An Analysis of Innovation and Commercialisation: ZapGo Ltd Report

This report provides a comprehensive analysis of innovation and commercialisation, using ZapGo Ltd, a UK-based company developing carbon-ion cells, as a case study. The report explores the importance of innovation compared to invention, organizational factors influencing innovation, and the 4P...Read More

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Innovation and its importance in comparison to invention....................................................4
P2 Organisational vision, leadership, culture and teamwork affect innovation and
commercialisation.......................................................................................................................5
TASK 2............................................................................................................................................7
P3 4Ps of innovation and use of innovation funnel.....................................................................7
P4 Development in frugal innovation.........................................................................................9
TASK 3..........................................................................................................................................10
P5 Importance of commercial funnel and application of NDP.................................................10
P6 Business case for an organisation with funding...................................................................12
TASK 4..........................................................................................................................................13
P7 Tools for protecting intellectual property............................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is the generation of new ideas, concepts, creative thoughts, new and
extraordinary imagination with the help of formulating a new device or method so that the
unfulfilled demand of the customers in market can be met. Commercialisation on the other hand
means introducing the new idea in the market and circulating it so that the users of the new
product, device, service or method can be made aware about such innovation. It refers to
mobilisation of innovation from laboratory to commerce (Bagno, Salerno and da Silva, 2017).
This report is based on ZapGo Ltd. which is based in Harwell Research Campus, Oxford, UK
and was founded in 2013. They offer carbon-ion cells which are ultra-fast charging and non-
flammable and are almost near-term alternative to lithium-ion batteries. This report will discuss
about innovation and its importance for companies, 4Ps of innovation, innovation funnel,
application of new product development etc. so that the importance of bringing new products in
the competitive market can be understood.
TASK 1
P1 Innovation and its importance in comparison to invention
Innovation : Innovation is the process of translating a new idea or invention into goods
and services which can fulfil the changing demands of customers so that they can be attracted
towards the company products and increase their sales. The innovation must have an economic
value both to the company and to customers. This helps the organisations in gaining competitive
advantage in the market thereby increasing its profitability. ZapGo for example has invented
carbon-ion cells which are a new category of energy storage device that incorporates carbon that
are nano-structured with improved fabrication techniques so that the energy density is enhanced
(Bosch‐Sijtsema and Bosch, 2015). This provides rapid charging facility to electronic vehicles
without any fire risk or safety concerns unlike lithium batteries.
Importance of innovation :
 Helps in increasing the productivity of business.
 Helps in solving problems easily through creative ideas.
 Helps in beating competition and being the first in attracting customers by fulfilling their
changing demands.
 The customer base can also be increased by marketing the new product or service.

Invention : It means developing a new product or service through overall engineering
and product development process. This maybe an improvement in machine, method, device,
process so that better results can be generated (Dai and et. al., 2017). This helps in introducing a
completely new and advanced technology in the market that has never been done before by any
of the companies. For example, ZapGo is a high technology business based in UK which tries to
invent new devices and methods so that the problems faced by electric vehicles can be solved.
Importance of innovation :
 Inventions help in staying ahead of the competitors in the market.
 It helps in improving and utilising the abilities, skills and knowledge of the employees.
 It helps in both personal and professional development of the employees of the
organisation by creating unique devices.
Difference between innovation and invention
Basis Innovation Invention
Meaning It means modifying existing process,
devices, methods and techniques used
to produce goods and services.
It means introducing a completely new
and unique idea into market which
creates value to customers.
Activities It is related to several products and
services.
It focuses majorly on inventing single
product or service in the market.
Skills required Technical and knowledge based skills
are required in innovation.
Scientific and research skills are
required to invent a new product or
service.
Occurs When changes in existing goods and
services are required.
When a new product or service needs to
be introduced by utilising scientific
mind.
Commercialisation : It is the process of introducing new products or services in the
market so as to attract customers and make them aware about the new products so that they can
fulfil their unmet needs and requirements (Duncan and Elkan, 2015). Commercialisation
includes various aspects such as production, distribution, marketing, sales, customer support etc.
so that the commercial success of new products or services can be achieved. This goes through

