Innovation and Commercialisation Report: Aldi's Innovation Practices

This report delves into the crucial aspects of innovation and commercialization within the context of a business organization, using Aldi as a case study. It begins by defining innovation, contrasting it with invention, and emphasizing its significance for organizational success. The report further explores the roles of leadership, culture, and teamwork in shaping innovation and commercialization. It then elucidates the 4Ps of innovation (Paradigm, Product, Process, and Position) and the concept of frugal innovation. The report also examines the commercial funnel and the application of New Product Development, culminating in the construction of an innovation business case, including funding access. Additionally, it discusses strategies for retaining and protecting intellectual property. The report underscores the importance of innovation for maintaining a competitive edge and achieving sustainable growth in the market.

Innovation and Commercialisation

Table of Contents
INNOVATION .....................................................................................1
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and its importance to organizations in comparison with invention.. .3
P2 Explain how leadership, culture and teamwork can shape innovation and
commercialization..................................................................................................................4
TASK 2............................................................................................................................................5
P3 Explain the 4Ps of innovation...........................................................................................5
P4 Explain developments in frugal innovation......................................................................6
TASK 3 ...........................................................................................................................................7
P5 Explain commercial funnel and the application of New Product Development...............7
P6 Build an Innovation Business Case for an organization, including ways to access funding.8
TASK 4 ...........................................................................................................................................9
P7Tools organizations can use for retaining and protecting knowledge of Intellectual
property...................................................................................................................................9
CONCLUSION...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation and Commercialisation are two very important aspects of any business
organisation for ensuring its sustainability in the market. It is important for both small and big
business firms to innovate their products and services on a regular basis to maintain the
competitive position in the business market. Commercialisation helps in increasing the
productivity and profitability of the business organisation. Aldi,is the leading global supermarket
chains with approximately 10,000 stores in 18 countries. This assignment is based on the
importance of innovation, difference between innovation and invention and different types of
innovation.
TASK 1
P1 Explain innovation and its importance to organisations in comparison with invention.
Innovation is one of the most important aspect of any organisation for practising business
effectively in the competitive grounds of the business.. Innovation can ensure high grade success
to the organisations. For standing in the competitive market, it is very crucial for the
organisations to understand the needs and desires of the customers in order to regulate high
grade success. The most important and crucial aspect of innovation is related to the creativity. It
is the core requirement of the innovation. The basic meaning of innovation is analysing new
pattern of completing or doing something. Business organisations that use creativity in their
working are more likely to be innovated. In last few years, innovation and creativity has become
one of the most important skills for any organisation. It helps in enhancing performance of the
business along with the individual (Chun, 2015). Creativity is the method of producing the
unique and new idea while innovation is the method of implementing that idea. Creativity and
innovation are two interrelated concepts and it can be applied on various methods, products,
plans or procedures. If applied efficiently, innovation can turn out to be very beneficial for the
businesses and it can help in adapting successful position in the market.
In Aldi, innovation plays a huge role in developing sense of responsibilities among the
employees,and it also helps in increasing the technical and interpersonal skills of the employees.
Some employees or workers contradict innovation with invention, however, both
concepts are different from each other. The same thing happened in Aldi, in such cases, it is very
essential for the organisational heads to initiate proper training and development for the member
so that they get clear idea of organisational strategies and policies. Innovation is very important

