Hyundai's Innovation & Commercialisation: Strategies & Analysis

This report delves into the innovation and commercialisation strategies employed by Hyundai, a leading automobile manufacturer. It contrasts innovation with invention, highlighting the importance of organisational vision, leadership, culture, and teamwork in fostering innovation. The report examines the 4Ps of innovation (Process, Product, Paradigm, Position) and the innovation funnel, alongside developments in frugal innovation. It further explores the commercialisation of innovation, emphasising the commercial funnel and New Product Development (NPD) processes. A business case for innovation within an organisation is built, including funding access methods. Finally, the report identifies tools for organisations to develop, retain, and protect knowledge and intellectual property, providing a comprehensive overview of Hyundai's approach to innovation and its commercial application.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
CONTEXT OF INNOVATION AND DIFFERENCES BETWEEN INVENTION AND
INNOVATION................................................................................................................................3
P1: Importance of innovation and its comparison with invention...............................................3
P2: Organisational vision, leadership, culture and teamwork in shaping innovation and
commercialisation........................................................................................................................5
DIFFERENT TYPES OF INNOVATION......................................................................................6
The 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas...........................................................................................................................6
P4: Developments in frugal innovation.......................................................................................8
COMMERCIALISATION OF INNOVATION..............................................................................9
P5: 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
...................................................................................................................................................10
WAYS TO SAFEGUARD COMPANY’S INNOVATIONAL ASPECTS..................................12
P7: The different tools that organisations can use to develop, retain and protect knowledge and
intellectual property...................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation refers to the art of introducing and discovering ideas that will maximize the
growth of a particular organisation. It is a formula that will introduce and implement factors that
will be the stimulators of growth in the organisation. Every business tries to innovate ideas in
order to flourish in the marketing race. Competition is at its perk and therefore the organisation
and industries fall in the line of haunting ideas for innovation (Reye and et.al, 2021). The ideas
that are attained by a thorough research are then being boosted by adding catalyst which is the
strategy that act as a binding nature for the innovations to stand form upon applying on the
organisation. The innovation practices are said to be cost-effective and therefore soon after an
idea is being implemented that is to be commercialized.
The company that is opted in this regard is Hyundai which is an automobile manufacturer
and is headquartered in South Korea. The company was established in the year 1967 and since
then it is termed to be one of the game changers and the world of automobiles. This report will
cover concept of innovation and its comparison with Invention, 4Ps of innovation, frugal
innovation, funnel innovation, process of NPD and a business case.
MAIN BODY
P1: Importance of innovation and its comparison with invention
Innovation as mentioned earlier is said to be one of those approaches in which the ideas and the
thoughts that are to be applied upon will be implemented and then the results will be generated.
Creating ideas will also increase the performance and efficiency of the organisation. The
company Hyundai being one of the most rated automobile organisation, follows different
approaches and the collection of thoughts and ideas will be applied upon drawing results of
innovation. It is said that any organisation cannot exist in the marketing race without proper
innovation strategies. In order to safeguard the existing customers and to reach their satisfaction
levels, it is said that innovation will act as a catalyst and will promote growth of the company.
There are different certainties that are to be balanced in the organisation (Rasmussen and
Eliason, 2017). Customers, growth, sales and the marketing competition are regarded as few
important aspects that are to be balanced by the organisation. In order to maintain a pace with all
of these factors then the company will have to introduce measures that will safeguard and act as
a barrier to face the atrocities.
Concept of innovation in the company

The innovation formulas that are adhered by Hyundai company are said to be satisfying the
customers needs. There seems to be a greater competitive advantage upon treasuring innovation.
After innovation strategies are sorted out then the next stage will be commercialization.
Commercialization can be implemented even before determining the cost of the innovations and
the idea will only be permitted to the organisation. Hyundai company determines the depth of
innovation by the policies and strategies it adapts in order to manufacture cars at the desired
needs of the customers. Innovation is the major goal and the major formula that is adopted by the
Hyundai company and that is the reason for it to sustain as one of the major competitors in the
automobile industry.
Comparison between invention and innovation:
Aspects Invention Innovation
Concept Innovation is the art of
creating the new thought or
action that is to be applied in
the organisation.
Innovation refers to the
strategy that is to be adopted
by the organisation in order to
implement the ideas and the
thoughts.
Result The outcome of invention is
the formation of entirely new
action plan.
Innovation results in
modifying the existing plan of
action with new strategies.
Idea This is considered to be
entirely new idea that will
determine the raw process of
the plan.
Already existing idea will
further be modified upon
additional strategies and the
techniques will be similar.
Approach Invention is regarded as a total
scientific approach that will
involve a proper research and
study.
Innovation is a strategic
approach that will further add
gleam to the existing idea.
Identity Invention will represent a
unique identity that is opted
by almost all the
The identity of innovation is
said to be the composition of
different strategies that are

