Innovation and Commercialization Report - Business Development Module

This report delves into the critical aspects of innovation and commercialization within a business context. It begins by differentiating innovation from invention and emphasizing the significance of innovation for organizational growth and competitive advantage. The report explores how organizational vision, leadership, and teamwork influence innovation and commercialization, highlighting their interconnectedness. It further discusses the 4 Ps of innovation and the concept of frugal innovation, along with its benefits. A significant portion of the report focuses on the commercial funnel and the application of new product development processes for commercializing innovations, including a business case study for Adidas. The report also examines tools and techniques for protecting and retaining knowledge, offering insights into safeguarding intellectual property and fostering a culture of innovation. The report concludes with a comprehensive overview of the key concepts and strategies discussed throughout, providing valuable insights for businesses aiming to thrive in a dynamic market environment.

Innovation and commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Explain innovation and its importance as compared to invention..........................................4
P2 How organization vision, leadership and teamwork influence innovation and
commercialization........................................................................................................................6
P3 Describe 4 Ps of innovation...................................................................................................8
P4- Frugal innovation ...............................................................................................................10
Benefits of frugal innovation ....................................................................................................11
PART B..........................................................................................................................................11
P5 Explain the significance of commercial funnel and application of new product development
processing for commercialization of innovation. ......................................................................11
P6 Discuss about how to build an innovation business case for “Adidas” which including
access funding. ..........................................................................................................................14
P7- Tools to protect and retain knowledge................................................................................17
Conclusion.....................................................................................................................................18
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INTRODUCTION
In such a complex business environment it is necessary for an organization to sustain in
market for long term. This is because it will allow them in their growth and development.
Besides that, it is analysed that with technological advancement there are many new product and
service developed. It has enabled in fulfilling needs of people and allowing business to grow and
expand. With this there is rise in competition among them (Wardle, Baum. and Fisher, 2019).
Also, it has led to doing various innovation by business in terms of products, process, service,
Model, concept etc. Through this they are able to survive and compete in market. Moreover,
innovation has become a source for organization to grow and develop. This is because it provide
vast opportunity to grow. When innovation is done it helps in gaining competitive advantage in
market.
However, in recent times innovation is hot topic for business. It is because with help of it new
concept and model are emerging. It has brought a change in way of doing business. Alongside it,
this is useful source for business to grow and gain competitive advantage. Innovation not only
provide new product or service but also gives new idea or way of doing business and fulfilling
needs of people. Furthermore, many businesses are highly focusing on innovation so that they
are able to compete. Apart from it, innovation is way through which rapid growth can be attained
in quick time. It helps in generating high revenue. In present times innovation has helped in
generating value of product. It is supporting in designing new process, method etc of operations.
There are many companies who are not able to sustain because they are not doing innovation. It
has led to decline in their growth. Moreover, they are not able to find out innovative ideas of
expansion.
The assignment will describe about importance of innovation and invention to organization
how they both differs from one another. Besides that, it will be explained about how vision,
culture, leadership shape along with sources of innovation. In addition, it will be discussed about
4 P's of innovation and innovation funnel. Also, pros and cons of funnel will be mentioned into
report. Alongside, concept of frugal innovation will be explained and its benefits to Adidas is
described. Furthermore, the process of commercialising innovation and new product
development will be discussed as well. In that a business case of company will be developed. At
last it will be discussed about how to protect innovation with help of various techniques with its
advantages and disadvantages.
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Adidas is a German company having its headquarter in Herzogenaurach, Germany, it was
founded in July 1924. The company is famous for its sports related products and manufacturer
shoes, clothing and other accessories. The company is largest manufacturer of sports products in
Europe and second at global level. It operates all over the world. There are 57016 employee
working in it and revenue generated by company on 2018 was 21.315 billion Euros.
