F-Drone: A Report on Innovation and Commercialisation (Unit 8)

This report examines innovation and commercialisation strategies within the context of F-Drone, a company focused on drone technology. It explores the importance of innovation versus invention, analyzing how F-Drone leverages its vision, leadership, culture, and teamwork to foster innovation and commercialisation. The report delves into the 4Ps of innovation, the innovation funnel, and the development of frugal innovation, providing a comprehensive understanding of how F-Drone brings its products to market. It also discusses the significance of the commercial funnel, new product development, and funding strategies for innovation, including building an innovation business case. Furthermore, the report examines the tools organizations use to protect intellectual property and retain knowledge. Overall, the report provides a detailed analysis of how F-Drone approaches innovation and commercialisation to achieve its business goals.

Unit 8 – Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
P1 What is innovation and what are its importance in the organisation in comparison with
innovation...............................................................................................................................3
P2 Discuss organisation vision, leadership, culture and teamwork which shape innovation and
commercialisation...................................................................................................................5
P3 Discuss 4ps of innovation and innovation funnel.............................................................6
P4 explain development of frugal innovation with the help of an example...........................9
P5 Discuss the importance of commercial funnel & application of development of new
products................................................................................................................................11
P6 Determining ways of funding by building innovation business case in organisational
context..................................................................................................................................14
TASK 2..........................................................................................................................................17
P7 Determining various tools organisation use to protect or retain knowledge and intellectual
property.................................................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
This report help in understanding the importance of innovation in a business organisation
in order to maximize business profitability. In a business organization Innovation is the process
of developing new and creative business ideas and commercialisation is the application of
different business strategies for presentation of that idea in market along with its establishment.
In an organisation, innovation can be processed in product, marketing, process, and organisation.
The organisation that is selected for the completion of this report is F- drone. The main purpose
for the selection of this particular organisation is only because of their innovative and creative
ideas This report is based on the selected organisation for, there is the consideration and
evaluation of innovation and commercialisation in context to organisation growth, development
and success (Rasmussen, T.E. and Eliason, J.L., 2017) .
.
MAIN BODY
Task 1
What is innovation and what are its importance in the organisation in comparison with
innovation
Innovation- This is used within business as the important skill or ability of the
entrepreneur or business man, through which they develop the new business plan and strategies
in order to achieve success. This can also help to overcome from the challenging issues
organization which can be short by innovative solutions.
Invention- This concept is about developing something new and unique so in context to
with a company invention is the approach to develop something creative and useful for the
success and the growth of the organisation. Such as the development of new techniques in the
drone for better services and product line for the target market. Unlike innovation, invention
tends to create something new from the scratch or from level zero.
Importance of Innovation over Invention
Innovation is creative skills of the individual’s which helps in the development of
inventive ideas thorough which the effective invention is can be accomplished. Innovation is the
key step of invention. Below is the brief explanation of the innovation and invention in context
to the business organization.

Provide direction for the invention- individual’s creative and out of the box thinking is
the part of their innovation skills which further helps in the invention of new business idea and
new unique products development. So, innovation is key directive step of the invention.
Innovation paves the foundation of invention.
Guidelines for invention- creative and innovative abilities and qualities of the
individual’s or group helps in the development of effective invention plan with the selective
guidelines of the innovative ideas. It works as the invention’s guidelines and formula for new
services and business strategy development (Haron, H., 2018 ).
.
Reinforce Brand: For each and every business organization image of their brand and its
value is influencing the changes in their share’s values, so in context to this organization
innovation approaches for offering the new unique services and products are the key factors
which helps in developing the strong base among the consumers. By meeting the comitative
edges.
Helping in growth of organisation- in relation to the F-Drone implementation of the
new innovative ideas in done in order to develop this effective tool with the benefits of resources
saving and time and money management. Products quality, facility and uniqueness will increase
the company profitability, and help to compete in the market with better product quality and
services.
Development of a unique selling point: UPS (unique selling point) means the unique feature of
the product or the company that differentiate the business services or products from the market
competitor. F-Drones is developed with the innovative idea of long range of capacity and
combination of the heavy payload, which develop the unique purchasing point for the
customers .
Pestle analysis
Political factors: This factor is very important in drone industry as there rae various
political issues that either allow drones such as unmanned aerial vehicles or ban their use through
transportation department. Therefore, f-drones have made sure there is proper mangemnt of
regulations set by American aviation. The weight of drones also varies its use for commercial use
at many places that is fifty five pounds maximum.

