Business Development: Innovation and Commercialisation Report, Unit 8

This report provides a comprehensive analysis of innovation and commercialisation within a business context. It begins by defining innovation and its importance, contrasting it with invention, and highlighting the roles of organizational vision, leadership, culture, and teamwork in shaping innovation. The report then delves into the 4Ps of innovation (Product, Process, Position, Paradigm) and the application of the innovation funnel, followed by a discussion on developing frugal innovation strategies. It further explores the commercial funnel, the application of New Product Development, and the creation of an innovation business case, emphasizing ways to access funding. Finally, the report examines tools for knowledge retention, development, and intellectual property protection, providing a well-rounded overview of the topic and offering practical insights into fostering innovation and achieving commercial success. The report uses British Telecom (BT) as a case study, highlighting how the company embraces innovation in its operations and product offerings.

UNIT 8. INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1. Innovation and its importance to organisation in comparison with invention......................3
P2. Organisational vision, leadership, culture and teamwork helps in shaping innovation and
commercialisation ......................................................................................................................4
TASK 2............................................................................................................................................5
P3. Explain 4P's of innovation and the use of innovation funnel ...............................................5
P4. Develop Frugal Innovation ..................................................................................................6
TASK 3............................................................................................................................................7
P5. Importance of commercial funnel and the application of New Product Development ........7
P6. Innovation Business case to highlight ways to access funding ............................................9
TASK 4..........................................................................................................................................10
P7. Different tools available to retain, develop and protect knowledge and intellectual
property ....................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is a creative procedure that involves producing something with new ideas and
thoughts. It helps in standing apart from rest of the company. Creativeness process helps in
making competitive advantage in market area. The maximum innovation take place in auto
mobile and electronics industry area (Stokes, 2011). Apple and Virgin are considered top most
organisations in this field. This report involves importance of innovation in organisational
system. It is also noted that culture, teamwork in any company helps is building innovation
concept. There are basically 4p's of innovation which are formulated by innovative enterprises to
achieve market growth and development. The organisation selected for this report is British
telecom (BT), it is one of the established communication enterprise in UK and have operating
branches in around 170 nations. This firm supply so many products to their prospective
customers in the form of communication services, supply chain management, mobile, digital
television etc. It is prominently necessary to be innovative in order to build image in minds of
customers and establish healthy relationship with them for long period of time.
TASK 1
P1. Innovation and its importance to organisation in comparison with invention
Definition of both innovation and invention
Innovation helps system to excel in their work and compete with other companies of
same industry. It can be defined as an important process that focuses on coming up with
innovative and creative process by devising modern and fresh ideas. Whereas, Invention refers to
procedure of complete development of product and services by introducing effective production
process. Apple and Virgin are top leaders of communication industry, that believes strongly in
innovation process. They aim to earn huge financial gains and establish huge image in minds of
customers. On the other side digitalisation also add value to company's products or services.
There are number of benefits enjoyed by enterprises who adopt innovation process in their
production. Developing ans small businesses must utilise such innovative techniques or tool sin
their working process (Sawyer, 2011). Some importance of innovation is discussed below:
 it helps in maximising the value of brand of company that has adopted innovation in their
process.
 It increases productivity and profitability of organisational structure.

 Helps in building strong market image or share in competitive area.
 Helps in increasing competitive advantage of organisation.
 It assists in increasing the net income or outcome of system.
To talk about innovation the first and foremost organisation which comes in mind is
Apple. It always offers innovative and different kinds of products to their customers to meet their
needs and wants properly. They offer ranges of I-pod, mobile phones, I- pad etc. They have
make strong image of products and services in market place. They are amongst the top most
company in networking industry (Goldberg, 2013). Virgin is also one of the best company along
with Apple, which have made outstanding accomplishment in their innovative fields. They also
offer different type of products in form of books, mobile phones, tourism stores to full fill
diverse requirements of prospective customers in market area. They have become leaders in their
field and have set example for other company to follow their theory of innovation.
In order to adopt innovation style on these two-fabulous company, BT group also
showcase their work of innovation by offering digitalised services to the consumers. They have
also gained their successful image in present time and have secured sustainable position in
telecom service industry.
Difference between invention and innovation
Basis of Difference Innovation Invention
Meaning It refers to employing emerged
thoughts.
It refers to framing of working
process in production.
Ability Having practical, technical
abilities to conduct work
process.
Possess scientific acquisition.
Focused Area Development and Research
field
Focused on ideas and thoughts.
Importance Overall image of product or
services
Initial stage of product.