three staged which are also known as funnel that helps in successfully commercialising the
products or services. These stages are ideation phase, Business process phase and stakeholder
phase.
The main aim of ZapGo is to solve the problems of charging related to lithium-ion
batteries so that fast charging and risk free facilities can be given to the customers. For this
carbon-ion batteries are invented by the company. Forb this they need to successfully
commercialise their new products so as to attract customers so that they can be encouraged to
purchase their new and innovative product hence giving them a competitive advantage in the
market.
P2 Organisational vision, leadership, culture and teamwork affect innovation and
commercialisation
Innovation plays an important role in an organisation as it helps it in introducing new
products and services in the market that can cater to the needs of customers that has not been
fulfilled. After bringing innovation it is important to commercialise the products in the market so
that customers can be made aware and the purchase of such new products and services can take
place. Various organisational factors affect innovation and commercialisation some of which are
discussed below : Vision : It is the aim and objective of the organisation that it wants to achieve in a
specific period of time. The vision of the organisation determines the success it wants to
achieve in the market and the level of satisfaction it wants to provide to its customers
(Fuller, 2016). If the company work towards providing customers with goods and
services that can give value to them then they will be highly involved in innovations in
order to meet the changing needs and requirements of the customers and so the
commercialisation will also be high in the company so that a large base of customers can
be reached. Culture : Organisational culture is related to beliefs, values and assumptions which
determines the behaviour of employees in the organisation. The culture of the
organisation influences the way in which employees perform their work and their
activeness in solving certain problems. An organisation with strong culture will influence
the employees and their ability to use their skills and knowledge son as to come up with
new and innovative solutions to various issues. For example an organisation following

hierarchical culture will be able to better distribute the jobs and responsibilities among
employees so that they can become efficient in their work and can easily find problems
and solutions through innovative thinking. Leadership : It means the type of leadership that is followed in the organisation which
will determine the level of freedom given to the employees so that they can share their
views and opinions on various matters. A demonstrative leadership style can be followed
in ZapGod Ltd. So that the employees can be encouraged to use their critical thinking
skills and knowledge to come up with innovations (Hakansson, 2015). They will also be
enthusiastic in commercialising their new ideas in the market.
 Teamwork : An organisation where the employees work in full coordination and
cooperation will give better results as they will come up with new and innovative ideas,
discuss their ideas and select the best possible idea. This helps the organisation in
introducing innovative products and services in the market and the strong teamwork can
also lead to rapid market capture so that sales and profitability of the company increases.
Hence, it can be concluded that innovation and commercialisation can be effectively done
if the above mentioned aspects are monitored and controlled in such a way that it encourages the
workforce in getting more involved in the activities of the organisation and come up with new
ideas.
TASK 2
P3 4Ps of innovation and use of innovation funnel
Innovation plays an important role in an organisation by making it sustainable in the
competitive marketplace. In order to bring innovation it is important to formulate a strategy and
plan so that various factors that lead to innovation can be analysed (4Ps of Innovation .2019).
This can be done by using 4Ps method which is discussed below : Product : It relates to the products or services offered by the company to its customers
and focuses on the way in which it can innovative its existing products or introduce new
products in the market in order to satisfy its customers. This can be done by analysing the
changing needs and requirements of customers. ZapGo for example can analyse customer
needs related to electric vehicles so that better products can be provided (Kang and et. al.,
2016).

 Process : It is related to the process of delivery of goods and services to customers.
ZapGo can analyse its delivery process so that quality products can be provided to their
customers. This will lead to innovating the process of delivery so that the customers can
be reached more efficiently. Paradigm : It is related with changes to where, how, why the products is used and for
what the product is used so that the needs of customers can be understood. This helps the
organisation in providing the type of goods and services to customers that helps in
fulfilling their needs and requirements and thereby increasing the profitability of the
company (Laihonen and et. al., 2015). Position : It relates to defining the target market in which the new products and services
ned to be introduced so that the customers can be attracted. This helps in commercialising
the innovative products in the specific market.
Illustration 1: 4Ps of Innovation .2019
Source : 4Ps of Innovation, 2019
Innovation funnel : This approach is used by organisations to develop innovative and
ideal action plan so that ideas can be screened for better viability (Innovation Funnel .2019). It
contains following three stages : Mouth of funnel : It relates to conducting effective market research so that the needs of
the customers can be found sop that the idea in order to fulfil such needs germinate at this
stage. It is the first stage where the innovative idea generates to improve the products and
services.

Illustration 2: Innovation Funnel .2019
Source : Innovation Funnel, 2019 Narrowing the funnel : At this stage the development of the idea takes place so that the
goals and objectives of the organisation can be achieved. An evaluation is made of the
cost-benefit analysis, risks involved, profitability etc. so that the idea generated can be
put into development phase.
 Narrowed part of the funnel : This is the final stage at which the new products and
services developed are launched in the marketplace so as to be available to customers.
P4 Development in frugal innovation
Frugal innovation means reducing the complexity and cost of goods so that the
production can be made simple and cost effective. It generally refers to eliminating non-essential
processes so that the products can be redesigned with unique features so that it can be made
better than the original product. This process is done in a scalable and sustainable manner. Some
principles are mentioned below : Find opportunities in hardship : In this process opportunities are found out in problems
so that advantage can be taken of a specific problem and costs can be reduced. This helps
the organisation in converting problems into opportunities by identifying the ways in
which they can be solved by introducing new and innovative ideas. For example ZapGo
can take the advantage of problems faced by the electric vehicle users in charging them
with lithium batteries which gave it an opportunity to make carbon-ion cells which can
ensure fast charging and are safe to use. Do more with less : it means that the limited resources that are available with the
company must be used in an optimum manner so that the production costs can be