for the organisation as it ensures creative benefit for all, looks for the future, provides for tips for
the the creativity. Innovation management is the process of managing the culture of the
organisation to generate innovative networks. Innovation and creativity is the inter-related
process, it is based on various group decisions. Consent of all the organisational members can
prove to be very beneficial for the growth and development of the organisations. It is very
essential for the organisational heads to implement strategies and policies which are beneficial
for both the employees and the organisation (Neumann, 2017).
COMPARISON BETWEEN INNOVATION AND INVENTION BASIS
INVENTION INNOVATION
DEFINITION Invention can be defined
as the occurrence of
unique and novel idea for a
product or services which
did not existed before.
Innovation can be defined
as implementing the ideas
in the new product, service
or method for the first
time.
CONCEPT The concept of invention
is the generation of
original idea and its
working in theory
(Anderson, et al. 2014).
The concept of innovation
is the practical
implementation of the new
idea.
SKILLS NEEDED Scientific skills are needed
in invention
Marketing, technical and
strategic skills are the
broad set of skills required
in innovation.
OCCURS WHEN Invention arises when a
new idea generates to a
scientist (Lee, et al. 2010).
Innovation occurs when
need for new product or
improving the existing
product is realised
(Anderson, et al. 2014).
CONCERNED WITH Invention emphasis on
single
Innovation concentrates on
P2 Explain how leadership, culture and teamwork can shape innovation and commercialisation.
Innovations and Creativity are two interrelated concepts. for establishing successful
organisations, it is important to use both the skills at the same time. In leadership, innovation is
the technique that combines all other leadership styles to enhance creativity of the employees.
Different leadership styles bound employees to generate interpersonal innovative skills to

modify the working dynamics of the organisation. He is the one who uses his creative strategies
and policies to enhance the working of the organisation. Innovative leadership is very important
aspect for running functions of the organisation successfully. These leaders have creative visions
of each and every idea that has to be used by the members of the organisations. Providing
motivation and satisfaction to the employees is one of the most important duty of the creative
leaders. According to some reports, creativity is the vision or idea which helps in increasing the
productivity and profitability of the organisation. Some authors also state that creative skills are
interpersonal skills of the individual and it cannot be developed through training and
development sessions.
Cultural diversity can prove to be very beneficial for conducting business operations. It
can turn out to be helpful by combining different viewpoints of the individuals for conducting
decision making process. Effective teamwork can turn out to be very productive while offering
services and benefits to the organisation as well as the individuals (Song, 2016).
Cultural diversity is the key of innovation, but not all organisations adopt cultural based
innovation strategies. The significance of cultural diversity in every business organisation is
different. Innovation is one of the most critical aspect of any organisation and it can be
applicable in variety of contexts. Team based innovation is categorised into four aspects:
creating, advancing, refining and executing. These four concepts help team to develop
innovative campaigns and contribute in working of the organisation. While on the other hand
vision is the position of the organisation that heads wants to see in future, they construct various
kinds of plans and policies in order to accomplish the vision and missions of the organisation.
For establishing innovation in the organisation it is very important to involve all the staff
members in decision making process so that they can use their creative and innovative thinking
to accomplish the goals and objectives of the organisation.
Teamwork is very important aspect of any organisation. It can ensure the successful
growth and development of the organisation. This initiates group working and helps in
developing the relation among the members of the organisation. But in some cases when group
of individual work together, they generally misunderstood the meaning of the teamwork
(Rasmussen, 2017).

TASK 2
P3 Explain the 4Ps of innovation.
As the competition is increasing, it is very essential for the organisations to use
innovative skills and creative skills in their business functions.. This will not only help in
generating productivity and profitability in the organisation but also aids in increasing
interpersonal skills of the individual. Innovation is the very broad concept and it can be
applicable on every sector of the business (Osoro, 2017).
The innovation model of 4Ps is developed by John Bessat and Joe Tidd. This model
helps in generating the strengths and weaknesses of the organisation. It assists in discovering the
process of innovation which can enhance the working of the organisation. This model also
supports in analysing the current and future position of the business. In addition, it helps in
generating new ideas for successful growth of business organisations (Walt, 2014).
The 4p's of innovation model are:
Paradigm: A marketing paradigm defines various kinds of ways through which
marketing can be done by means of various set of guidelines and procedures that are as per the
theories and the strategies. There are several types of marketing paradigms that are essential for
the organisation, the four new of them are: Concentrating on making contact to building assets ;
developing campaigns to platforms, Increasing awareness to activation and lastly enhancing
transactions to experiences. Generally, innovation is used to improve the working of the
business. The changes applied to the working of the business can be critical in many cases but it
is very important to make sure that they bring positive impact on the flow of work of the
business. This step helps in generating the positive imaginations of the applied changes. While
paradigm can be considered as the special and specific category of innovation, it revolves around
the changes that occurred in the organisation.
Product: With the increase in the competition, it becomes very important for the
organisation to enhance the working of the organisations. It can be possible by developing
product and services of high quality. Suggestions from employees can be used to enhance the
standard of the product.
Process: All the steps which are taken by the organisational members to implement the
plans and polices of the business are combined together to become a process. Example:
supplying, recruiting, training, orienting and developing etc. Latest techniques and procedures

