Commercializing Innovation: NPD, Funding & Protecting Ideas

This presentation elucidates the process of commercializing innovation, emphasizing the importance of the commercial funnel and its application in the New Product Development (NPD) process. It explores various tools that contribute to successful market implementation, exemplified by Amazon Go's introduction of Organic Apple Juice. The presentation details the four steps of the commercial funnel—attract, convert, improve—and underscores the necessity of a structured NPD approach to manage risks and achieve realistic targets. Furthermore, it constructs an innovation business case, highlighting funding avenues like crowdfunding and Amazon lending, alongside strategies for employee motivation and market share assessment. The presentation also evaluates methods for protecting ideas through trademarks and copyrights, providing a comprehensive overview of developing, retaining, and safeguarding knowledge and intellectual property.

LO3 Discuss the process required
to commercialise innovation

Table of Content
• Introduction: Slide 3
• P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation. Slide 4 to 14
• P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Slide 15 to 19
• LO4 Evaluate the range of methods for protecting ideas and understand their advantages and
disadvantages. Slide 20
• P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property. Slide 21 to 22
• Conclusion: Slide 23
• Reference list: Slide 24

Introduction:
• The following slides will show the importance of commercial funnel
and how it can be applied in the NPD or new product development
process. the various tools that help the process to be successful in the
market are also described. apart from that, a business case for an has
been taken and different ways of funding and how the company can
sustain in the market have been discussed. At last, the tools of
developing, retaining and protecting intellectual property is displyed
in the slides.

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation.
• As Amazon Go is the grocery shop started by the online retailer
Amazon, the company has launched some new products as well.
Initially, Amazon started to sell Organic Apple Juice.
• Within the first few months, the sale was increased by manifold and
the company witnessed a significant revenue.

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• The structure of commercial funnel makes sure that the sales and profit of a
company increases significantly. There are four steps in the commercial funnel.
• Attract: The first step of the concept is to make people aware of the existence
of the product. While a large amount of the population will know about the
product, some among them will buy it (Kim, Park and Lee, 2014). In case of
Amazon Go, the company wants to make sure that the launch of its varieties of
Organic Juices is known publicly.
• Convert: As the next step, the company must ensure that people are able to see
the product and know that the product is available in a wide range of variety.
Besides, why the product is different from the similar products should also be
described so that people trust the brand.

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• Though the first two steps are the most important steps and those can’t
be missed, there are some additional ways that the commercial funnel
can be improved.
• Different types of marketing channels can be utilized to attract more
customers
• The marketing campaigns of the company should be analysed
regularly, and rectifications should be made immediately

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• The picture below is helpful in understanding how the commercial
funnel works:
• Figure: Commercial funnel
• Source: (Bergh et al. 2017)

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• The NPD or New Product Development Process:
• A company must have a proper and documented approach towards
NPD or New Product Development so that the company can
successfully achieve a new product and implement the product
successfully in the business. Thus, the company will have a clear map
of how to get ahead by developing the new product (Gopalakrishnan et
al. 2015).

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• Risk of failing: The risk of failing in the market varies from product to product and so does the
revenue generation. The table below shows how the success and failure can affect the new
product development over a period of five years:

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• The necessity of structured New Product Development process: The New Product
Development team is put under pressure all the time so that they can come up with different and
extensive portfolios of new products ad they can manage the risk related to developing these. The
table below shows the major factors that the emergent models have:

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• The success measurement: It is evident that there’s no absolute term
that can make sure that the NPD process will be successful. The
success depends on the realistic target setting and having an objective
that draws on the new product development process.
• However, there’s two basic points that can be remembered:
• The success of new product depends on situations
• There’s not a dingle factor that can ensure the success of the new
product

P5 Explain the importance of the commercial funnel and
the application of New Product Development (NPD)
processing for commercialisation of innovation. Contd.
• Keystones of success: Here are some points that the companies like
Amazon Go can keep in mind while developing new product.
• The company must have a long-term, distinguished strategy related to
product development
• The company should be ready and able to fund the process with proper
resources