HND Business (2020-2021): Innovation and Commercialisation Assignment

This report provides a comprehensive analysis of innovation and commercialisation, focusing on the distinctions between invention and innovation, exploring various sources of innovation, and examining the crucial links between an organization's innovativeness, its leadership, organizational culture, and teamwork. The report delves into the 4 Ps of innovation, evaluates the innovation funnel and frugal innovation, and uses the case study of Big Belly, a waste recycling company, to illustrate these concepts. Furthermore, the report explains the significance of the commercial funnel and the New Product Development (NPD) process for successful innovation, constructing an innovation case study utilizing the commercial funnel to highlight the practical application of these concepts. The study covers essential topics like product development, market strategy, and financial analysis to enhance the commercial viability of the innovation.

Unit 8: Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Section 1...........................................................................................................................................1
Examine the difference between invention and innovation, analyse sources of innovation as a
core process in a specific company ............................................................................................1
Different sources of innovation...................................................................................................2
Critically discuss link between innovativeness of a specific organisation and its leadership,
organisational culture and teamwork .........................................................................................2
Evaluate 4 Ps of innovation, appraise the value of the innovation funnel and frugal innovation
with reference to your case study................................................................................................3
Section 2...........................................................................................................................................5
Explain the importance of the commercial funnel and New Product Development process for
successful innovation..................................................................................................................5
Build an Innovation case utilising the commercial funnel..........................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is termed as a comprehensive procedure that allows an entity to develop new
ideas, products, thoughts, services and imagination. Main aim behind this is to significantly
enhance competence and effectiveness of organisation operations. Innovation allows an
organisation to adopt new processes and technology and increase growth and profitability at
great extent (Yildiz, 2020). While on the other hand, commercialisation is defined as a process in
which services and products get effectively introduced in market segment.
Present report has been conduced on the case study analysis of Big Belly, organisation is
operating their business services by recycling waste and offering eco - friendly products to
customers. For this company undertakes advantage of smart technological process. In this report
formative discussion has been made on the concept of innovation and invention. In addition to
this various sources and 4P's of innovation is also being discussed in this report. Along with this,
application of NPD and tools to protect intellectual property is also covered in present report.
Section 1
Examine the difference between invention and innovation, analyse sources of innovation as a
core process in a specific company
Innovation:
This process facilitate entity to bring some certain form of alteration and modification in
their existing services and products as to maximise effectiveness of them (Şen, 2020). To
accomplish this, entity undertake advantage of innovative nature, unique thinking and creativity.
Invention:
With the help of this process organisation can bring totally new services or products
within market. Main purpose behind this to disrupt competition and ensure maximum
profitability advancements. In order to conduct this process company take advantage of
aggressive research.
Differentiation between innovation and invention
Basis Innovation Invention
Aim Innovation aim towards making addition
of more values in the already existing
Invention is define as a practice in which
an organisation engage in the practices of
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products, services, ideas in order to
increase its existing quality.
introducing new things within market
segment.
Occurr
ence
This process is mainly undertaken by an
organisation if there competition level get
low as compared to other rivals.
Invention is being practised by an
organisation or an individual when they are
looking forward to develop new idea and
product into efficient products and services
in order to serve customer with best.
Different sources of innovation
According to the view point of Peter F Drucker, innovation can be derived from seven
different sources, that include unexpected which mainly arise by evaluating different growth
opportunities in order to assure success and profitability. Along with this the incongruity, process
need, industry and market structure change, demographics, changes in perception, meaning and
mood and new knowledge are some of the effectively sources of innovation that drives
organisation towards higher growth and success.
Critically discuss link between innovativeness of a specific organisation and its leadership,
organisational culture and teamwork
Leadership:
It is one of the most important source of innovation, it has been determined that
organisation with having strong leadership environment facilitate employees to undertake
advantage of critical thinking, hard work, talent and capabilities towards accomplishing vision of
company. Effective leadership allows Big Belly to determine behavioural pattern of employees
and further motivate them towards more profitability and productivity.
Teamwork:
Innovation can be effectively derived from behavioural pattern and performance of
employees. Furthermore, it has been evaluated that collaborative workplace environment
facilitate entity to undertake risk for higher profitability and advancements. With having strong
teamwork Big Belly leader and supervisors can accomplish organisation objectives and mission
with more effectiveness.
