Report on Business Innovation and Commercialization Strategies

This report delves into the critical aspects of business innovation and commercialization, emphasizing their importance for organizational success in competitive markets. It examines innovation's role in product diversification, profit increase, and market share expansion, contrasting it with invention. The report further analyzes how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes, using 'The Healthy Juice' as a case study. It explains the 4Ps of innovation (Product, Process, Position, Paradigm) and the Innovation Funnel, highlighting their use in shaping innovative ideas. Additionally, the report explores frugal innovation and its application in resource-constrained environments. Finally, it discusses the commercial funnel, new product development (NPD) processes, and the importance of protecting intellectual property, providing a comprehensive overview of innovation and commercialization strategies.

BUSINESS INNOVATION AND COMMERCIALISATION
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Table of Contents
Introduction:.......................................................................................................................3
LO1:...................................................................................................................................4
P1: Explain Innovation and determine its importance to organizations in comparison
with invention ....................................................................................................................4
P2: How organizational vision, leadership, culture and teamwork can shape innovation
and commercialization.......................................................................................................6
LO2....................................................................................................................................8
P3: Explain the 4Ps of innovation and explain the use of the Innovation Funnel to
examine and shape innovative ideas................................................................................8
P4: Explain developments in frugal innovation and provide examples of how it is used in
an organizational context.................................................................................................11
LO3..................................................................................................................................12
P5: Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation..............................12
P6: Build an innovation business case for an organisation, including ways to access
funding.............................................................................................................................14
LO4..................................................................................................................................16
P7: Evaluate the different tools that Mr Green can use to develop, retain and protect
knowledge and intellectual property................................................................................16
Conclusion.......................................................................................................................18
Reference list:..................................................................................................................19
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Introduction:
In today’s world, Innovation has become the unique factor for a company to establish
itself in the tough competition. Innovation helps the products and services of the
company to occupy a prominent place in the corporate world. At the same time in the
flow of this unbending competition, this has turned to be a necessity for the companies
to blend the innovation with the market commercialization, which is nothing, but to
present the product such a way that meets the present trend of demand of the mass.
This particular project shades light on ‘The Healthy Juice’, a UK based company that
was founded in the year of 2016. This project will focus and explain the importance of
Innovation and Commercialization in the business market full of rigid competition.
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LO1:
P1: Explain Innovation and determine its importance to organizations in
comparison with invention .
Innovation is the fruit of creative ideas in any field. Particularly in the ground of business
Innovation is triggered by the process of brain storming among the heads within the
organization (Burns, 2016). This is the tool that converts ideas into the overall growth of
the company and the well-being of the society. With these developing factors of a
business, new products and processes do come in the way and gradually developed
and commercialized in the marketplace.
Importance of Innovation in Business:
By implementing new ideas a business proceeds towards wider range of success (De
Bono, 2015). Innovation leaves the scope to grow for the company in different aspects
with:
 Diversification of Products
 Increase in Profit
 Differentiation between products
 Meeting the expectations of the customers
 Expanding the market share by providing diverse products with fine difference
from each other
 New business opportunities
 Personalized Services
Mr. Green had successfully launched the product ‘Healthy milk shake’ for the first two
years, but unfortunately after that, the sales figure took an about turn and “The Healthy
Juice” has been facing some serious turbulence in the path of its growth. Here comes
the need of blending the two components, “Innovation” and “Invention”. Overcoming the
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issue will be possible if new ideas are implemented to improve the base product
keeping intact the newly launched product (Healthy Milk Shake).
Invention and the comparison of the same with Innovation:
Invention, a term that is quite similar to the term Innovation, actually has a fine line of
difference (Denscombe, 2014). Invention is all about creating or designing a new
product that satisfies the customer’s demand and Innovation is something that brings in
the diversity to improve the product. In short, ‘Invention’ turns the ‘Innovation’ into
reality.
Elements Innovation Invention
Implication Innovation is all about
implying new ideas to
bring in new products
or processes in the
company.
Invention is about giving
shape to the Innovation
through the creation of
the particular project.
