Business Innovation and Commercialisation Report for Airdri Ltd

This report examines innovation within Airdri Ltd, a UK-based manufacturing company, covering various aspects from its importance compared to invention, to the role of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. The report delves into the sources of innovation used by Airdri Ltd, analyzes the development, embedding, and measurement of innovation within the organization, and explores the 4Ps of innovation (product, process, position, and paradigm) along with the use of the innovation funnel. It also discusses frugal innovation and its application, the commercial funnel, New Product Development (NPD) processing, and presents an innovation business case. Finally, the report covers tools for developing, retaining, and protecting knowledge and intellectual property within the context of the wider business environment.

Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its importance to organisation as compare to invention...............................1
P2 The way in which organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation..............................................................................................2
M1 Different sources of innovation used by Airdri Ltd.............................................................3
D1 Analysis of the way in which innovation is developed, embedded and measured in the
organisation.................................................................................................................................3
TASK 2............................................................................................................................................4
P3 4Ps of innovation and the use of innovation funnel to examine and shape ideas..................4
P4 Developments in frugal innovation and examples of its uses................................................6
M2 Analysis and application of innovation funnel in an organisational context........................6
M3 Evaluation of the role of frugal innovation in an organisational context.............................7
TASK 3............................................................................................................................................7
P5. The importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.......................................7
P6. An innovation business case for Airdri Ltd..........................................................................9
M4. A detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve....................10
TASK 4..........................................................................................................................................11
P7. Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property..................................................................................................................11
M5.Evaluation of these different tools in the context of the wider business environment.......11
D2 The nature of innovation and the context in which it is developed....................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is the process of finding, developing, analysing and evaluating a new idea
which is chosen by the organisations in order to achieve predetermined goals. It guides business
entities to make modifications in their existing products according to customer's preferences so
that large market area can be captured. Various types of innovations are launched by companies
in order to attract large number of customers and retain them (Anderson, Potočnik and Zhou,
2014). The organisation which is chosen for this project is Airdri Ltd. which is a manufacturing
company and established in UK. It was founded in year 1974 by Peter Philipps.
This assignment aims at the concept of innovation, its importance as compare to
invention, types and 4Ps of innovation with its uses etc. Process required to commercialise
innovation and evaluation of range of methods for protecting ideas and their advantages and
disadvantages have also been covered under this report.
TASK 1
P1 Innovation and its importance to organisation as compare to invention
Overview of the organisation: Airdri Ltd. is a manufacturing company which is
currently operating its business in UK and manufactures hand dryers. The organisation was
established in year 1974 by Mr Peter Philipps with a fellow engineer Peter Allen. All the
operational, marketing, supply chain and other activities are appropriately managed by the
organisation.
Innovation: It can be defined as an idea that helps the organisations to make
modifications in existing products according to customer's requirements. It is very beneficial for
business enterprises because it results in the attraction of large number of individuals who are
willing to buy innovative products.
Invention: The process of creating a new idea which have not yet been introduced by
any other company is known as invention. It helps the organisations to launch a product in the
market for the first time. Customers will get attracted towards the products that are new and also
creates an urge for them to try a new item (Bain and Kleinknecht, 2016).
Innovation and invention both are very important for the Airdri Ltd. as it can help to
achieve organisation goals such as profit maximisation and customer satisfaction. Both of them
are also important for the employees. It can be understood from below comparison:
1

Innovation Invention
The employees who are able to find ideas that
can be used to make modification in existing
products then it can help them to attain growth
in the organisation.
If worker of Airdri Ltd. have creative mind and
they can give new ideas that have not yet been
used by any other organisation then it will help
to develop the organisation and they will also
get developed.
Innovation will result in increased turnover of
the company. When the company is having
higher profits than salaries and compensation
for the employees will also get increased.
Invention helps to attract large number of
customer by launching a new idea in the
market for the first time. If it results positively
then the employees who were involved in the
project get rewards as appreciation.
P2 The way in which organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation
Innovation is a process that guides organisations to make changes in their current
products so that customer's expectations can be met in order to successfully operate the business.
While launching innovative products in the market top executives of Airdri Ltd. needs to focus
of following points as it can help to shape innovation and commercialisation:
Vision: While planning for an innovation the managers needs to communicate
organisation's vision to the employees in order to enhance their work quality by giving
importance to them. Vision of Airdri Ltd. is to offer good products to the customers so that their
satisfaction level can be enhanced and large market area can be captured. If the work force is
having appropriate information of future objectives then they will work with more involvement
and also contribute in shaping of innovation and commercialisation (DiMasi, Grabowski and
Hansen, 2016).
Leadership: Leaders of Airdri Ltd. are responsible to motivate all the subordinates in
order to enhance their work quality and engagement in job responsibilities. If they take advice
from the employees, then workers will get motivated and also work more effectively in order to
achieve all the goals that are set by the organisation. Democratic leadership style is followed in
Airdri Ltd. that helps to increase employee's involvement so that innovation and
commercialisation can be launched successfully.
2