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Evaluate 4 Ps of innovation, appraise the value of the innovation funnel and frugal innovation
with reference to your case study
Innovation mix or innovation is defined as a model which is being established by Joe
Tidd and John Bessant. With the assistance of this organisation can explore different ways
through which they can enhance innovation process (Ganjeh, Khani and Tabriz, 2020). With the
help of taking advantage of 4P's of innovation organisation can accomplish the position for their
striving position in marketplace. Furthermore, it has been evaluated that by taking advantage of
4Ps of innovation company can fulfil its business objectives with more effectively. 4Ps of
innovation is applied in the organisational objective of Big Belly:
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Illustration 1: The 4 P of Innovation

Product:
In this form of innovation organisation undertake ideas in order to convey changes that
they are going to make in services and products of organisational offerings. In terms with Big
Belly it has been evaluated that entity is looking forward to introduce innovative garbage bins .
For this entity can make their product available in a commercial way through which they can
reduce waste and windblown litter (Nakandala, Hurriyet and Perry, 2020). With the help of this
concept entity can make reduction in production cost of beans.
Process:
It is defined as a manner in which organisation changes that way in which things get duly
created and delivered. In terms with Big Belly in order to assure success of innovation company
by taking advantage of automation can not only reduce overall manufacturing cost but can also
make elimination of unnecessary elements or individuals during the process of development of
products and services.
Position:
In this P's of innovation company make changes in the context through which services
and products get introduced in marketplace. In relation to this, Big Belly can target individuals
who are more tend towards environmental concerns by satisfying them with advanced innovation
in their garbage. Along with this company can also offer their products easily available in
market.
Paradigm:
This aspect mainly focus upon the manner in which innovation get incorporated in
system as to conduct organisational operations with more effectiveness. In relation with Big
Belly entity by undertaking use of rapid innovation can transform their business model through
which they can encourage large number of individual towards organisational offerings.
Company commercial potential
Big Belly adopts technological changes prior to its competitors. This company aim towards
serving customers with high tech technology and innovative products as well as services. It
indicates that this company is having significant opportunity of commercialisation as they adopt
technology in order to fulfil needs of markets in an effective manner. In addition to this, it has
been evaluated that new idea of Big Belly, smart garbage big in innovative and have significant
potential for future growth.
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Section 2
Explain the importance of the commercial funnel and New Product Development process for
successful innovation
Commercial funnel is defined as a journey through which a customer goes through in
order to make decision related to buy products and services. It allows organisation to determine
behavioural pattern for consumer in a well define and effective manner (Mazzarol and Reboud,
2020). By taking assistance from different stages of commercial funnel Big Belly can influence
or persuade customers behavioural pattern towards organisation products and services. With the
help of commercial funnel Big Belly can develop effective marketing strategy in order to ensure
long term sustainable growth in industry along with higher profitability.
While on the other hand if it is talked about NPD, it is termed as a process that allows
organisation to create new ideas and services in an effective manner. With the help of this
process entity can maximise their overall revenue generation capability in an effective manner.
Mentioned below NPD process is being applied that allows Big Belly to assure success of their
new product, Smart garbage effectively:
Idea Generation:
This stage involved development of new innovative idea, in this process Big Belly can
undertake advantage of brain storming sessions as to effectively formulate idea to produce new
smart garbage bins.
Idea evaluation:
At this stage company evaluate laid down ideas as to identify their capabilities in order to
determine the extent of success entity can assure. It has been evaluated that Big Belly is
sufficient with potential and talent team individuals.
Development of Concept:
In this process new idea get converted into product concept, during this stage Big Belly
new product smart garbage bin get prior tested in the small market segment of consumers.
Marketing Strategy:
At this stage, company undertake use of various promotional and advertising techniques
in order to make customer aware about organisational offerings. In this, Big Belly can use social
media and public relation in order to effectively promote smart garbage.
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Illustration 2: The Eight Steps in the New Product Development Process
Source: https://marketing-insider.eu/new-product-development-process/
Business analysis:
During this stage it is essential for Big Belly to effectively ascertain different aspects
related to cost, profit, sales and other form of expenditure associated to new product.
Product Development:
This stage is the actual product development stage in which Big Belly is required to
engage in the process of the development of new product, Smart garbage bin in order to serve
customers with best and undertake more competitive edge in waste management industrial
segment.
Test Marketing:
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At this stage it is essential for Big Belly to evaluate effectiveness and efficiency of their
new product as to assure more success and satisfaction of consumers.
Commercialisation:
By this stage Big Belly can introduce their new product, new garbage bin in waste
management industry as to ensure higher profitability and more competitive advancements.
