Analysis of Innovation and Commercialisation at Dyson (BUS101)

This report provides a comprehensive analysis of innovation and commercialisation strategies, using Dyson as a case study. It begins by differentiating between invention and innovation, emphasizing the importance of the latter for organizational success. The report explores how Dyson's vision, leadership, culture, and teamwork shape its innovation processes and commercialization efforts. It discusses various forms of innovation, including incremental, disruptive, radical, and architectural innovation, and outlines four directions of change within an organization: product, process, business model, and marketing. The report also examines innovation approaches such as the innovation funnel and frugal innovation, highlighting the significance of the commercial funnel. Furthermore, it delves into the importance of innovation business cases and tools used to develop, retain, and protect intellectual property. The report concludes by summarizing the key findings and insights into Dyson's innovative practices.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Difference between invention and innovation...........................................................................1
Value and importance of Innovation and how the organisation vision, leadership, culture and
teamwork shape innovation and commercialisation...................................................................2
Different forms of innovation and four direction of change in organisation .............................4
Approaches that can be taken for process innovative ideas including innovation funnel and
frugal innovation.........................................................................................................................6
Importance of commercial Funnel..............................................................................................7
Innovation business case ............................................................................................................8
Different tools that organisation can use to develop, retain and protect knowledge and
intellectual property..................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is related to transforming an idea into action which leads to the uniqueness in
the process, product etc. It is a process that consist of different activities to get the new things
which are not present earlier. With the help of innovation companies are able to create new
opportunities for their business to be successful in the market and get the competitive advantage
against the other firms. In this assignment, Dyson will be consider which is a most innovative
company. This company is operating in UK and is involved in technology industry. It
manufactures household appliances such as vacuum cleaners, air purifiers, hand dryers, heaters
etc. The company wants to introduce a new product for which this whole study is presented.
Furthermore the study will provide information about invention and innovation. Moreover, It
will consist information about innovation funnel and frugal innovation. Also, it will consider the
importance and value of innovation to organisation. In addition , it will give information
regarding 4P's of innovation and its capability to support management of innovation.
MAIN BODY
Difference between invention and innovation
Innovation is related to putting ideas into action through processing of goods and
services in the market to increase the market share of company through product. Innovation is
improving the existing products and services but on the contrary, invention is related to creating
a new product for the first time (Abdul Razak and Murray, 2017). Innovation is important to
organisation because without improvement and development in products and services the firm is
not able to achieve its goals and objectives.
The following is the difference between innovation and invention
Invention Innovation
It refers to creation of a new product which
is never been made before.
It is implementation of an idea into action by
improving the product
It is creation of new industry Improving or developing existing products by
adding value to it (The Difference Between
“Invention” and “Innovation”, 2017).
The skills required for invention is scientific Whereas it required marketing, technical and
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skills strategic skills.
Invention is limited to research and
development department.
Activities related to innovation are spread in
the whole organisation.
From the above table, the difference between invention and innovation provides a clear
understanding that invention is something which is never done before whereas innovation is
improving the exiting products or process through a new idea. Commercialisation is the process
of transforming ideas, knowledge and inventions for introducing a new product and making it
available in the market. It is driven by market and profit motives (Xu and Maas, 2019). The
Dyson company is most innovative company as it uses new technology and other innovative
tools to develop its exiting products such as vacuum cleaner etc.
Innovation assists company in attracting more customers towards the firm by improving
the products as per the requirement of the customers. In Dyson Innovation is most important
because it is the driving factor for its success. Innovation is providing the customers with
different products which are not available with its competitors through development of product
(Ahn, Minshall and Mortara, 2015). In Dyson the innovation is developed on the basis of the
customer requirement by identifying their demands and needs and accordingly they develop their
products and they measure their performance through using the past product and making changes
in those products.
Value and importance of Innovation and how the organisation vision, leadership, culture and
teamwork shape innovation and commercialisation
It is important for the organisation to have innovation process on continuous basis as it
assist in developing products and services of firm. Innovation is important because it creates
value for firm by developing products and process which leads to success of organisation.
Innovation in products and process have been increased over years. With the help of
innovation, companies are able to improve their products and can satisfy requirement and needs
of customers which assist in attracting the potential customers towards firm and retaining
existing customers in business for long run (Arkolakis and et.al., 2018). The following are
various importance of Innovation in the organisation :
 It assist in achieving goals and objectives of firm.
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 It is important for gaining competitive advantage against the rivals existing in the
industry
 Satisfy the needs and demands of customers.