reduced. These resources can be used by introducing innovation in the process so that
less resources are utilized in producing goods and services. For example ZapGo can reuse
the old battery cells in making new batteries so that the resources used can be less which
reduces company costs. Think and act flexible : It is related with enhancing the thinking process so that efficient
strategies can be developed so that different situations can be dealt with differently.
Organisations need to be flexible so that no rigid structure is adopted and situations are
handled accordingly. It helps them in meeting the changing requirements of market and
meeting customer expectations. This helps in using new and trending technologies so that
strategies can be changed with situations. For example the company policies are flexible
which allows the employees to think and act flexibly which encourages innovative
thinking through which innovations can be brought.
 Keep simple : This means adopting simple and understandable processes and strategies in
the organisation so that performance of employees can be enhanced and productivity of
the company can be increased. This also helps in reducing conflicts and encouraging
employees to think innovatively in solving various problems. For example at ZapGo the
innovation plans are made in such a way that they are simple to understand and apply by
the employees in bringing innovation.
TASK 3
P5 Importance of commercial funnel and application of NDP
Commercial funnel is a marketing concept which maps out the process a customer
follows before making a purchase of a product or service. This process helps the organisation in
identifying its potential and actual customers so that profits and sales can be calculated. This
process is important as it helps the company to promote their products in the marketplace. This
function can be used by ZapGo so that the demand of product among customers can be increased
(Tuli and Shankar, 2015).
New Product Development (NDP) is the process used by organisations while
introducing new products in the market based on the needs and wants of customers so that
competitive advantage can be achieved (The new product development process .2019).
Following steps are important in new product development :

 Idea generation : Idea generation refers to a systematic process through which new
approaches to solutions are searched for, new concepts are innovated, processes are
developed so that these can be brought to reality. At this stage an idea regarding a new
product and service develops by analysing the market so that potential opportunity can be
evaluated in order to introduce a new product in the market to fulfil the unmet demands
of customers. For example ZapGo analysed the market so that problems faced by users of
electric vehicles can be found out. Idea evaluation : It refers to evaluating the ideas that are generated in the first stage so
that decision can be made regarding which ideas to keep and which ones to discard. It
helps in evaluating the cost efficiency of the idea so that the goals of organisation can be
achieved. For example it can help ZapGo in evaluating the usefulness of the idea to meet
the business objectives.
Illustration 3: The new product
development process .2019
Source : The new product development process, 2019 Concept development : It related to developing strategies and plans so that the idea can
be converted into reality. It relates to developing the processes that are required to

complete the product development. It is about combining the project brief, market
research, user insights so that creative problem solving techniques of doing things
differently can be invented. For example appropriate strategies are formulated by ZapGo
to implement the innovation in the market. Development of strategy : It involves determining how innovation will help in creating
value for their target customers, how company will create value for their customers and
which type of innovations should be pursued by the company. R&D of ZapGo select
most appropriate and effective strategy so that more customers can be attracted and value
can be created for them. Examine business condition : It refers to analysing the business position in the market so
that its image in the market can be analysed which helps in placing the newly developed
products efficiently in the market. It helps ZapGo in analysing if the new product or
service that is developed will be able to sustain in the market over a longer period of time
or not. Product development : At this stage the product or service is finally developed by using
the strategies that have been selected in the above stages. The products are developed and
tested at this stage so that their performance and efficiency can be analysed. This will
help ZapGo in developing the best strategy to implement innovation in their products. Test marketing : At this stage the new product is tested in a small sample market so that
reaction of customers can be analysed along with their ability to fulfil their demand. The
product and its marketing programme are tested in realistic market settings so that an idea
can be gained by the marketers as to how the product can be marketed to great extent. It
also includes segmentation, targeting and positioning of the products in the market.
 Commercialisation : At this stage the products are extensively marketed so that
customers can be attracted and made aware about so that sales of the company increases.
The costs involved in commercialisation are high as the companies try to capture huge
markets and attract large number of customers to their products.
P6 Business case for an organisation with funding
Business case : It is a document that explains in detail all the stages that will be required to
complete a project from start to finish so that desired results can be obtained (Vuori and Huy,

