Pearson BTEC Unit 8: Innovation and Commercialization Business Report

This report provides a comprehensive overview of innovation and commercialization within a business context. It begins by defining innovation, differentiating it from invention, and illustrating its impact through various business examples, categorized by innovation types. The report then explores how organizational vision, leadership, and culture shape innovation and commercialization. It delves into the 4Ps of innovation, explaining the innovation funnel and its application. Furthermore, the report examines frugal innovation, providing real-world examples, and details the importance of the commercial funnel and New Product Development (NPD) processes. A significant portion of the report is dedicated to building an innovation business case, including strategies for accessing funding. Finally, the report evaluates tools for developing, retaining, and protecting knowledge and intellectual property, offering a holistic understanding of innovation management.

Assignment Front Sheet
Qualification Unit number and title
Pearson BTEC Levels 4 and 5 Higher
Nationals in Business
Unit 8: Innovation and Commercialization
Unit code:
Unit Level: 5
Credit Values:
Student name Assessor name
Date issued Completion date Submitted on
Assignment title Innovation and Commercialization
Word Count
Assignment Front Sheet
Hand-in Policy
You must complete this assignment on time. If you experience difficulties, you must
inform your tutor accordingly.
Late Work Policy
Consideration will be given to students who have valid reasons for late submission (e.g.
illness)
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In case of plagiarism, college regulations will be applied. You must declare that this work
is your own by signing the following statement:
Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.
Student signature: _______________________ Date: ___________________________

Table of Contents
P1. Explain the different context of innovation and differentiate between invention and innovation.......3
P2. Explain how organization vision and leadership and culture shape the innovation and
commercialization.......................................................................................................................................4
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas...........................................................................................................................................4
4 P’s of Innovation...................................................................................................................................4
P4. Explain developments in frugal innovation and provide examples of how it is used in an
organizational context.................................................................................................................................5
P5. Explain the importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialization of innovation...............................................................................5
P6. Build an Innovation Business Case for an organization, including ways to access funding....................6
P7. Evaluate the different tools that organizations can use to develop, retain and protect knowledge and
intellectual property....................................................................................................................................6
Bibliography................................................................................................................................................8

Unit 8 Innovation
P1. Explain the different context of innovation and differentiate between invention
and innovation
Definition of innovation
“Innovation is the creation, development and implementation of a new product, process or
service, with the aim of improving efficiency, effectiveness or competitive advantage.” (Hudson,
2014)
Example of business innovation
Business success occurs with –
 creating new products / services / markets
 updating something known so it is exciting again
The following are examples of success through innovation –
1.
1. Technology companies triggering a paradigm shift by
impacting industries
A. Apple – changed music and consumer electronics
B. Uber – changing the taxi business
C. Airbnb – changing the accommodation industry
D. Amazon – changing retailing
1.
2. Technology companies creating new markets / industries
A. Google – with ” Search, etc. ” for a much better online
experience
– changed the Advertising world with Adwords
– impacting the mobile, car, utility, etc. industries
B. Facebook – established the ” social network ” market
C. WhatsApp – established the personal communications market
D. Steam – established the online market for licensing games
1.

3. Companies making something old new again
The following brands have taken familiarity and made it relevant
with modern technology to create a winning product / service –
1. Nest
Nest successfully revolutionized a stagnant thermostat industry
because they took something we all use and asked, “How can we
make this (much) better?” They listened to people’s complaints (ex:
energy use, comfort levels) and went about applying answers to
these problems. When you’re in tune with public demands and you
can create the appropriate solutions, you’ll be successful. — Nicolas
Gremion, Free-eBooks.net
2. Nintendo
Pokemon Go is a world-class example of how Nintendo became
relevant again by simply reinventing itself through a modern game
that activated gamers of all ages and genders. Pokemon Go
incorporates virtual reality elements, gamification, and commerce at
scale in a way that has never been done with such precision. I
believe the reason for the success was well-executed timing.
— Kristopher Jones, LSEO.com
3. Snapchat
Snapchat brought photo sharing forward into the modern age and
brought back a real interest in photos and communicating through
photos. They were successful because they incorporated the social
element and added ways to edit the pictures and add things to them
that made it even more fun for their audience. They also brought
the photo-sharing concept into the digital online age and made it
interactive.
4. Slack
Chat rooms on the internet have always been around, and in the old
days, asking someone for their age/sex/location was just what you
did on them. Slack brought chat rooms back and made them more
productive by highlighting their usefulness for teams. Today you
would be hard-pressed to find a company not using Slack, or at least
someone from the company not active in a Slack community.