Culture: In Airdri Ltd. task culture is followed in which teams are formulated to find
solutions for organisation's problems. It helps to shape innovation and commercialisation
because the skilled employees will find appropriate ways to launch new product in effective
manner.
Teamwork: This element is also very important for Airdri Ltd. to successfully launch
innovative products in the market because if the employees are working in teams and supporting
each other then it will result in attainment of business objectives. It will also help to shape
innovation and commercialisation of the company (Dodgson, 2018).
All the above described elements needed to be focused by the managers and other
executives of Airdri Ltd. because all of them can help to shape innovation and
commercialisation.
M1 Different sources of innovation used by Airdri Ltd.
There are various sources of innovation that can help to find best way to launch an
innovative product. All the sources that can be adopted by managers of Airdri Ltd. are described
below:
New knowledge: Time changes and with it technology also get modified and the
companies like Airdri are required to launch innovative products to meet technological
knowledge of customers. When it enhances the demand and expectations of individuals get
increased and they search for new innovations that may satisfy them (Sources of innovation,
2012).
Changes in perception and demand of customers: When customer's preferences and
needs changes then companies plan for innovation because it can help to retain them. When one
demand of consumers is fulfilled then another take place hence companies are required to modify
their products according to customer's perception.
D1 Analysis of the way in which innovation is developed, embedded and measured in the
organisation
In Airdri Ltd. innovation is developed, embedded and measured in appropriate manner.
The managers always try to analyse the market changes so that modifications in existing
products can be made. In Airdri Ltd top executives always try to find best ways to launch
innovative products in the market so that it can achieve all the future objectives that are customer
satisfaction, sales and profit maximisation. When needs and demands of individuals changes
3

with time the company conduct appropriate research so that actual requirements of them can be
identified. After all these steps Airdri make changes in its products and launch new items in
market that customers are willing to buy.
TASK 2
P3 4Ps of innovation and the use of innovation funnel to examine and shape ideas
4Ps of innovation: It is also known as innovation mix which is a combination of four
different types of elements. These are process, position, paradigm and product (4Ps of
Innovation, 2015). It helps to identify the ways in which appropriate ideas can be made in order
to improve innovation process. A description of all these components is as follows:
(Source: 4Ps of innovation, 2015)
 Product: It is the first element of innovation mix that guides the companies to make
innovations in the products. Airdri Ltd. can launch a new product in the market by
making modification in its existing products so that large number of customers can be
attracted toward the company.
4
Illustration 1: 4Ps of Innovation, 2015

 Process: This component helps to modify the process in which products are
manufactured by the company. It is the procedure of changing the method which is used
to create the hand dryers by Airdri Ltd. This type of innovation is can help the
organisation to enhance sales by using innovative techniques in manufacturing process.
 Position: When a new product is launch by a company like Airdri Ltd. Then it is also
very important to use a new method of promotion. It will help to target large number of
customers so that they may get aware of the innovative product. Position innovation
guides the companies to make modification in the method of marketing and promotions
for new products (Drucker, 2014).
 Paradigm: It is the last element of innovation mix that guides the companies to make
innovation in basic activities that are performed by them. Airdri Ltd. may also use this
components while launching a new innovative product in the market. It includes the way
in which products are sold, services are delivered etc.
Innovation funnel: It is the process of making innovation in an appropriate manner. It
can be used by Airdri Ltd. to launch new products in the market (Innovation funnel, 2016). There
are three different steps of this funnel all of them are as follows:
(Source: Innovation funnel, 2016)
 Investigations: In this step a research is conducted by Airdri Ltd. and customer's needs
are identified. It helps to analyse the ways that may guide to make appropriate changes in
existing products of the organisation.
5
Illustration 2: Innovation funnel, 2016

