Icon College: Innovation and Commercialisation Report - HND Business

This report delves into the concepts of innovation and commercialization, using Bentley Motors as a case study to illustrate key principles. It begins by defining innovation and differentiating it from invention, emphasizing its importance in enhancing productivity, gaining a competitive edge, and meeting market preferences. The report explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization within Bentley. It then examines the 4Ps of innovation (paradigm, product, process, and position) and the use of the innovation funnel. The report further discusses the importance of the commercialization funnel and New Product Development (NPD), building up an innovation business case. Finally, it evaluates tools for developing, retaining, and protecting intellectual property. The report aims to provide a comprehensive understanding of the innovation process and its practical application within a real-world business context.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Explanation of innovation and determination of is importance with comparison with
invention.................................................................................................................................1
P2. Explanation of how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation..........................................................................................3
LO 2.................................................................................................................................................4
P3. Explanation of 4Ps of innovation and use of innovation funnel......................................4
P4. Explanation of developments in frugal innovation..........................................................6
LO 3.................................................................................................................................................7
P5. Explanation of importance of commercial funnel and New Product Development (NPD). 7
P6. Building up of innovation business case..........................................................................9
LO 4...............................................................................................................................................11
P7. Evaluation of different tools to develop, retain and protect intellectual property..........11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation refers to adding specific and value added features to an offering of individuals
which are required to appropriately enhance the importance and value of the offerings. In
addition to this, innovation is an essential practice which ensures a culture of increased
creativity, sustainability and competitiveness in the marketplace (Eslamloo, 2017). In such
context, the report below is based on Bentley Motors Limited, which is a world renowned
automotive organisation. Despite its exclusive offerings, the company is willing to introduce a
new innovation, which would help the firm in enhancing its competitive image in the
marketplace. To attain this purpose, the report would be addressing explanation in relation to
innovation and its difference with invention. In addition to this, it effectively includes different
types of innovation that is required to be understood and implemented within the company.
Moreover, the report discusses the process required by the firm to commercialise its innovation.
Along with this, evaluation of range of methods for protecting ideas and understanding their
advantages and disadvantages.
LO 1
P1. Explanation of innovation and determination of is importance with comparison with
invention
Innovation is an essential process to appropriately and effectively add better and more
useful features within one's offerings with an intention of making it more useful and appropriate
as per the changing marketing conditions. In relation with Bentley, it is one of the biggest
organisations in terms of perfection in their designs, creativity and innovation within their
vehicles (Huzair and Sturdy, 2017).
Moreover, there are several aspects which reflect the importance of innovation within the
company. Some of these factors are discussed below: Enhancing Productivity: One of the prime importance of innovation within the
organisation is that it enhances productivity within the company. This is because new
processes and techniques are used to bring innovation in the products, along with
developing creativity within human resources, which contributes to productivity. Competitive Edge: Another importance of innovation as reflected by the fact that this
could help Bentley in getting a competitive edge in the marketplace. In addition to this,
1

innovation is very complex to be tracked by the competitive organisations, which
provides immense benefits to the company in terms of enhancing its sustainability in the
market. Market Preferences: This importance is associated with the enhanced preferences of
customers due to better and more useful features within the company offerings.
Innovation helps in analysing the market gap and improvise products in ways which
closes the gap and increase inclination of customers (Lawton Smith, Bagchi-Sen and
Edmunds, 2018). Problem Solving: This importance, in comparison with invention is related to the fact
that it helps in solving effective problems within the organisation. This is because value
added features within offerings of the company are very much effective in solving the
evident problems of the firm;
 Continuous Improvement: While invention is a one-time improvement, innovation
appropriately helps in ensuring consistency in improvement in processes as well as
products of the company.
However, these factors of importance of innovation could be better understood against
invention, which refers to creation of a completely new product that hasn't been created before.
The difference between both these factors is highlighted below:
BASIS INVENTION INNOVATION
Purpose
Purpose of invention is related
to creation of a novel and
unique product.
Innovation is channelised
towards improvisation in
existing products and services.
Scope
The scope of invention is quite
narrow, stating the fact that it
is subjected towards one
particular offering.
A wider scope is shared by
innovation, as it could be
implemented on every product,
department and procedures.
Orientation
Invention is more product
oriented, i.e., it is subjected
towards a new creation.
Innovation is profit-oriented,
as it is directed towards
ensuring more usefulness and
effectiveness.
2