5. Polaroid
Polaroid cameras used to be these ugly, old looking things that
resembled View-Masters, and with everything going digital,
Polaroid’s future didn’t seem very promising. But, they’ve found a
way to make their cameras kitschy, cool and popular through unique
branding and an engaging aesthetic. I doubt they’ll ever be seen as
dated again.
6. Unwelcome Greetings
The team behind Unwelcome Greetings knew that traditional
Hallmark cards were boring. At least, among Millennials, they felt
that there was a better way to congratulate a friend or share a
funny meme. And so far their outrageous greeting cards have been
a hit among consumers who prefer to communicate in
memes, emojis and pranks.
7. Dollar Shave Club
Dollar Shave Club made it easier and cheaper to buy razors, and
they did it with style. They were successful, in part, because of their
innovative approach to advertising. But the real key was taking on
an established industry that had been overcharging for generations,
and making the product cheaper and more convenient. Companies
like Casper are doing the same for mattresses.
8. GoPro
GoPro effectively took an old product that everyone has, re-
purposed it, and made a fortune. GoPro is nothing but a good-quality
camera. However, they managed to make it attractive, target a
large niche of passionate customers and create a new category for
themselves. The beauty behind this brand is targeting a group of
people who are tight-knit and large enough to build a sizable
business.
9. Netflix
As one of the cornerstones of the home entertainment industry,
brick-and-mortar DVD rental stores seemed like they’d be around
forever. Then along came Netflix. Not only did the brand reinvent
the delivery of DVDs, they transformed movie rental altogether with
streaming service. The brand’s success has come from not just
embracing change, but seeing it as an opportunity for innovation.

10. Adidas
Adidas benefited from people’s increased interest in sports gear that
became athleisure wear. Rapper Kanye West, NHL Pittsburgh
Penguins star Sidney Crosby, and NFL Green Bay Packers
quarterback Aaron Rodgers helped put Adidas back on top. As
Adidas says, “Americans like winners. We needed to not just have
athletes but the best athletes.” (CAIL, 2017)
Types of business innovation
It is remarkable how many people are under the false assumption that companies are either
innovative or not. This is a very polarizing and simplistic perspective that does not take into account
the different types of innovations that companies can and do pursue.
For this post, let’s break down innovation into two dimensions: Technology and Market, which gives
us the following 4 types of innovation:

Incremental Innovation
Incremental Innovation is the most common form of innovation. It utilizes your existing technology
and increases value to the customer (features, design changes, etc.) within your existing market.
Almost all companies engage in incremental innovation in one form or another.
Examples include adding new features to existing products or services or even removing features
(value through simplification). Even small updates to user experience can add value, for example
below is an older version of Constant Contact’s email schedule page:
There is nothing majorly wrong with this page, however it is easy to see that the page title is
“Schedule”, yet there are no schedule settings anywhere to be seen. In fact, in this version, you
have to click on the yellow schedule button on the upper right-hand corner to actually pop up the
schedule settings. In addition, there is a huge empty space on the right side of the page that does
not contribute much value to the user. Below is a more current version of the same page:

This updated version replaces the “Schedule” title with the title of the email campaign. This makes it
easier for the user to see which campaign they are working on. Actual schedule settings have
replaced the awfully huge empty space on the right-hand side, which makes it possible for the big
yellow “Schedule” button to actually schedule. Also, larger sized form fields have been introduced
to allow easy clicking on those elements. All these changes, which may seem as just updates, are
actually small incremental changes focused on adding more value to an existing product. They will
prove to be incrementally innovative if customers have a better experience with the product and are
able to schedule email campaigns much easier.
Disruptive Innovation
Disruptive innovation, also known as stealth innovation, involves applying new technology or
processes to your company’s current market. It is stealthy in nature since newer tech will often be
inferior to existing market technology. This newer technology is often more expensive, has fewer
features, is harder to use, and is not as aesthetically pleasing. It is only after a few iterations that
the newer tech surpasses the old and disrupts all existing companies. By then, it might be too late
for the established companies to quickly compete with the newer technology.
There are quite a few examples of disruptive innovation, one of the more prominent being Apple’s
iPhone disruption of the mobile phone market. Prior to the iPhone, most popular phones relied on
buttons, keypads or scroll wheels for user input. The iPhone was the result of a technological
movement that was years in making, mostly iterated by Palm Treo phones and personal digital
assistants (PDAs). Frequently you will find that it is not the first mover who ends up disrupting the
existing market. In order to disrupt the mobile phone market, Apple had to cobble together an
amazing touch screen that had a simple to use interface, and provide users access to a large
assortment of built-in and third-party mobile applications.

Architectural Innovation
Architectural innovation is simply taking the lessons, skills and overall technology and applying them
within a different market. This innovation is amazing at increasing new customers as long as the
new market is receptive. Most of the time, the risk involved in architectural innovation is low due to
the reliance and reintroduction of proven technology. Though most of the time it requires tweaking
to match the requirements of the new market.
In 1966, NASA’s Ames Research Center attempted to improve the safety of aircraft cushions. They
succeeded by creating a new type of foam, which reacts to the pressure applied to it, yet magically
forms back to its original shape. Originally it was commercially marketed as medical equipment
table pads and sports equipment, before having larger success as use in mattresses. This “slow
spring back foam” technology falls under architectural innovation. It is commonly known as memory
foam.
Radical innovation
Radical innovation is what we think of mostly when considering innovation. It gives birth to new
industries (or swallows existing ones) and involves creating revolutionary technology. The airplane,
for example, was not the first mode of transportation, but it is revolutionary as it allowed
commercialized air travel to develop and prosper.
The four different types of innovation mentioned here – Incremental, Disruptive, Architectural and
Radical – help illustrate the various ways that companies can innovate. There are more ways to
innovate than these four. The important thing is to find the type(s) that suit your company and turn
those into success.
(LOPEZ, 2015)
Definition of invention
Invention is the physical creation of a new concept or idea (innoway, 2018)
P2. Explain how organization vision and leadership and culture shape the innovation
and commercialization
Explain the value and importance of innovation to organizations and how this can be
embedded within the organizational vision, leadership, teamwork and culture at
Essence Drinks

According to McKinsey, 84% of executives say that their future success is dependent on innovation.
Although innovation may sound like a buzzword for some, there are many reasons why companies put a
lot of emphasis on it.
In addition to the fact that innovation allows organizations to stay relevant in the competitive market, it
also plays an important role in economic growth. The ability to resolve critical problems depends on new
innovations and especially developing countries need it more than ever.
We’ve written quite a few posts about innovation management and this time, we’ve decided to take a
closer look at the reasons that make innovation important for an individual organization and the society
at large.

Table of contents
 What is innovation and why do we need it?

 Macro perspective: The role of innovation in our society
 The fundamental outcomes of innovation
o Economic growth
o Innovation and the future of jobs
o Increased well-being
o Reduced sickness, poverty and hunger
o Communication and educational accessibility
o Environmental sustainability
 Micro perspective: The importance of innovation for an organization
o Competitive advantage
o Maximize ROI
o Increased productivity
o Positive impact on company culture
 Conclusion
What is innovation and why do we need it?
Innovation, by definition, is the introduction of something new. Without innovation, there isn’t anything
new, and without anything new, there will be no progress. If an organization isn’t making any progress,
it simply cannot stay relevant in the competitive market.
Because organizations are often working with other individual organizations, it can sometimes be
challenging to understand the impacts of innovation on our society at large. There is, however, a lot
more to innovation than just firms looking to achieve competitive advantage.
Innovation really is the core reason for modern existence. Although innovation can have
some undesirable consequences, change is inevitable and in most cases, innovation creates positive
change.
We've decided to look at the outcomes of innovation on macro and micro level: