Online Learning Component: Innovation Incubation Process - Week 8

This assignment focuses on explaining the innovation incubation process, a critical element in fostering innovation within businesses. The document breaks down the incubation process into three key stages: pre-incubation, incubation, and post-incubation. The pre-incubation stage involves assessing the validity of innovative ideas, providing training, defining business models, and developing business plans. The incubation stage provides support to entrepreneurs by offering access to resources and funding. Finally, the post-incubation stage focuses on activities after the company matures. The assignment emphasizes the importance of factors like defining objectives, focusing on disruptive innovation, and involving senior management for successful innovation incubation. The document also provides references to support the concepts discussed.

Online Learning Component Cover Sheet
Week 8
Term and Year Term 4 2017
Assessment Type Discussion question
Date
Student Name:
Student ID No:
Submission deadline: Due at the end of Week 8 (upload on Sunday by 11:59pm) via Moodle Submission
Point
Qualification : BSB50215 Diploma of Business
Unit Code: BSBINN501
Unit Title: Establish systems that support innovation
Assessor’s Name
Student Declaration: I declare that this work has been completed by me honestly and with integrity.
Name:
Signature:
Date:
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Online learning/ evidence gathering conditions
Each online learning component is recorded as Five hours (5), Three hours (3) or Zero hours (0). A student can only
achieve competence when all online learning components listed under procedures and specifications of the fulfilling the 5-
hour online learning per week section are Satisfactory. Your trainer will give you feedback in the student learning
management system after the completion of each online learning component. A student who is assessed as Zero hours (0)
is eligible for re-submission. Should the student fail to submit the online learning component, a result outcome of Zero
hours (0) will be recorded. Any form of plagiarism or copying other students’ work would also result in a Zero hours (0)
record outcome and there would be no provisions for a re-submission.
Resources required for this Assessment
 All documents must be created using Microsoft Word.
 Upon completion, submit the online learning component (using this official template) via the student learning
management system to your trainer along with the completed assessment coversheet.
 Refer the notes on eLearning to answer the tasks
 Any additional material will be provided by Trainer
Instructions for Students
Please read the following instructions carefully
 This online learning component is to be completed according to the instructions given by your assessor.
 Students are required to conduct their research and complete this online learning component outside the class contact
time.
 Feedback on each task will be provided to enable you to determine how your work could be improved. You will be
provided with feedback on your work within 2 weeks of the online learning component due date.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge.
You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit
of competency.
 If you are not sure about any aspect of this online learning component, please ask for clarification from your assessor.
 Please refer to the College re-submission policy for more information.
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Task
Explain the innovation incubation process (not more than 800 words).
Innovation is the process of converting a creative idea for product or service into reality to
create value or improve the efficiency of operations. In the corporate sector, modern
corporations focus on promoting and supporting innovative ideas and approach because it
provides them a competitive advantage and sustain their future development. Modern
corporations use two methods to implement an effective innovation approach in the
business, strategic entrepreneurship and corporate venturing (Khalil and Olafsen, 2010).
The corporate venturing strategy works by adding new and potential businesses to the
organisation. Google has implemented this approach in its organisational environment; the
company invest in new and potential startup ideas and purchase them to add their
innovative approach to its culture. The strategic entrepreneurship focuses on adopting an
innovative approach in the business model to promote innovating ideas; Innovation
incubators come under the category of strategic entrepreneurship. Incubation means
providing necessary support to entrepreneurs in order to assist them in developing their
own business; in other words, it focuses on providing required support to new
entrepreneurs to help them build their own company (Cooke et al., 2011).
Business incubators are the corporations that provide support and help new entrepreneurs
or start-up firms in developing their business by offering services such as office space,
internet connection, training or others. The incubators allow entrepreneurs to use help
from experts and implement it into their business that assists them rapidly develop their
businesses. The innovation based incubator is a business development center that provides
its services to small corporations and new entrepreneurs to develop their innovative ideas
(Al Mubaraki and Busler, 2011). The innovation incubation focused on promoting and
supporting new ideas for increasing the efficiency or building new products design to
sustain a business growth. In an existing corporation, if top-level management decides that
they need to increase company’s growth rate to fulfill the requirement of shareholders and
existing policies are not enough to accomplish organisational targets, they may decide to
establish an innovation incubator.