P2. Organisational vision, leadership, culture and teamwork helps in shaping innovation and
commercialisation
Today's business world is dynamic in nature and keeps on changing with time. Hence, it
is requisite for every organisation to construct their image in such a manner that they can able to
beat their competitors. Every organisation whether small sized or large scale carry out their
process in accordance to their vision and mission that must fulfilled in given time frame.
Innovation helps in adding value to this process in effective and efficient means (Wolin, 2016).
Apple and virgin have innovation in their working process whether it is used in production
process, development procedures etc.
Organisation's Vision: In respect of BT group, they deliver first class communication
services to their clients. They basically solve the problem of barriers related to communication
system. Innovation is taken in improving their range of products that is combo package of data
services, many added up gradation in post-paid or prepaid connection services. All these
innovative steps people to stay connected with this company for longer period. Therefore,
innovation aids in increasing the image of enterprise in positive ground.
Organisational culture: The culture of company affects the performance of personnel in
many ways. They wish to work in healthy and conducive working environment. Innovation in
BT company's working culture helps in enhancing productivity and effectiveness of employees.
Hence, organisational culture plays a very important role in accelerating the performance of staff
member at significant reach.
Leadership process: Leadership is a process of guiding behaviour of individual and
motivating them to perform task in proper way. They basically aim in achieving set goals and
objectives of company system. In respect of providing guidance to number of people there are
several techniques of innovation implemented in various fields like training and development
process etc. There are number of departments performing diverse functions, thus they need to be
coordinated in proper mode. Innovation concept helps in achieving such task very easily
(Boudreau and Lakhani, 2013).
Concept Of Teamwork: Every organisation functions properly through team work. Under
this there are group of people in a single team, which are provided a particular objective through
aligning this with organisational vision. So that both contribute in succeeding the final set

objectives. Innovation helps in constructing team in such a manner so that they can achieve their
final targets in proper manner. Include Tuckman theory
Bruce Tuckman had devised model of group development in which, he had formulated
four stages which are described below:
 Forming: This is a first step in which team members come together to understand
various challenges and opportunities that are available and than frame targets according
to it. Members are fully centred on adopting various type of risks that are present in
business environment and than, frame plan of actions accordingly.
 Storming: This is a second stage of group team development, in which every team
member come and work together. There can be possibility of conflict generation as ideas
of individual do not match with each other.
 Norming: In this third stage, every individual of team understands their specific role and
responsibility and carry out their work in accordance to it. Every team is allotted specific
task that has to be fulfilled by them in set time period.
 Performing: This is a last stage in which staff members are highly motivated and able to
take decisions on their own. Leaders supervise the members and they are free to carry out
their actions on their own.
TASK 2
P3. Explain 4P's of innovation and the use of innovation funnel
Innovation funnel refers to increasing the value of any product along with its process of
production. Now a day’s customers are considered king of the market, hence company have to
produce such type of products or services that helps in accomplishing customer and market's
needs and wants. Organisation must analyse the preferences and tastes of individual people so
that they can create such products that lead to fulfil the necessity and wants of people. Hence,
they have to apply 4P's of innovation in their process that are discussed below:
 Product: Products are considered outcome of production process. There are various
types of products available of different nature. Company produce in accordance to
demand in the market area. Industry of different nature offer variety of commodities.
Thus, it become essential for company management to perform research process in

innovative manner (Lichtenthaler, 2011). For instance, apple or Virgin innovate their
offerings in field of music players, it will help them in maximising their area of coverage
or focus.
 Process: Products or goods of the company have to pass through process in converting
them into final usable form. Institution have to carry out process in efficacious and proper
manner. Apple company have to increase their efficiency and effectiveness by converting
it into innovative process.
 Innovation in position: It takes into consideration the perspective of product and image
positioning in market area. British telecom organisation has to be innovative in
establishing their strong position in customer's mind and perspective. Thus, they must
acquire learning concepts and process for attracting large number of customers towards
themselves. There are several competitors established in market area, hence, they must
build innovative tools in order to sustain in market place.
 Paradigm: This is regarded as last step in innovation process which have to be properly
formulated and implemented by organisation system. Thus, every organisational system
has to study market structure and consumer preferences very properly and carefully to
draft final report.
All the above discussed 4P's of innovation are wide in scope and is highly depended upon
individual firm, the ways through which they execute their marketing process. Innovation funnel
concept is very much indispensable in increasing and processing the product or services in
market area or places.
P4. Develop Frugal Innovation
Company applying innovation process in their method of working, they have to adopt
certain methods. Apple and Virgin company must focus on their innovative process to increase
their productiveness and reducing cost at significant level. Company have to draft budgets
properly to come into conclusion of estimating expenses and costs. So that final decision can be
taken to reduce extra cost (Naphade and et. al., 2011). Leaders of every organisational system
have to apply frugal innovation in proper mode. Some points are discussed below:

 Every business firm carry out their operations in accordance to policies and procedures.
Apple and Virgin organisation have to draw correct and significant targets that has to be
proper implemented in practical situation.
 Leaders or managers have to work align their objectives and aims with organisational
final targets to reach final purposes. This is the responsibility of manager to find out
correct position of eligible candidates so that they can be placed at right time.
Company have to apply resources of surroundings in efficient and effective manner. These
resources can be in form of labour, materials, capital, manpower etc. All these resources need to
be combined in such a manner so that final aim can be achieved in time frame. Frugal innovation
also has added advantage as it helps in producing quality products which does not involve huge
amount of funds and electricity. There are number of pros attached to it some are:
 It aids in bridging gap between set standard performance with actual performance
performed from workers.
 Frugal innovation process assists in finding out such areas and process which they
provide final gains and outcomes.
 It also focuses on achieving final goals and objectives in proper mode.
 It provides help in decision making process as it highlights most important and key areas
so that main focus can be delivered on that fields.
 It also helps in providing basis of planning for future time and assist in accomplishment
of goals and objectives.
 It provides tools and techniques of innovation process so that, monitoring and controlling
process can be carried out.
Hence, from above points it can be concluded that Frugal Innovation eliminate any extra or
unfavourable elements from production process. Hence, they have to fulfil aims in efficient way.
TASK 3
P5. Importance of commercial funnel and the application of New Product Development
Commercial Funnels helps in formulating various types of research process of
organisation. It is sub divided into three stages starting from accumulating data from various
sources which can be market research or collecting data from various number of sources. After
that, examining the collected data properly and firmly. Finally, the results are calculated in

appropriate manner. Company only works in accordance with the interests of people to satisfy
their wants and needs in creative and innovative manner (Lin, 2011).
Virgin and Apple company frame such plan of actions that help in achieving huge profits
and financial gains and eliminating risks at significant level. Commercial funnel aids in locating
those areas that can pose obstacle and has to be removed from business enterprises.
New Product Development refers to the process of developing creative and specific for
final customers in market area. Product introduction in market area, has to be properly evaluated
according to current market condition. There are Eight steps that can follow by company to
upgrade their product development procedure. Steps are as follows:
1. Emerging of Ideas: Market research can be performed to evaluate consumers
requirements and needs to monitor current trends and demands of customer.
2. Screening of ideas: Management of organisation must evaluate the idea generated and
examine it properly so that final plan can be selected by them.
3. Testing of Concept: Under this process, company structure has to choose some number
of customers so that full information can be provided to them, and final feed backs can
be taken if changes are to be made.
4. Analysis process: Under this, analysis function is performed by organisation system so
that proper feedback can be considered by the company if any changes are to be
formulated.
5. Developing of Product: This is very critical step in organisational system, which
involves framing such steps and process that lead to alter product characteristics.
6. Test Marketing: In this, products in market is tested that they are contributing up to the
expectation or not (Chiaroni, Chiesa and Frattini, 2011).
7. Commercialisation: This process is directly linked to above step in which, if the results
of launching of products is positive company make decisions regarding expansion and
increasing their current market share.
8. Monitoring and Reviewing: This is an essential step of monitoring the activities that
are implemented in market area. Hence it is very important to examine results that are
obtained after the services are implemented.