Conception Improving the existing
product
Creation of a fresh product
altogether
Required Skills Knowledge about the
market demand and
creativity in thinking
Scientific and technical
expertise
Concern Area Wide range of products
and processes for
overall advancement
A particular product to
work on at a time
Responsible Departments Entire organization starting
from associates to
management levels is
welcome to input ideas
Only Research and
Development
department is involved.
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When it comes to Mr Green’s company, the marketer is not really interested to shift his
concern totally to the newly launched product from the first one he stepped into the
market with. This can be done only by using the concept of Innovation to implement
some new changes to meet the consumer’s expectations. This is clearly made out of
the situation that the Invention is not actually required here.
With the study above this is to conclude that Innovation and Invention, both are equally
important but according to the situations that a company faces time to time (Cooper and
Edgett, 2012).
P2: How organizational vision, leadership, culture and teamwork can shape
innovation and commercialization
Bhatti (2012) opined that the culture, vision and leadership always have a very positive
impact towards setting up the concept of Innovation. Based on this concept, the
organization must know how to commercialize the products in the market that is full of
competitors. For sustaining the growth of the company the above three components are
very important.
In case of ‘Healthy Juice’ the organizational culture, leadership, structure and the vision
will definitely platform noteworthy effects and will build up the concept of Innovation
within the company. In case of ‘Healthy Juice’, the way of leadership needs to be
modified in order to meet the demand and expectation of the leaders as well as the
vision of the company is another concern area to be focused if required. Even this can
be a subject to change according to the situation. Having a clear idea about the demand
of the consumers is very much essential to bring in a wide range of products to beat the
competitors by meeting the customer expectation.
Leadership plays the equally crucial role to incorporate the innovation among the
workforce of the company (Ashcraft and Cohooni, 2017). For example, in ‘Healthy Juice’
the managers and leaders must have the capability to inculcate creative ideas within
and that only enables them to inspire other employees to implement ideas to produce
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new products to attract the target customers. They must do so in order to direct,
encourage, persuade creativity among the workers, and bring in the required change in
the managerial procedures. This shall be done by utilizing all the required resources
efficiently in order to bring in innovation in the business. The management has one
more thing to be updated constantly with is transformational leadership style and this
can be executed flawlessly once all the resources are utilized to its fullest. For ‘Healthy
Juice’ the management style should be such that the significant innovation and
commercialization become a constant part for the organization.
Generally, the process of innovation involves three stages.
 Generation
 Evaluation
 Implementation
A continuous support and inspiration encourage employees to undergo a brainstorming
and help them to come up with new ideas. In case of ‘Healthy Juice’ there will be no
exception. The management should be a permanent support system. The concept will
definitely uphold the commercialization through proper implementation and practice. For
any organization team work is the main driving factor in order to succeed. With
implementation of these stages the workforce will be self motivated to apply their
creativity while fabricating the new products (Basu et al., 2015).
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LO2
P3: Explain the 4Ps of innovation and explain the use of the Innovation Funnel to
examine and shape innovative ideas.
The 4Ps of Innovation
Similarly as the 4ps of Marketing, there are the 4Ps in Innovation, as known as
Innovation Mix, is a model that has been developed by John Bessant and Joe Tidd.
The 4Ps are as follows:
 Product
 Process
 Position
 Paradigm
Product:
This covers the area where the innovator and his workforce emerge with new concepts
to imply in order to improve the existing product or producing a new one. Different ways
to draw customers towards the product making it more appealing are programmed and
enclosed (Katzenbach and Smith, 2015).
Process: Under this stage all the needed changes and the innovators employ
refinements. They carry out all the steps that are necessary to enrich the products and
services (Yu et al., 2016).
Position: This portion is all about reviewing till now whatever is done by the
organization. The innovators have to look at their own products, services and even the
company from a third person’s perspective to understand how the audience views their
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organization and accordingly making compulsory adaptations and altercations in order
to reach the expectation level of the target customers (Beck, 2018.).
Paradigm: This section is all about a huge change if needed. Under this, innovators
may alter a big part or even the entire procedure the company caters the services in. In
order to eliminate the dull tag associated with a firm, the innovators may pull in a major
change in the operations or other sectors of the business. Sometimes the revolutionary
change in the presentation of the company helps itself to recreate the image and bring a
noticeable change in the viewer’s perception.
