Innovation and Commercialisation Report: Business HND, Semester 1

This report provides a comprehensive overview of innovation and commercialization, essential concepts for business students. It begins by defining innovation and its importance compared to invention, followed by an examination of how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. The report then delves into the 4Ps of innovation, the innovation funnel, and frugal innovation with practical examples. Furthermore, it explores the commercial funnel, New Product Development (NPD), and the creation of an innovation business case, including funding access. Finally, it evaluates tools for developing, retaining, and protecting knowledge and intellectual property. The report uses F-drones as a case study throughout to illustrate the concepts.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention. ....................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................4
Task 2...............................................................................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas. ...............................................................................................................6
4 P's of Innovation:......................................................................................................................6
Innovation Funnel:.......................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................8
Task 3...............................................................................................................................................9
P5 Importance of the commercial funnel and application of New Product Development (NPD)
processing for commercialisation of innovation. ........................................................................9
P6 Build an Innovation Business Case for an organisation, including ways to access funding
....................................................................................................................................................11
Task 4.............................................................................................................................................12
P7 Evaluate the different tools that organization can use to develop, retain and protect
knowledge and intellectual property..........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is defined as most important task for any organization as it involves long term
competitiveness and introduction of new products and services that can help to attain the
business goals. In other words, innovation is process of brining new product range by
understanding needs and wants of customers that increases performance and profitability (Aryal
and et.al., 2016). Commercialisation is related to selling the products and managing all functions
and activities effectively. To understand about this F-drones has been taken that enables aerial
deliveries to ships and offshore platforms. This provides unique design of specs and aircraft for
the purpose of running business accurately. The management brings innovation in their products
and services that supports to operate the business regularly. The report covers innovation by
identifying difference between invention and innovation, types of innovation, process that
requires to commercialise innovation and range of methods for protecting ideas.
Task 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation is the process of production, assimilation and exploitation of existing
products and services that uses by organization in order to run a business and grow its
performance. This is important for organization to understand what is running in trend and how
the customers get satisfaction. In relation to F-drones, management focuses on innovation where
it introduces new products by analysing demand and increase the business performance
(Badizadegan and et.al., 2020).
Invention refers as process of developing a new though and product which is not
available in the market. This means introduce new products which are still not available and
attract the number of customers. In relation to F-drones, management focuses on invention and
launches new products for providing safe riding and journey to their customers.
Difference between innovation and invention

Basis Innovation Invention
Means This means to introduce new
products and services by adopting
changes and modifying existing
products.
This means to use the new technique
and ideas for introducing new
products that are not in market.
Required skills Skills requires in innovation are
analytical thinking, adaptability,
quantitative skills, risk taking and
entrepreneurship skills that helps to
introduce the products and increase
productivity (Ge and et.al., 2016).
In invention, there is need of
marketing skills, decision making,
motivation, working collaboratively
and critical thinking skills that
supports to recognise the new
products and services.
Dealing with This is first step that brings about
products, as deals with bringing
new ideas or distinctive approach to
the organization.
This deals with the process of how
can products and services brings to
the customer actually.
Importance of Innovation and invention
Creation of new ideas- Innovation is important as it uses by management to analysis the
needs by developing new ideas and thoughts that can help to operate the business smoothly. By
using innovation F-drones can introduce unique design of drones and services that attracts the
number of customers and increase performance.
Satisfaction of customer's needs – The reason behind using innovation is to analyse the
demand and satisfy the customer's needs in changing environment. In relation to F-drones,
management brings the innovation in their products according to new trend that helps to provide
customer satisfaction (Ge and et.al., 2017).
Attaining competitive advantages: The aim of organization is to focus on consumer
trend and introduce new products at less price as compare to others that can help to provide the
competitive advantages. F-drones uses the innovation activity that supports to attain the
competitive benefits by managing all functions.