 Development: When appropriate data in being collected than changes are made in the
products. Airdri manufactures new items that customers are willing to buy in order to
meet their expectations (Fang, Tian and Tice, 2014).
 Shipping products: This is the last step of the funnel in which products are shipped to
the market for sale.
P4 Developments in frugal innovation and examples of its uses
Frugal innovation: It can be defined as the process of removing and decreasing
complexities and cost of production of existing products so that large number of customers can
be attracted towards the company. It can be adopted by Airdri Ltd as it can help to reduce the
cost and increase the profits by attracting large number of individuals. For example, Airdri Ltd
can use it launch new supersonic hand dryers by reducing cost of producing and removing some
old unessential features in existing dryers. It will help to capture large market area and increment
in profits. There are six different principles of frugal innovation all of them are as follows:
Find opportunity in adversity: It directs the organisations to find best in worst situation
so that marvellous opportunities can be identified (Principles of frugal innovation, 2015).
Do more with less: According to this principle the companies should use limited
resources and then find good ways to launch innovative products at low price.
Think and act flexibly: It guides companies to remove rigidity and be improvisational
so that complexities in manufacturing process can be removed.
Keep it simple: Organisations should use easy methods for innovation because
complexities may cause issues like reduction in customer interest.
Include the customers in decisions: It guides the business entities to include customers
in decision making process so that a good image can be set in their minds.
Follow your heart: According to this principles the enterprises should be passionate
about their goals and also follow the same (Lee, Kao and Yang, 2014).
M2 Analysis and application of innovation funnel in an organisational context
Innovation funnel is the combination of three different elements that are investigation,
development and shipping. All of them are used by Airdri Ltd. in order to launch new innovative
products in the market. First of all, a market research is conducted to gather market data and
information of customer's taste. After this step changes are made accordingly and at last products
are shipped to the market for sale.
6

M3 Evaluation of the role of frugal innovation in an organisational context
Frugal innovation is very beneficial for Airdri Ltd. and other companies because it helps
to reduce complexities and cost of production. When the company is manufacturing products
with less cost than price of such products will also be low. It will result positively for the
company because customers will get attracted toward such products that are new and have less
price. It will be very beneficial for the company and also increase its profits and sales for future.
TASK 3
P5. The importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation.
Commercial funnel: it refers to the buying process that company leads to the customers
through when purchasing products or services. A sales funnel can be described through
following steps:
Attentiveness phases: it create more awareness for existence of a solution. .
Interest phase: It create more interest by conducting product research.
Evaluation phase: Examine the competitive situation.
Decision phase: Final decision is taken toward research.
Purchase phase: Purchase is made.
Repurchase phase: Purchase is made again by the consumers.
There are three segments of funnel. First one is marketing funnel, second is sales funnel,
and last one is customer funnel (Reij and Waters-Bayer, 2014). The detail explanation of these
segments are as follows:
Marketing funnel segment: Airdri Ltd. use that segment by the help of its marketing
team to converting prospects into leads. It is very helpful to force them into sales funnel.
Sales funnel segment: It is the segment which is totally hold by the sales staff. These
staffs are responsible for the closing of business operations. The main motive of that segment is
to encourage people to make a purchase.
Customer funnel segment: It is totally managed by the service and support staffs. These
staffs working for retaining the customers. And managing the repeating orders (Union, 2014).
Importance of commercial funnel:
7