 Innovation assist in creating value for the investment done by shareholders and provide
higher returns on their investment.
Innovation create value for the business because by innovation organisation is able to
provide new ideas for improvement in their products and services which helps in increasing
productivity and performance of company in which it operates. Innovation create opportunities
for the organisation through which they can enter the new market to increase their profitability
and meet the demand of the potential customers through their developed products and services
(Cefis and Marsili, 2018). Innovation brings improvement in the organisation structure and
culture and motivate the employees to improve their performance for achieving organisational
goals and objectives through the innovation.
Innovation create a healthy work environment in organisation and keep the employees
motivated which assist the firm in gaining competitive advantage towards their competitors.
Dyson for creating the culture and structure of innovation is require to motivate the
employees to actively participate in the firm operations and engage in the innovation process .
Moreover, it is required to provide the employees with specific tools, information and skills to
enable them to innovate (Nepelski, 2019). The importance of organisational vision, leadership,
culture and teamwork for creating innovation are as follows:
 Organisation in order to shape innovation and commercialisation are required that they
must provide understanding to employees regarding the firm's vision which motivate
them to engage in innovation process and the way through which implementing this
innovation will assist in achieving the vision of company.
 It is important to have clear organisation vision to provide better understanding to
employees and create a positive work culture towards the vision.
 Leadership can shape the innovation of firm by motivating its team and providing them
knowledge and understanding. It can provide the team with training to improve their
performance and can get suggestion from the employees regarding the improvement
required in organisation.Innovation culture is developed through continuous involvement
of firm in development of exiting product with use of technology and other tools.
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 Teamwork is important because without team work organisation is not able to develop or
implement a new idea.
The sources of innovation consist of changes in industry or process needs, unexpected
failures etc. the external sources of innovation consist of demographics changes , changes in
perception, mood and meaning etc. The organisation create a culture of innovation because it
assist in supporting the creativity. The firm in order to create the culture of innovation can
empower their employees and by developing the innovation ambition etc. the firm can measure
the innovation through use of key performance indicator such as innovation sales rate which is a
percentage of sales of new products (Kang, Burdon and Mooney, 2019). Innovation is
developed in order to meet the new requirement of customers and industry.
Different forms of innovation and four direction of change in organisation
There are different types of innovation which are as follows:
 Incremental innovation : It is most common form of innovation. It creates value for the
customers. Through use of incremental innovation the firm is able to improve its existing
products within the existing market. It is related to small changes or improvements
which are made to company's existing product, services, process of methods (Cornaggia
and et.al., 2015). Dyson in order to use this type of innovation can make changes in its
exiting product or process such as developing a new version or with advance feature .
 Disruptive innovation : It assist in creating a new market and goes on to disrupt the
exiting market. Disruptive innovation refers to a technology which is implemented by
the firm and will disrupt the market functions. For example, adopting the technology
which is not present with the competitors will affect the company (O’Gorman and
Donnelly, 2019). Dyson through use of disruptive innovation will be able to adopt a new
technology which is not present by other competitors for example, Dyson has
manufactured Dyson Cyclone v10 which is a cordless vacuum cleaner not present with its
competitors assist in gaining competitive advantage to firm but as it is very expensive
many customers cannot afford it.
 Radical innovation : It is the innovation which gives birth to new industry in the market
(Dincer, 2017). It changes the whole business model and create an industry which is not
present earlier for example, the technology industry was not present earlier but with this
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innovation the different industries change their business model due to increasing
popularity of technology.
 Architectural innovation : It destroys the usefulness of firm's architectural knowledge
but preserves the usefulness of the knowledge about the product's components.
The four direction of change that an organisation can take consist of the following:
 Product change: It refers to changing the product through use of innovation in
organisation. It can be through improving product by use of various technological tools
such as introducing a new version of exiting product.
 Process change: It is a change in the process or operation performed by firm. It refers to
change or improvement in production methods through innovative ideas.
 Business model change: It is related to changing the organisation structure or methods
of business practise.
 Marketing change: It provide understanding that changes in marketing methods for
attracting more customers towards the products and services offered by firm. It refers to
changes in product design ,or packaging, product promotion and pricing etc.
Dyson is using the product change by improving its exiting product through use of innovation to
provide better services to customers and increase its profitability.
