Innovation and Commercialisation Report: Apple's Business Strategy

This report provides a comprehensive analysis of Apple's innovation and commercialisation strategies. It begins by defining innovation and its importance to organizations, contrasting it with invention, and emphasizing its role in brand reinforcement and organizational growth. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation, using Apple as a case study. It examines different sources of innovation and how organizations can foster creativity, followed by a discussion of the 4Ps of innovation (paradigm, product, position, and process) and the application of the innovation funnel. Frugal innovation is also addressed, with examples. The report further delves into the commercialization funnel and the use of New Product Development (NPD), including an innovation business case and evaluation of its effectiveness. Finally, it discusses tools for developing, retaining, and protecting knowledge and intellectual property. The conclusion summarizes the key findings, highlighting Apple's approach to achieving business objectives through innovation and commercialization.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Describe about the innovation and determine the importance of organization..........................4
P2 Explain about organizational vision, leadership, culture and teamwork which shape
innovation and commercialisation...................................................................................................5
M1Examine different sources of innovation, and how organisations can foster and develop an
surroundings and culture of creativity.............................................................................................6
P3 4Ps of Innovation and the use of innovation funnel...................................................................8
P4 Developments in frugal innovation with examples....................................................................9
M2 Apply innovation funnel in organisation context....................................................................10
M3 Function of frugal innovation..................................................................................................10
TASK 3 ..........................................................................................................................................11
P5 Importance of commercial funnel and application of New Product Development (NPD).......11
P6. An innovation business case for an organisation.....................................................................12
M4. Innovation business case which consist how to evaluate its over all effectiveness...............13
TASK 4..........................................................................................................................................14
P7. Different tools that organisations can use to develop retain and protect knowledge and
intellectual property.......................................................................................................................14
M5. Evaluation of different tools...................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is a basic process that is used for purpose of creation of a value for customers.
Innovation is used for purpose of innovation and applying all the innovative objectives in
achievement of higher business values. In every business there are some desired gaols and
objectives that have to be achieved in course of business (Bandarian, 2019). Commercialisation is
also a process that is having relation with how manufacturing and supplying strategies can be
applied for improvement of efficiency in a organisation. Present report is based on Apple. There is
discussion of invention and invention for achievement of business objectives. Vision and leadership
is also used for shaping of innovation so that desired goals can be achieved.
TASK 1
P1 Describe about the innovation and determine the importance of organization
Innovation: It is a method that is used for creating a idea ion a company that can be used as
a motivation factor for purpose of attainment of success. Innovation is also helping in capturing
larger share in market. For building of a suitable brand image there is requirement for innovation as
in case of Apple there is use of innovation for purpose of launching a new phone that will be water
resistant and will reached in a time period of just 5 minutes.
Inventions: it is used for purpose of generation of something new and not in the existing
product or service of a organisation (Çengel, , 2019). It is useful for attainment of success by
increasing the value to be provided to various customers. Such as new electric vehicles is a type of
invention that has been done for purpose of ensuring cost effectiveness for people living in the
society. There is requirement of huge research for attainment of particular objective related to
innovation.
Importance of Innovation over Invention
Reinforce Brand: Company its brand plays a very important role in capturing larger share
of market. It is a basic process that is helping in achievement of more innovation for a organisation.
There are various driving forces that are being considered for purpose of achievement of success. It
is also used for sustainability for longer term in a business organisation.
Helping in growth of organisation: According to many experts it can be said that
innovation is also very helpful in expansion of business and growing in an effective manner.
Innovation is providing constant support and growth in fulfilment of requirement of a company. It is
also used for purpose of reduction of risk and theft that is present in external market of a company.
Creating of a unique selling point: In case of innovation it consist of such things that are
different in value for a company or a product. Innovation is helpful for providing right advantage to

