measuring the performance
of an organisation. This hypothesis supports manager in identifying the suitable techniques or
methods which can be adopted by an organisation for increasing sales and generating high
revenue.
Marketing funnel is considered to be another effective tool which assist
manager in developing the understanding about the journey done by the consumer from the time
he becomes aware of the product/service to the point of purchase. This strategy supports
marketing manager in formulation of appropriate marketing plans , policies as well as strategies
for attracting customers. Marketing model funnel assists an enterprise in identifying the
techniques which can be used for generating brand awareness.
Application of new product development processing for commercialisation of innovation
The procedures of new product development starts just after the generation of
ideas by an individual. New product development procedures included different phases :
Phase 1-At the initial phase thought is being generated by manager bin an organisation
about the production on innovative commodity. In this level manager in healthy juice
organisation prefer to seek proposal as well as suggestion from employees and response from
customers about the idea of new product development.
Phase 2-At 2nd phase manager in an enterprise ensures and confirms the idea. The
different tools and techniques is used by management for measuring the effectiveness of thought
and its impact on business performance.
Phase 3-Concept Development and testing. At this phase The content or data affiliated to
product development are being tested by manager in healthy juice company weith the purpose
of eliminating biasses in information.

Phase 4-At this phase external analysis techniques are conducted by management in an
organisation for analysing as well as develop the understanding about environment in which the
company operate. This phase also includes determination of impact of different component on
business procedures or operation affiliated to development of new product (Huizingh, 2011).
Stage 5-This phase include executing internal analysis for identifying an organisational
capability of developing or producing new product and determining the need of business
resources which are needed to fulfil the demand of different resources by new product
development procedure. This stage also includes determining the competitor strengths and
strategies.
Phase 6-This pace include enforcing product development procedure and
Phase 7-Last phase include evaluating the procedure.
P6 Innovation business case
Healthy juice is launching Sugar Free Acai Berry Juice which will be neutralized by
antioxidants and prevents occurrence of diseases like, diabetes, cardiovascular and heart. The
main ingredients of acai berry drink will be Proanthocyanidins and anthocyanins. There are
several external and internal sources from where funds can be accessed for introducing these
concepts.
Business Case
Company Healthy juice
Product Sugar free Acai Berry Juice
Ingredients Proanthocyanidins and anthocyanins
Sources of funds Bank loan, business capital and government grants
Bank loan is one of the primal sources from where the business owner of healthy drink
can obtain sufficient amount of financial resources. As one can get loan on very low interest rate.
Apart from this, one can lend money from various government institutions providing aid for
starting innovative business that would help them to raise funds for investment.
Budget for Sugar free
Expenses Amount (in £) thousands
Raw material 70
Travelling charges 30

Wages to experts 65
Warehouse (electricity, machinery maintenance, etc.) 40
Selling, administration and distribution 25
Advertisement on television, newspapers and radio 50
Market campaign for public relation and corporate event 150
Other expenses 70
Total 500
It is very much crucial for finance manager in an organisation to measure the
effectiveness of all the sources from where capital can be raised (Somaya, Teece and Wakeman,
2011). As this strategy will assist business entity in avoiding the extra charge or cost as well as
minimising the chances of risk associated with raising of financial resources.
Factoring -This method enables enterprise to sell their accounts receivable to third party
in order to gain immediate cash in exchange. This technique allows an organisation to sell their
accounts receivable to third party in order to receive immediate cash in dealing.
Retirement Accounts-It includes borrowing money from loan. The raising money from
loan using this method eliminate interest rate if the loan is repaid on time.
Government grants-This method include raising funds from government. This method
is very technical in nature as the firm is required to conduct research in order to identify the
proportion of funds that can be obtained from government.
Peer to peer lending- This method includes raising funds using online sources. It refers
to masking use of internet for obtaining finance from the known people.
M 4 Detailed innovation business case
There are several components or elements which are required to be considered by the
manager in healthy juice organisation when selecting the sources for raising the capital. Saving
account, equity and debt are some sources from where the business entity can obtain the financial
resources for fulfilling the basic required of procedure in business. Lack of financial resources
can create major hurdles or barriers in completing the specific task or procedure. Due to the
insufficient resources, it might become challenging for business venture to maintain the balance
between demand and supply of product or services. Apart from this, a particular segment of
customers must be taken in order to develop strategy to successfully target them. The product

