Innovation and Commercialisation Strategies: A Report on F Drones

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This report provides a comprehensive analysis of innovation and commercialization strategies, using F Drones, a Singapore-based marine delivery company, as a case study. The report begins by defining innovation, differentiating it from invention, and emphasizing its significance for organizational growth and differentiation. It examines how organizational vision, leadership, culture, and teamwork shape innovation and commercialization within F Drones. The report then delves into the 4Ps of innovation (Product, Process, Position, and Paradigm) and the use of the innovation funnel to shape ideas. Furthermore, it explores frugal innovation and its practical applications. The report also addresses the importance of the commercial funnel and the application of New Product Development (NPD) processing for commercialization. It includes the creation of an Innovation Business Case for F Drones, covering funding access. Finally, it evaluates tools for knowledge and intellectual property development, retention, and protection, concluding with a summary of the findings and recommendations for F Drones' continued success in the competitive market.
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8 Innovation and
Commercialisation
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................5
TASK 2............................................................................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas. ...............................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................8
TASK 3............................................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation. .....................................9
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................11
TASK 4..........................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Modern business succeed and grow in the today's corporate climate for end number of
reasons. Some organisations are known for their services or product and others are known for
their brand loyalty or promotional activities. One thing which is common in all the companies is
that they have clear leaders which focus on embracing innovation so that they can stand out from
others. Innovation can be referred to as the process which the organisation or the person
undertakes in order to conceptualise the brand new process, product or idea or approach the
existing process, product or idea in an new way (Yildiz, 2020). Commercialisation is the process
through which new product or the production method can be introduced in the commerce. The
organisation chosen for this report is F Drones, which is established in Singapore. This
organisation is specialised in Marine deliveries. This report shall cover the understanding of
innovation and its importance together with its comparison with invention, vision, leadership,
culture of the company, 4ps of innovation and frugal innovation. Further it will deal with new
product development and a business innovation case.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation is a concept which refers to the process through which the individual or the
organisation undertakes the task of either introducing the new product, idea or process or
approach with the existing product, idea or the process in some new ways. It can be defined as
the process in which new combinations are carried out which includes introducing new products
or method of production, opening of the new market or the source of supply.
Invention is a noval or a unique device, process, composition or method which involves
a process within an overall engineering and the product development process. It can be an
improvement in a product or machine or new process involved in creating the new result or the
object (Naughton and Foss, 2019).
In context to the F- Drones company, which is a innovative organisation focusing on
marine deliveries, the importance of the Innovation for F Drones is discussed below- It helps the organisation to grow- for a business to grow and succeed, it is important to
focus on the goals. It has been examined that the companies which wishes to grow needs
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innovation in their companies. It is a slow process but induces growth (Ellwood,
Williams and Egan, 2020). F Drone is a large organisation which has made its mark on
other companies only because of the innovation which it is coming up with. All
customers attract those companies which bring new and creative offering. It differentiate companies from others- Innovation is something which is done different
from others. In order to attract customers, a company must focus on doing something
which is different from others and brings an element of standout in the brand identity and
strategy. F Drones focusses on innovating new things so that it can launch something
which is not done yet in order to stand out from others. This is the reason behind its
success.
Innovation keep the companies relevant- the world is dynamic which is constantly
changing. So it is very important for the companies to stay profitable and relevant and for
this, companies has to adapt new realities. The main driving factor is the technology
which needs change (Monotti, 2017). F Drones work to bring new changes in the
technology which keeps it relevant and profitable in this competitive world.
Comparison of Innovation with Invention
Basis Innovation Invention
Meaning It is the implementation of the idea
for the product or a process for the
first time.
It refers to occurrence of new idea
for the product or process which
has not been done before.
Skills required It requires combination of different
skills like technical, strategic and
marketing.
It needs scientific skills for
inventing anything new.
Occurrence When a need is felt as to a product
or the improvement is needs in the
existing product, an innovation is
made.
It occurs when a new idea strikes the
scientist, an invention is done
(Locatelli and et. al., 2020).
Concept It is a practical implementation of
the new idea.
It is an original idea which is
worked in theories.
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P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
An organisation is an entity which undertakes different operations, activities and
functions so that it can attain its objectives with which it is established. In order to grow and
succeed in the competitive world, the companies has to innovate and develop. F Drones is a large
company which focuses on building the drones for the maritime logistics. It is focused to bring
aviation grade drones to become the leader of the drone logistics in five years (Razak and
Murray, 2017). Focus alone cannot work, rather there are many factors which affect the
functioning of the company and some factors helps in giving shape to the innovation in order to
commercialise it further. The elements like vision, leadership, culture and teamwork is discussed
below in context to F Drones which helps in shaping the innovation and the commercialisation.