P1 Explain innovation and its importance as compared to invention
Innovation can be defined as the procedure of enforcing new information and idea in
making new process for the products or services. It means that new facts and data are used to
modify something. Innovation gives organization an upper hand over their competitors; they can
simply gain advantage by creating something unique and different (Wardle, Baum. and Fisher,
2019). Innovation allows companies to gain competitive advantage by developing unique goods
to fulfil needs of customers. Also, it is necessary for organisation to cope up with new market
and technological trends. With help of it, they are able to do things in completely new way.
Customers needs and desires change every day and only through innovation any business can
achieve it. It is also necessary for businesses to meet new market trends by keeping themselves
technologically upgraded. With the help of innovation, organization can do things in new and
efficient ways
(Ganjeh, Khani,. and Tabriz, 2020).
On the other hand invention is defined as something totally new in the world that doesn’t
exist previously. Invention means discovery of a new product, process or service etc. It is
something that has never been before.
Both the words innovation and invention are different terms and it is described below:-
Basis Innovation Invention
Meaning Innovation is recognized as
carrying out of information or
concepts to produce new
product, product or service. It
means modifying something
that already exists.
Invention is explained as
something totally new that
could be any product,
serviceor some other concept
that doesn’t exist before.
Concept Innovation is a practical It is something that needs to
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thought where one needs to
apply the ideas and concepts to
the existing thing.
be understood first
theoretically. This concept has
theoretical nature.
Skills This concept requires that a
person should have distinctive,
strategic and unique skills.
Therefore, it only requires
that a person should have
strong theoretical skills
Activities The concept of innovation is
simply applied to all the parts
or areas of business to make it
different from competitors.
Invention is restricted to
Research and Development
function of the organisation.
Concerned with It is correlated through
producing something unique
and newprocess for the
existing product and services.
It is associated with bringing
something completely new
that doesn’t exist.
Refer to Innovation means adding some
value to a thing that exists.
In invention something new to
brought to the world (Wardle,
Baum. and Fisher, 2019).
Many times both the terms are misunderstood to be same but they are two different terms
and completely different meaning. Innovation is meant to be adding some value in an existing
product and on the other hand Invention meant is creating a new product altogether. Innovation
is useful in different areas of business but invention is not (Ganjeh, Khani,. and Tabriz, 2020).
Innovation is an important factor for businesses as it helps in growth and expansion in
different areas. Along with it, there are many other ways of it which is explained below:-
Building long term growth- By innovation businesses create a new platform for their long term
growth and success. It helps in building strong future by finding customer wants and desire, this
enhances company’s productivity. When an organization is working for something new, bring
change or innovation it means they are looking for long vision. Future is build when the base in
solid. Businesses can sustain for long term in the market by producing new continuously. When
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there is continuous innovation done it results in building in long term growth. This allows in
gaining competitive advantage as well.
Providing high tech and advance Tool- As Innovation means change in process or creating
something new, so it refers to the new modern tool for businesses. Existing processes are
redesigned with using new tools. This requires more effective and efficient workforce, by
providing proper training the organization can achieve their goals. In this way employees will get
something new to learn, gain knowledge. Innovation brings in new and advance tools which is
used by staff. They use those tool to work in creative way. It leads to increasing efficiency in
production and gaining skills and knowledge of employees.
High Quality Goods- It is one of the major advantages of Innovation that provides high quality
products and services. As something new or can say something has improved in the quality of
the product (Ganjeh, Khani,. and Tabriz, 2020). Redesigning the old process allows removing
deviations from system and fastening the working process. Firms Productivity is enhanced and
with it employee performance is also improved that leads to higher efficiency. Unique products
tend to attract more customers, as they are offered something that they actually desire. In this
way value is added to the product and customers are retained.
Therefore, Innovation provides organisation a platform form growth and sustainability. It
helps the businesses in getting an upper hand and gain competitive advantage.
P2 How organization vision, leadership and teamwork influence innovation and
commercialization
Innovation can be highly influences from various aspects that are culture, teamwork vision etc.
