HND Business Management: Innovation and Commercialization Report

This report provides a comprehensive analysis of innovation and commercialization strategies within different organizations. It begins by defining innovation and commercialization, then discusses various types of innovation, including disruptive, technological, value, and incremental innovation, providing examples such as Amazon, Netflix, and Southwest Airlines. The report further analyzes how innovation is sourced and supported within organizations like Uber, BMW, and Toyota, highlighting their unique approaches to fostering innovation through technology integration, manufacturing methods, and cultural philosophies like Kaizen. The report concludes by differentiating between incremental and radical innovation and examining the successful processing of different types of innovation, such as service, process, and design innovation, within various organizational settings. This assignment is available on Desklib, a platform offering a wealth of study resources for students.

STUDENT ASSESSMENT SUBMISSION AND
DECLARATION
When submitting evidence for assessment, each student must sign a declaration confirming
that the work is their own.
Student name:
Chaudhary Adnan Nizam
Assessor name:
Issue date: Submission date:
08-01-2024
Submitted on:
08-01-2024
Programme:
HND Business in Manangement
Unit:
Assignment number and title: Innovation and Commercialization
Please list the evidence submitted for each task. Indicate the page numbers where
the evidence can be found or describe the nature of the evidence (e.g. video,
illustration).
Assignment task
reference
Evidence submitted
P1 Page 4
P2 Page 8
P3
P4
P5
P6
P7
P8
P9
M1 Page 5
M2 Page 9
M3
M4

D1 Page 11
D2
Plagiarism
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of malpractice.
Student signature: Ch Adnan Nizam Date: 08-01-
2024
Contents
Plagiarism.............................................................................................................................................2
INTRODUCTION:......................................................................................................................................4
P1 Discuss the ways in which different organisations source and foster innovation, using specific
examples.....................................................................................................................................................4
Disruptive Innovation:.............................................................................................................................4
Technological Innovation:........................................................................................................................4
Value Innovation:....................................................................................................................................5
Incremental Innovation:..........................................................................................................................5
M1 Analyse the ways in which innovation is sourced and supported within different organization
environments and cultures..........................................................................................................................5
Uber:........................................................................................................................................................6
A Source of Innovation:...........................................................................................................................6
Innovation as Support:............................................................................................................................6
Cultural Influence:...................................................................................................................................6
BMW:.......................................................................................................................................................6

Innovation as a source:............................................................................................................................6
Innovation as support:.............................................................................................................................6
Cultural Influence:...................................................................................................................................7
Toyota:....................................................................................................................................................7
Innovation as source:..............................................................................................................................7
Innovation as Assistance:........................................................................................................................7
Cultural Impact:.......................................................................................................................................7
P2................................................................................................................................................................8
Incremental Innovation:..........................................................................................................................8
Radical Innovation:..................................................................................................................................8
Difference Between Incremental and Radical Innovation.......................................................................8
Product Innovation:.................................................................................................................................8
Service Innovation:..................................................................................................................................8
Difference Between Product and Service Innovation:.............................................................................8
M2 Analyse how different types of innovation are successfully processed within different organization
settings....................................................................................................................................................9
Service Innovation:..................................................................................................................................9
Process Innovation:...............................................................................................................................10
Design Innovation:.................................................................................................................................10
D1: Critical analysis of innovation development:......................................................................................11
References.................................................................................................................................................11

