Unit 8 Innovation and Commercialisation Report: BTEC HND Business

This report provides a comprehensive analysis of innovation and commercialisation within business organisations, focusing on the importance of innovation for growth and competitive advantage. It examines various sources of innovation, both internal and external, using examples from companies like Fresh Direct, Tesco and Schwan's. The report differentiates between types of innovation, such as disruptive innovation, and discusses how they are processed within organisations. It also delves into the challenges faced by innovative organisations and provides a detailed business case for innovation, including risk assessment, benefits, and funding options. Furthermore, the report evaluates tools for developing, retaining, and protecting knowledge and intellectual property, highlighting the significance of intellectual property rights in safeguarding innovation. The report concludes by emphasising the critical role of innovation in ensuring long-term sustainability and success in the competitive market.

Submission Front Sheet
Programme BTEC Higher National Diploma (HND) in
Business (RQF)
Unit and Title Number Innovation and Commercialisation (Unit 8)
Unit RQF level/Code Level 4: D/618/5042
Credit Value 15
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EXECUTIVE SUMMARY
Innovation plays a very important role for the business organisation not only to grow
in the competitive market but also develop a different image in the market. It is very
important for the business organisation to develop the innovate their product on regular
basis in order to improves their sustainability in the market. The following report is going
to discuss about the importance of innovation for the organisation and its sources. This
report also discussed about the business case and the use intellectual property rights in
order to protect the innovation.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Discuss the ways in which different organizations source and foster
innovation, using specific examples............................................................................5
Differentiate between different types of innovation and how they are processed
within organizations.........................................................................................................9
Critically analyse the success or failure of the innovation in each online
grocery retailers...............................................................................................................14
Produce a detailed business case for innovation for an organisation, including
risks, benefits and ways to access funding.............................................................15
Explicit action plan for the innovation.......................................................................16
Suggestion of funding channels for the recommended innovation, supported
by analysis of business value for potential investment.......................................18
Evaluate the different tools that organization can use to develop, retain and
protect the knowledge and intellectual property....................................................19
CONCLUSION.............................................................................................................................23
REFERENCES............................................................................................................................24

INTRODUCTION
Innovation in business basically is a process, ideas, or an approach to
conceptualise the product that an individual or organisation undertakes. Innovation is
also defined as completely redesigning or improving the product or services by the
business innovator (Adams, Freitas and Fontana, 2019). Here the selected organization
for understanding the concept of innovation effectively is Fresh Direct Company. In
respect of the organization the firm came under the category of retail sector and the
provide their services and products through online mode. The report will cover discuss
the way in which different organizations source and foster innovation, using specific
examples. It further covers differentiate between various types of innovation and how
they are processed within organizations. It also covers suggestion of funding channels
for the recommended innovation, supported by analysis of business value for potential
investment.
Company overview: -
Fresh direct is basically online grocery shop which deliver their services within
the united states. The respective organisation was founded in 1999 almost around 23
year ago by Joe Fedele and Jason Ackerman. The firm provide employment to around
3000 employees and provide excellent services to their customers. In 2019 the revenue
of the company is around 600 million dollar. The selected firm directly buys the product
from the farms and deliver the fresh products to the customers (Allataifeh and
Moghavvemi, 2021).
Importance of innovation in organisation: -
Innovation plays a very important role within the business organisation in order to
adopt and overcome from the challenges. Importance on the different types of
organisation has been discussed below: -
For example, like innovation for the TESCO company is very important, this helps them
in serving the business as well as the customers in a very effective manner. TESCO is a
well-known food retail brand all across the globe so in order to make their presence on
the market the management of the company regularly focus on the products and the
process of innovation. Replenishment application system is being considered as the

main and effective innovation for the company. This system collects the data from the
checkout points and transferred to the supply department.
Discuss the ways in which different organizations source and foster innovation,
using specific examples
Sources of Innovation
Write about 7 sources of Innovation ( Peter Drucker’s)
Innovation is basically a systematic process which assist the business
organisation in achieving a successful position in the market. With the help of this they
can implement they can effectively implement the new ides make effective changes in
their existing goods and services. This improves firm goodwill in the market and helps
them in attaining competitive advantage in the desired industry. Following are the
different sources of innovation which is mentioned below: -
Inside sources: -
 The Unexpected: - this is being considered as that type of innovation that
happened unexpectedly and firm attain new heights in the market (Battisti, 2019).
The individuals of the firm paid focus on the development of new as well as
innovative idea which assist them in attaining successful position and enjoying
benefits in the future.
 Incongruities: -This innovation is developed when the need is incongruent with
the supply or an individual attempt to resolve the existing incongruities. For