Build an Innovation case utilising the commercial funnel
In order to assure effective success and smooth business operations it is essential for an
organisation to enlist important requirements in order to develop an innovative business case.
This will allow entity to measure their performance in an effective manner. Big Belly is looking
forward to introduce a smart garbage bin, for success of this new product an innovative business
case will allow entity to determine various aspects related to pricing strategy, product
development process, market emergence and customer awareness program.
Executive summary:
Big Belly business case is linked with development of new product, Smart garbage bins.
Company is required to evaluate different business aspect with the help of PESTLE, SWOT and
Porter's Five Force analysis in order to undertake advantage of more opportunities.
Mission statement:
Big Belly is having mission to serve customers with best and assure more competitive
advancements in market.
It is essential for Big Belly to set reasonable price of their new product to targeted
consumers in order to increase success of their product in marketplace. Along with this entity is
also required to have strong promotional strategy in order to seek new investor.
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Innovation funnel
Figure 1: Innovation funnel
According to the above mentioned graph it has been evaluated that innovation funnel is
mainly differentiated into three segments that duly starts with opening of funnel, it is mainly idea
development. While on the other hand in second step it is subjected to concept development and
the narrow segment is of concept to launch. With the help of this Big Belly can use innovation
funnel in their new product process by first developing ideas that are needed to be developed.
While in second scope the development that basically include new product and then find the
scopes that are essential or useful for new product. In third step which is the narrow segment it is
related to launch that duly incorporates building the business case of Big Belly along with the
development of new products, testing of product and at last launching in market segment. With
the help of this company can effectively cut down the unnecessary cost.
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Frugal innovation
Figure 2: Frugal innovation
It has been identified that in context frugal innovation of Big Belly new product smart
garbage bin is that it can be highly profitable. In this company with the help of testing the
product in smaller market segment can easily gather feedback from clients and can evaluate
information related to their mind set. It will help company to utilize funds in effective manner
and cut down unnecessary cost in their product at various levels.
a. Evaluate resource and funding considerations
Resources and funds plays most important role for an organisation, as it allows them to
conduct activities and functioning in smooth and effective manner. Mentioned below resource
and funding consideration that are required to be emphasize by Big Bely is given:
Resources: Big Belly management is required to determined and allocate all the
resources and their sources in order to make sure that all the activities of product development
till delivery undergoes in an effective manner.
Market analysis: It is one of the most important factor that are required to be consider by
Big Belly, in this it is essential for company management to undertake effective market
evaluation as to identify external as well as internal factors along with its direct and indirect
impact on company operations.
Cost and benefit analysis: Big Belly is required to conduct market analysis and
determine cost and benefit analysis in an effective manner as to determine cost to conduct each
and every activity.
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Financial projection: It has been evaluated that Big Belly requires estimated amount of
£45,000 as to invest in the production of smart garbage bins.
Funding ways: It is essential for Big Belly to identify different types of sources through
which they can allocate funds. In this entity is required to set up funding ways from financial
institutions and banks.
b. Identify key risks that can impact the successful implementation of the innovation
According to the evaluation it has been evaluated that there are number of risks that can
have negative impact upon successful implementation of the innovation. In context with Big
Belly it has been determined that company can face risk from the following ways:
Operational: In this Big Belly can face risk to meet quality, scheduling or cost
requirements.
Commercial:In terms with this factor it has been evaluated that, Big Belly can face risk
to attract enough ration of consumers.
Financial: In context with this factor, it has been underlined that Big Belly can face risk
related to lack of funds in order to conduct all the activities with great effectiveness.
It is essential for Big Belly to identify impact of these factors on business operations and
undertake advantage of professional advice, grants, licensing and ongoing research (Law,
Sarmidi and Goh, 2020). By considering upon all these factors Big Belly can effectively conduct
their business operations and can fulfil activities of their business case with more efficiency.
c. Establish specific Key Performance Indicators that will allow to control/monitor and assess
the success of the new product’s implementation.
In order to assure smooth business operations it is essential for Big Belly to have regular
monitor and control over the new product implementation process. For this company by taking
advantage of benchmarking can make significant improvement in the process and procedure of
processes while making significant improvement in the quality and satisfaction level of
customers.
d. Evaluate how the company can protect the intellectual property rights of the new product.
Patent:
This tool allows company to protect their design, invention and other form of confidential
things. By undertaking advantage of this tool Big Belly can protect their new idea and unique
innovation.
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