INTRODUCTION:
The term innovation comes from the Latin verb innovare, which meaning to renew. In essence,
the definition of the term is unchanged. To innovate is to enhance or replace something, such as
a method, a product, or a service. However, in the context of businesses, the phrase requires
clarification. A definition is required in the difficult environment of business. Innovation is the
process of renewing and updating a domain, a product, or a service by introducing new
methods, introducing new techniques, or generating effective concepts to produce new value
(R. Bilderbeek 2000).
The process of bringing new products or services to market is known as commercialization. The
larger act of commercialization includes manufacturing, distribution, marketing, sales, customer
support, and other vital services necessary for the new product or service's commercial success
(P. Den Hertog 2000).
Commercialization often occurs once a small firm has matured and scaled its operations to the
point where it can effectively reach a bigger market. For example, if a small bakery is well-
known for its cinnamon rolls and has had great success selling them, it might commercialize its
products by selling packaged cinnamon rolls to local grocery shops, where people can purchase
the pastries and the bakery can grow its sales through a variety of means (M. Boden 2000).
P1 Discuss the ways in which different organisations source and foster
innovation, using specific examples.
Disruptive Innovation:
The term disruptive innovation describes innovation that makes formerly expensive or highly
complex products or services available only to a higher-end or more affluent customer segment
more widely available at lower costs. This change pushes out long standing, established rivals,
upending the market. Technologies used to make items more accessible to a greater, non-
targeted market and easier to use or access are examples of disruptive innovation. Keep in mind
that it excludes the process of making things better or more appealing to the same target
market (ALEXANDRA TWIN 2023).
Amazon provides a clear example of disruptive innovation. Jeff Bezos, in 1995, subscribing
to the notion that the internet could significantly boost commerce, launched Amazon to sell
books to a growing, but largely ignored online shopping community. In doing so, he forced many
bookstores to go out of business. Netflix is another prime example. After it disrupted the media
industry, the dominant player, Blockbuster, went from having 9,000+ brick-and-mortar stores to
one (ALEXANDRA TWIN 2023).
Technological Innovation:
The development and implementation of new or better technologies, tools, systems, and
processes that result in major developments or breakthroughs across many sectors is referred

to as technological innovation. It entails leveraging information, experience, and resources to
create new solutions that solve issues, increase efficiency, propel development, and provide
value (NICK JAIN 2023).
Example: Electric Vehicles (EVs) represent the peak of technical advancement in the automobile
industry, ushering in a new era of mobility. Key improvements in battery technology, particularly
the use of lithium-ion batteries, are critical in improving driving ranges and reducing charging
times. These advancements are complemented by regenerative braking systems that improve
energy economy and the use of electric motors such as Permanent Magnet Synchronous
Motors, which provide better performance.
Value Innovation:
Value innovation is the process of developing new or better products, services, or business
models that provide distinctive value to customers while at the same time cutting costs. Its only
reasonable for a firm to desire to avoid competition. Going outside their market's limits is one
approach to do this (Stefan F Dieffenbacher 2023).
Example: Southwest Airlines pioneered the low-cost, no-frills airline concept. They provided
inexpensive air travel by reducing extraneous services and focused on efficiency, undermining
the traditional airline business model. Another example of Value Innovation is Cirque du Soleil
transformed the entertainment business by fusing circus skills and theater. This novel technique
resulted in a new type of live entertainment that drew a wide audience and distinguished itself
from traditional circuses (Stefan F Dieffenbacher 2023).
Incremental Innovation:
The practice of adding minor, steady changes to a current product, service, or process is known as
incremental innovation. These adjustments might range from simple alterations to a product's design or
performance to new features that make it more user-friendly. The latter is the most prevalent sort of
innovation, and it is frequently seen in items that have been on the market for some time (Georgina
Guthrie 2022).
Example: Incremental innovation impacts not just products but also services. Sainsbury's has
improved its delivery service so that online consumers may receive their purchases faster. Only
a few weeks ago, the grocery behemoth revealed that it was testing same-day delivery, a move
that will help the business meet escalating customer demands. Coca-Cola is another excellent
example. Over the years, line extensions such as Cherry Coke, Coke with Lime, and, most
recently, Coca-Cola Life have allowed a 130-year-old brand to stay relevant, tap into rising
trends, and provide something fresh to its fans (Georgina Guthrie 2022).
M1 Analyse the ways in which innovation is sourced and supported within
different organization environments and cultures.
The environments and cultures of firms are greatly influenced by innovation, as demonstrated
by the following examples: Uber, BMW, and Toyota. These businesses have all embraced

innovation in different ways, which has helped them succeed and have an impact on their
respective sectors. Different Organizations as follow.
Uber:
A Source of Innovation:
The ride-sharing concept was introduced by Uber through a mobile app, which completely
changed the transportation business. This invention upended conventional cab services and
opened up a new market in addition to altering how people commute. Uber has used an
inventive technique by using dynamic pricing, often known as surge pricing, which is
determined by supply and demand. As a result, more drivers are encouraged to be accessible
during peak hours, guaranteeing that passengers may get a trip when they most need it.
Innovation as Support:
Technology Integration: The core of Uber's operation is its app, which offers a convenient user
interface to drivers and passengers alike. The app's constant upgrades and enhancements
demonstrate a dedication to technical progress.
Diversification: Uber now offers freight, driverless cars, and food delivery (Uber Eats) in addition
to ride-sharing services. This diversification shows a dedication to remaining on the cutting edge
of market developments.
Cultural Influence:
Entrepreneurial Culture: Uber promotes an innovative work environment where employees are
urged to think creatively. The company's capacity to innovate quickly and adjust to shifting
market conditions has been aided by this. Uber places a strong emphasis on agility and the
capacity to react swiftly to market demands. The organization is able to test out new concepts
and offerings because to this flexibility.
BMW:
Innovation as a source:
Electric Vehicles (EVs): With models such as the BMW i3 and i8, BMW has led the way in the
luxury electric car industry. This action shows a dedication to automotive technology innovation
and sustainability. BMW has made significant investments in connected car technology,
incorporating connectivity choices and smart technologies into their cars to improve the driving
experience.
Innovation as support:
Manufacturing Methods: BMW has used cutting-edge manufacturing techniques to produce
lightweight and fuel-efficient cars, such as the i Series widespread usage of carbon fiber.
Research on Autonomous Driving BMW's dedication to remaining at the forefront of
automotive innovation is evident via its investment in this field.
Cultural Influence:

Engineering Excellence: A dedication to creating high-performance automobiles and
engineering excellence are at the core of BMW's ethos. The company's identity has been
established by its emphasis on quality and innovation.
Sustainability Focus: The advancements in electric car technology are consistent with a societal
focus on sustainability. BMW's dedication to lessening its environmental effect is indicative of a
larger movement in industry culture (S. Heusinkveld 2002).
Toyota:
Innovation as source:
Toyota was a pioneer in the field of lean manufacturing, emphasizing productivity, cutting
waste, and ongoing improvement. This creative method revolutionized production practices in
many different sectors. Hybrid Technology: Toyota's dedication to environmental sustainability
and innovation in fuel-efficient automobiles was demonstrated with the launch of the Prius, the
first hybrid car to be built on a large scale (J. Benders).
Innovation as Assistance:
Toyota has established industry standards for quality management through its creative
initiatives, including the Toyota Production System. The brand's reputation is largely supported
by this dedication to excellence. Toyota's commitment to staying ahead of technical
breakthroughs is seen in its investments in future transportation, which include hydrogen fuel
cell technology and electric automobiles.
Cultural Impact:
Kaizen Philosophy: The continuous improvement "Kaizen" philosophy is frequently linked to
Toyota's cultural influence. This strategy encourages creativity and staff participation in
developing more efficient processes.
Long-Term Vision: Toyota places a strong emphasis on a long-term outlook on corporate
strategy and innovation. The corporation is able to sustain its research and development
investments because of its patient attitude.
Conclusion, innovation shapes the environments and cultures of Uber, BMW, and Toyota while
also acting as a source of support for them. These businesses exhibit a variety of innovative
qualities, including disruptive business strategies, technical breakthroughs, and a dedication to
sustainability. These organizations' defining beliefs, behaviors, and values all reflect the cultural
impact of innovation.

P2
Incremental Innovation:
The technique of introducing little, gradual changes to an already-existing good, service, or
procedure is known as incremental innovation. These modifications may take the form of
additional features that improve user-friendliness or small adjustments to a product's
functioning or design. The latter kind of innovation is the most prevalent and is frequently
observed in long-standing products (Georgina Guthrie 2022).
Radical Innovation:
Radical innovation is the process of producing something entirely new. This could be a brand-
new offering in terms of goods, services, or business plans. Radical innovation is far more
uncommon but can have a far greater commercial impact (Georgina Guthrie 2022).
Difference Between Incremental and Radical Innovation
When we hear the word innovation, we instantly think of a movement in the direction of
development. While the concept of a product is what generates a change, innovation is the
fundamental process of how to put that idea into reality, capitalize on it, and help it prosper.
To realize its mission, a firm must create economic advancement through innovation. Even if a
company invents something that puts them far ahead of their competitors in the market, it is
the power of their innovation that will keep them there.
For example, Apple (iPhone) took a major leap in product quality many years ago, but Apple
has remained the top of the finest manufacturers by utilizing ongoing innovation that entices
people to shop constantly. It is impossible to find a more ubiquitous word in economic writing
right now than innovation. There is little question that inventions have aided economic progress
throughout history, but as this notion has grown in popularity, its scope has broadened and the
term itself has become increasingly convoluted. (idea shooter 2022)
Product Innovation:
Product innovation is the process by which a business or organization develops new or
enhanced goods, services, or procedures. It entails introducing cutting-edge concepts, features,
technologies, or designs that set the product apart from competitors' offers in the market and
offer customers more value (A. Dubois 2002).
Service Innovation:
A service innovation is a fresh or improved intangible offering that entails the company carrying
out a task or activity with the goal of helping clients. In keeping with this, the phrase can also be
used to describe the fundamental process of coming up with fresh or enhanced service ideas
that meet the unmet demands of the client (L.-E. Gadde 2002).
Difference Between Product and Service Innovation:
The main difference in product and service innovation is the expense of development. Product
innovation has a higher development cost than service innovation. A product's design,

development, and manufacture also take a significant amount of money and effort. Without
frequent investment, the service innovation delivers steady income. After development,
services may be tested and improved, but a product must be flawless once it is released.
Product innovation is more scalable than service innovation, which raises development costs
and makes it hard to alter and upgrade a product once it is launched. However, the program's
capability limits the scalability of service innovation.
For example, Apple is a company that uses the concept of product innovation. The product
requires a supply chain to meet the needs of the customers. In contrast, service innovation
requires a service concept, client interface, and service delivery system (technology).
M2 Analyse how different types of innovation are successfully processed
within different organization settings.
Studying diverse forms of innovation within various organizational settings requires a strict
assessment and evaluation procedure. It starts by recognizing the sorts of innovation that are
typical in each context, such as technical inclusion, marketing and branding, or social
innovation. As a result, a thorough examination of how these innovations is created, developed,
and implemented within each organizational environment is required. Understanding the
underlying methods, resource allocation, and cultural characteristics that foster innovation are
all part of this approach. Examining the efficacy and impact of various forms of innovation
within various organizational contexts allows for insights into their contributions to the
organization's development, competitive edge, and elasticity in a frequently changing market
landscape. Different Organization setting with different type of Innovation (K. M. Eisenhardt and
B. N. Tabrizi)
Service Innovation:
Service innovation is the invention or enhancement of services supplied to customers, as well as
the introduction of new ways to create value or improve customer experiences. It focuses on
establishing new service delivery methods, enhancing service quality, or providing completely
new services to satisfy changing client demands. The emergence of ride-sharing services such as
Uber and Lyft are an example of service innovation in the transportation sector. Modern
technology has been crucially incorporated, such as smartphone apps that offer real-time
updates and GPS tracking. The innovation includes dynamic pricing structures, a driver-
partnership strategy that is distinct, and user-friendly interfaces. Trust is increased by safety
measures like user ratings and background checks. With the introduction of services like Uber
Eats and Lyft Rentals, the companies have extended their offers beyond ride-sharing. Adaptation
and communication are used to navigate regulatory obstacles. Their dedication to continued
innovation is highlighted by their constant iteration and improvement, which are driven by
customer input. To put it simply, Uber and Lyft have established themselves as leaders in the
rapidly changing transportation sector through a dynamic and all-encompassing approach that

blends technology innovations, user-centric design, regulatory adaptability, and a dedication to
continual improvement (K. M. Eisenhardt ).
Process Innovation:
Process innovation is the application of new or considerably enhanced procedures, techniques,
or workflows in a company's production, manufacturing, or operating processes. Characteristics:
By reengineering current processes or introducing fresh ideas, it tries to simplify operations,
boost efficiency, decrease costs, or improve the quality of goods or services (L. Dorenbosch
2004).
For Example, Toyota, well-known for its lean manufacturing concepts, introduced process
advancements that completely changed the way cars are made. In order to minimize waste and
minimize inventory, just-in-time manufacturing was introduced by the Toyota Production System
(TPS). Employees at all levels are empowered to find and apply minor changes in their daily
work processes by use of the "Kaizen" or continuous improvement idea. Toyota's dedication to
process innovation can be characterized by automation, robotics, and an emphasis on efficiency.
Their strategy has affected other industries worldwide in addition to streamlining
manufacturing (M. Verhagan 2003).
On the other hand, Nike, a market leader in athletic apparel and gear, has integrated process
innovation into every step of its supply chain. The business improves product development and
streamlines its manufacturing operations by utilizing technology and data analytics. Nike uses
digital channels to boost sales as part of their Direct-to-Consumer (DTC) strategy, which enables
them to react swiftly to consumer needs and market trends. Nike has also revolutionized its
operations by introducing eco-friendly and sustainable production procedures, which is in line
with the increased emphasis on corporate social responsibility (M. L. van Engen 2004).
Design Innovation:
Design innovation is the invention or enhancement of goods, services, or processes with an
emphasis on aesthetics, functionality, usability, and user experiences. It stresses user-centered
design, creative problem-solving, and the use of novel design features to improve product or
service appeal, usability, and marketability (R. Greenwood 1990).
For example, Apple's design innovation in devices like the iPhone and MacBook demonstrates a
combination of practicality, aesthetic appeal, and user-friendly interfaces that establish trends
in the technology sector and affect consumer expectations. The iPhone's design innovation
includes elements like the App Store, which made the device a flexible platform. Apple's
dedication to pushing the frontiers of design while preserving customer convenience is
demonstrated by features like Face ID and the elimination of the home button in later versions.
Conversely, MacBooks offer a smooth user experience with to advancements like the butterfly
keyboard mechanism, Retina display, and integration of macOS.
Apple's design innovation process is characterized by a careful attention to detail, a dedication
to pushing the frontiers of technology, and a focus on user demands. Apple's status as a leader

in design innovation within the tech industries has been cemented by the company's ability to
seamlessly integrate hardware and software into an ecosystem while also balancing form and
function (Sitran raportteja, Helsinki, 2004).
D1: Critical analysis of innovation development:
The critical examination of innovation development is essential in determining the overall
success of the development process. The organization may determine the efficiency and efficacy
of the development process by identifying and measuring aspects such as project scope, quality,
and time management.
The project scope is a vital component in evaluating innovation development. successful project
scope aids in the development of clear expectations and the facilitation of good project
management. A poorly defined or imprecise project scope, on the other hand, can lead to
uncertainty, misunderstandings, and higher project risks. Quality is another critical factor in
innovation development evaluation. High-quality innovations are essential for long-term success
and customer satisfaction. Quality can be evaluated through various quality metrics, such as
customer satisfaction, market acceptance, and user experience. Achieving and maintaining high
quality in innovation development requires continuous efforts, such as thorough research,
product design, and user testing (S. Kemppilä 2004)
Time management is a vital aspect of innovation development evaluation. Efficient time
management is crucial for ensuring the successful completion of the project within the specified
timeframe. Time management involves effectively planning, organizing, and executing tasks, as
well as effectively monitoring and controlling the project progress. Innovative approaches, such
as Agile project management, can be employed to improve time management during the
innovation development process. The organization may discover areas for improvement and
execute appropriate corrective steps by including critical analysis of innovation development
into the entire innovation management process. This iterative method allows the organization
to constantly refine and improve its innovation development skills, resulting in greater product
quality, shorter development time, and increased market competitiveness (E. H. Kesller 2004)
Finally, critical examination of innovation development is vital for determining the overall
success of the development process. The organization may assess the efficiency and efficacy of
the development process by examining aspects such as project scope, quality, and time
management. This methodical strategy enables the organization to continually refine and
improve its innovation development skills, resulting in greater product quality, shorter
development time, and increased market competitiveness (E. H. Kesller 2004).
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