example, like the number of cars has been grew and this result in the shortage of
parking area. So in attempting to solve the incongruity between the car parking
and number of increasing cars, the smart cars are born.
 Market Structure: -an existing structure of the market also give rise to
innovation. The entire structure of the firm can be improved by the management
and while improving the structure they might be able to develop various ideas.
This can also help them in attaining a systematic growth in the industry.
 Innovation based on the processed need: - this also been considered as the
most suitable source of innovation within which different types of ideas are
implemented by the firm to achieve the great result. Necessity is being
considered as the mother of invention as well as innovation (Beck, 2020). The
individuals of the firm try to fulfil the need in new manner through new products
and mechanism.
Outside Sources: -
 Changing in perception - Dynamic opinions concentrating things can alike
facilitate fourth innovations. People are changing their perception regularly during
the time of purchasing things, company need to analyse that type of changes in
the consumer perception to bring out the innovation according to current
servings.
 Demographics – In respect of pay level, human resource, age ranges and
population are changed many times on regular basis of big organizations.
Unifying demographic information, with division and focusing is a good and
powerful technique for preciously fulfilling the necessities of potential market in
time.
 New Knowledge: -The new knowledge as well as skill can also be considered
as the biggest source of innovation. Each and every year new areas are
discovered or added in the existing one on the bases of existing knowledge. This
can also assist the firm in attain successful position in the market.
Sources of Innovation in different organisations

In context to Fresh Direct this type of online retail based company and this organization
used different types of tools or method in aspect of fostering and sourcing the business
in their functions are described below –
Innovation In
different
organisation
Fresh direct TESCO Schwan's
organization
Rogers's
innovation
diffusion Theory –
Within this theory
there is diffusion of
thoughts as well as
ideas which are
developed over a
time of span. With
the help of this the
organisation can
effectively get
momentum in the
market and offer
best quality services
to their consumers.
Different types of
strategies are
developed by the
management of
Fresh Direct which
improved their
various ideas to offer
high quality products
to the consumers
(Birch, Chiappetta
and Artyushina,
2020). New ideas
are implemented by
the firm in which
helps them in
becoming more
profitable within the
market.
In context to the
TESCO, immense
amount of
competition has
been given by the
firm to their
competitors through
developing different
types of new ideas
as well as
technological tools.
Due to this, they are
able to attain
successful position
in the market.
In relation to the
Schwan's
organization a
systematic flow of
work has been
implemented by the
company
management which
helps them in
diversifying their
business in the
different regions.
Technology
Acceptance model
: -this model assists
In the recent time,
the management of
the Fresh Direct has
The performance of
the TESCO
management has
The management of
the Schwan's
organization

the firm in adopting
the different types of
new ideas which
helps the firm in
becoming new more
profitable in the
industry. The
process which are
implemented by the
firm is fasten in
proper manner
through
technological
advancements.
implement the digital
infrastructure within
their workplace that
assist them in
achieving success in
the industry. So,
technological tools
are utilized by the
company
management in
order to attract the
large base of
customers towards
them.
been increased in
the market which
improves their
growth. New
methods are
adopted by the firm
in their production
function in order to
earn more profits.
provide their
products as well as
services to their
customers as per
the change in the
customer’s
preferences.
Technology are
used by the firm in
diversifying theory
business functions in
various regions. So
with the help of
innovative ideas the
firm is able to earn
more profits (Chou,
2019).
But in aspect of Schwan's organization it is also a one type of retail company who
facilitates their services and goods to customers through online mode and this firm is
dealing with wide range of services and products to users in committed time. The
authority of this organization is also concentrating on fostering innovation in the
functions of business –
Characteristics of innovative organisation: -
 Customer focus: -The key purpose of any business is to innovate the products
according the customer's taste and preference which helps them to be successful
(Ehls, Polier and Herstatt, 2020). Their innovative ideas help the customers to be
more satisfied and this will lead business to be what customers wants, what they
need. As at the end customer preference should be the focus of the company.