P2. Explanation of how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation
Commercialisation is a process of effectively introducing a new offering into commerce,
i.e., within the marketplace. It is highly essential for a company like Bentley to effectively shape
innovation and commercialisation, in relation to developing a highly effective culture and better
functioning of the firm. Moreover, there are several factors which play crucial role in shaping up
these elements within the company. Hence, such aspects are discussed below: Vision: The vision of Bentley Motors is that the future designs of the organisation's
vehicles must be subjected towards making the brand unique (A NEW VISION FOR THE
FUTURE, 2019). This reflects the fact that the company is very much inclined towards
having a separate entity in terms of their products, processes and practices. Hence, vision
could shape innovation within the firm quite effectively, through ensuring that every new
offering promotes uniqueness and contributes towards creation of their own identity. Leadership: Another factor that could shape innovation and commercialisation in
Bentley motors is Leadership. It is highly required for leaders to appropriately encourage
innovation in the company and lead the firm towards accomplishment of the same. The
leadership adopted within Bentley Motors is directed towards creative understanding and
developing competence within individuals in relation to adopting innovative ways and
procedures in the company. Hence, this could shape innovation through motivating
individuals and providing appraisals and benefits for their contribution towards
innovation. There are several types of leadership theories, such as autocratic, democratic
as well as transformational leadership, which is adopted within the organisation in its
various departments. However, for the company, one of the most appropriate approach
which could facilitate innovation is transformational leadership. The reason for this is
because an appropriate flexibility is induced by this leadership which is necessary for
fostering innovation. Culture: This factor is very deeply associated with how innovation and
commercialisation could be shaped up within Bentley. The culture of the firm has been
very much inclined towards developing a working environment which is associated with
innovative practices and development of enhanced and valuable cars within the company.
3

This could very well shape innovation as creative ideas will be welcomed and required,
that would provide enhanced opportunities for the organisation (Read, 2018). Certain
cultures that are associated with the company are Power, Task, Role and Person.
However, person culture is the most contributing type of culture to enhance innovation.
The reason for the same is that person culture helps in appropriately foster creativity
within individuals, that is the main requirement for innovation.
 Teamwork: Innovation, as well as commercialisation could also be shaped up by
Bentley's teamwork. This could be achieved through developing support and harmony
within the company and its departments which would be providing assistance to one
another in relation to how best the innovation could be developed in the organisation.
Belbin's theory of team roles must appropriately be adopted by the organisation in
context of innovating the services and products in an appropriate manner. Hence, in this
relation, plant is one of most appropriate roles that are required to enhance innovative
practices within the company.
Ways to develop, embed and measure innovation:
There are several ways within an organisation through which innovation could be
developed, embedded and measured. For example, in terms of developing the same, enhanced
research and development activities are required to be implemented to ensure that an effective
idea for innovation is developed. In relation to embedding the same, Bentley is required to
develop an organisational culture which is related to promotion of innovation and creativity.
Moreover, there are several ways through which the innovation could be measured in the
company, such as key Performance Indicators, as well as Benchmarking Analysis with respect to
innovation (Uctu and Jafta, 2018).
LO 2
P3. Explanation of 4Ps of innovation and use of innovation funnel
There are several types of innovations, which are required to be understood by an
organisation, that helps in developing a prominent culture of innovation within the company.
these types are very much linked towards fostering this element in firms and helping them in
achieving better results.
4