Sales funnel or commercial funnel is important for attracting new customers and to
convert them. Without a proper guidance and a directive path consumer can't be converted. A
massive opportunity will be missing out without a proper tracking. There are also various
benefits to reviewing the sales funnel on quarterly basis such as focus on enquiries, adjustment
requirement, analysing new business opportunities. Airdri Ltd. Used the sales funnel process
very effectively to promote its businesses activities.
Application of new product development process: New product development follows
some specific steps. It means to develop a new innovation with an advance characteristic than the
existing product. Airdri Ltd. Launches its new innovation in market as supersonic hand dryer.
The features of that dryer distinct from the existing products of company. The process is as
follows :
Idea generation: Ideas may be in various forms and comes from different ways. Airdri
Ltd. Use the following steps to generate new ideas.
 Internal sources: The company get innovative ideas from their internal employees then it
is called as from internal sources.
 Swot analysis: Analysing the strength, weaknesses, opportunities and threats .
Market research, competition and customers are also included in that stage. These factors
are also very helpful at that phase/step (Urabe, Child and Kagono, 2018).
Idea screening: Ideas generated in large numbers but only few from these are good. So
that stages involves the finding of feasible idea for launching new type of hand dryer.
Concept developing and testing: it is a detailed strategies and developed phase of idea.
Airdri Ltd. Also use that concept for better development of its new product. It introduces its
supersonic hand dryer to some of selected customer. After testing the results get feedbacks for
further development.
Business strategy analysis & Development: After finalizing the concept it develops the
marketing branding and some other strategies. Such as competition of the product,cost included,
pricing points, break even stages.
Product development: All the branded and pricing strategies are applied at this stage to
promote the product in market scenario.
Further test marketing and commercialization is also performed by the company for its
new product development.
8

P6. An innovation business case for Airdri Ltd.
The following steps are followed to build an innovation business case for the Airdri Ltd.
Summary: The company wants to launch its new product so it has to follow some
specific steps. By launching its new supersonic hand dryer, it want to increase its market share
and brand value. The Airdri Ltd. is a dryer manufacturer company.
For succeeding in prospective field it adopts various strategies and a specific process of new
product development.
Objectives: Airdri Ltd. sets its objective to achieve the market share by 20% and
maximizes its profit by 50% than existing profit level with the help of introducing new product.
Solutions: The company faces many problems in existing products. The hand dryers
introduced by the co. previously in the market was not much effective. The customer’s complaint
about the service rendered by the product and quality of the product. So by introducing new
supersonic hand dryer it wants to rebuilt its brand name and try to remove complains of
customers.
Innovation in product: It means developing a new product. By the help of various
phases of new product development, the Airdri Ltd. innovate a new supersonic hand dryer with
better features than the existing product (Vermesan, O. and Friess, P. eds., 2014).
Research: This includes the market research which help in developing new product. By
conducting the market research requirement and customer’s preferences can be measured. The
market situation also be analysed with the help of marketing research strategies.
Funding: It includes the various sources of funds which will be require to full fill the
demand of funds during whole operations. Airdri Ltd requires following funds for new product
development (Voorberg, Bekkers and Tummers, 2015).
Particulars (1000 units) Amount
Material 100000
Labour exp. 66000
Others 10000
Total 176000
9

Source of funds: Above mentioned funds are required to produce the 1000 units of
supersonic hand dryer. The company can acquire a loan from bank to fulfil the requirement. It
may sell its oldest assets which is not useful now in the business operations. It may use the
personal finance for funding. And some other modes also available to source the funding in
business operations. Venture capital also be used as source of funds. Angels investors are also a
big factor for funding in companies. Business incubators also plays a vital role in developing
new businesses. These invites future businesses to share their premises. And most important
factor is Govt.
it provides various grants and subsidies for new innovations and business development.
The Canada businesses network website provides a list of various Govt. programmes. Customers
and suppliers also plays a vital role in funding the new product development activity. Leasing
and crowdfunding also helps in financing small size business activities (Wolin, 2016).
Benefits: The new hand dryers will be very beneficial for the company because it will
result in enhanced customers interest.
M4. A detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve.
The Airdri Ltd uses various tools and techniques to new product development. Its main
objective of new innovation is to build its brand image and to expand its market share and
maximize the profit level. For that it introduced a supersonic hand dryer which have distinct
feature than the existing product. It have to attract more and more customers. Company faces a
lot of problems / hurdles but it overcome from those with the help of various techniques. It
achieve its setted objective with its new innovation in product.
TASK 4
P7. Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.
It refers to the trademarks, copyright and patents which assign the right to a person for a
specific period to use over a product as monopoly. There are various tools and techniques to
protect the intellectual property. The key IP tools are as follows:
10