 Unique strategy: -The innovative company has to develop the relevant strategy
in order to be more clear towards the goals and objectives. As the company
should be able to adopt the unique strategy so that it makes you different from
that of your competitor.
 Continuous development: -The innovative business keeps on innovating new
products and services, they don't see innovation as the end. This is one of most
important factor that innovative company focus on to achieve mission and
objectives.
Challenges which are faced by the innovative organisation: -
 The innovative business requires high skilled manpower so to make the
employee familiar with the new innovation, the company should provide training
to the employee. It may lead to the high investment in arranging the training for
the employee time and again. Due to this the employee may not feel motivated
towards doing any new innovative work.
 If the innovative company fails to make the proper strategy against adopting and
making proper use of innovation, then it became difficult for the company to
manage the resources and sustain in the market (Epstein, Huang-Saad and
Duval-Couetil, 2020). So, developing strategy according to the innovation is a
challenging part for the business.
Examples
 Apple is one the multinational company that is involved in making the innovation
regarding software products. The has innovated so many products such as multi
touch function, laptop trackpad, 3D touch which are being popular day by day
and customers are being attracted towards its innovation very rapidly.
 Telemedicine become more innovative in during the pandemic as it changed the
way the medicines was practice d. As through telecommunication technology the
medicine were given to the people who were at long distance as it established
portal to communicate.

Differentiate between different types of innovation and how they are processed
within organizations
 Disruptive innovation – It is basically a type of innovative technique and in this
strategy various types of advanced technology are heavily utilized by company.
With help of heavy use of technology organization easily increased their profit
margin and productivity at maximum level within short duration (Kempton, 2019).
The main highlight of this type of innovation is that this type of innovation is
mainly utilized or adapted by start-up companies in the segment of unnoticed
category within market.
 Incremental innovation – In this phase gradual and ceaseless increment of
products and services are involved. Due to the effective use of this type of
enhancement in current business functions, products and services firm is able to
stopped the stagnation when it effectively involved in market place (Lowe and
Feldman, 2018).
 Sustaining innovation – In comparison with other innovation it is highly strategy
regarding safeguarding the position of business in market for long duration. It is
highly focusing on small type of enhancement regarding products and services in
aspect of sustaining consumer satisfaction level. It also assists the manager of
both companies for upholding the position in market effectively (Materna and
Galieriková, 2019).
After the above analysis, it concludes that disruptive innovation is the suitable and
effective strategy for Fresh Direct in aspect of running various business functions
effectively. In this type of innovation authority is highly focusing on utilizing advanced
equipment's which supports them delivering best quality services and goods to
customers for long time. Due to the use of advanced and updated technology like
artificial intelligence assists the organization for running their whole functions smoothly
and also for identify the desires of customer's in quick manner (Obwegeser and Müller,
2018). Due to the effective use of various types of technology and this type of
innovation organization is able to fulfil the requirements or needs of the customers in
time.

But in aspect of Schwan's here authority need to focus on sustaining innovation in
their services and product effectively. Due to focusing on this type of innovation
company easily sustain their position in market for long duration. Therefore, in this type
of innovation top level management is focusing creating small type of change in their
goods and services rather than higher for sustaining their goodwill in minds of users for
long time. The main motive of using this type of innovation by firm is to develop strong
popularity in their product and services within low time by adding new and attractive
specifications (Shin, Kim and Jeong, 2018). For sustaining various types of change
effectively here authority of this company are utilized Block chain in their activities
regarding keeping fairness in their services towards consumers.
4 PS of innovation: -
This is basically innovative strategy which assists the company management in
designing the leverage innovation to drive the success of organisation. The PS of
innovation has been discussed below: -

1. Paradigm innovation: - this is basically the shifting of an underlying mental
model through change. This is being considered as the most common and the
most important form of innovation (Singh, 2020).
2. Process innovation: - this may be defied as making the changes in the way of
creating the things as well as delivered. This made a huge impact on the
profitability as well as efficiency of the firm. For example, like Wal-Mart invent
store within a store concept in response to the big box discounters.
3. Position innovation: - this change is related to the product and the services
which are introduced by the company in the market. For example, like AIRBNB
before moving into the general and traveller industry they position themselves
around conferences.
4. Product innovation: - this is being considered as the first thing which came in
the mind when the individuals talks about the innovation and conveys innovation
which are offered by the organisation (Sorenson, 2018). For example, like
Microsoft word processor in comparison to the Word Perfect is very poorer when
it first came in the market. By making changes in the product on regular basis by
the management this allows them to enjoy the competitive advantage in the
market.
Developing a Business Case
Process of Innovation - New Product Development (NPD Process)
It is basically referring to introducing new type of goods and services, sources of
supply and methods of production. In the innovation process different types of steps are
involved which are explained below –