Organisational Vision
The vision statement of the company is focused on long term objectives. The
organisations undertake their functions in the light of their vision statement which is developed
in the beginning when the company is setting up its operations. F Drones is a company whose
vision statement represent the main agenda of the organisation. Its vision statement is focused on
the innovative drones which can fly with heavy load in order to fulfil the large scale and on
demand aerial transportation of the goods.
Organisational Leadership
leaders are entrusted with the roles and responsibilities to undertake the activities which
lead to achievement of the organisational goals. They have requisite skills and knowledge which
help them to lead their teams in order to enhance the productivity of the company and its
employees. Leaders also motivate the workforce to bring out their best and in the area of
innovation, leaders pay a vital role (Szutowski, 2019). F Drones is a innovative company which
requires innovative ideas to stand out from other. The leaders of F Drones follow the
participative leadership style in order to engage their workforce in discussions and debates so
that creative ideas can be flourished and its mission is achieved.
Organisational Culture
Culture of an organisation states the values, background and beliefs under which the
company undertakes its working which helps in guiding the workforce. In context to F Drones,
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the management of the company focuses on continuous motivation so that their employees feel
job satisfaction. The culture of the company is happy and healthy which engages every staff in
its decision making so that its employees feel valued and can work to enhance the productivity of
the company so that its goals are achieved 2well on time.
Teamwork
Driving innovation is not an easy task, it requires skills and knowledge of the personnel
which is not an individual contribution but requires the efforts of the whole team (Ramli and A.
Zainol, 2017). It is an important factor which helps the companies in shaping innovation. The
company F Drones focuses on employee engagement so that each one is involved at every step
so that together they can focus on achieving the goals.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
Innovation is a process of bringing something new in the world either by introducing new
product or process or making improvements in the existing product or process (Gabriel, 2019) .
For adopting and implementing the process of innovation, F Drones can use 4Ps of innovation
which is discussed below-
Product Innovation- An innovative product is something which features new process or
methods which is original and advanced. It may be change in existing product or complete new
product is invented. The product innovation which is being introduced by F Drones is the new
“transition drone which enables aerial deliveries to offshore platforms and ships”. There are
many companies which have invented drones, but this is original and unique because it has
capability to hold heavy logistics.
Process Innovation- It is a procedure through which value is created by the companies. It
includes process as to how product is created. In context to F Drones, the company must taken
process innovation into consideration to implement reliable standards which can hold the heavy
payloads. It must also focus on production process which have high safety standards.
Illustration 1: 4Ps of Innovation, 2020
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Position Innovation- It refers to the market segment to which the company is focusing its
target. In context to F Drones, its target market is companies which are engaged in marine and
offshore logistics.
Paradigm Innovation- It stands for the changes as to how, where, why and how things
are get to be done. It consists of different principles, theories and doctrines. The top management
of the F Drones company can adopt such methods and theories which can bring change and help
in implementing it efficiently. It can make use of the systematic innovation in order to enhance
knowledge about the small components which are to be introduced at different level.
Innovation Funnel
It is a mechanism which is used to describe steps which are taken place in developing the
product or service. It determines the stages which is required to be undertaken to bring a change.
F Drones can make use of innovation funnel which is discussed below-
Investigation- It is the first stage where the Research and Development team of F Drones
will collect ideas from its external and internal source for the innovation. In order to
know the market condition and demand, the idea will be selected for innovation. Development- Once the ideas is gathered, this stage starts its work. Under this, scrutiny
of the ideas is done and one idea is developed which is suitable with the vision, mission
and objective of the company. F Drones is innovating transitional drones which can
enable aerial deliveries to the ships and offshore logistics.
Illustration 2: innovation funnel, 2016
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Shipping product- At this stage,the finished product is ready to be launched into the
market. It is an important stage as it tells the success and failure of the innovation.
Therefore F Drones has to come up with aggressive marketing strategies in order to
launch the product to attract as many customers as it can.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is a process which is undertaken to reduce the cost and complexities of
the product and its production. It usually involves removing the non essential features from the
durable good in order to sell it in developing countries. It involves discovery of new business
model and the value chain which is used to design the product or service which can render best
quality and valued goods to those people who are facing the problem of affordability. In today's
era, the lack of resources and the high empowered customers forces the companies to develop
and grow in the sustainable manner (Rietsch, Beaudry and Héroux-Vaillancourt, 2016). It is
more than a strategy which denotes new frame of the mind. There are few principles which are
given by experts in order to make use of frugal innovation which is discussed below- Principle 1: Engage and Iterate- under this the company must engage its Research and
Development through new ways rather than using old techniques which engages high
cost and is time consuming. F Drones can make use of its websites and social media in
order to conduct the market research which is cost and time effective. Principle 2: flexibility- it is one of the feature of this frugal innovation as it applies to
wider asset chains also. F Drones can make use of the frugal innovation in order to
innovate its drones so that it can lower its cost and maximise its profitability. Principle 3: development of sustainable solution- as the resources are diminishing, there
is a need of sustainable solution for it. F Drones can make use of reusable and recyclable
resources so that it can use its existing resources. Principle 4: shape customer behaviour- shaping customer behaviour in a positive
manner can be difficult. F Drones can do this by educating and spreading awareness to
the people by rendering them with relevant information.
