Innovation and Commercialization: A Deliveroo Case Study

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INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
DIFFERENCE BETWEEN INVENTION AND INNOVATION..............................................5
WHY INNOVATIONS ARE IMPORTANT FOR AN ORGANIZATION...............................6
ORGANIZATIONAL VISION, LEADERSHIP, CULTURE AND TEAMWORK CAN
SHAPE THE INNOVATION AND COMMERCIALIZATION................................................6
INTRODUCTION...........................................................................................................................8
4 P’S OF INNOVATION AND HOW THE INNOVATION FUNNEL USED TO SHAPE
INNOVATIVE IDEAS................................................................................................................9
INNOVATION FUNNEL OF DELIVEROO............................................................................11
ROLE OF FRUGAL INNOVATION IN THE DEVELOPMENT OF DELIVEROO.............12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation refers to the affairs of people and organization that make themselves and habitat to
change. It means inaugurate new levels and degree, developing new things and behaviours by
disturbing outdated and routines with a supreme way of thinking. Innovations lead from the
disappointment with the ongoing state of skill or technique, through creative attitude
organization can take advantages of new social and technological opportunities. Innovation
refers to the composite development of discoveries and inventions in order to lead the business
and environment. This further spread and accepted by users. Whereas diffusion of innovations
leads development in both ideas and innovations that are mostly imitated by other competitors or
players in the same industries.
Innovation is a process of converting the plan or purpose or invention into goods or services that
basically construct the value for which consumer will pay. When the idea is reproducing the
specific needs and satisfying those needs at an economical cost is called an innovation (Bagchi,
2007). It involves imagination, initiation, and application of information in generating greater
and stronger values from the available resources consisting of new ideas which create and
convert into useful products. When a company applies the ideas which further results in
satisfying the needs and presuppositions of the consumers.
Commercializing is the process of introducing new methods and products into commerce to have
principally financial gain. Commercialization needs business advancement as a strategy like
determining the supply of product in the market, marketing plan and determines the hurdles
coming for the companies' success. The direction or the ideation phase, stage for business
process and stakeholder stage these are the main three segments for the process
commercialization.
In a social state of affairs, innovation assists in creating new methods for association creation,
comfortable working hours, joint venturing and creating of purchasing power of buyers.
Innovation is divided into 4 broad categories:

1. Sustaining innovation- the area where we are already doing is the scope where we spent
most of the time to get better this is the area where it happens. Here we try to improve our
existing capabilities in the existing market because of we quite clear about the idea that
where we are having a problem and how it needs to be resolved and what is the skills
estate needed to solve them.
This kind of problems gets the answers through conventional strategies such as traditional
R&D labs, strategic planning, bring new resources and skill sets into the organization by
using assets meant to be very effective. David Kelley, founder of the design firms IDEO
and Stanford's d.school that is Method of design thinking can help the organization
tremendously in both the problems and skill are well understood to solve it.
2. Breakthrough innovations- problems that are just deadly hard to solve them which are
well-defined for example impurity in undersea, in this kind of cases we need to develop
unusual expertize and explore the skill province, such as including marine biologist to a
team for inventing solutions. Open strategies can be highly effective innovation as they
help in revelling the difficulty through various skills.
3. Disruptive innovation- this concept was introduced by HBS professor Clayton Christen in
the book The Innovator's Dilemma, it was all about disclosure. He found in his study that
why good firms fail, what the best applications are considered normally like focusing on
bottom line, listening to customers and continue investing for improvement, this situation

can be mortal sometimes. He discovered that when the changes come in the basis of
competition because of change in the marketplace, technological shifts and also
companies find themselves better and better at things where other people giving least
concern, in that situation your product innovation would not help you as you need to
innovate your business prototype. Alex Osterwalder has created The Business Model
Canvas and value proposition canvas and Lean startup method were developed by Steve
Blank these are the necessary assets for the people who find themselves in the situation
described by christening and these model are proving to be very effective in Nemours
conditions.
4. Basic research- groundbreaking or path-breaking innovations never appear fully
organized (Varis et al., 2010). It always take-up with the discovery of some new
phenomenon. Nobody is able to guess how Einstein’s discoveries would shape the world,
as Neil deGrasse Tyson said when he was asked about the impact of a major discovery,” I
don’t know, but we will probably tax it” to his point of view discoveries of Einstein plays
very important role in ranging technologies from nuclear energy to computer
technologies and GPS satellites.
Some larger enterprise4s have the resources to plough money into labs to run after basic
research like IBM and Procter & Gamble. The government had made possible to even
small and medium-size enterprises can access world-class research because of federal
government funds and much variety of programs like series of manufacturing hub to
develop the advanced technologies, Hollings manufacturing extension partnership and
Argonne design works. Local universities are providing scientific talent that is valuable
resources.
DIFFERENCE BETWEEN INVENTION AND INNOVATION
Creation or introduction for the first time of any product or process can be defined as
"invention", whereas on another side when someone puts his effort in improving that existing
product, process or services is known as "innovation". Someone invented the android phones
then different featured android phones has come up with unique qualities which is possible
because of innovation.