The 4ps of Innovation are as follows:
It is the model which assist organisation in making changes by understanding the the
current status of the product and ways to innovate them. The following are the 4 ps of
innovation:
 Product : It is a changes in the product or services offered by the firm in order to gain
the competitive advantage and gaining more market share through that innovation which
will assist in increasing their customer base (Goffin and Mitchell, 2016). Dyson is
involved in innovating the new product which act as threat for its competitors such as
Hoover etc.
 Process: This is related to changes in the way things are created and delivered. The
company can make changes in the process through use of technology which will helps in
improving production process of products and services and the firm will be able to
provide high quality products and services in the better way (Clarke and Evald, 2019).
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 Position: It refers to re- positioning the perception of the existing products and process.
By positioning the products in market at high standards which helps the company in
building a strong customer base.
 Paradigm: It is the change in the mental models relating to the company's operations. It
includes behaviour and emphasis local ownership, leadership etc.
Dyson is involved in product innovation in which it provide change in the existing
products and developing a new product according to the demands of customers in order to satisfy
them which assist in increasing the profitability of firm.
It is recommanded to innovation manager to be involved in disruption innovation
because it assist in increasing the changes for firm to enhance their profitability because the
technology advancement or innovation implemented is not present with the competitors.
Approaches that can be taken for process innovative ideas including innovation funnel and
frugal innovation
The funnel is required to be wide at the front to capture potential ideas as possible to
select the few that are actually carried out within the active portfolio (Doyle and et.al., 2019).
An innovation funnel is used to describe the steps that are undertaken for the development of
process or product. In Dyson, The innovation funnel is used to carry out the activities for the
development of product.
The aim of any product or process development is to take an idea or concept to reality by
implementing it and convert into specific product that can meet the market needs in a economical
way. The innovation process start with broad range of inputs. It is the way through which the
idea is converted into innovation through development of products or process. The steps in
innovation which consist of investigation, development and product shipping. The process of
innovation starts with the idea which is implemented practically for deriving results (Isomursu,
Wallin and Jaekel, 2016). The innovation funnel is applicable to Dyson because in innovation
funnel the innovation is made through use of research and development. For example,
improving the product of Dyson it first make the research on the requirement of the customers in
order to develop the product accordingly.
There are two model of development of funnel
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Model 1 : It is model which is technologically intensive and larger. The larger firms which rely
on research and development to generate new ideas and technology, product and process uses
this model.
Model 2 : It is a top down model which is common in small, entrepreneurial start-ups. In this
model, the firms bet on single product
Frugal innovation : It is the process of reducing the complexity and cost of good by
removing the non essentials features from product. Frugal innovation is used in organisation to
reduce various constraints. Dyson in order to use the possible innovative ideas for the
development can refer to the followings:
 Using the social media: Dyson through use social media can reach a wide range of
customers and can provide them information about its products and services. Social
media can help the firm in increasing its sales by promoting the products and services of
organisation through different websites such as Facebook, Instagram etc.
 Sponsoring the community events: The company in order to increase its sales can
promote its products and services through use of community events.
 Become a resource for customers: The firm has to be resource for its valuable
customers. For this, the organisation should provide information and support to its client.
Frugal innovation is used in Dyson to increase the sales of firm by cutting the cost of
products which are not in used by customers to increase their sales by those which can afford it
at the low prices (Johannessen, 2017). Dyson provide its various products at low cost by using
the frugal innovation to increase itssales. Frugal innovation is the process of reducing cost and
complexity in production of product.
Importance of commercial Funnel
Commercial funnel refers to the buying process that companies lead customers through
when purchasing products goods. The commercial funnel involves several phases like awareness,
opinion, consideration and preference. Commercial funnel is important because it assist in
identifying the areas for improvement in organisation. Dyson mainly focus on vacuum cleaners
and other products for the customers are provided less importance and so, in order to develop its
products Dyson is required to focus on every products it manufacture to provide satisfaction to
its customers (Lin, 2018). But due to company's higher prices, there are less customers attracted
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towards its product. As only high income group people are attracted towards the products of
Dyson. In order to solve this problems Dyson is required to introduce products which are
affordable to other consumers also and must contains the features which are as follows:
 Available at affordable prices
 High quality
 Must have options
Commercial funnel is required for creating awareness among the customers regarding the
products. Dyson must provide the awareness of its products to customer by promotion. Because
if the consumer is aware of the products then they will prefer their products rather than that of
competitors.
For development of new product of Dyson, the following are the steps:
 Idea generation : It refers to coming up with new idea regarding the product for
example, Dyson development for cordless vacuum cleaner.