a organisation that is helping in changing of requirements according to external environmental
needs.
Difference between Invention and Innovation
Basis Invention Innovation
Meaning It refers to a new strategy that
is adopted by a business
organisation for the purpose of
launching of a completely new
product or a service in market.
There is a new invention that
is made and it does not has a
relation with already exiting
product or service (Gabriel,
2019).
It is a process that is connected
with creation of a new idea or
a concept of development in a
exiting product or a service
that is being developed in a
organisation. It is very helpful
for making new innovations
and increasing utility of a
particular product or a service
for their present and future
users.
Concept It is concept that is used for
providing services that are
better to be used by certain
consumers in the society. Each
invention is made for different
segment of customers and a
particular invention can
posse’s utility for one segment
and for other it may not.
It is a process that is mainly
concern with enhancement of
value of a particular product
and providing that
enhancement of value to their
customers.
Activities It is mainly limited with the
approach of research and
development.
It is spread in whole
organisation and can never be
limited to a particular
department of a organisation.
spread across entire
P2 Explain about organizational vision, leadership, culture and teamwork which shape innovation
and commercialisation
In every organisation growth and long term survival are the two primary motives that has to be
achieved in long run by a business organisation. There are various factors that are helping a

organisation in achievement of overall desired objectives that is acting as a differentiation of factors
for company:
Organisational vision: It is the action that actually helping in pulling out of a innovative
idea for a company for achievement of desired objectives. Companies are using their overall vision
as a tool of communication to achieve desired goals ( Grace, 2019) . It is an inspiring action that is
used for purpose of establishment of coordination of employees. Apple has a vision that is getting
involving in a process of continuous innovation. In case of apple, vision of the brand is to involve in
a process of innovation for their present and prospective customers. It also leads for customer
loyalty in long term.
Leadership: It is a process that deals with guidance and path for achievement of
organisation’s objectives. Effective leader is one that posse’s quality to influence employees and
work towards achievement of objectives. Leadership skills are used in Apple for purpose of
transformational & transactional leadership so that new process can be adopted positively. Change
is not easy to be adopted in nay organisation, so Apple may face resistance from their employees.
So it is responsibility of all the leaders in organisation to use leadership style in a more effective
manner so that employees have a positive attitude towards new changes that have to be adopted in
the organisation
Culture: It is the overall characteristics that consist of languages, background and religion
that is art of every organisation. In every organisation culture in defining the internal environment
of a organization (Mazzarol and Reboud, 2020. It is based on shared attitudes, habits and overall
beliefs of the organisation. Apple is willing to achieve desired objectives according to new
innovation that is being implemented in coming period of time
Team work: It is very helpful for a organisation to work in a team so that various tasks have
to be performed in way according to coordination among overall workforce. In case of apple teams
have been made buy higher management so that every department has some specific number of
people who are visiting towards achievement of objectives. It is helping in improvement of skills’ of
all employees at various levels in organsitaion
M1Examine different sources of innovation, and how organisations can foster and develop an
surroundings and culture of creativity
For Apple it is very important in achievement of desired objectives in given point of time. There is
various different emerging business that are helping in gaining competitive advantage in the market.
There are various source of innovation such as engineering, innovation that has been adopted by
Apple in implementation of creativity in their new innovation.

TASK 2
P3 4Ps of Innovation and the use of innovation funnel
Innovation is a process that is used for creation and development of a new product and service
in market in improvement of overall effectiveness in market. The 4Ps of innovation has been
developed by bessant (Mazzarol,and Reboud, 2012). It is used for purpose of implementation of
results in given point of time. 4Ps of innovation such as paradigm, position, product and process.
This model in case of apple is discussed below:
Paradigm –it is the first element that is used for determination of various ways that has
been formulated for enhancement of effectiveness in functioning of a organisation. In
Apple, it can be identified that this is a system innovation is helping in understanding future
ways of the new innovation.
Product – innovative product is that is being launched in market accordance with attracting
new customers. Implementation of a new innovative idea is helping in attracting of more
customers (Naughton,. and Foss, , 2019). In case of Apple, it is helping in attracting of more
customers as the new feature if water resistant will enable people to pay more as such type
of innovation will help in creation of a unique position in the external market
Position – It is the element that deals with target area that is helping n deciding target
market of organisation. Apple is launching new product in market and it is helping them in
creation of a product that is used for purpose of achievement of organisation’s objectives
that is increasing of sales. The overall process of creation of a different position in external
market in adoption of a new concept that is totally different from already prevailing
products.
Process – Management of a firm has the responsibility that they have to make a proper
analysis and adopt for manufacturing of new product. The overall process that will be used
for launching of new product such as Apple will also be using online channels along with
offline channels. It will help in increasing the reach for their customers through both the
mediums.
Innovation funnel
Innovation funnel can be defined as a mechanism that is used for purpose of constant flow
of that enables the constant flow information in a unique manner. It is used by many organisations
for purpose of implementing in business, for launching of various innovative ideas in market a
company can make use of innovation funnel. There are three major stages that are part of this
innovation funnel as described below:
 Investigation – In the first stage of innovation funnel is used for the purpose of analysing of
are situations that are helpful in development of plans for further adoption. This step is used

for purpose of making detailed investigations of the macro environment in which innovation
has to be launched by a particular organisation. In Apple there is a special research team
who has been assigned the work of performing a detailed research relating to aspects such as
scenario of market, actions of competitors before adoption of new plan of innovation.
 Development – It is the second stage that is used for development of a target market in
which the product will be launched by the organisation. In apple present the exiting market
where their products are already present such as markets of USA an Europe has been
considered for launching of their new innovative product
 Product Delivery – It is the last stage of a innovation funnel that is sued for development of
final product that has to be launched in market. It is step that is used for overall growth after
the innovation has been launched in market. In case of Apple, after new product has been
launched in the market.
P4 Development in frugal innovation along with examples
Frugal innovation is defined as a procedure that assist in declining cost and complexity of
production as well as product. It is basically remove unnecessary activities from the production
process that save cost and raise profit of an organisation. By the acquisition of this method, it is
easy for companies to lower down cost of manufacturing process in a positive manner. Frugal
innovation concept is used by higher authorities of Apple in order to make improvements in their
process and to earn high profits in an effective manner. The company is decide to launch new phone
which is water resistance and can be charge rapidly as compare to its previous devices. This will
assist company to attract more number of people and increase market share of the organisation.
There are many companies such as Samsung, 1 plus uses frugal innovation concept in a
proper manner. It is more about offering high value to customer at lower prices that impact
positively on profits of an association. This concept is merely used by those organisation who have
high market share and profits. By the assistance of this method, there is overall improvement in
societies and living standard of an individual. Frugal innovation assist in developing unique,
innovative and new business models which is mostly durable as well as sustainable. Innovation
practices and procedures is considered as frugal which mainly emphasise on the core activities of
company which directly contribute towards increasing in performance of an organisation. There are
various principles of frugal innovation that is thinking & acting flexibility, gaining more with less,
maintain things simple and many more (Naughton, and Foss, 2019). All these principles is
considered by managers in order to launch new product in market in an effective manner.
Idea generation: In this stage idea is generated. In apple after seeing problems of people
related with water resistant phone there is a new concept that is being used for attracting more
customers.

Feasibility: In this step after idea has been generated it is analysed in the external
environment that whether it is feasible to launch idea in external market.
Capability: In this step overall capability of product is analysed based on optimization of a
product.
Launch: In this step actually product will be launched by Apple in their target segment of
market.
M2 Innovation funnel in relation to organisation
Innovation funnel is defined as a methods that is adopted by companies in order to generate
innovative idea and decline overall cost of an organisation. Innovation funnel is used by managers
of Apple that assist in developing innovative and unique idea which leads to raise in productivity as
well as sales of company. The water resistance and fast charging phone will provide safety to
customers that impact positively on sales of Apple. In addition to this, innovation funnel assist in
gaining opportunities & knowledge regarding new market trends due to which company offer
products as per customer needs and market requirements.
M3 Functions of frugal Innovation
The main objective to use frugal innovation concept is to decline cost and improve production
process of an organisation. By the assistance of new idea that is development of water resistance
phone, the more number of customers is attract towards it and can be accept in the real market. It
protect the phone of users which is one of the main point consider by customers at the time of
purchasing new phone. In addition to this it also help company to analyse market trends and make
production according to them which leads to customer satisfaction and retention.
TASK 3
P5 Significance of commercial funnel & application of new product development
Commercial funnel is mainly a procedure that target market in such a manner that leads to
consumption of goods as well as services offered by company at marketplace. In order to adopt this
concept, it is important for an entity to identify customer needs as well as requirement so that
offerings can be accordingly (Pynnönen, Hallikas and Immonen, 2019). By the assistance of
Commercial funnel, the higher authorities of Apple will be able to aware people regarding
launching of new phone in marketing along with its new features and characteristics. In addition to
this, it also helps in identifying the potential customers and target market of company that leads to
raise in customer base level and profits. Moreover, identification of market conditions support
company to cope up with the flexibilities and problems arise in future. This also assist in marketing
new product in a proper manner as it undertake activities which is involved in promotion of brand at

marketplace. By the assistance of commercial funnel, it is easy for managers of Apple to launch
new product and gain success within short span of time.
New product development process:
It is a step to step process which helps in launching goods and services in a proper manner to
target right and potential customer by company. The process is defined below in relation to Apple of
its new product development which is water resistance and quick charge iPhone:
Idea generation: Herein, the company is planning to launch a new idea in market and is
focusing towards development of unique and innovative idea. In apple when the company saw that
people are facing difficulty in carrying of chargers they thought of innovation a phone which can be
charged in just a period of five minutes.
Screening: At this stage, all the ideas which is develop is scrutinised by analysing which one
is more beneficial to the company and attract more number of customers. This idea was screened in
detail by research & development department of this organisation.
Development of concept: Herein, the testing of selected concept take place and main
emphasis is on legal formalities, technical feasibility, designing and many more.
Marketing strategy: At this stage, effective marketing strategies is developed in order to
promote product at marketplace in an effective manner. The manager’s in Apple select target market
and distribution channel which assist them to attract maximum number of people prevailing at
marketplace.
Business analysis: Herein, evaluation of acceptance of new product that is water resistance
phone is analysed by higher authorities of Apple.
Development: It is the actual stage of expansion of goods and services that will offer in
market by the company. The plan is implemented & activities is started performing which is
associated with the launching of new water resistance phone. After idea was completely tested in
Apple the product will actually be developed.
Test marketing: In this stage, the product is tested according to the actual strategy in order
to know the effectiveness of new innovation at market place (Grace, 2019). Idea will be tested in
the external market where it has to be launched.
Commercialisation: The last and final stage where the product is launch in market in proper
manner and by using effective strategies by Apple.
P6 Innovation business case of company
Steps Description
Summery This case shows development of water resistance and quick charge
phone which protect phone of a user. For this, company target the

market in an effective manner.
Objectives The objective of Apple is to raise profit level by 10% in coming 6
months by offering unique features to customers in iPhone.
Mission The mission of company behind launching new features in phone
is to attract more customers and competitive advantage at
marketplace.
Vision The vision is to increase brand image in market and to raise
market share of company.
Solution In order to attain the objectives, it is important for company to
develop effective strategies so that product is accepted in market in
easy and effective manner.
Innovation in product The innovation in the product is the phone charge within few
minutes and is water resistance.
Funding In order to launch and offer this innovative idea, Apple needs
finance which can be taken from both the external sources and
internal resources. Herein, funds is taken as bank loan as it is one
of the most secured way to borrow funds for innovation.
Benefits By launching new phone in market, Apple can easily earn higher
profits which impact positively on its brand image and market
share (Rotstein, 2019). One of the major benefit of innovation is it
help in attracting more number of customers that has a positive
influence on the sales as well as profitability of the organisation.
Moreover, innovation help company to develop a unique brand
image and attain competitive edge at marketplace. Along with this,
innovation assist managers of Apple to fight with rivals and gain
leading position in the industry.
Monitoring and
controlling
The managers of Apple check and monitor the activities that is
associated with launching of new product. They compare
performance as per the set standards which help them to make
improvements at initial level in effective manner.
STP Segmentation: In Apple, market has been segmented based on

capacity of payment by their customers.
Targetting: The customer segment who belongs to upper class of
society and can pay higher amount for products are only
approached by this brand Apple.
Positioning: Apple is bale to create a different position in market
by sue of the innovative strategy that they are willing to adopt in
course of business.
Sources of funding
Bank loan: It is determine as one of the secure and common form of taking loans. The bank
grant loans to the companies and in return charge interest along with the principal amount. The bank
check and verify all the documents and after that grant loan to the companies for implementing their
activities.
Government assistance: The government provide fund to the companies who is present at
their own nation for development of the country. The government set standards that is followed by
companies in order to take loan. It is determined that the government charge less interest on the
amount given to the companies.
M4 Evaluation of innovative business case
The innovative business case includes mission, vision and objective of a company towards
bringing innovation in market. By the assistance of this, companies identify their potential
customers and target market that leads to enhancement in overall performance level of an
organisation.
TASK 4
P7. Different tools that organisations can adopt to develop, retain & protect knowledge and
intellectual property
It is important for every organisation to protect their unique and innovative idea form its
rivals in market. In relation to Apple, it is going to launch new feature phone in market so it is
essential for them to protect new idea by the assistance of intellectual property. The different tools
which can be use by Apple are as follows:
Patent: This tool is establish by the national authorities in order to protect methods, process,
and devices of an entity. By the assistance of this, Patentee protect their new idea of water
resistance phone which is going to launch in market by Apple.

Strength: Strength of patent is that it helps in protection for a very long duration of time that
is 10 years.
Weakness: patent has weakness that it takes a very long procedures and a very high
investment by a organization to get a patent. All such investigation has to take place for a longer
period of time and only after proper consideration by various factors.
Copyright: Herein, the right is given to the innovator for their new idea for certain period of
time. The main purpose is to protect real idea to be copied in market by other competitors. The
managers of Apple can use this method in order to bring out its new idea in market in a proper
manner.
Strength: It gives a sole right to produce a piece of work to a person and it also gives the
right to reproduce a innovation that can be related to musical, dramatic, literary etc.
Weakness: It does not provide a ownership as authority only provides the right to exercise the
right of protection.
There are also many other tools of intellectual property such as trademark.
Evaluation from the above made discussion in context of Apple:
From the above mentioned different types of intellectual property rights it can be said that the
most suitable for Apple is the Patent as, patent can help them in protecting their innovation and it
also has a validity of about 20 years. It is analysed that one of the most beneficial tool can be use by
Apple is patents as it safeguard new idea and did not copied as well as sell by others in market. It is
going to benefit Apple and will lead towards high profitability as no other organization will be able
to imitate their brand or other products, technology, features associated with this brand.
M5 Evaluation of intellectual property tools
There are any tools which is adopted by an organisation in order to protect their ideas within
the market. This tools are trademark, patents, and copyrights and may more (Zarrouk and
Ouerghemmi, 2019). By the assistance of this, companies can gain competitive benefits and attain
higher success at market place effectively as well as efficiently.
CONCLUSION
From the above study, it has been analysed that one of the best way to expand operations and
market share is innovation. It is important for companies to bring out new offerings in market as it
help them to gain success and retain in market for longer time period. New product development
process assist companies to target right customer and identify needs of customers as well as market
conditions. Moreover, there are various tools in order to protect innovative idea such as copyright,
trademark, patents and many more.