Report on Innovation and Commercialisation in Business Context

This report delves into the concepts of innovation and commercialization, emphasizing their significance for organizational growth and competitiveness. It explores the differences between innovation and invention, and analyzes how organizational vision, culture, leadership, and teamwork shape innovation processes. The report examines the 4 Ps of innovation, the use of the innovation funnel, and the application of frugal innovation, using Bigbelly as a case study. It further explains the importance of the commercial funnel and new product development processes, including building an innovation business case and securing funding. Finally, the report evaluates tools used to develop, retain, and protect knowledge and intellectual property, providing a comprehensive overview of innovation and commercialization strategies within a business context.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 ................................................................................................................................................1
P1 Describe innovation and its importance to organisation in comparison with invention .......1
P2 Explain organisation vision, culture, leadership and teamwork can shape the innovation
and commercialisation................................................................................................................3
LO2 .................................................................................................................................................4
P3 4 Ps of innovation and use of innovation funnel....................................................................4
P4 Developments in frugal innovation with an example in context of the organisation............6
LO3 .................................................................................................................................................7
P5 Explain importance of commercial funnel and application of new product development
processing ...................................................................................................................................7
P6 Build an innovation business case including ways of access funding in organisation
context.........................................................................................................................................8
LO4 ...............................................................................................................................................12
P7 Evaluate different tools that is used to develop, retain and protect knowledge and
intellectual property..................................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Innovation refers to a creative and fragmented thoughts and imagination in a procedure
form. It involves modification in existing products to raise the profits and growth of the
organisation. It also focus on the customers satisfaction after analysing the current and future
trends. Here, a commercialisation refers to an introducing and launching a new product in the
market place that attract wide range of people and in this it covers the steps relating to producing
to distribution process of a product offerings in the current and present market place. This report
is based on Bigbelly that is incorporated in 2003 with the aim of reducing the fossil fuel
consumption. They provide a cloud- connected, web-based platform that delivers the actionable
insights into the waste operation. To make more advanced city company thinks to innovate their
bins. This report includes innovation, invention and importance of innovation, difference
between innovation and invention and its types of innovation. Further this report analyse the
process that is required to commercialise the innovation and various range of methods for
protecting the ideas with its pros and cons of that rights in the innovation of a product in the
organisation (Datta, Mukherjee and Jessup, 2015).
LO1
P1 Describe innovation and its importance to organisation in comparison with invention
Innovation
It refers to the deliberate application of facts, imagination and initiative in deriving
different values from resources that included the process in which unique ideas are generated and
converted into useful products. It is the process of inventing, implementing of new goods with
the aim of improving efficiency and effectiveness for competitive advantages. Bigbelly is
considered as a innovative organisation that offers a smart dustbin to the peoples. It is famous for
innovating that manufactures creative dustbin for hygienic society (Innovation.2020).
Invention
It refers to a process and device that has been innovative and creative in making the
product and services. It refers to a process of innovation done in existing product that is not
done by any other company in the market. For example- in context of Bigbelly, making a new
type of dustbin is included in invention (invention . 2020).
Importance of innovation
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Innovation is important for every organisation who grow their business, profit and
sustainability in the market place. There are some importance of innovation that are as follows. Beat rival firms- It is an important benefit for a company by doing new innovation. It
becomes very easy to beat the competitors in the markets by innovating new products
and services according to the customer needs and wants and the society welfare. Using
innovation company can figure out the right marketing techniques that will grow the
business. For example- Bigbelly is one of the best innovative company according to the
society welfare that help in beating the rival firms in the market (Bashmakov, Popov
and et. al., 2015).
 Maintain customer relationship- It is an essential for the company to maintain the
relation with customer. Innovation develops and modify the products in a creative way in
the present operation. It is important because every customers always determine new
functions in shopping mall that helps in increasing the standard of company. For
example- Bigbelly is the company who always develop and maintain the healthy relation
with their customers, clients that helps in better the relationship with them and earns
more profits.
Differentiate between invention and innovation
Basis Invention Innovation
Concepts It defines the creation of goods
and introduction of this
product offerings or process
for the first time. Invention
means create something new
(Ke and et. al., 2016).
It refers to the process of
improve or make some
contribution to an existing
products and services
according to the needs and
wants. Innovation means
creates something that sells in
the market.
Example Product designs, working
prototypes. Bigbelly invent a
solid working business model
that is based on the clean the
Bigbelly successful process
innovation like reduce fossil
fuels, cloud-computing that
notify the nearby station about
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city. the bin.
Activities It is the activity that is perform
by research and development
department.
It is an activity that is
performed at all level and all
over the organisation.
P2 Explain organisation vision, culture, leadership and teamwork can shape the innovation and
commercialisation
Innovation and invention both are important term for the success and growth of the
company. It also helps in earning more profits and beat the competitors in the current market
place by using creative ideas, product and process. Bigbelly uses different factors that can shape
the innovation and commercialisation that has been discussed below (Hrdy, 2015).
Commercialisation refers to a process of bringing and launching new product offering or
services in the market. It includes various factors like distribution, marketing, producing,
customer relations and sales that helps in achieving the success of new product or service
(WhyCommercialize?.2020).
Vision
The vision of Bigbelly is to appoint a highly skilled professional team who are passionate
about their work and committed to the success of the people who live in the society and
transform the way of living in the cities, organisation, campuses by using advanced technology
that is drive the advantage of the economy and the communities. This vision promote the
company to make innovation in their bin to make the city clean, hygienic and beautiful (Mollick
and Robb, 2016).
Culture
Internal environment factor affects by the productivity, efficiency and profits of a
business. A manager of a company is responsible to create a healthy and friendly environment so
it eliminates the conflicts between the employees at the work place. In this Bigbelly, adopts the
flexible and diverse culture in this employees from diverse regions, education, skills and various
technological and scientific experience all this produce an productive outcomes that helps in new
ideas for commercialisation. Hydrogenated skill of technical department leads to more creation
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and launching of differentiation in product offering within the organisation. Culture of a
company related to leaders who positively or negatively implement the firm.
Leadership
It defines the process of both a research area and practical skills that encouraging the
ability of an individual and organisation to lead other person, teams and the whole organisation.
It main aim to develops a sound, make a decisions on difficult situations, creating and
destructing the vision, maintain a healthy culture that helps in effectively and efficiently working
of an employees and earns a high profit and growth. In Bigbelly company, leadership affect the
productivity and proficiency in the market. In this leader of a firm helps in encouraging and
motivating the employees and their followers by creating and innovate new ideas and thoughts
and influence them to work with high potential in completing the task without creating the
conflicts in the organisation that helps in earning revenues and longer sustainability of a industry
in the market place (Libaers, Hicks and Porter, 2016).
Teamwork
It refers to that work that is done in collaboration of different people or group to achieve
a common goal or task in a most appropriate and efficient manner. It is a group of interdependent
individuals who work for a specific task and project to achieve a best outcomes. Therefore, when
an employees work in a team it will create a harmonious and healthy environment that resolve
and reduce conflicts and work will be done with more dedication to achieve the targets on time
within the organisation. Every individual have their own perception and thinking and this will
bring innovative and unique ideas for developing and modifying the bins in Bigbelly and
working in a team will encourage employees that helps in generating more revenue and growth
of a company(Paradkar, Knight and Hansen, 2015).
LO2
P3 4 Ps of innovation and use of innovation funnel
Innovation mix includes 4Ps that help the company in earning more profits and growth
while reducing the competition in the market. It includes person, press, process and product. In
this Bigebelly use 4 Ps of innovation to increase or expand their profits and revenue as well as
brand image in the market.
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 Person – This is concerned with an individual and a person who is an entrepreneur or an
employee. In this a person use their skills, creative abilities and encouragement to create
the product. In this Bigbelly appoint new talent in the company who innovate and modify
a bins with their skills and motivation that helps in develops a new products for a
company and clean the city (Marx and Hsu, 2015). Process- It refers to a plan of action that ends with completion of project. It applies to
perception, learning, communicating, promoting, selling, operations and thinking. In this
manager of a company develops a plan to improve the distribution and production
function of a product. In Bigbelly, manager use this strategies for launching and
manufacturing a smart dustbin in a market place. It also helps in working of employees
by proper process and planning they work efficiently and effectively. Product - It defines the modification and innovation in a product offering. This step
includes packaging, designing, ways of promotion, distribution etc. In Bigbelly it means
to modify and innovate the design and technology in making a bin that clean the city and
provide a hygienic environment to the society. In this they innovate the bin “ Big safe
bins” which is actually bomb-proof and blink a blue light by chilling the garbage to
eliminate smells and prevent bacterial growth. While recycle bins feature it also show and
display local weather, news and status information.
 Press- It refers to a process that represents an environment and climate in which an
individual lives and operates their function. Bigbelly innovate and modify bin “ big safe
bins” in this they represent a clean and hygienic environment and provides a better
climate for a society (Rubera, Chandrasekaran and Ordanini, 2016).
Innovation funnel
It refers to a mechanism that enables an idea from concept to reality by converging to a
specific product that fulfils the demand of a market in an economical way. It comprises of three
stages which are being described below. Investigation – It refers to an initial stage where Bigbelly collects data that is required to
make modify and improve the bins according to the society demand. Market Investigation - It is the second step where segments is divided into different
segments of markets under this Bigbelly can sort and create plans so that company can
modify and improves their products(Fernald, Pennings and Claassen, 2015).
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 Delivering products – It is the last step where the manager of Bigbelly take some
decisions regarding delivering of goods. With the help of segmenting the market they
produce and delivers a goods that will lead to satisfy the customers. In this manager can
use promotional tools to advertised their offering in wide area.
P4 Developments in frugal innovation with an example in context of the organisation
Frugal innovation
It refers to an effective method which is very useful for every company to eliminating
complexities and cost of manufacturing. It is essential to produce a good at a very low cost that
can boost profit margins that support the employees to improve productivity and in a efficient
manner. In this manager of a company removes the threats and encouraging and finding
opportunities and strength to make more revenue and growth in the market place. It also helps in
attracting new customers and retain old ones for a longer time. In context of Bigbelly, they are
required to use frugal innovation funnel to remove the problems and eliminate the extra cost that
was incurred in making the product. It also helps in increasing quality with customer satisfaction.
In this Bigbelly thinks to innovate their bin by using recycling and minus technique “big safe
bins”. In this bins they innovate recycle bins feature that is dedicated slots for newspaper waste,
cans and they built so well like a bomb-proof. In this they install a LED screen which shows a
local weather, status and news related to local area. At the same time these bins are chilling the
garbage to eliminate smells and prevent from bacteria by displaying a blue light and their
temperature are fully adjustable (Ismail, Nor and Sidek, 2015).
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 Finds opportunities in adversity- It is the first step in frugal innovation where a company
can finds some opportunities for the betterment and earning more revenue in the
organisation. In context of Bigbelly, manager finds opportunities in the market for
increasing the revenue at the same time beat the competitors by innovating and
modifying their bins by using recycling bins and bacteria removing technique as per the
society demand. Use less perform more- It is the next step in frugal innovation where Bigbelly thinks very
flexible and according to the welfare of the community. In this they perform their
functions according to the society and environment needs (Van Norman and Eisenkot,
2017). Think and act flexible- This step shows the flexible nature of an employees and a
manager who are an essential part of every organisation in increasing the proficiency. In
this manager of Bigbelly understand the needs and wants of society people and then make
a products. Use clear and simple methods – In this manager of Bigbelly use those technique and
methods in their bins that are easily understood by the employees and clients. Includes margins for change – In this method manager leave some margin like if there is
a need of change in the launching product as per the expectation of the society they wikll
do that.
 Follow your heart – In this step Bigbelly taking the feedback of their users that they will
satisfy or not and in future company can do more efforts in making the products as per
the demand of the user.
LO3
P5 Explain importance of commercial funnel and application of new product development
processing
Commercialisation funnel
It refers to a cycle of introducing and launching a new product or manufacturing process
into the market. An actual launch of a product offering is the final and last stage of new product
development and the one where the most monetary value have spent on promoting and selling
the innovative products. Bigbelly company, attracts and encourage many people to use their bins
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in public place and after that give feedback on the official website of a firm. It is very useful for
the company to know the reviews of a people. In this they use new product development process
that can be explained below (Flammini and et. al., 2017).
New product development process
It defines the process of bringing and introducing the original product, process idea to
the market. It is an essential for customer to attract more users to earn a large amount of profits
and revenues. It includes various steps that are described below(Ahmadi and O'Cass, 2016). Idea generation – It is the first step of new product development process in this manager
of Bigbelly identify and analyse the new ideas regarding the products. In this company
focus on the customers, journals, employees and suppliers. It is very crucial stage because
it is the base for further steps in this process. Screening – In this step company go for a screening process that have generated in above
step. In this manager of Bigbelly take suggestions from customers, other business and
their employees that is essential for reducing the cost in making the products. In this
external factors also affects the company market like legislation, rival firms etc. Testing the concept- It is the third process in new product development process where
Bigbelly managers analyse and examine the SWOT to identify the internal and external
factors exist in the market. Business analytics – In this step Bigbelly analyse and identify the whole market and
capture the opportunities that is beneficial for the growth of the company. In this process
by using innovative products manager analyse the whole market and their competitors. Marketability test- In this step Bigbelly provides a test panel by using this they collect
the valuable information from the market in which its exists for their innovative “big safe
bins”. Product development- This process entails the design and production process of the
product. It starts with the manufacture of prototype that helps in market testing. In this
step manager of Bigbelly decide whether to launch their product in front of large
audience or not (Maritz and Donovan, 2015).
 Commercialisation- This steps shows the favourable conditions of the products in the
large -scale production and commercialisation. Here the manager of Bigbelly use
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different promotional tools that helps in attracting more people towards an innovative
products.
P6 Build an innovation business case including ways of access funding in organisation context
Steps Description
Executive summary Bigbelly is one of the best bin manufacturing
company which produces solar powered,
rubbish-compacting bin. It is use in public
place such as parks, beaches, universities, retail
properties, grocery industry and food services
operations. Its main aim to provide a clean
environment to the society. For this they thinks
to modify their dustbin by using some
innovative ideas and techniques.
objective Bigbelly main objective is to reduce the
consumption of fossil fuel that affect the
people who live in the society.
Mission Bigbelly mission is to make a smart city by
using advanced bins like leveraging the power
of cloud computing to improve the public
space and the quality of life of the people.
Source of innovation The major source of innovation is to beat the
competitors and earns more revenue by
satisfying the demand of the environment and
make a smart city(Perkmann and et. al., 2015).
Solution By using this innovative products it provides a
solution related to public health.
Innovation in product Bigbelly innovate their bins by using recycle
bins in this they built bomb-proof bins and
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install a LED that display a local weather,
news and status of city. In this bins technical
department use cool blue light that helps in
chilling the garbage by eliminating smell and
which is also prevent from bacteria. That does
not harm public.
Target market In this Bigbelly target the public areas like
parks, amusements, schools and universities.
For this company can use various promotional
tools like radio, social marketing, online
website that aware more people to the use of
this bins.
Source of funds Sources of funds is an essential part to raise
funds for innovation of products in the
Bigbelly. There are various sources of funds
that a company can used in raising the funds
that are as follows.
Bank loan- This type of loans are very secured
for the company and in this the interest rate is
also specified that does not change but it is
very flexible.
Crowdfunding – it is another source of fund
from which a company can raise funds for their
innovation by using social media where
number of investors are available.
In context of Bigbelly, manager should use
bank loan that is safe and secured for the
company in a way that it has low interest rates.
Which is beneficial to earning more growth
and retaining the cash for future use. It also
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help in earning more profits and
revenue(Akinwale, Adepoju and Olomu,
2017).
Benefits By innovating the bins Bigbelly make a city a
smart and advanced city that maximise profits
and loyalty of customers.
Monitoring and controlling In this step manager of Bigbelly monitor and
control all the above activities and take
corrective actions for increasing the
proficiency.