The best example for innovation is job's iPod as the iPod was not the first portable music device
in 2001, whereas Sony popularized the music by 22 years earlier through Walkman. So invention
is the creation of a new product, on the other hand, innovation is something which adds the value
to the already existing product. The invention has the concept of original ideas by following
working theories and innovation is the practical implementation of new ideas on existing
products. Innovation required the set of skills like technical, marketing and strategic skills and in
invention, only scientific skills are required. Inventions are occurring when scientist strikes with
the new ideas and in innovation, it is the need and feeling to improve the existing product or
services.
WHY INNOVATIONS ARE IMPORTANT FOR AN ORGANIZATION
Innovation gives extremity to a company to be powerful in the market at a faster rate and also
provide better links or relationships to grow in the market in order to achieve the sizeable
opportunities mainly in wealthy countries. That's why it is very important at the workplace.
Original concepts can be developed through innovation by giving the innovator to take charge
which gives self-assured attitude to bear risk so that things can be done. The process of creation
is not always that simple but when the company is having an innovative culture then it can grow
easily. We have reliable methods that are tried and tested but trying out new things and
experimenting worthwhile are always led to success.
ORGANIZATIONAL VISION, LEADERSHIP, CULTURE AND TEAMWORK
CAN SHAPE THE INNOVATION AND COMMERCIALIZATION
Multiplicity is very advantageous for innovation by broadening the pool of ideas through a
different point of views collected from various places. Open culture allows a dissimilar way of
thinking to be conveyed, effective teamwork in the organization which can convert the designs
and ideas into fruitful products and services and makes the vision clear which helps to separate
noise from proficient data, that’s why open culture plays an important role in innovations.
Adaptive structure of a company is very important to encourage the process and helps in making
effective this can be possible only when the leadership is there who construct and show the
vision and give illustrations and samples. To be successful the company needs to have a strong

and clear vision, goals, missions and desirability of the company. These components assist the
team and vision of the company to commercialize.
The team should be as good as the leader. The leader should find the employees who are not
willing to adopt the changes, who are not having the right technical skills or other required skill
is very necessary for the success of an innovative organization. The kind of environment is
required where innovation inspires by hiring different background people which gives liberal
hours and spirit to experiment. Basically, teamwork procreates innovation and then strategic
efforts of the company combined well then it can guide to the commercializing of a great
product.
Innovation in a culture in any business is an essential part. It is not sufficient just to concur and
communicate the importance of it. If the company wants to remain alive and flourish in this
digital time, then the company needs to move in this direction for the betterment of the company.

INTRODUCTION
Delivroo is a British online food delivery company founded in 2013 by Will Shu and Greg
Orlowski, both are Americans. Headquarter is in London. It is operating in two hundred cities in
the UK, Netherlands, France, Germany, Belgium, Ireland, Spain, Italy, Australia, Singapore,
United, Arab Emirates, and Hong Kong. Deliveroo charge commission fee from restaurants, as
well they charge a fee from the customer for per order to make the money.
The orders can be made through its app or website and then Dispatch rider through bicycle or
motorcycle transport the order from restaurant to customers.
Deliveroo introduced deliveroo plus in November 2017 which basically a subscription gives
services to the UK customers that is unlimited free delivery.
Deliveeroo is working for the biggest restaurants across the UK, the majority of the restaurant
are exclusively available on deliveroo app with numerous restaurants. Deliveroo also allows
marketing along with the delivery services and takes order this it arranges the food from
restaurants which do not provide and offers delivery services normally. This company also won
various valuable awards for its performance.
In the year 2015 deliveroo write down a loss of 1.4million then in November 2016 again set
down a loss of 18.1 million and in September 2017 deliveroo performance showed the growth in
global revenue of 611% in 2016, with sales 128.6 million whereas losses fly up from 30 million
to 129 million.