Economic factors: In a perfect competition market, organisation such as F-drones have
introduced a fast alternative way to carry out logistic activities including transportation of raw
material. The most efficient way of introducing drones in market is replacement of manual labor
with fast technology drones leading to better productivity.
Social factors: Main motive of innovation and invention of product is to commercialize
new product into the market. For success of F-drone vision they innovate new ideas like the
delivery drone and commercialize that product in market economy.
Technological factors:When a company provides new product with high quality it
enhances the value of organisation, as an innovative product provides competitive advantage to
company. Therefore, F-drones has use technological innovation for improving their process and
achieve growth in future. The parts for development of drone are taken from the old and the
unused drones. develops other drone which give more benefits to their customers as compare to
their competitors.
Legal factors: This factor signifies various rules and policies under which many
countries restrict
use of drones. Therefore it is important for chosen firm to follow laws of very country or region
they are operating their aerial drones technology.
Environmental factors: Respective organisation use this factor to do internal & external
environment analysis. One such factor is climate or werather of country usually that may broadly
affect or limit use of drones.
Competition, customer and globalisation effect on innovation & invention
Invention refers to generation of new idea for any product and serveries that never been
made before. These new ideas have no relation with the product and services already exist in
market. In context of F-Drone their research and development department are working on
inventing new ideas. Which helps in future growth of company. As per this, the concept defines
as invention is basically working on theories and on a new idea which is not exist in market. In
context of F-drone they use different segments of customers for successful invention. The skill
which is required for this is electrical and mechanical skills. Invention is basically for single
products and process. It provides a new product or service to market which helps in improving
economic growth. In context of selected firm invention is only limited to research &
development department (Henttonen, K. and Lehtimäki, H., 2017).

Innovation refers to a practical implementation of new ideas related to any product and
services for the first time. In context of F-Drone they innovate their existing products for facing
competition and creating USP for their products. Innovation helps organisation in making their
products more useful to their customers. Concept of innovations is related to practical
implementation of new ideas which is related to products and services. In context of F-Drone
their innovation helps in increasing profit through customer satisfaction. In context of company
they require a set of marketing, technical & strategic skills. Organisation have to deeply analysis
different needs, trends of market & financial capacity of organisation. It concerned with different
combination of product and process. All activities related to innovation of a production and
service is spread all over the organisation
Discuss organisation vision, leadership, culture and teamwork which shape innovation and
commercialisation.
In context of company, its long-term success is depending on different factors which help
organisation in achieving its goal. Innovation of new product helps organisation in facing
competitive market and increase profitability of organisation. The process of promoting,
advertising and selling the new innovative product is consider as the commercialisation. For
success of new developed innovative product this involves the different activities from the
management of new products, promotion and distribution, such as the various marketing process.
. some of another important factors of the innovation and commercialization are given below.
Organisation vision- In relevance with the F-Drone organization vision is to develop the drone
with further more services facilities, behind this product organization idea is very innovative to
facilitates the higher weight capacity for long distance place delivery services of drone. Heavy
weight transportation services by the drone to the distance place is the organization advantages
over the competitors. This innovative and unique property drone development innovation and
then final invention of that further helping the organization to commercialize the product and
achieve success in the market.
Leadership- this is the key function of the organization leaders and team manager which is
important in order to influence the workers for giving commitment and motivate them for the
productive work through which company can achieve their selective goals. F-Drone company is
using the autopilot leadership under which they lead team according to the new and innovative
means of talent and team development. Organization leader try to encourage the team members