Here, they are interlinked with each other and any change on one highly effect on another. Thus
it is necessary for company to maintain all of them so that innovation is implemented. It can be
useful in giving shape to innovation as well. Thus, they are explained as below
Vision- this is main factor which shape innovation. A vision is built on long term plan. It reflect
what an organization want to become (Ganjeh, Khani,. and Tabriz, 2020). When vision support
innovation then it is easy to implement it. Besides that, it provide a framework of how value will
be generated through innovation in organization. Alongside, vision helps in setting of goals and
info on basis of which innovation is based. Thus, in this way vision shape innovation.
Culture- the culture reflect organization value and ethics. These provide a direction for company
to implement innovation. When there is positive culture within company it automatically support
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ethics and value. The employee understand that innovation is valued and an environment of
change is developed. This forces in implementing innovation in effective way. But if culture
does not support in innovation then it is difficult to deal with it. So, when culture shapes it brings
in change in values and ethics.
Leadership- there is a significant role of leadership in shaping innovation. This is because with
help of leadership change is implemented. However, leadership style depends on culture. An
effective leadership style will be useful in providing direction and leading to execute innovation.
The employees will be able to accept change and work with it. Leader are front line people on
which implementation depends. They provide long term vision for company to focus on. They
find out new ways of dealing with innovation.
Team work- Likewise, teamwork also supports in shaping innovation. when working in team
each member is able to contribute towards performing their roles. However, in innovation goals
are allocated to team. so, having high effective and qualified teams support in implementing
innovation. It also requires to have diversified people on team so that they learn and support each
other in working with change and carry out the things effectively and efficiently. Teamwork
plays vital role in shaping innovation and building positive culture. In firm, each employees
assigned new task and roles.
So, it is evaluated that culture, leadership, teamwork are related to one another and highly useful
in shaping innovation. They all needs to be integrated so that innovation is implemented in
effective way. Culture is shaped from team work and leadership and vision reflect on values of
organisation.
Sources of information
Innovation is consider as a far deeper process that changes as well as improves the long lasting
as well as full of impact. Thus Innovation has also becomes buzzworld within the 21 century.
The unexpected
Innovations are takes place unexpectedly as it can also happen through chance. For example the
dynamite as there are very long list of the innovations that are unexpected innovation where
humans also stumbled, several other exams also focused various several innovations within
history.
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Incongruities- when there is a requirement is incongruent accompanied the supply ,innovation
takes place. Within the innovations the populations of the cars grew as there was shortage of the
parking area. Small car is also fit within the small places.
Market structure- A present market structure can also increase the chances for innovation.
Google was born something like that. Google also shaped the market of the search engine.
Necessity- It is also called as mother innovation but at the same time it is also called as the
mother of innovation. Microscope also born out of the requirement to delve deeper within the
world of the microbial. Requirements always set us thinking with innovation. As Innovation is
also based upon the ideas that are bright ideas. As Humans are always thinks new creative things
that can be better accomplished the existing requirements. Within the process , humans also
filling the needs within new ways as well as devising new mechanism as well as products.
Demographics
Lifestyle can also be a basis of the innovation as nowadays everyone has a lifestyle such as w
feel the requirement to smoke as smoking is dangerous as nowadays e-cigarettes are in trends
to satisfy the requirements of the people. The requirements of the people are also small needs as
well as their requirements.
New knowledge- It is also called as a innovation’s source .whether it is biotechnology,
nanotechnology as well as even also the artificial intelligence and also new knowledge within
any areas that falls under the source of innovation.
P3 Describe 4 Ps of innovation
Innovation of the 4Ps termed as product,position,process as well as paradigm. Basically
they are used to assists as well as understands building the strategy called innovation strategy
(Davies, Roderick. and Huxtable-Thomas, 2019). These types of tools are also able to discover
the several new ideas as well as carry out several types of
innovation. Thus it is used to build an ability to manage as well as organize innovation that leads
to a greater achievement.
Given below the four types of innovations
Product innovation
within simple terms, product innovation is redesigning a product when the product is existed
already within market. Such as ballpoint pen was an innovation that has changed over the years.