can be implemented by the organisational members to upgrade the process this will help in
competing in the growing market.
Position: Framing products and services comes under this aspect. Position intends to
maintain the sustainability in the functions of the business in order to maintain the profitability
and productivity of the business.
After applying the 4Ps model of innovation, it is very important for the business
organisation to analyse all the findings. This will help in choosing the best outcome which can
be used by the organisation for establishing and enhancing the functions of the business.
This technique is used to demonstrate, how business can improve its working in order to
increase the productivity and profitability. It helps in evaluating the current market position of
the organisation (Wang, 2016).
P4 Explain developments in frugal innovation.
The process of decreasing the complexity and cost of goods and services as well as its
production is called as frugal innovations. In general, it is a process of eliminating unusable
features from products in order to increase its selling capacity in other regions of the country.
Carlos Ghosn, introduced the concept of frugal engineering. This concept has gained the
popularity in the regions of the South Asia. The basic meaning of innovation is analysing new
pattern of completing or doing something. Business organisations that use creativity in their
working is more likely to be innovate. In last few years, innovation and creativity has become
one of the most important skills for any organisation (Wang, 2016).
Innovation is one of the most important aspect of any organisation for ensuring its
successful growth and development. Innovation can ensure high grade success to the
organisations. For standing in the competitive market, it is very crucial for the organisations to
understand the needs and desires of the customers in order to regulate high grade success. The
most important and crucial aspect of innovation is related to the creativity. It is the core
requirement of the innovations
It helps in improving the applications of the business. In general creativity is the method
of generating a new and unique idea for completing a task or activity. There are various methods
of applying creativity into the working of the organisation, but the selection of the methods
depends upon the choice of the organisational heads. They are one who have the full idea of the

working of the organisation. All the creative and innovative decisions are in the hand of
organisational heads. .
Frugal innovation is used to develop new models of business and redesign products and
services to serve users in the most appropriate manner. It helps in bringing products and services
in the reach of poor and middle class people. This helps in cutting cost in order to safeguard the
values of the user.
Renault - Dacia and Tata Motors use the frugal engineering methods implemented by
Carlos Ghosn. It is relatively one of the new field of research which is earning popularity in
controlling the working of the organisation.
TASK 3
P5 Explain commercial funnel and the application of New Product Development.
Jon Mroz was the one who developed the total funnel system program. The main idea
behind this program is to develop sales funnel system. It is used to sell products and service on
auto pilot mode, commercial funnel is a sales team for conducting business online.. For
introducing new products and services into the market, commercialisation is used. This process
is broken into number of phases from the first stage to last stage. It includes, production,
distribution, monitoring customer support and achievement of commercial success. The process
of commercialisation is like a funnel. Commercialisation of product and services is very
important for generating product recognition in the market. There can be many ideas for
launching a product in the market. As competition is increasing, it is becoming crucial for the
organisations to provide stability and consistency in their products. For maintaining sustainable
position in the market, it is very crucial for the organisations to introduce new products and
services in the market on regular basis as this will help in gaining customer’s attraction and
attention. In general words, it is the process of introducing new products and services into the
market. It is the process of managing financial operations of the organisation in order to ensure
the smooth working of the organisation. While functioning business, new product development
is the process of bringing new services in the market. Jon Mroz was the one who developed the
total funnel system program. The main idea behind this program is to develop sales funnel
system. It is used to sell products and service on auto pilot mode. It is a team of sales for online
business. For introducing new products and services into the market commercialization is used.
For maintaining sustainable position in the market it is very important for the frims to develop

new products and services in the market. This will help in gaining customers attraction and
attention. In general words it is the process of introducing new products and services into the
market. It is the process of managing financial operations of the organisation in order to ensure
the smooth working of the organisation This process is broken into number of phases from the
first stage to last stage. It includes, production, distribution,monitoring customer support and
achievement of commercial success.. Commercialization of product and services is very
important for generating product recognition in the market. There can be many ideas for
launching a product in the market. As competition is increasing it is becoming crucial for the
organisations to provide stability and consistency in their products. Winterhalter, 2017).Before
introducing new product and services in the market, it is very important for the organisation to
analyse the current position of the market. Before introducing new product and services in the
market, it is very important for the organisation to analyse he current position of the market. It
will help in generating goods and services of customer’s desires. Development of new product
and services should be based on feasibility study of the market. It helps in gaining the full details
of the market. Feasibility study is the study of the market on the basis of environmental,
technical, economic, political and social factors of the market. Development of the product
typically consist of more than one activity, it is very complex process for delivering new
products and services in the market. Whenever new product is introduced in the market, it has to
pass from various phases before it introduces in the market. New product development is the
complex process. For initiating process smoothly, various conceptual models are being
introduced in the market. It is important for the organisations to observe the needs of the
customers before developing new products and services.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
One of the most difficult aspect related with innovation is developing business case.
Many information related to business are often not clear and disturbed at early stages. It enables
the functions to enter in the process of the commercialisation. Defining new innovations is
generally a hard process. Innovating new business case in related to clear and appropriate
methodical approach. The effective business case based on the innovation should be initiated
with various concepts and clear discussion process. Making effective business case is very
systematic approach for the business organisations (Xiao, 2016).

Making and implementing business case is very crucial process for the business
organisations. It gives opportunities to the business to identify the external and internal forces of
the market. Less impactful business cases not improve the working of the organisation, so it is
very essential for the business firm to generate such innovation which can ensure growth and
success to the organisations.
One of the biggest challenge for any business organisation is to raise funds for operating
the function of the business. Funds are required on every stage of the business, they are
necessary to launch the business functions of the organisation. There are various methods of debt
funding:
Self-funding: It is the process in which individuals use his own money for conducting
business practices. This can be possible by using savings or personal funds etc.
Family funding: Funds can also be generated by the relatives or other known people. It is
considered as a safe method of generating funds for conducting business activities.
Dominant Investors: These are the people who are generally interested in initiating
investment in the business. These are the group of people who are considered as angel investors
for the business organisation.
TASK 4
P7.Tools organisations can use for retaining and protecting knowledge of Intellectual property.
Intellectual property can be termed as creativity of the mind in order to initiate
innovations, artistic thinking, symbols and designs for enhancing the growth of the organisation.
Intellectual property is based on laws and legislation like copyright, trademark and patents. It
helps in earning financial benefits from inventions and creations. This is used to create the
environment in which creativity and innovations can be accomplished in the business activities.
Creating and sharing knowledge is the core requirement of any business organisation.
Copyrights and patients are the most important form of the intellectual property rights used to
ensure the commercial exploitation of a device or method to be used.
Copyrights, trademarks, design rights and patents are the key of intellectual property
tools. For fostering innovations, intellectual property protections are very important. Without
identifying the full idea behind the business functions of the individuals, the business could not
take full benefits of the inventions and innovations (Zeschky, 2014).

Copyrights: It provides right to the organisation regarding the name and the authority of its
brand name and usage.
Trademarks : These are use t verify the validation and authenticity of the commodity or the
organisation and its brand name.
Design rights : These are the rights and the authority that are encompasses by the particular
organization regarding their offerings and services designs.
Patents: It provides complete authority and authenticity regarding the usage and the dispatch.
CONCLUSION
From the above assignment, it can be concluded that innovation and commercialisation
are two very crucial aspects of any business organisation. Innovation can turn out to be very
successful and beneficial when it is applied effectively and efficiently on the functions of the
business organisation. It has been seen that for maintaining sustainable position in the market, it
is very important for the organisations to introduce new products and commodities on regular
basis as this will help in fascinating customers. It also states the importance of frugal innovations
and intellectual property. Innovation is one of the most important aspect of any organisation for
generating effective business practices.
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Online
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