which is determined in above business case is for those individuals who are suffering from
dementia disease in which they forget to drink water. Therefore, these attractive juicy and
chewable drops will provide them easy consumption of water in their body.
Lo4
P7 Identifying tools which Mr Green can utilise for developing, retaining and protecting
knowledge
and intellectual property.
It is necessary for an entrepreneur to increase their knowledge about intellectual property.
As this tactic will help business owner in recognising the laws whose support can be taken in
order to protect their ideas or creation from exploitation or misuse by other people.
Intellectual property is recognised as immaterial property which \has originated from
the innovation (Osoro, Kirama and Vermeulen,2017). Different tools as well as techniques can
be utilised by an individual for developing, retaining and protecting knowledge and intellectual
property.
Internet is considered to be as suitable tool which can assist an organisation inn
minimising the cost base well as time duration which is spent on research activity. It is very
much important for business owner to before implementing the thought or solution to ensure that
the ideas have not been executed by other. In addition to the above, there are some other tools
which can be utilised by an entrepreneur for retaining as well as protecting knowledge
and intellectual property are:
Patent: It is recognised to be as suitable tools which provides ban individual with right to
protect the ideas or invention from partial competition. Inventions permit numerous companies
to become successful because they develop new or good process or good which offers
competitive advantage in an industry. An instance of fountain pen. The incomparable
characteristics of pen is that it can stock ink. This fountain pen has assist business entity in
attracting wide number of customer and increasing sales.
Trade mark- It includes logo, design, unique symbol which is embraced by the inventor
or company for differentiating its products or services from that of its competitors. In contexts of
healthy drink organisation can use special types of packaging material which is seldom available.
Trade Secrets-It is required by business owner oh healthy drink to get their products,
patents or ideas registered. As this activity is very much important in terms of preventing the use

of ideas by others. Trade secrets is considered to be as process which is executed by manager in
an enterprise for maintaining the confidentiality of ideas related to the new product development
(Kirkegaard Sløk-Madsen, Ritter and Sornn-Friese, 2017).
M5 Evaluation of different tools in the context of the wider business environment
Patent – This tools is considered to be as the best tool. As it enables investor to restricts
others people from creating, selling, or utilising the invention. It provides owner the right to
exclude others from exploiting particular patented technology or innovation (The importance of
patents, 2015). An effective protection of patent regulates investigation and is considered to be a
key for maximising venture capital. Therefore, it promotes economic growth.
Trade mark – It allows business entity to differentiate products or services from that of
competitors (Crass and Schwiebacher, 2017). Trademark helps to convey emotional as well as
intellectual attributes of the company to users. It assists in capturing attention of customers.
Trade secrets- This tools enables an organisation to prevent the misuse of brand name
or utilisation of ideas by other person. This strategy will support business entity in gaining
several benefits or advantages in highly competitive business environment (Sandeen and
Seaman, 2018). Trade- Related aspects of Intellectual Property Right Agreement (TRIPS) is the
association that provides guidance for trade secrets. It depicts that some information is needed to
be kept secret and that must have some commercial value.
CONCLUSION
The project has concluded that in highly competitive business environment, innovation as
well as commercialisation are two important factors which can help firm in fostering growth.
Study has successfully demonstrated the importance of the commercial funnel and its application
in the procedure of new product development. Assignment has highlighted the different types of
innovation and importance of same in context of an organisation. It has also demonstrated the
way organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation. In addition to this report has explained all 4Ps in innovation mix.
The report has provided different methods which can be used by an enterprise for
protecting ideas.

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