Also by some research innovation idea can be quickly transform within the creative as well as
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smart product by the experience. In addition to this the new product bring overal change within
the roles as well as process
Process innovation- It focuses on bringing change within the techniques or procedure within
the operation. Thus it also done so that the improvement can bringing within the enterprise's
operational efficiency. Here the loopholes must be recognized as well as changes that are made
within the innovation form. Firm requires to utilise the new tools as well as machines to bring
several changes within the process of change. Within this level it focuses on the utilization of
tools as well as techniques of the modern advancement so that the changes undergone with
services as well as commodities effectively. It is focuses basically on the process or in other
words how the product is manufactured or delivered. Examples such as Flipkart ,Amazon uses a
specified process within which they can do their business as Firms like Amazon makes the
profits by charging the commission on the shipping prizes of the products to the consumers ,also
Createspace that falls under the part of the Amazon enables filmmakers,writers ,musicians and
publishers to work on the websites. Product is only produce by them if there is huge demand and
therefore manufactures its as the firms comes within.
Position innovation- The goal if this innovation is to find out the new market to attract the more
number of people. Thus to bring expansion within business into various marketplace is the main
object. For this Firms require to conduct the market researches that aids to recognises the needs
as well as wants of the several services. Adidas require to enlarge its activities within new
market to increase its brand image. Therefore, to attract the large number of the audiences social
is one of the best as well as effective tool and also it aware people about the new services as
well as products. Firms must be offer several cashback system, discounts ,coupons and many
more top increase the share of the market. Thus by analysing the requirements of the consumers,
the firm makes the changes more effectively. It focuses within the specified context there is a
repositioning of the product that is established. Such as Levis redeposition jeans into the more
fashionable item.
Paradigm innovation- Innovation is always change as within both the long term as well as
short term objectives that provides an useful insights that how the process regarding the
innovation requires to be developed and at the same time inclusive the full details regarding to
make modification within the innovation's business model. It also helps bring changes within the
firm's operational methods as well as techniques.
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Innovation funnel- It is known as the framework where its aids to generate the ideas. It is also
known as the idea where ideas can be implemented successfully. Thus, there are various steps
that can be mentioned below.
Mouth of funnel – It is the first and foremost step where there is a collection of the ideas. It is
also effective and at the same time provides the clear view about what type of innovation needed.
Adidas can also gather information about the several ingredients that can be more effective for
the consumer's health.
Narrow funnel- Here the innovation's process must be watch accompanied by the set of the goals.
Adidas can develop new products as per the desired objectives.
Narrowed part- The innovation process is required to executed as per the plans as well as ideas
therefore,Testing is required to be done as well as new products must be launched within
market. It is also very effective so it can brings the ideas that will aids to bring the development
within goods as well as services through firm.
P4- Frugal innovation
Frugal innovation is focuses to bring reduction in prices as well as complexes of the
products and also its activities regarding manufacturing. It also helps to eliminate non crucial
features from lasting products for example phone or car sells within the developing nations. It is
also known as the process that aids to discovers the new business models,reconfigures value
chains and redesign products. Adidas is also sports enterprise as well as process the innovation
called frugal innovation as the company can reduces its costs. It is also associated with the
eliminating the characteristic that are not required in the products of the firm that helps to
increase the long lastingness of the products. Thus, the given firm deals with the sportswear and
for them it is crucial to remain competitive in marketplace. To undertakes such kinds of actions
effectively ,the firms requires to adopt several strategies to gain the tremulous over other firms.
Such type of methods put more focuses to create good qualities of the products as well as
increase the super values to the consumers in terms of low level cost of the products. Thus,
successful innovation not only focuses to bring decrease in the cost but at the same time also
performs activities that can be available through firms at large scale. Thus, frugal innovation can
be done within firms and also defined with such examples.