P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Innovation and commercialization is important aspects for any business as it consider
various organizational functions and activities that needs to complete on time and it helps to
attain the business goals. The success of any business involves vision, leadership, culture and
teamwork that should be properly manage and arrange as it increase business productivity. In
relation to F-drones, management are focusing on vision, leadership, culture and teamwork that
affect the organizational productivity.
Vision – This refers as statement that involves opportunity, growth, forward looking and
other activities that needs to consider while running a business. The main vision of F-drones is to
deliver better quality of products and services by introducing new products that can attracts the
large number of customers and increase performance. Thus, vision of selected organization are
shaping innovation and commercialisation efficaciously (Ke and et.al., 2016).
Leadership – This is the process by which executive direct, guide, and influence the
behaviour of others that can help to manage the workings. Leadership is the ability of
management that uses to assign the work between employees who are working in particular
situation and helps to attain the business goals. In relation to F-drones, leader is playing is
important role as it brings innovation and new services in their organization that can help to
manage the all activities and complete the roles effectively that provide higher profitability.
Thus,leadership is shaping the innovation and commercialization.
Culture – This means customary beliefs, shared values, attitudes, goals and
characteristics that relates to organization that affects the business. This is important for each
organization to understand what are the culture of their customers and how they can be satisfied.
In relation to F-drones, management provides the products and services as per their culture and
attitudes which can help to operate the business and increase profitability. This also helps to
attain the business goals by following the role culture in which roles and responsibilities are
allocated between employees.
Teamwork – This means collection of people who are working collectively and making
efforts to achieve the goals properly. In relation to F-drones, management are following the
Tuckman team development theory in which it follows forming, storming, norming and
performing stage that can help to attracts the large number of customers and attain the

profitability. The teamwork in relation to selected organization is shaping the innovation by
getting work done from all employees (Kim and Park, 2018).
Task 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
Every organization has dream to increase the business performance by managing all
functions and activities as it brings the changes in existing products as per customer demand
which helps to attain the higher profitability. In relation to F-drones, management are using 4P's
of innovation for the purpose of running their business by managing all activities. The
management conduct the research and introduce kind of products which can help to maintain
higher profitability. The description of 4 P's of innovation are as explained:
4 P's of Innovation:
Product: Product Innovation is the change in the thing the organisation offer. In this the
company can expand the range of product they are offering or they may change the existing
product or can offer extra service to make the product innovative. F-drone is offering transition
drone that enable aerial delivery to ships and offshore platforms. This will help to provide the
good opportunity by increasing number of customers.
Process: Process innovation include change in the method the product is producing or
delivering. It is the change in the way things are done within the organization. Process
innovation is done to increase the profitability of the organisation. F-drone is using new
technology to make the product innovative and make change in existing product available in the
market (Koirala and et.al., 2016).
Position: Position innovation include the changes in the mindset of consumer related to
the product. It can be done with serving new market segment with new product. For this
company need to assess who is interested for their product. F-drone are offering innovative
product to their customer and creating distinctive position in the minds of their customer. By
offering the better design and quality of products organization is maintaining good position in the
competitive environment.

Paradigm: Paradigm innovation means changes in the pattern of something. It include
the change in where and how the product is used. It also include theory, models, principle, value,
belief. F-drone is analysing their competitor and offering new ways to reach their customer.
Moreover, management run the market campaign that can help to bring the changes and
introduce between the people for the purpose of operating a business and attaining business goals
effectively (Li and et.al., 2019).
Innovation Funnel:
Innovation funnel is a tool that evaluate ideas and conceptualize product. It is used by
many companies and individual to innovate their product successfully. In innovation funnel large
number of innovative ideas related to the projects are scrutinized and redefined. This process
include three steps- investigation, development, shipping product.
Investigation: In product or process development project, the aim to generate idea. To
generate ideas, the company must make some investigation related to the product to meet the
need of the market. In this process, the F-drone generate different ideas and one option is
selected in development stage. For investigation, F-drone do market research, competitor
analysis. The focus of company is to increase knowledge and information related to the project.
With information company create number of idea to create number of products. They collect
information by evaluating the market. For this stage company must have clear perspective of
their objectives, understanding of capabilities and intent to actualize the idea.
Development: In this process, screening of range of input alternative options are done
and best one is chosen to create a development plan. Screening include go with of idea with the
company's objective. In this stage the F-drone starts developing its product and also starts its
production process. In this stage risk and return related to the project is assessed to select the best

among them. Resource are allocated to the project in a way to get maximum return (Liao and
et.al., 2016).
Shipping Product: After the development process of product, the company take decision
related to launch the product. In this step the company ensures that the selected ideas are meet
the company's objective. This step include releasing the product to the market (Rasmussen and
Eliason, 2017).
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is defined as process of engineering that reduces the complexity and
cost of good sold as well as production. This refers as activity in which non essential features are
removing from durable goods. This involves various factors such as political, social and
environmental that has affected the organizational profitability. Frugal innovation basically
consider practices of being reducing required features and developing the effective product that
increases demand of particular products and services. For example, F-drones is using the frugal
innovation in manufacturing and providing services activities that helps to increase value and
attaining high marketing opportunities (Frugal innovation. 2021).