LO4
P7 Evaluate different tools that is used to develop, retain and protect knowledge and intellectual
property
Intellectual property rights
Intellectual property rights comprises of various legal rights which are formulated with
sole purpose to provide security and protection to the creations of intellect. In other words these
rights refers to those rights provided to person over innovation of their mind. This generally act
as permission given to creator associated with use of their creation for specific period of time.
These rights are classified in different sub types of rights such as copyrights, patents, trademarks
as well as trade secrets. Each right has its own strength and weaknesses that required to be
consider by firm while choosing suitable rights. Most well known types are explained
below(Park and Ryu, 2015): Copyright: this particular right refers to that unique right provided to creator of creative
work in order to made replica of same work, it is generally provided for limited time.
Main aim of this right is to protect the first as well as original expression associated with
idea in terms of innovative work. In simple terms, copyright means right to copy that
means creator of specified product offer right or authority to few individual to reproduce
the work. Strength of this right is that it protect creative work from being copied by other
organisation or people without permission and if someone try to copy out that work then
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legal action is taken. Weakness of this right is that it is granted for limited amount of time
not for longer period also it is an expensive right. Patents: refers to those legal rights which provide protection to owner which exclude
others from using, selling, making as well as importing that invention for long term
period. It is granted to an inventor through which it can able eliminate chances that others
can make use of this work. Huge benefit of such right is that it stop other organisation or
persons from producing, make replica of same product without taking permission from
inventor. Weaknesses of such right is that it is very time consuming process as it take
three to four years in order to build a patent.
 Trademarks: refers to recognizable signs, symbols, designs which differentiate or
identifies product or services from others competitor's products. These particular rights
helps to identify products that business makes separate from another business. A
trademark can be a name, word, logo, picture, symbol that must be not copied by other
firms. Strength of this right is that it provide protection and security to design of product
and services. It grants right to individual or firm to use registered trademark symbol.
Disadvantage of this right is that it contains risk for genericide which arises when
customers try to associate a brand logo with common goods that have same utility.
From above discussion, Bigbelly can make use of Patent right as it is launching a new
product under name of “big safe bin” in which company is introducing a feature of LED which
focuses on reducing smell of garbage and provide prevention from bacteria. To protect such
innovation, company can adopt patent right so that no other firm can manufacture and sell same
product feature in target market (Ke and et. al., 2016).
CONCLUSION
From the above report it has been concluded that innovation and commercialisation is an
important process for earning more profits, more competitive advantage, increase sustainability.
For this Bigbelly can innovate their bins to make smart city. In this they use innovation funnel
that helps in developing and modifying the products. Company also use commercialisation
funnel for new product development process that help in longer life of the product while
satisfying public. Further they build a business plan for innovating and modifying products
including sources of funds. At last they show the protection tool that protect the company
innovation so the organisation can earn more profits and longer sustainability.
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REFERENCES
Books & journal
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Bashmakov, A.I., Popov, V.V., and et. al., 2015. Generic Heurorithm of Innovation Management
from Generating Ideas to Commercialization.
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Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review. 58(2). pp.72-87.
Libaers, D., Hicks, D. and Porter, A.L., 2016. A taxonomy of small firm technology
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Paradkar, A., Knight, J. and Hansen, P., 2015. Innovation in start-ups: Ideas filling the void or
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Rubera, G., Chandrasekaran, D. and Ordanini, A., 2016. Open innovation, product portfolio
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Flammini, S. and et. al., 2017. Business model configuration and dynamics for technology
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Park, T. and Ryu, D., 2015. Drivers of technology commercialization and performance in
SMEs. Management Decision.
Ke, W. and et. al., 2016. Employing lead thiocyanate additive to reduce the hysteresis and boost
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Online
Innovation. 2020 [Online] Available
through:<http://www.businessdictionary.com/definition/innovation.html>
Invention . 2020. [online]. Available through: <https://www.yourdictionary.com/invention>
Why Commercialize?. 2020 [Online] Available
through:<https://www.innovation.pitt.edu/innovators/why-commercialize>
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