Hence, with respect to Bentley Motors, there are several types of innovation which are
explained below: Paradigm: This element represents overall climate and environment surrounding the
person in which they are required to operate. Moreover, all the conductive as well as
prohibitive conditions are reflected in this element. This reflects the culture of
organisation, along with its best practices. Hence, it is necessary for the organisation to
develop its future innovative products in such a way that a healthy and conductive
environment is maintained and promoted (Harvey and Tom, 2017). Product: It is basically an outcome of the person as well as the creative thinking
processes used by them. Hence, each of the new product developed by the company that
is related to innovation is an outcome of the creative approaches and abilities of the
senior management and the other departments of the firm. Process: It refers to all the procedures, as well as the methods which are implemented by
an organisation with respect to development of the product. However, the reference in
this respect is the thought process rather the mechanical ones. Hence, within Bentley, this
could be implemented in order to solve the issue of getting the firm an appropriate
competitive advantage in the market. Hence, senior management of the organisation
could implement their thinking processes to develop a new solution to such a problem,
with emphasis on creation of a new product (Hernández-Ramírez, 2018).
 Position: This refers to the process as to how the offering and innovation of the company
is placed within the marketplace. Furthermore, this is an essential aspect which helps in
enhancing the scope of improvement of the company as seen within the innovation.
Hence, it is required that there are several appropriate and effective ways through which
this could be done. For instance, the firm must place its product in both offline as well as
online markets for further improvement.
Apart from this, in order to appropriately develop an innovative product, it is required to
understand the process related to the same. Such procedures could be well reflected by the use of
innovation funnel by the organisation, which is explained below: Phase One: The very first phase with respect to the innovation within an organisation is
associated with identification of ideas. The agenda of this step is to gather several
concepts in relation to the innovation (Innovation Funnel, 2019). Within this process,
5

Bentley is required to attain information with respect to the processes and techniques
which would contribute in helping them in gaining a competitive advantage. Moreover,
high quality research is required to be appropriately implemented by the company with
respect to determining the new ideas for their future innovations. Phase Two: In this phase, the ideas developed previously are appropriately screened.
This process is necessary with respect to determine as to whether the ideas align with the
objectives and goals of the company. moreover, to attain this, risk matrix, cost benefit
analysis and many such frameworks are used. Moreover, the particular idea selected is
then appropriately subjected to allocation of resources to ensure effective opportunities.
For example, in case after the screening, the firm determines and selects the idea of
launching a new electric car, then several human and technical resources would be
allotted to make the idea into reality (HKnoke, Missikoff and Thoben, 2017).
 Phase Three: This phase sees the transformation process in which the ideas are actually
converted into a product. This step includes evaluations, reviews and testing of the
product. Moreover, if everything goes well, it the offering would be launched within the
marketplace.
Illustration 1: Innovation Funnel
(Source: Innovation Funnel, 2019)
6

P4. Explanation of developments in frugal innovation
Frugal innovation refers to the process with which complexity within a particular product
is reduced, along with the cost. Moreover, this is directed towards completely eradicating the
non-essential features from an offering to ensure that it is sold in higher orders.
There are several developments within this aspect as far as the automotive sector is
concerned. For example, there are advancements in several processes and equipments within the
vehicles, that are saving the cost as well as complexities, for instance, emission reduction, engine
and fuel efficiencies, etc. Such developments are very crucial for companies like Bentley to
adopt, as well as implement in their new products, which would be helpful in increasing the
effectiveness and efficiencies in the organisation (Ferasso, 2018). For example, Bentley, while
developing their new vehicle, could appropriately involve this innovation which appropriately
and effectively enhance the scope of improvement with respect to their product development
process.
Frugal Innovation plays an active role within the organisation in several ways. For
example, it helps the firm in being economical, through innovative ways of saving energy, cost
and resources. Furthermore, competitive advantage is yet another role which is effectively played
by the organisation with respect to assisting the company in being cost effective.
In addition to the above explanation, frugal innovation could be very well applied by
Bentley Motors with respect to development of their new and innovative products. For instance,
they could use complete electrical function in their new vehicle, which would add to fuel
efficiency. Moreover, using high quality techniques and equipments by effective supply chain
management, would assist in reducing the cost.
LO 3
P5. Explanation of importance of commercial funnel and New Product Development (NPD)
Commercial Funnel refers to the overall journey of a customer towards buying an
organisation's offerings (Hu and Allen, 2017). In addition to this, this is a highly sequential
process, which helps a company with respect to ensure complete and effective purchasing of the
organisation's offering. There are several steps associated with the commercial funnel, these are
explained below:
7