2016). In ZapGo it aims at providing fast charging, energy efficient and risk-free batteries to the
customers though providing them carbon-ion batteries in place of lithium-ion batteries.
Summary : ZapGo was founded in 2013 with technology from the Oxford university, UK
with an aim of producing batteries for modern world. The company is growing based on its
advanced technology use.
Objectives : To provide customers with fast charging batteries so that electric vehicles
can be charged at high speed and with efficiency.
Solution : ZapGo wants to improve the efficiency of batteries by increasing their speed of
charging by using carbon-ion batteries instead of lithium-ion batteries.
Innovation in products : The company uses technology to bring innovation in their
products so that needs of buyers can be met. ZapGo uses creative and innovative methods so that
the users of electric vehicles can be provided with fast charging batteries.
Research : It helps the company in identifying the needs of customers and the target
segments where the new products and services can be introduced so that the customers can be
attracted and sales of the organisation can be increased.
Designing and development plans : It relates to designing the plans after research
process so that effective outcomes can be achieved. These plans will provide specific directions
to the company so that new products can be developed.
Marketing strategy : It refers to a business plan and strategy through which it can reach
to its prospects and convert them into actual customers which can help the company in achieving
sustainable competitive advantage in the marketplace.
Funding : It means acquiring of funds required to introduce new products in the market.
It can be done through bank loans, financial institutions etc. Bank loans are an effective method
to acquire funds s they charge interest rates which are comparatively low as compared to other
financial institutions. Angel brokers is another way of acquiring funds where individuals with
enormous amount of ideal funds provide them to the start-ups or businesses in return of interests
(Bank loans .2019).
Benefits : It helps in analysing the response of customers towards new products so that
further products can be manufactured and made available in the market.
The ask : In this the managers of ZapGo will evaluate the feedbacks and reviews of
customers and bring necessary changes so that the customers can be fully satisfied.

TASK 4
P7 Tools for protecting intellectual property
In the modern era all the business organisations are engaged in high competition with
each other. They try to bring new and innovative features in the existing products and services or
try to invent completely new products which did not exist in the market so that customers can be
attracted by fulfilling their dynamic demands. The knowledge is developed through continuous
R&D in the market so that the customers needs can be analysed and the company can become
first in market to address those demands. Also use of internet and advanced technology can help
the companies in acquiring knowledge so that innovations can be brought in order to stay ahead
in the competitive market. These innovations in methods, processes, devices, technologies etc.
however needs to be protected so that other companies do not imitate them. The protection can
be done in following ways : Patent : It is a legal right given to the companies to protect their innovations which is
given for a certain time period and neds to be renewed. It protects the companies from the
threat of being copied by other rivalry companies (Zimmermann and et. al., 2016). Copyright : It is an exclusive right given to individuals on creation of creative work in
art, music, poems, songs etc. This right helps the person in generating copies of the same
work which cannot be copied by any other individual.
 Trademark : It is a recognisable symbol, sign or design which differentiates a particula
company's products and services from others.
ZapGo can use trademarks so as to differentiate their products in the market. This sign
can also help it in gaining a distinguished identity in the market.

CONCLUSION
From the above file it can be concluded that innovations are important for an organisation
so that competitive advantage can be gained in the marketplace by providing customers with
goods and services that can fulfil their demands that has not been met earlier in the market. Also
effective planning is required in order to introduce innovation in their products so that the
desired results are obtained. The consideration of business case and innovation funnel are also
important so that the innovation can be successfully launched in the market.

REFERENCES
Books and Journals
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innovation management: a literature review. R&D Management .47(4). pp.637-653.
Bosch‐Sijtsema, P. and Bosch, J., 2015. User involvement throughout the innovation process in
high‐tech industries. Journal of Product Innovation Management .32(5). pp.793-807.
Dai, X and et. al., 2017. Quantum‐dot light‐emitting diodes for large‐area displays: towards the
dawn of commercialization. Advanced materials .29(14). p.1607022.
Duncan, B.A. and Elkan, C.P., 2015, August. Probabilistic modeling of a sales funnel to
prioritize leads. In Proceedings of the 21th ACM SIGKDD International Conference on
Knowledge Discovery and Data Mining (pp. 1751-1758). ACM.
Fuller, G.W., 2016. New food product development: from concept to marketplace. CRC Press.
Hakansson, H., 2015. Industrial Technological Development (Routledge Revivals): A Network
Approach. Routledge.
Kang, H. and et. al., 2016. Bulk‐heterojunction organic solar cells: five core technologies for
their commercialization. Advanced Materials .28(36). pp.7821-7861.
Laihonen, H and et. al., 2015. Technological strategy, open innovation and innovation
performance: evidences on the basis of a structural-equation-model approach.
Measuring Business Excellence.
Tuli, P. and Shankar, R., 2015. Collaborative and lean new product development approach: a
case study in the automotive product design. International Journal of Production
Research .53(8). pp.2457-2471.
Vuori, T.O. and Huy, Q.N., 2016. Distributed attention and shared emotions in the innovation
process: How Nokia lost the smartphone battle. Administrative Science
Quarterly .61(1). pp.9-51.
Zimmermann, R. and et. al., 2016. The influence of supply chain on the innovation process: a
systematic literature review. Supply Chain Management: An International
Journal .21(3). pp.289-304.
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