for the creative and innovative skills development in order to make effective invention (Kadir, B.
and Shamsudin, M.F., 2019).
 Organisation culture- That is the biggest part of the organization management and it
involves the sets of rules, guidelines, which influence the employee’s behaviour. This
also involves the sets of organization expectation and overall performing environment of
workers. F Drone is managing the positive organization culture which support, motivate
and encourage the staff for innovative performance. Organization is following the
Handy’s task culture through which they are getting success in the inventive product
development and commercialization.
 Teamwork- For the successful achievement of the goals, team work is important, under
which team members collectively give their best for the task accomplishment. Such as
in context of F-Drone, they have particular teams for project, operation and delivery.
They have to work according to the new product development and commercialization
task. Team work in the organization is manage by the influence of effective leadership
and polies. Which help to manage the productive team work and performance.

Innovation is the most important quality of the entrepreneurs and other business leading
individual’s which help them to sustain in the market with unique competitive advantage. In
prospect to the F-Drone company is using the all-important sours of the management and
apply this innovatively. There is the flat management structure, which influence the effective
flow of the innovative communication without any barrier and help the organization to make
new invention with the help of information collected by the flat structure. Then in other hand
company is using the 360 degree feedback approach in order to collect customers and
employees review for improvement, through which they can further work for the new
innovation in order to fill that gap. All of these practices are the important part of the
innovation.
Discuss 4ps of innovation and innovation funnel
Innovations means generation of new ideas and developing new products in market
which increases organisation profit and success in future. Innovation of any product or service is
going through a process which helps organisation in developing new ideas related to their

product and service. 4Ps of innovation are also known as innovation mix which helps
organisation in generating new ideas.
In prospect to the of F-Drone they successfully use these 4ps of innovation for growth of
organisation (4 P's of innovation, 2020). Radical innovations lay main emphasis on developing
new technologies and revolutionary market economies. On the other hand, incremental
innovations are focused in improving systems that are already existing at cheap rates and fast
innovations. These are discussing below:
Paradigm- This is one of the innovation process under which individual or group change their
mental or physical performance strategy’s with the influence of new innovative factors. Such as
in case of the F-Drone company is using this innovation process through which they use the
critical analysis step of challenging environment factors and threat in order to make new
innovative approach for the invention through which they can facilitates the effective sustainable
products and services. With the help of this they are able to create the outline of everything that
they want to do. Incremental innovation is able to analyse and foresee the challenges and the
threats during the implication of Plan (Lin, S., Xiao, L. and Wang, X., 2021). Product- It refers to a service and a Good that is being provide to the customers in
exchange of some money. This helps to develop the profitability of company, product
Illustration 1: 4p's of innovation2008-2021

and services are the important factor of the P from 4p. The main radical innovation that
they will be providing is the high range delivery drones. through this they will be getting
competitive advantage over its competitors. Process- This involves the innovative product commercialization strategy through which
company can effetely make higher sale by providing products to the customers in most
creative way. In context of F-Drone its success depends on its delivery process. The
success or the failure of the drone depends on the processing time take by the drone. for
the process of taking the orders and supplying them F-drone have initiated role to
different personal for the whole task. Incremental innovation will reduce the chaos in
between the task and it will also make the process time short.
 Position- In prospect to the F-Drone, they place and position their goods in the market
by targeting the specific groups of the customers with specific services and products
needs. Main motive behind it is to create a positive image in the mind of their customers
through which they will be able to increase the sales of new product and service.
Incremental innovation will be able to position their production within market with the
help of marketing campaign.
Innovation funnel- In prospect to the F-Drone, their administration applies this approach
in order to develop creative and relevant action plan with the help of innovative skills. This is the
innovative technique or way of satisfying the consumers. (Lim, J.S., Darley, W.K. and Marion, D.,
2017) . There are some selective steps of this approach which helps the organization to
innovatively satisfy the customers, explain below: Information collection- The initial step of the innovative funnel is start from the
collection of information from various area of the sources. Such as in context to the new
products lunch F-drone firstly analyse the environmental factors to select the best
alternative approach of customers satisfaction. Radical innovation help organisation do
proper collection and analysis of information helps in successfully development of plan. Development- That is another important step of the innovation funnel, this guide to select
the best market segment for the product lunching. Such as in context to the F-Drone
they should use their existing market segment where the customers are already aware
about the company and its product’s.