Illustration 1: Frugal innovation, 2021
Source: Frugal innovation, 2021
Principles of Frugal Innovation
Engaging and iterating: This means employees of organization should be engage in the
process of innovation that can help to introduce the products and services in changing
environment. F-drones has used the frugal innovation to identifying new ideas and removing the
unnecessary functions from activities that supports to save time and cost (Reyes and et.al.,
2021).
Creation of sustainable solutions: While introducing new products and services,
different problems and challenges arises that should be solve. This principle is being uses solve
the problem which arises in the process of development of products. In relation to F-drones,
management identify the problem and attain the possible solution that supports to develop
business.
Shaping customer behaviour: This means make frugality by using visualization, social
comparison, self-monitoring, gamification, social learning and product longevity that can help to
shape the customer behaviour. In relation to F-drones, management introduces variety of

products by reducing unnecessary activities and cost that attracts customers and increase the
profitability.
Flex the assets – The approach of frugal innovation is opted by management across
assets chain that involves manufacturing, distribution, services and others. F-drones uses
modular design for their plants, uses 3D printing by adopting new technology by fixing the
platform that increases business performance and profitability (Wang and et.al., 2017).
Task 3
P5 Importance of the commercial funnel and application of New Product Development (NPD)
processing for commercialisation of innovation.
Commercial Funnel – This can be determined as continuous process which use by
organization to bring potential customers closer and making the buying decision. The aim of
using commercial funnel is to understand the demand and increase organizational productivity.
This involves marketing activities such as emails, articles and videos that attracts the number of
customers and increase the business sales. F-dorne is using commercial funnel for the purpose of
increasing sales of products and services. This can help to attain the business profitability.
Importance of commercial funnel
Analysing the business: Commercial funnel is important for all businesses as it uses to
analysing the business activities and deciding how it can develop the performance. F-dorne is
using commercial funnel for analysing the business performance and formulate planning that
help to attain business goals.
Using different marketing channel: For all organization it is important to use the
different marketing channel that can help to provide the right information and make decision of
buying products. This helps F-dorne to increase the sales and performance in changing
environment (Song and et.al., 2016).
Bringing improvements: Commercial funnel is uses by F-dorne for the purpose of
analysing problem of customers and bringing improvement by implementing sales strategies that
helps to attain the higher profitability.
New product development process:

NDP is the process of introducing new products and services in competitive market that
increases business profitability. The organization mainly focuses on different activities and
functions that supports to continue all activities. The stages of NDP process are as explained;
Idea generation: The prime stage is idea generation which uses by F-dorne to develop
the new understanding and ideas to increase organizational productivity (Weng and et.al., 2017).
Idea screening: In this, ideas are screening by management that can help to launch the
new products and services. In relation to F-dorne, can use this stage to screen and analysis the
ideas that can help to meet customers needs.
Concept development: This stage is uses by selected organization for brining changes in
their existing products and services as production of new items that helps to increase business
performance (Wang and et.al., 2017).
Development strategy: In this, F-dorne is developing the promotional activities by using
different marketing channel that supports to attain the business profitability.
Examining business condition: The management of selected organization examine the
business condition that increases understanding how a business can be grow (Xiao and et.al.,
2017).
Product development: In this, F-dorne is launching new products and services as per
demand that attracts large number of customers and attain the profitability.
Market development: This strategy is uses to entering in new marketing and gaining
high range of customers who helps to attain the higher profitability.
Therefore, F-drone is bringing the use of NDP process in which it introduces new
products and services that can help to attracts the large number of customers and attain the
profitability. The management analysis the market and introduce the services which supports to
attain the higher profitability by managing all functions and activities.
P6 Build an Innovation Business Case for an organisation, including ways to access funding
Innovation refers as main activity which uses by company to introduce the new products
and services that helps to increase the business performance (Weng and et.al., 2018). F-drones
wants to increase their sales and profitability by introducing new products and services as it
launch products by understanding demand and needs of customers. The business case has been
explained below:
Executive Summary F-drones is planning to launch new product and services that

are demanding by customers. In this, it uses new technology
and machines that can help to provide the products and
services effectively and increase the profitability.
Vision and mission The vision and mission of F-drones is to increase number of
customers by offering better design and quality of products
that supports to make profits.
Budget To launch new products and services budget has been
prepared that are:
Type of expenses Cost ($)
Operating cost 300
Marketing activity 400
Raw material and finished goods 500
Sales and distribution 500
Labour cost 400
Total 2100
Funding resources To complete any task and activities there is need of funding
which is important to manage as it helps to operate the all
functions and activities which increases productivity and
profitability. To arrange all funds and organizational function
Bank loan can be use by management that can help to operate
all activities and maintain good performance.
Moreover, family and friends are also source of funding
from where money can be arrange and run the operation
effectively.
Evaluation and control All the functions and activities that are used in launching new
products will be arrange by management that can help to
attain the business goals effectively. For this, Benchmarking
tool will be use that would help to bring changes if needed.