Use of the Innovation Funnel:
The term ‘Innovation Funnel’ is used to describe a definite type of self-assessment for
the companies. Through this ‘Innovation Funnel’ the ideas get shape in reality and
innovations are required to reach the expectation level of the customers.
Figure: Innovation Funnel
(Source: Katzenbach and Smith, 2015)
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This encompasses three divisions (Guttmann, 2016). First one starts with the wide
mouth of the funnel that accepts all kinds of ideas and creative thinking that may
develop the products. In case of “Healthy Juice” the same can execute the same in
order to develop their range of products. By this step a wide variety of ideas are
unbolted in front of the company. The study and progress team of “Healthy Juice” can
explore and research about the a variety of merchandise and the formerly brought in
innovations obtainable in the market, consider the competition, and most notably, find
out the flaws and limitations of its own product varieties.
Second stage is represented through the starting of the narrow ended part. In this next
step the relatable and contextual ideas are sorted and all these filtered concepts are
subjects to be screened and experimented in the first step. If they go as per the
company’s goal, the products and services undergo compulsory changes based on the
approved ideas.
The third and final stage is the one that is symbolized by the end portion of the narrow
ended part. Here the finally tested ideas are extensively released for the consumers.
This is the phase where the final results of innovation are assessed (Christopher, 2016).
When it comes to ‘Healthy Juice’, the organization should give a look at the
shortcomings of their own products and consider implying the Innovation Funnel when
they have decided to undertake the opportunity of innovation. In the next stage it has to
shape out the filtered ideas that go hand in hand with the company objectives as well as
exclude the inappropriate ones. Finally they should present the new products filled with
innovative changes to the target customers.
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P4: Explain developments in frugal innovation and provide examples of how it is
used in an organizational context.
Frugal Innovation:
There may be situations when a company faces insufficiency of resources and this is a
big hindrance for any innovations to take place. Here comes the effectiveness of Frugal
Innovations (Trifilova et al., 2016). When the innovator and the creator emerge with the
concerns of lack of resources, they somehow cope up with the situation with the help of
Frugal Innovation. For example, countries like Africa are suffering lack of resources as
lack of electric supply till date. There are people who can arrange the charging of
electronic devices using their bicycle. In short, they are capable to produce electrical
energy from mechanical energy (Marx and HSU 2015).
In Mr Green’s company the management can use Frugal Innovation to imply various
factors such as bringing solar energy in use to operate the machineries. They can cut
the cost of packaging by using fibre or any other substitute materials in place of glass
materials. Research says that whenever products come in market with different
packaging, consumers start noticing it once again with a new perspective and this in a
whole helps the company to uplift its profit and sustain the market hold.
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LO3
P5: Explain the importance of the commercial funnel and the application of new
product development (NPD) processing for commercialisation of innovation.
A literal meaning of funnel is a tube, which is wide at the one side and narrow on the
other side. A commercial funnel is used to explain different steps, which are followed in
the various components of a business such as sales, production etc. The main objective
of product innovation is to create new products, which are relevant to the market, to
address the need of the target consumers and to stay ahead of the competitors ( Lewis
et al., 2017). There are three broad stages of commercial funnel in the product
innovation process. Here, the stages will be discussed in the context of ‘Healthy Drinks’,
Following are the stages of innovation funnel:
 At the first stage concentrates on the Research for the products: wide mouth of
the funnel
At this stage, the company focuses to enhance its knowledge and information
regarding the relevant products. The motive of this stage is to collect as much as
ideas possible from the market as to the need and demand of the product
(Kotlarsky et al., 2016). Depending on the ideas, company can decide how many
products they want to develop for the near future.
Before, commencing the research, the concerned team need to chalk-out a
proper plan as to how, when and what information they need to complete the
task. In order to collect the information, the team can conduct surveys in the
market such as colleges, universities, shopping centers etc and collect
information from competitors. Brain storming among the peers can also provide
valuable insights (Appio et al., 2014).
In this stage, the company needs to move as fast as possible and have clear
understanding of the main objective of the activity. The team also needs to have
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