 Screening the idea : It means identifying the effectiveness of the idea.
 Concept development and testing : It is to understand the concept of the product for
example, cordless vacuum cleaner assist in cleaning the home and it is designed for floor-
to -ceiling cleaning.
 Product development and testing : It means creating a prototype product. To provide
sample in the market to identify the effectivenesses of the product.
 Market testing : Modifying the products and services according to customers feedback.
 Commercialisation : It is the stage at which the products has gone mainstream and
consumers are purchasing the product. Dyson vacuum cleaner is more beneficial as it is
designed for floor to ceiling cleaning.
 Product launch : It means introduction to the market. The vacuum cleaner will be
provided to mostly the households.
Innovation business case
Executive summary : Dyson is the most innovative company and is coming up with the
new product which is Dyson vacuum cleaner V11. The unique feature of the product is the
motor. This innovation of the company will drive more customers for the firm and will provide
better cleaning to the customers of their homes and other places. Dyson V 11 is a upgraded
version of vacuum cleaners V8 and other.
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Mission statement : Its mission is to inspire the new generation of engineers.Objective :
 To provide the customers with more convenient tool for cleaning.
 To enhance the sale of firm by 10% .
 To provide long lasting usage through advanced motor.
 To increase the profitability by 10% by development of this product.
Marketing Mix : It is the understanding of targeted market to understand the taste and
preference of customers. The 4ps of marketing mix applicable to Dyson are as follows:
 Product : Dyson vacuum cleaner V11 is a bag less cyclonic , durable and light weight ,
good quality and is convenient for use. The product will be useful for customers and will
save their time in cleaning (Doyle and et.al., 2019). This product will assist in increasing
the profitability of Dyson and will provide customers with more convenient services.
 Price : The price of the product is required to be identified for understanding the the sales
which will be achieved by developing this product. Dyson vacuum cleaner will provide
by the company through use of market penetration strategy to enter the market with new
product. While entering the market it will keep the prices low in order to attract the
customers.
 Promotion: It refers to advertising of the product through use of different promotional
tools. Dyson will use the social media technology for promoting the products because
huge traffic is found on social media which can assist in promoting the product of Dyson
(Parker and Van Alstyne, 2017). Place : It is the place where the product will be made available to customers. The Dyson
vacuum cleaner V11 will be available at physical store whereas on its websites so that the
large number of customers are attracted towards the product.
Segmentation, Targeting and positioning
Segmentation : It is the process of dividing the market into groups on the basis of similar
characteristics. The Dyson will provide product on the basis of age, gender, demographics ,
occupation, social class, income group etc.
Targeting : It will target mostly the females but also males will be consider . This
product will focus on household people of average age group.
Positioning : It is positioned as the most innovative company which provide the
customers with different products with high – technology based not available with competitors.
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Ways to access funding : The following are the different ways which can be used by
Dyson for its new product (Parker and Van Alstyne, 2017).
 Retained earning : It is the profit earned by company which are retained in business for
future investment in the operations and process of organisation. Dyson for its product
development can use this source in which it can use the profits by reinvesting them in
business.
 Equity financing : It refers to issue of equity to public in order to attain the funds.
Dyson can use this source for its product development in which it can offer the equity
shares to the public (What Are the Sources of Funding Available for Companies, 2019).
 Bank loan : It is the loan which the firm can acquire from bank for performing their day
to day operation . Bank loan is the most common form of acquiring funds. Dyson can
use bank loan for the development of its products.
Different tools that organisation can use to develop, retain and protect knowledge and intellectual
property
The followings are the tools which can be used by company for protecting the knowledge
and intellectual property.
 Patent : It is the property right of the inventor. To get the patent it is required that the
information about the invention must be disclosed to the public in the patent application.
It gives an right to the inventor to protect its invention and restrict other to use the same
invention.
 Trademark : It is recognizable sign , design which identifies the product or services of
a particular source from that of others (Maritz and Donovan, 2015). It refers to the logo
or brand.
 Copyright : It is the legal right of the owner of intellectual property. It means the creator
of the product if provide authorization that only have the right to use the product or
service. It includes computer programs , films, artistic works etc. the copyright is granted
only for the owner to reproduce the material.
 It is recommended to Dyson to use the copyright to protect the intellectual property from
using by other individuals and organisation.
Dyson can protect the knowledge by using data protection policy. It includes that the data
will be collected and used fairly and lawfully. Dyson can take the legal steps against their
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