 Attract: The very first stage requires Bentley to advertise and market their products on
their website to attract customers. Convert: The firm in this stage helps in appropriately and effectively provide offers
which inspire the customers to share contact information. Close: Furthermore, several efforts are very much required by the company to close the
customers and ensure that they buy their product.
 Delight: This requires the firm to provide quality service to customers in relation to
engage them appropriately with the organisation (Mazurkiewicz, 2018).
This funnel is very important to be adopted and implemented by the organisation with
respect to effectively ensure that each potential customer is approached, as well as converted into
a loyal customer later. In addition to this, the funnel is very much important for ensuring an
effective profitability level of the organisation through their new product and hence, this aspect
is very important to be considered by Bentley.
In addition to this, New Product Development must also be implemented by the
organisation, which would be effective for the organisation to ensure a proper commercialisation
of its new offering (THE NEW PRODUCT DEVELOPMENT PROCESS (NPD) – OBTAIN NEW
PRODUCTS, 2019). The company is very well planning to develop a new and innovative
offering, by the name of “B-Elec”, which is an electric vehicle introduced by the firm for
environmental protection and fuel consumption. Furthermore, it would be having integrated an
automated systems, which would be implemented in relation to providing safety to the driver and
passengers inside the car.
For this purpose, the New Product Development is specified below:
 Idea Generation:
This process is related to systematic market search in relation to appropriate ideas in
relation to the new product. Moreover, this could be done through appropriate internal, as well as
external analysis, such as marketing and competitors' analysis (Wadrop, 2017).
 Idea Screening:
Within this step, the ideas are screened and filtered, with respect to the effectiveness and
contribution towards the goals of the organisation. In this purpose, the idea of formulating an
electric car with integrated safety systems was selected.
 Development and Testing of Concept:
8

A product concept is developed in this step, where several development and
manufacturing plans are required to be developed by the organisation. In this step, Bentley
developed certain appropriate concepts in context of the new product through development of
plans such as the building and manufacturing process. Hence, different concepts were then tested
internally within the organisation.
 Marketing Strategy:
Marketing strategies and tactics are required to be developed by the organisation in
relation to enhancing the scope of marketing of the new offering. In this respect, Bentley is
needed to develop plans related to target market, organisation's planned price for the product, its
distribution channels and marketing budget (Rahe, 2018).
 Business Analysis:
Business attractiveness of the product is analysed within the new product. Sales, costs
and profit projections are made and reviewed to ensure that the concept would further develop
physically.
 Product Development:
This is related to the actual development of the product. Hence, Bentley would be
developing its new vehicle through implementing several resources, techniques and methods.
 Test Marketing:
After the product is developed, the organisation would be testing the same on a sample of
target market, as well as internally, to determine its effectiveness appropriately.
 Commercialisation:
In the last step of this process, the company would be actually launching its complete
product after modifications from review from the previous stage. In this aspect, the firm would
undertake activities like product launches, press releases and so forth (Intarakumnerd, 2017).
P6. Building up of innovation business case
Business case is a document, which is related towards providing a detailed knowledge
about strategies and funding related to the new product. Hence, with respect to the new offering,
the business case by the firm is discussed below:
 Executive Summary:
9

Bentley is one of the most effective luxury car brands within the UK and beyond.
Currently, the organisation wants to focus on innovation to develop their new products
effectively.
 Problem:
Currently, the UK market is being quite competitive, which requires organisations to
enhance their innovative abilities and instil the same within their offerings. Hence, Bentley will
also be required to adopt this aspect to gain a competitive advantage.
 Solution:
In order to ensure effectiveness, the firm will be developing a new and innovative
offering by the name of B-Elec, which will be an electrical vehicle with automated safety
systems.
 Innovation:
The company would be using an active role of Automation and Artificial Intelligence in
ensuring functioning of the car as well as its safety considerations.
 Market Research:
In order to research, the company has used external marketing methods such as feedbacks
and surveys, which helped them in determining preferences of customers.
 Funding:
There are several ways in which the firm could appropriately acquire funding for this new
project. The very first method is Bank Loans, where the company would be acquiring the loan
from banks. The advantage for this is that the interest rates are low. However, the firm would be
taking a risk in taking a loan for such a big project. Another method is Retained Earnings, within
this aspect, the company would appropriately be using its past earnings and profits to invest in
this new product development. One of the biggest advantages associated with this method in
comparison with bank loans is that the firm would be free from any sort of burden associated
with interests. Moreover, since the firm is such a renowned one, this would actually contribute in
enhancing its public image, which would be better for future sales.
Furthermore, in order to test, iterate and improve, the firm could appropriately use
methods like projected fund flow statement, to compare the future and actual standards.
Moreover, the firm could also use surveys which would give detailed review of effectiveness of
their product. In this context, a projected cash flow is stated below:
10