The innovation incubation process involves three stages, i.e., pre-incubation, incubation,
and post-incubation. These stages focus on establishing an effective incubation system for
new innovations to transform them into reality for the benefit of the company. An
incubator performs the innovation incubation procedure, and it assists an entrepreneur to
achieve its innovation objectives (Chandra, Srivastav and Shah, 2003). The pre-incubation
stage focus on providing support to the potential entrepreneur to assist him in developing
his idea, plan and business model. Following is the process of pre-incubation:
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 Firstly, the incubator assesses the validity of the idea for innovation that is proposed
by the entrepreneur.
 After satisfying with the idea of innovation, incubator provides training on topics
such as management, legal and administration.
 After that, entrepreneur enters into orientation stage in which incubator defines
the business idea and business model for the innovation.
 In innovation assessment stage, the incubator measures the competencies of
innovation idea through an external committee.
 In the final stage, incubator builds a business plan along with financial forecasts to
expand the business.
The incubation process relates to the support provided to the entrepreneur for expanding
his startup (Guo-dong and He-dan, 2010). Following is the process of incubation:
 Providing entrepreneurs access to financial, legal, administrative, and intellectual-
property rights.
 Rising funding for innovation, building new networks and providing required
technology.
 Pushing the entrepreneurs to expand the business based on the innovation.
The post incubation includes activities that are performed after a company has reached its
maturity stage, and is ready to handle its operations on its own (Baumgartner, 2013).
Following is the process of post-incubation:
 Diagnostic of innovation
 Providing internationalization support
 Technology commercialization
 Business development planning
These processes are necessary to be fulfilled for an effective innovation incubation process.
The innovation incubator focuses on promoting creative ideas and turning them into reality
to improve product or service design (Wunker, 2007). Following points are necessary to be
considered by the company and entrepreneurs during the process of innovation incubation
to ensure its success.
 The entrepreneurs should not be worried about the failure of innovation incubation
because it increases pressure on them to achieve targets that result in failure.
 Defining the purpose and objective of the incubation to understand the priority
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opportunities clearly.
 Particular focus on disruptive innovation that focuses on maximizing shareholders’
value.
 Taking critical staffing decision during the incubation process because the selection
of eligible and qualified person leads to innovation success.
 Senior management should be involved in the innovation incubation process to
motivate employees because it encourages them to achieve their targets more
quickly.
The innovation incubation process focuses on building new innovations by focusing on
mundane details of operations because they hold the key to newer innovations. The
innovation incubation process assists in building an effective business plan and model that
benefit the company by sustaining its future development (Sonne, 2012). In recent years,
globalisation and digitalisation have increased competition between companies and
innovation incubation process assists them to gain competitive advantage and establish
business sustainability.
References
Al Mubaraki, M. and Busler, M., 2011. The development of entrepreneurial companies
through business incubator programs. International Journal of Emerging Sciences, 1(2),
p.95.
Baumgatner, J., 2013. A Process for Innovation Planning. [Online] Innovation Management.
Available at: http://www.innovationmanagement.se/imtool-articles/a-process-for-
innovation-planning/ [Accessed on 24/11/2017]
Chandra, P., Srivastav, S. and Shah, B., 2003. Innovation, incubation, and
incubator. Vikalpa, 28(2), pp.89-94.
Cooke, P., Asheim, B., Boschma, R., Martin, R., Schwartz, D. and T_dtling, F. eds.,
2011. Handbook of regional innovation and growth. Edward Elgar Publishing.
Guo-dong, Q. and He-dan, M.A., 2010. Research on Regional Innovation System Based on
Interaction between Innovation Incubation and Venture Capital [J]. China Soft Science, 2,
pp.97-106.
Khalil, M.A. and Olafsen, E., 2010. Enabling innovative entrepreneurship through business
incubation. In The Innovation for Development Report 2009–2010 (pp. 69-84). Palgrave
Macmillan, London.
Sonne, L., 2012. Innovative initiatives supporting inclusive innovation in India: Social
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business incubation and micro venture capital. Technological Forecasting and Social
Change, 79(4), pp.638-647.
Wunker, S., 2007. Incubating Innovation. [Online] Forbes. Available at:
https://www.forbes.com/2007/12/21/ibm-hp-incubator-leadership-clayton-
in_sw_1221claytonchristensen_inl.html#1e60295f164c [Accessed on 24/11/2017]
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