P6. Innovation Business case to highlight ways to access funding
British Telecom goals and aims are known from the business case which is discussed. It
also highlights the sources of acquiring funds to run the process very smoothly and promptly.
There are some situation highlighting the importance of innovation which is discussed below:
Vision and mission of organisation: It refers to set procedures and basis that has to be
achieved in business life. It helps in combining efforts of everyone in organisation so that they
are directed towards ultimate path. Vision and mission provide basis of managing activities in
particular set direction (Ordanini and Parasuraman, 2011).
Setting targets: Targets helps in framing objectives of organisation in strategic manner
so that it can be attained in particular time frame. It is very important to draft any policy in easy
way so that all work procedure can be done effectual and expeditious mode.
Research on customer behaviour: It is very important to study the minds and tastes of
consumers in market area as it helps in producing and processing their products accordingly.
Research helps in allocating key areas or fields, so that proper procedure of work can be carried
down. Company can evaluate their level of execution and helps in finding out certain complex
areas that help them to reduce.
Finance: Finance is considered most important part of any business organisation. There
are several number of sources that are available to provide financial support. It is the duty of
organisation to study these sources in efficient manner and then take strategic decision to take
funds from this source. There are some sources through which funds can be acquired, they are
discussed below:
 Government bodies: They play a major role in extending help to various business
organisations. They render high discounts on finance especially to small scale enterprises
or newly established businesses.
 Banking institution: There are number of commercial banks in society that provide
loans to people of society so that their final needs can be met easily without any
hindrance or problems (Govindarajan and Ramamurti, 2011).
 Financial Institutions: Other than banks, there are other number of financial institutions
that are established in society, which grant help in form of funds, advices, counselling so
that proper steps can be taken by any individual.

TASK 4
P7. Different tools available to retain, develop and protect knowledge and intellectual property
If an individual holds some intellectual property in his or her name there is need to
protect such properties in effective manner. This helps them to protect their property from other
bodies. Same rule is applied to organisation as they must secure their goods or services, so that
other party cannot make false use for the same. If such happening take place, the owner has right
to sew that individual in court. There are intellectual properties that are discussed below:
Trademarks: It includes logo, symbol of any company. This helps customers to
differentiate their product of one company from others. It may include some slogans, devices etc.
Pros:
 It protects from copycats and impostor.
 It never get expire as renewed on time to time. Many companies have trademark on their
product more than 100 years
 They are inexpensive, which means only minimal fees required to registered.
 Trademarks build brand loyalty as this make customer believe that organisation is for a
long run.
Cons:
 In case of trademark, company have able to do local business in their country but if an
association wanted expand their business in another nation then they need to register
trademarks as per international laws.
 Trademark get cancelled in every 5 year due to which awareness is required for renewing
it in order to safeguard their penalty charges.
Patent rights: This right is given to individual who have made certain product or
services. Patent rights helps in securing their right on particular property which can be land,
building or any formula of producing something (Lin and Chen, 2012).
Pros:
 Patent restrict other organisations to copy, manufacture, sell, inventions without their
permission.
 It protects company for a limited period of time from competitors.
 Patent represented as source of revenue for business. Due to providing
licenses,businesses able to collect royalties.

 It encourage further discovery in future from same creator as they are not afraid of
infringement.
Cons:-
 Process of applying and registering a patent is complex and time consuming it take 3 to 4
years which resultant change in market and technology.
 Person have to remember to pay annual fees otherwise it get lapse.
 It will cost your wealth whether patent is successfully registered or not.
 Inventor has to disclose all details of the invention include how it works , background and
application which can be view by anyone even by competitors.
Copyrights: These rights are applicable for particular period frame. After expiry of this
time period, it has to be renewed in proper format. It must be applied on tangible things or
elements. It is linked to something that is created in innovative and creative form.
Pros:
9. It protect material or work from stolen, abused and unauthorised duplication by others.
10. Patent gave right only to creator to produce and reproduce their work. It provide creator
power to earn profit from their invention.
11. Only Patent holder has the authority to share their activity.
Cons:-
12. Copyright stop other person to use patentee work even if they are not using for profit.
13. It can be expensive or cheaper depends upon the type of creation. High amount of
innovation charges large fees to make it registered where as low creation result in low
cost.
Industrial Design Rights: It is adopted by company institutions and organisations that
are under process of production. It can be possible to secure products or goods in terms of size,
shape, position or composition of all these constituents.
All the above elements adopted by any individual body helps in rising value and image of
business organisation. It helps in attaining welfare and advantages of intellectual property
protection so that opportunities can be grabbed.
CONCLUSION
This assignment throws light on innovation that is a creative process adopted by every
organisation. It is very important to maintain their quality of products in business world. This