Principle 5: make innovative trends- F Drones can highlight the trends by collaborating
with the government or suppliers so that it can deliver its product and can attract large
customers.
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TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel is considered as the marketing tool with the use of which companies
find, trade and qualify its merchandise to the customers. It basically breaks the customer journey
from the awareness to the purchase stage. It is mainly a chronological process which attracts the
customers towards the products and try to convince them in order to purchase (Mazzarol and
Reboud, 2020). With the help of commercial funnel, F Drones will be able to spread awareness
in the market regarding the product which will result in increased profit and sales for the
company. Further the analysis of conditions of the market, the organisation will be able to offer
its innovative product to the target market to enhance its profitability and productivity. The
stages of commercial funnel is discussed below in context to F Drones so that it can bring
innovation in the market in an effective manner-
Awareness- It involves people who have knowledge of the product. The workforce of F
Drones will make use of social media and its website to spread awareness regarding its new
Illustration 3: Commercial funnel, 2020
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product so that it can reach large audience in short span of time. It can also engage in marketing
campaigns so that it can attract more and more customers.
Interest- Under this, the come can make leads towards those people who have shown
interest in its working. The interest can be shown by visiting their website or contacting them
regarding their vision. This will help F Drones in attracting more customers.
Decision- Under this step, the people interested in the product makes decision regarding
its purchase. The company F Drones must offer discounts and offers to the customers in order to
enhance their sales.
Action- In this step, actual purchasing take place and new customers are added in the
company. The company F Drones must make sure that it satisfy the needs of the consumers in
order to retain them for longer time.
New Product Development Process
It is a process which helps in bringing the new product into the market. It ensures that the
product innovation is created and brought into the market in an effective manner for the first time
(Rotstein, 2019). The product may be original or modified or improved existing product. In
context to F Drones, it can bring its new product “transition drone which enables aerial deliveries
to offshore platforms and ships” in the market. Following steps are required under this process
which is discussed below-
Illustration 4: New product development process, 2020
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Idea generation- This process begins with idea generation which refers to the systematic
research for the ideas of new product. F Drones can generate the idea by researching from
both internal and external sources which involves R&D team and employees as internal
source and competitors and suppliers as external source. Idea screening- It means to filter the ideas gathered in first stage and pick the best one
which is reliable and usable for future work. Concept development- Under this the idea is given a shape of the product. It is a detailed
version of the idea which gives meaning to the customers. Marketing strategy- It involves development of marketing strategy. In context to F
Drones, When the product is made, its time to come up with the marketing strategy in
order to introduce it into the market. Business analysis- This step involves review of the cost, sales ad profits for the new
product with a aim to find out whether it will satisfy the needs of the customers. F Drones
can evaluate these factors from different sources. Product development- This step involves implementation of the innovative idea which
tested by F Drones. Market test- In the step, F drones which test the product and the proposed marketuing
strategy in the real market. F Drones can test the product as to whether it is as per the
standards or not.
Commercialisation- It is the last stage of this process where the product is launched as
per the planning.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
The innovative idea with which the company F Drones is coming up is the “transition
drone which enables aerial deliveries to offshore platforms and ships”. It is an innovative idea
because it has the capacity to hold heavy logistics in the air and can take off vertically and fly
like the fixed wing aircraft. This idea will help the company to increase their sales and profits.
Steps Description
Summary This business case will show the development of the drones in an
effective manner in F Drones. This innovation of transition drones takes
place after analysing the market conditions and needs of the target
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Steps Description
audience. This innovation will help the marine and off shore ships to get
the deliverables in easy and effective manner.
Objectives The objectives of F Drones is to become the leader of the heavy payload
drone logistics in the industry in the next 5 years.
Mission The mission statement of the company is to enable the large scale aerial
transportation of the goods with its innovative drones which can carry
heavy loads.
Vision The vision statement of the company is to become the leader of this
industry on heavy payload logistic drones.
Innovation In
Product
The innovation which F Drones is coming up with is the transition drones
which can carry heavy load of deliverables to the ships and offshore
logistics. This innovation will help in creating the positive impact on the
aerial transportation from where it can increase its sales and profitability.
Funding For giving shape to this innovation, the company F Drones will enable the
funds from external sources which includes investors as equity and bank
loans as debts.
Benefits The core benefit of this innovation is that it will help the marine ships and
offshore logistics to carry the large amount of goods in an easy manner
through drones. It will enhance the aerial transportation. It has a unique
feature that it can fly like wing aircraft and can take off vertically and can
land on the moving target easily.
Monitoring And
Controlling
It is very important for the organisation F Drones to monitor and control
its progress. The tool which shall be used by the company shall be Key
performance Indicator which will help the company to meet its standards.
Ways to access funds
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