4 P’S OF INNOVATION AND HOW THE INNOVATION FUNNEL USED TO
SHAPE INNOVATIVE IDEAS
Innovation is the process in order to create the new ideas for the improvement of products
and services and it is also known as innovation mix, here are the 4P’s which helps in
developing the ideas:
 Paradigm- it is the process planned by an organization and concerned with the changes
in an organization by doing something. It is about change over that can be anything. For
the bakery's the way they sold the product selling on the internet or through catering
system it may be in any way. Can we imagine online bakery again its innovation, but it

should be profitable, changes not always lead towards the success of a business. Shifting
to rural area from an urban area is not a good idea this will won't work when your
surrounding if full of different culture, attitude and values.
Can we imagine getting your birth certificate from computers rather than standing in long
line for the certificate, this can also be innovated by radical changing, the way we do in
our business.
In the same way, deliveroo has to do planning how to do business in different situations
and conditions where deliveroo face various problems like fake calls and time services
when they provide new food to customers.
 Process- process innovation is anything we can do to improve the process of an
organization so that work can be done in a more efficient way and in a quicker way that
can also be cost-effective manner. In simple words, creative and innovative ideas should
be applied to the existing process that will lead towards the success and profitability of an
organization. It also refers that replacing the old ones and adopting the new process. This
process can be related to anything it mi9ght be decision process, manufacturing process
or managing process, this innovation process can be applied to anything which involves
the process.
So process is the way of providing the product to the end users so, it is very important
like if your delivery process is long then the possibility of success is low and if your
delivery process is short then there are more chances to get success in the business, thus
deliveroo must follow this process of delivering the food to get the criteria of success.
 Product- it is the main and foremost item offered to consumer, which adds the value to
organization, so here the innovation is all about product, how we can innovate our
product or service, by giving them different or new method of delivery, new packaging,
new shape, new colour or anything and if you are selling of product well then your
innovation had worked for you, will be considered as real innovation. Therefore it can
anything related to your product which makes your product improve and loved by
consumers.
Thus, in case of deliveroo if it creates or launches a new product which is able to give
best services to customers then it will successfully be able to add the value to an

organization by giving competitive advantage so ultimately 4P's consist main item that is
a product, by which innovation and commercialization is done.
 Position- in marketing mix the ‘position’ and ‘promotion’ are somehow similar but in the
innovation mix they are extremely different. Perception of customer depicts the position
it refers to the psychology, what is the perception of customer about their product,
employees, business-partners, salaries, revenues, and contractors, there are lots of things
which affect the perception of customer regarding the business, in today’s era position is
everything in market, now it not about the services and products providing by
organization it all about how their customers are perceiving them.
It is the basic goal of commercialization and innovation to create a position in the minds
of the customer by giving them smile and satisfaction through their product. Similarly,
deliveroo wants to achieve the position by giving the best services to its customers.
INNOVATION FUNNEL OF DELIVEROO
Innovation funnel is the process of evolving new ideas and concepts which basically helps in
describing the steps by which ideas can be formulated in the best manner to give the finest
services to the customer (Cooper et al., 2009). The idea can be handled and managed by which
organization can maximize the goal and objective through different types of a funnel, the
different type of ideas and intelligence (Vanhaverbeke, 2013).

In the case of Deliveroo the first step of innovation funnel is to collect facts and figures in order
to know how much this idea fitted in the needs and demand of customer, then the next step is to
separate the idea from other different ideas which seem to be best for the implementation after
that we need to understand which best idea going to highly support the company drawbacks and
opportunities after analyzing this implementation of idea into real actions will be done.
ROLE OF FRUGAL INNOVATION IN THE DEVELOPMENT OF DELIVEROO
Frugal innovation exercise is related to the developing market. frugal innovations are producing
the volume that is perfect for an economic market which completely fit in the needs and
requirement of a consumer, in other words, these products and service are very affordable so that
every customer poor or common man can easily buy. As low-income consumers also want to
purchase and participate in the economy of the market as it improves their lives and permitted
them to increase their demand. This term frugal arouse from the translation of the Indian Hindi
language word ‘jugaad'. This word denotes that "extemporize arrangement or ordering due to
lack of resources". Basically, it refers that producing or processing of low-cost products,
imaginatively, uniquely and finding the innovative solutions for the problem faced by general
people or organization.
Frugal innovation is a process used to rearrange or reshape the usefulness and supply chain. This
plan or thinking is applied to redesign or reconstruct the product and services (Agnihotri and A.,
2015). Frugal innovation helps in producing new models for business which are used to put in the
business activities and extensible operations. There is some condition when the innovation
process and exercise considered as frugal:
1. When considerable cost reductions can be seen
2. When the focus is centralized on the main actionable
3. To be the strong factor in attaining prime execution
These are essential to determine whether the frugal innovation is justified and how it is justified
in the exercises of frugal innovation, whether it is working for a company in producing
innovative cost-effective or not.