Business Report: Innovation and Commercialisation at Hotpoint

This report examines the concepts of innovation and commercialisation, using Hotpoint Electric Heating Company as a case study. It begins by defining innovation and differentiating it from invention, emphasizing its importance for business growth. The report then explores the vision, leadership, ...Read More

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Importance of innovation in comparison with invention............................................................1
Vision, leadership, culture and teamwork of organisation that help in innovation and
commercialisation.......................................................................................................................3
Different sources of Innovation..................................................................................................4
TASK 2............................................................................................................................................5
4Ps of innovation and innovation funnel to shape innovative ideas...........................................5
Explanation of developments in frugal innovations and the way in which it is used in an
organisational context.................................................................................................................6
Apply and analyse innovation funnel..........................................................................................7
Function of frugal innovation......................................................................................................7
How innovation is developed, embedded and measured............................................................7
TASK 3............................................................................................................................................8
Importance of commercial funnel and application of New Product Development (NPD).........8
Innovation Business Case...........................................................................................................9
Measuring overall effectiveness using appropriate technique..................................................11
TASK 4..........................................................................................................................................11
Evaluating various tools which could be used by organisations for the purpose of developing,
retaining and protecting knowledge..........................................................................................11
Evidence based evaluation of different tools............................................................................12
Critical evaluation of nature of innovation...............................................................................12
CONCLUSION..............................................................................................................................13
........................................................................................................................................................14

INTRODUCTION
Innovation and commercialisation refers to introducing a totally new and creative
business idea and using this idea in business for commercialisation so that profits in business can
be maximised. A innovation at the first stage is simply an idea that requires commercialism so
that valuable goods and services can be created that helps in generating more and more profites
in buisness (Aarikka-Stenroos and Lehtimäki, 2014). Through commercialisation process new
and innovative products or services are introduced in the market. In this project to understand the
importance of innovation and commercialisation for growth and development Hotpoint Electric
Heating Company is considered. It was founded in the year 1911 by Eari Richardson and
headquarter is situated in United Kingdom.
Innovation of introducing a holographic display television was commercialised by
Hotpoint organisation. To understand the concept of innovation and commercialisation in this
project innovation is determined and how it is different form invention is mentioned. Different
types of innovations are discussed with process required to commercialise innovation in the
project. Together with this methods for protecting ideas and their advantages and disadvantages
will be elaborated in this project report.
TASK 1
Importance of innovation in comparison with invention
Innovation is defined as a process which leads to introduction of a process of translating
an idea into reality to form a new good or service that will help in creating more value and
initiates in enhancing revenues. Through innovation more challenging process is adopted that
will help in creating a product and service as per changing needs and wants of large consumer
group in the society. Innovation helps in adopting changes that are taking place in the
challenging business environment and delivering products and services as per consumers taste
and preference. Through innovation a totally new and different product will be introduced by
Hotpoint organisation in the existing market (Aarikka-Stenroos, Sandberg and Lehtimäki, 2014).
This will help in enhancing market share of the company by retaining existing consumers and
attracting new consumers who are highly influenced through innovative idea. Holographic
display television will provide a display that utilizes light diffraction to create a virtual three-
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dimensional image of an object. In this no requirement of aid through glasses or external
equipment and viewer can see the image.
Invention means introducing something totally new based on own idea and development.
Through innovation a product is introduced for the first time in the world. A invention is only a
one time thing that has been made over a period of time in the business as it requires lots of
research and development. For example- introducing television was an invention and after that
change in its shape and features all are termed as invention that leads to addition of more and
more features as per changing taste and preference of consumers.
Importance of Innovation over Invention is defined as follows-
Continuous Improvement: Innovation gives sustainability to Hotpoint organisation with
making continuous improvements, repacking and re-branding of the products served by them. As
invention can give only one time success and to maintain that success invention is required on
continuous basis (Abdul Razak, Murray and Roberts, 2014).
Reinforce Brand Name: Development branding is popular in organisational leadership.
Leaders of Hotpoint organisation had recognised importance of innovation and turned it as an
main drive for success. Continuous improvement in the products served by the organisation will
help in creating brand image that is not possible with one invention.
Responding to Competition and Trends: Through innovation opportunities are garbed
by Hotpoint organisation in the present market and helps in assessing future trends. This helps
business to become competitive and attain more and more success.
Together with all these importance there are lot of things that are used in day-to-day
activities and innovation has made their use more smoothly. For example- Screen touch mobile
phones, online apps to purchase and sale and new technology in electronic products is
continuously improving standard of living like- automatic washing machines, LED's and
Holographic systems.
Difference between Invention and Innovation-
Basis Invention Innovation
Meaning It refers to an idea or concept
for a product that has never
been introduced before.
Innovation leads to implication
of a new idea on a product the
existing product and service.
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Concept It is an original idea and its
working in theory (Chun,
Chung and Bang, 2015).
It leads to adding value to
something that is already in
existence.
Activities It is limited to research and
development.
Activities for innovation is
spread across all the
organisation.
Vision, leadership, culture and teamwork of organisation that help in innovation and
commercialisation
Sustainability and profit maximisation are common goals that each organisation required
to attain so that they can become one of the competitive business in the industry. Introducing
innovation in Hotpoint organisation will require support of all the employees working at
different levels in the organisation so that innovation and commercialisation provides benefits to
business objectives. Some factors that supports innovation are as follows-
Vision: It is a clear photograph of an organisation that it wants to achieve at some of time
in future. It provides direction because it describes what organisation wants to achieve in future
and actions taken for the same objective (Fuertes-Callen and Cuellar-Fernandez, 2014). Hotpoint
is working with a vision to be leader through developing photovoltaic energy solutions and
actively contributing towards social welfare and sustainable development. It aims to make
Hotpoint a global company recognised for its business model based on sustainability and
excellence. As in long run to achieve sustainability Hotpoint organisation needs to provide its
concentration on innovation because through innovation new products will be served to targeted
consumers. These new and better products such as holographic television will help in satisfying
consumers and leads to profit maximisation. Generating more and more revenue will help in
attaining its vision and that will shape innovation in organisation on continuous basis.
Leadership: This is all about developing people and helping others to reach to their full
potential level. A good leader possess quality of influencing all the followers to achieve targeted
goals and objective by motivating and encouraging them towards hard work. In Hotpoint
organisation participative leadership style is followed where individuals are considered unequal
by hierarchal order and possess shared power in decision making. Leadership helps in shaping
innovation as when new idea of introducing a holographic display television was introduced in
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the organisation leaders motivated all the employees to work hard and make this new innovation
most productive. Through participative leadership style of leadership all the employees are
considered for decision making and that induces them to work hard and attain set objectives
(Henttonen and Lehtimäki, 2017). Their are different types of leadership style that are as
follows-
Democratic: In this form of leader make all the decision on the basis of performance of
each individual. Employees at each level are provided with decision making power required to
perform operations.
Autocratic: In this leadership leaders make all the decisions without taking inputs form
anyone. Employees are the followers of leaders directions.
Laissez-Faire: In this form of leadership style all the powers are provided to employees
to perform their activities.
In Hotpoint organisation to introduce innovation Democratic style of leadership will be
used so that employees opinion can be considered to make changes.
Culture: Hotpoint organisation wants to achieve success through innovation by serving
best products that leads to sustainability and social welfare. This culture helps the organisation to
generate positve market image and will help in introducing innovative ideas in most smooth
manner. In an organisation there are different types of culture can prevail such as create culture,
collaborate culture, control culture and compete culture. In order to introduce innovation in
smooth manner control culture will be followed in Hotpoint so that each activity is performed in
hierarchical manner.
Team Work: When all the employees working in Hotpoint organisation at different
levels perform their part of work as a team then it leads to maximise chances of success for new
innovation. Effective team work will help in introducing innovation in such manner that
objectives for sustainability is achieved (Kaihua and Mingting, 2014).
Different sources of Innovation
For Hotpoint organisation their exists some important sources that leads to innovation
such as unexpected occurrence of an opportunity. Together with this assessing changes and new
knowledge also become a source which leads to innovation. To foster and develop an innovative
culture in an organisation all the employees needs to be appreciated for new and better idea.
Together with this importance of innovation and its benefits must be communicated by leaders
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throughout the organisation and all workforce will be motivated towards innovation so that
innovative culture is established.
TASK 2
4Ps of innovation and innovation funnel to shape innovative ideas
Innovation combine is the combination of four different elements which are product,
place, promotion and public relations. This model was developed by John Bessant and Joe Tidd
in order to facilitate companies to observe the opportunities to launch innovations in the market
and improve the business (MacGillivray and et.al., 2014). As HotPoint is going to launch
Holographic T.V. In the market so it is very important for the company to analyse 4Ps of
innovation. All of them are described below in context of the organisation:
Paradigm: It is fist element of innovation mix that helps to determine the way in which
innovations are formulated by companies to improve the manner in which business is executed.
While implementing this element the management in HotPoint is required to make sure that the
decision which is take by them to launch a new T.V. in the market will result positively for
business or not. It will guide the managers to make change in the business model so that new
products could be manufactured (Lipkova and Braga, 2016).
Product: This element of innovation mix is related to the new product which will be
offered by the company to customers. While formulating the idea of Holographic TV it is very
important for the managers of HotPoint to make sure that the concept which is used by them is
new and unique as compare to other companies. It guides organisations to make their products
more appealing.
Process: The process which is used to manufacture product is also required to be
analysed while planning for innovation. With the help of it the managers in Hotpoint are required
to make sure that they follow proper processes to launch and produce new holographic TV.
Position: It is the last element of innovation mix in which the area which is targeted to
introduce the innovation is focused. As HotPoint is planning to launch holographic TV is the
market so it is very important for management of the company to make sure that it communicate
the features of TV with customers properly. It will help to position new products in minds of
clients successfully.
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Innovation funnel: It is a process that is used to develop a new product so that
organisations can attain success in future. As new TV will be launched by HotPoint in the market
so it is vital for the management of the company to go through all the steps of this procedure so
that success of the new idea could be assured. All the three main steps of it are described below
in context of HotPoint:
 Investigation: At the very first stage of investigation managers of HotPoint will analyse
market situations in order to formulate idea of new Holographic TV. Here, different
opportunities in the market are analysed and then one of is selected to make innovation
(Innovation mix, 2019).
 Making development: It is the second stage where the market is developed in which
target market for the launching of new products is analysed. The managers in HotPoint
will determine the marketplace and the select one area where new Holographic TV will
be launched for the first time (Maritz and Donovan, 2015).
 Delivering products: At the end in which managers in HotPoint will ship the new TV in
the market for the purpose of increasing its sales. Before introducing the products to
public it is vital for the company to make sure that it will help the business to attain
growth.
Explanation of developments in frugal innovations and the way in which it is used in an
organisational context
Frugal innovation: The activity which is focused by large as well as small business
entities for the purpose of making reduction in costs, production and complexities in business
processes. These are performed by removing non required features from the products which are
sold to the customers. With the help of it the cost of products could be reduced and monetary
funds could be saved for making other changes in the business or its processes.
It is used by most of the companies such as HotPoint for the purpose of enhancing sales
and profits by making changes in their business processes and removing some of the non
essential features from the old TV (Mohannak and Samtani, 2014). The organisation is planning
to launch new holographic TV in the market and for this purpose could be used so that cost of
product could be reduced. For example, the company can remove the old screen from the TV and
replace it with holographic screen to it which will help it to provide new experience to the users.
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This new innovation will be very beneficial for the company as it may result in large market
share higher profits for the company.
Source: Frugal innovation Funnel, 2016
Apply and analyse innovation funnel
The innovation funnel is a method which is used in organisations to assess scerrned for
viability. The innovation funnel is applied in Hotpoint organisation through Funnel management
process which helps organisation to create an innovative and realistic plan into action plan. As an
idea provided through innovation funnel will be assess on all the points that will help it to
become possible in real terms. As Holographic television is an innovative idea and innovation
funnel will assess whether it is possible to provide such televisions or not. This helps in
minimising chances of failure for any new innovation.
Function of frugal innovation
Frugal innovation helps in introducing a procedure that cut down the complexness and
cost of a goods and its production. When holographic technology is introduced in television the
frugal innovation will be implemented so that non-essential features for television can be
removed to minimise its cost and enhancing value for the goods to targeted consumers. When
complexity in the innovation is minimised then it improves chances through which an innovative
idea can be brought to real world. Together with this minimised cost will give Hotpoint
organisation more chances to become successful.
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Illustration 1: Frugal innovation Funnel, 2016

How innovation is developed, embedded and measured
Innovation in terms of organisation is developed through enhancing investment in idea
generation, developing deep consumer understanding. Together with this favourable culture in
company and effective sources will be used to assess the idea completely that is required for its
development. Innovation is measured through key performance indicator by measuring
performance of the organisation before innovation and after introduction of innovative idea.
Innovation is embedded in the organisation structure through establishing a favourable business
structure for innovation.
TASK 3
Importance of commercial funnel and application of New Product Development (NPD)
Commercial funnel refers to the process of purchasing product which is offered by
organisation. There is requirement of proper understanding of way through which individuals are
able to understand and determine the ways through which satisfactory product and services can
be launched. It is important for managers to understand and determine changes which are taking
place in market. When Hotspot organisation is using commercial funnel, then there will ease in
communicating with people about understanding and determining changes in better and
appropriate manner (Pellikka, 2014).
When consumers came to know about features of products and services, then they get
proper assistance through understanding policies and determining changes in better and effective
manner. In order to ascertain what is the demand of consumers, can determine when they give
feedback over holographic television. These days, consumers are more smart and specific
regarding understanding the ways through which they can determine whether their money gives
proper return or not. In case there is no proper return of their money, then in this case their
purchase decision gets affected. Marketing of holographic television offered by Hotpoint gets
easy with use of commercial funnel.
New product development is also important component for organisation because there is
requirement of proper understanding about changes which are taking place in market. There are
various steps which has to be performed by managers of Hotpoint for successfully launch of
holographic television. Steps of launching holographic television is as under-
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Idea Generation: This is the step in which managers of Hotpoint will think to come with
approach for improving consumer satisfaction and gets positive impact on sales. Managers of
Hotpoint thinks to come with different approaches for providing satisfactory services to
consumers (Razak, Murray and Roberts, 2014).
Screening: In this stage, as many ideas are generated, so they are evaluated win context
of external market and evaluating the range of best come approach. This is the way through
which best option out of rest is selected.
Development of Concept: After coming with best option of launching holographic
television, there will development of concept in lieu to it. This step has to be performed properly
because this is the best way to conduct operations in appropriate and relevant manner.
Marketing Strategy: After developing product, market stunts are planned and performed.
There are different marketing techniques, best among them have to selected. This assist in
communicating society about holographic television.
Business Analysis: After determining and evaluating market strategies, market analysis
is done. This is the way through which external market is considered with understanding and
evaluating changes.
Development: After conducting business analysis, development of product is done. This
is the stage after which holographic television will be in market.
Test Marketing: After product manufacturing, testing of product is done. holographic
television is launched among some consumers and feedback are collected, in case of negative
outcome, corrective actions has to be planned.
Commercialisation: After testing, commercialisation of product is done. This is the
actual launching of holographic television in market.
Innovation Business Case
With the help of innovation business case, there is ease in understanding and determining
what changes are required in operations for successful launching holographic television in
market. In case of Hotpoint, managers are coming with holographic television which is new for
3- D effect. Innovation business plan of holographic television is as under-
STEPS DESCRIPTION
SUMMARY This case shows launching of holographic television which assist
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Hotpoint in launching new product and service. As there are many
organisations which are coming with new approach for maintaining
positive relations with consumers.
OBJECTIVES
Objective of Hotpoint behind launching holographic television is-
To improve sales of organisation up- to 10% with launching
holographic television in 6 months.
MISSION
Mission behind launching holographic television is:
“To provide 3- D effect image experience to consumer at affordable
prices.”
VISION
Vision is:
to make improve brand image among consumers in electric
segment.
SOURCE OF
INNOVATION
The source of this innovation is changes in perception of
consumers. As these days, there is requirement of some changes in
demand of consumers regarding electronics, so this 3- D technique
is innovated in television at cheaper rate.
SOLUTION
In order to achieve this objective, there must be proper and
innovative marketing strategies with which consumers are ready to
avail it. There must be proper marketing strategy with which
consumers gets attracted towards it.
INNOVATION IN
PRODUCT
holographic television is the television which gives more clear
image because of higher pixel. This television is with feature of 3-
D effect picture at affordable rate.
RESEARCH
Managers of Hotpoint conduct market research with internal as well
as external factors, so it is easy for managers to determine what
factors gives positive impact, while which give negative. Hence
strategies are framed accordingly.
TARGET
MARKET
Target consumers of this product is people who wants to invest in
home threater , hence target consumers are on the basis of
demographical grounds. Positioning in market is done through live
demonstrating at the store of Hotpoint and television
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advertisements.
SOURCES OF
FUNDS
There will use of internal as well as external sources of funds
through which Holographic television can be launched successfully.
Retained earning are used as internal source of funds and bank loan
as external source of finance.
Apart from this there is appreciation from government as well under
which they contributes in financial assistance and organisation can
pay it with nil rate of interest.
Government assistance
Sources of funds for entrepreneurs are small business loans,
government grants, small business grants, etc. which are available
at very less or nil interest rate. When people are getting interest free
rate of return, then they get motivated and it assist in getting proper
funds for completing business idea. There is rebate in tax rate as
well through which motivation to entrepreneurship can be provided.
BENEFITS
With launching holographic television, organisation can gain same
brand image in industry and they can excel in market because they
come with 3- D techniques in domestic television.
MONITORING
AND
CONTROLLING
With conducting activities for innovating and launching new
product, there is requirement of many resources for completing and
launching product and services properly. At last, it is essential that
managers of Hotpoint have to monitor and evaluate activities to get
positive outcome. In case of any imbalance, corrective actions can
be taken at that instance only.
Fund flow statement for Hotpoint
Fund flow statement is the part of financial statement under which information is
provided about cash inflow and out flow. This statement provides information about any impact
on cash of the company because of investing or expansion of money. There are three main
activities operating, investing and financing activities.
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Measuring overall effectiveness using appropriate technique
With the help of understanding and determining the requirement of consumers, managers
of Hotpoint come with holographic television. From above business case it is clear that
consumers can get better option with latest technique at affordable price. Operational efficiency
of Hotpoint on launching new product will be measured through accounting ratios because this is
the way through which to determine what is input and output in terms of finance, hence it is easy
to take rectified actions. With use of accounting ratios, it is easy for managers to determine rate
of difference in initial and later performance i.e. after launching holographic television. There are
different types of ratios such as gross profit ratio, sales ratio, new profit ration, etc. with which
overall performance can be judge and it is easy to evaluate best ways to determine ways to
improve performance. With operational efficiency, overall efficiency of association can also be
judged,so it is easy for managers of Hotpoint to guide and direct workers to for betterment of
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enterprise. Overall performance can be evaluated in terms of profits and revenues. To determine
quality of holographic television, managers can take feedbacks from consumers and employees.
If there is any new idea with employees while testing of holographic television, then it can be
implemented.
TASK 4
Evaluating various tools which could be used by organisations for the purpose of developing,
retaining and protecting knowledge
For all the companies which are making innovations it is very important to protect them
by using effective tools and techniques. As HotPoint is going to launch new Holographic TV in
the market so it is very important for it to make sure that it should retain and protect its
knowledge and intellectual property. For this purpose different tools could be used which are as
follows:
Patent: It can be defined as a right which is allocated by the government for specific
purposes or devices, substances, process or methods etc. main benefit of it is that with the help of
it the patentee can save the innovation which is the new creation. By using it, HotPoint can make
a patent for the holographic TV which will be launched by it in the market for the purpose of
enhancing profit in future (Ustyuzhantseva, 2015).
Copyright: It is a type of right which is provided to the creator for the creative work or
unique idea to reproduce it in future for a limited time in future. Main purpose of it is to protect
the original innovation which is in the form of creativity. With the help of it, HotPoint can
copyright its unique idea of holographic TV so that other companies will not use its idea to make
the same products.
Trademark: It can be define as a tool which could be used to protect a unique prodt or
service with the help of a specific design, sign or expression that helps to make a product
different from others. In order to keep the innovation of holographic TV Hotpoint can use this
intellectual property right safe. It allows companies to keep their products separate from others.
In order to create, keep and assist cognition and unique innovations all the above
described tools could be used by companies such as HotPoint it can help to make sure that the
product and service which is launched in the market is their own creation.
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Evidence based evaluation of different tools
Tools that are used by business organisations to protect and retain intellectual property
rights are quite useful for taking a legal right to register a innovation. When innovation is
protected through intellectual property rights that it leads to provide a competitive advantage to
businesses that put all their efforts to make that innovation successful. It also helps in earning
more and more profits in long run as no one can use that innovation without prior approval. This
also provides wider business environment to an organisation to operate where competition is
minimum.
Critical evaluation of nature of innovation
Innovation leads to development and provides a goods and services to society which are
better in terms of quality and provides more satisfaction. Innovation is developed through new
ideas, assessing current market trends and future expectations of targeted consumers. In the
process of innovation there are several challenges that are faced by Hotpoint organisation such as
existence of similar innovation, chances of adaptation of new innovation, leakage of information
before developing innovating products. To overcome these challenges market analysis and
competitors analysis needs to be made effectively. Together with this confidential information
needs to be protected in appropriate manner to minimise chances of leakage.
CONCLUSION
This report concludes that commercialisation and innovation are the processes which are
focused by companies for the purpose of attaining growth and development for business. For all
the organisations it is very important because it help them for the purpose of expanding market
share and attract more and more clients. There are various components that can facilitate process
of shaping commercialisation and innovation for business. These are vision, leadership,
teamwork and culture which is followed within the company. While launching a unique product
for companies it is vital to focus on 4Ps of innovation which are process, paradigm, product and
position. Frugal innovation is also an essential element which should be taken in to consideration
while introducing a new product. For this purpose company is required to follow the steps
involved in new product development process. Entities can use different intellectual property
rights such as copyright, patent and trade mark for the purpose of retaining and protecting
knowledge.
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