The products of the Adidas firm can avoid the use of the plastic waste and also at the
same time use the recycled plastic not only within their products but also their transportation as
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well . One of the best example is the utilization of the poly bags (Davies, Roderick. and
Huxtable-Thomas, 2019). Adidas is very highly effective while using the packaging of the
plastic so that they can protect their products at the time of the shipping ,storage as well as
handling and also widely used all over the fashion industry to assure a safe arrival of the
garments to the costumers. From this mind Adidas is develop as well as implement a solution for
a regular use of the polygons. As first step of the Adidas they already use the completely
recycled poly bags after 2021 onwards.
Another example is the Nike , sometimes nobody does better than Nike. Innovations Such as
Lunarlite foam cushioning, Nike Fly wire support system, Hyperdunk basketball shoe, and the
new Trainer 1 shoe and new generations of Free footwear, continuously set the standard of the
industry.
Benefits of frugal innovation
Through the help of the frugal innovation limitations can turns into resources,whether
material ,institutional and financial into the benefit through using them within new ways. It can
be also done by reducing the product's complexity or the production process or also through
removing the features that are non-essential (Hou, Hong, Chen, Shi,. 2019). For the established
firms like Adidas ,Frugal innovations enables a firm with a quality product to compete
effectively accompanied a good quality good to compete effectively with cheaper manufactures
as it makes the better products and also more affordable. While with the rising markets ,frugal
innovation has is own place and allows a firm accompanied by quality products to effectively
compete with other cheap manufacturers . This innovation is also utilized purposefully so that it
can target the bottom as well as provides the benefits for the buyers (Davies, Roderick. and
Huxtable-Thomas, 2019).
PART B
P5 Explain the significance of commercial funnel and application of new product development
processing for commercialization of innovation.
Commercial Innovation funnel is mainly describing the process to develop the particular item.
As its name of indicating the funnel and entire innovation process in proper manner. Sometimes,
it is also creating the marketing requirement of item and service. Funnel of innovation act as a
refinery system in which product innovation and also launching. The commercial funnel is
mainly involves three different steps in its journey to modify product as well as services.
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“Adidas” company including the wide range of funnel that help for collecting or gathering
information (Jin, Guo and Zhang, 2019). In order to create the opportunities in term of product
innovation. In another step, Adidas has been segmented to collect innovation idea which means
for screening the information. The major step is that when “Adidas” Company must deliver the
enterprise service in properly, meet the significant goal and objective of organization.
The importance of commercial funnel is that when identifying sales rates. Sometimes, it is
also including the process by which Adidas generate more leads, engage with more customers.
Furthermore, there are certain phases and factors that should be considered by Adidas to
exaggerate the existing list of consumers (Harmsen, 2019). It is very important for maintaining
and controlling the entire growth of organization.
Attract: in this phase, it is mainly explaining and maintaining the accurate source to attract
new clients as well as investors. Sometimes, “Adidas” uses innovative idea which always
attracting the more customer under specific process. In Adidas, manger can be performing the
different process to investigate the content and review them that are available through online
platform. In order to pay attention for collecting both positive as well as negative feedbacks.
“Adidas” offering various product and service in global marketplace (Miller, Pandit and Connell,
2019). For instance, the success story of adidas that depend on the website and other social
media networks. In order to express their unique strategy that helps to attention of customers.
Converts: this process is mainly referred as making unknown visitor to find out the
existing customers. Sometimes, Adidas offer the better item so that many customer attracts
towards organization. In this way, Adidas add more attractive discount, offers for giving best
options. Furthermore, it is useful for gaining more customer while launching and introducing the
new clothing item range in marketplace.
Close: it is another process which help for identifying the different activities performed by
“Adidas”. Therefore, it should be measured the preferences, demand of customer. Sometimes, it
may include desirable goal to continue the relationship with organization. In another way, it also
participating in term of growth where easily closing lead to fulfill the requirement of client.
Delight: In this step, it can be satisfied the level of existing client that are broadcasted.
“Adidas” focus on the seamless service which can easily hold the customer satisfaction level. In
this way, Adidas should also maintain the process to upgrade which offering best quality of
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