 Delivery of products- This is the final step of the funnel innovation which involves the.
Innovative approaches of the product delivery to the customers. Such as F-Drone delivery
new and innovative products to the customer with more attractive and influencing plan
and activities as it is important for the success full achievement.
Figure 1Innovation funnel
As per the above diagram, this is well analysing that the idea generation is
necessary for any new product, as per this innovation funnel used to state any new idea is
formulated and their concept is analysed by various proof and survey. In addition to this, the
products and service are approved for the manufacturing and then are sale in various
marketplace. F-drone must use incremental & radical innovations funnel in order to visualise the
various factor such as idea generation to manufacturing of product which affect their business
profitability and productivity.
Explain development of frugal innovation with the help of an example.
Frugal innovation refers to a process of innovation which helps in efficiently utilized
available scarce resources for developing a new product. Frugal innovation is depending on
political, environmental and social factors of a country. These factors help in providing direction
of innovation process. In context of company this process helps organisation in reducing cost and
enhancing profit of organisation (Zhou, H., 2018). This method assists economic development of a
county. This is a process of frugal innovation because customers of UK have different taste and

preferences. The customers are also happy to pay high price for innovative products with new
and advance features.
One of the essential functions of the frugal innovation is to develop the business
strategies which helps in the customer’s interaction, higher sale and increasing profit of the
organization. Such as selling of the products at lower reasonable price by the helps of using
innovative product development technology which save the time and resource’s use through
which price rate of the product is can be control. So that with the help of this method
organization can provide good quality products at lower price. F- Drone is the new innovative
product with the better service delivery quality such as it faciality higher efficiency in delivery of
the higher weight substance with lass time. Analyse needs and demand of customers and make a
product that is satisfying their needs (Kelly, R. and Kim, H., 2018 ).
Principle of frugal innovation:
Principle 1: Engage and iterate
There is various old model which is time consuming in R&D, in this it is inflexible and
often forget to mark the changes. The old product is complex to buy, use and maintain and
number of product are not environment friendly. The continuous engagement and iteration called
as follow me home or visit by intuit to understand the need of consumer. In context to F-drone
they innovate new product in aspect of drone to engage customer with product.
Illustration 2: Frugal innovation,2021

Principle 2: Flex firm assets
This is second approach which is taken by frugal in their innovation. This is applied in
asset chain and also in manufacturing, distribution, service. In context with F-drone they are set
their pattern as same time and same duration for manufacturing and production of new innovated
product and services. With relation to F-drone they have fix distribution channel which manage
the manufacturing to sale of product in market.
Principle 3: Create sustainable solution
In the context with this, the climate changes, environmental sustainability which include
minimum use of energy and natural resources, and also depend on the ethical sourcing and
ultimately this help to switch in renewable energy. In this the recycling and upcycling is taken.
As per the selected firm, they recycle their product if the they are damaged and they use energy
from batteries which is sustainable in nature.
Principle 4: Shape customer behaviour
There are number of customer which already follow the frugal principle, the more need is
essential to enhance the awareness and motivation. The full cycle carbon reduction need to attach
more utilisation pattern of this and this is not just production. As per this the customer need to
consume less but consumer better. Moreover, F-drone provide quality of product and service to
their customer which moderate the behaviour of customer for firm product.
Principle 5: Co-create with other prosumers
As per this, consumer wants personalised solution and communication with brands. Some
of them hack it and improve its availability and in this number of people wants to design new
and built and sell product more effectively. This is important for firm to engage customer and
works as consumer centric. In respect to F-drone they use personalised query team to solve th
issue of customer via telephone or face to face (Frankelius, P., Norrman, C. and Johansen, K., 2019).