organisations. applied.
Orientation Invention is research
orientated.
Innovation is the group
orientation.
P2: Organisational vision, leadership, culture and teamwork in shaping innovation and
commercialisation
Vision
The vision of the company Hyundai is to maintain of proper organisational structure. The
teamwork in Hyundai is considered to be one of the most flourishing aspect for the organisation.
Hyundai most forward with the vision to serve the customer needs in the best way possible. The
manufacturing unit of Hyundai is supposed to develop and manufacture new inventions followed
by different innovations in order to meet their vision (Ardiansari and et.al, 2020). For this aspect
the company mainly focuses upon all the implementation and techniques by adding additional
features that will contribute to a better quality. Hyundai maintenance of proper customer
relationship is an added benefit to the organisation. The management of Hyundai incorporates all
the values that are needed to establish and achieve the vision of the company therefore the
workforce is considered to be one of the most dedicated one and which will contribute for a good
performance of the organisation.
Leadership
Every organisations performance is based on the type of leadership that it considers. The
leadership of the company Hyundai is said to be designed in such a way that will meet the
competencies and the goals that are stipulated to the company. Being an automobile company,
the automobile industry is of various challenges and the leadership of the company deals with
every challenge and every atrocity that comes in the way. The operation of the company is said
to be the most satisfying one to its customers where there is minimal usage of resources and that
is managed in a proper manner. The leadership of Hyundai will discuss idea of innovations with
the team that is constituted to work on innovation. A brainstorming is then performed where
managers will collect all the necessary ideas and then apply the ones that are relevant. The
leadership of Hyundai will push the crew ahead of encouraging their works.
Teamwork

In order to achieve a proper plan or an objective it is the team that is important to work upon all
the implementations (Altaf and et.al, 2019). When innovation is a set of formulas that are to be
adhered by the company then the teamwork is the major asset of the company that will drive
innovation in the better way possible. This can only be achieved with a dedicated team and the
crew of Hyundai is supposed to be one such in the automobile industry. They emerge with the
common goal and apply the basic formulas that are required to develop and invent upon a
particular project.
DIFFERENT TYPES OF INNOVATION
The 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
There are four Ps of innovation that are implied and applied upon the organisation and Hyundai
follows this 4 Ps:
Process innovation:
The process innovation deals with different practices that are associated upon generating a
particular invention. Identifying different processes is the set of practice that is to be dealt with
consciousness. Hyundai company is known for its process innovation where it identifies every
aspect that falls under process. This is considered to be a huge concept that deals with every
small factor of the organisation. The growth and profitability are the two aspects that are
associated with process innovation. The services that are offered to the customers of Hyundai are
identified at the early stage where people can perform innovations based on customer desire.
Product innovation:
Whatever formula the company deals with is to develop a product that is unique. Customer
desires are to be met by manufacturing products that are needed (Hassan, I. and Batool, S.,
2019). Hyundai company allocates certain time period to work upon a product manufacturing
where within this stipulated time period there will be teamwork that is performed to apply the
formulas as well as the necessary modulation that are required to bring the final output. For this
the workforce will perform a research oriented mechanism to meet the needs.
Paradigm:
When walking up on a particular product or the manufacturing is of one slide the reason why the
company is manufacturing will fall upon the other side. Paradigm of a company is nothing but

the reasons that are associated with the manufacturing unit. Hyundai company is always in a
hustle to find out why they are up to innovation for a particular invention and therefore they are
capable of bringing best of organisational environment.
Position:
Position or positioning in is the considerable aspect of every organisation and industry. The
marketing world is so competitive that every industry tries to position itself based on the output
and profitability that it has attend in the stipulated period. Hyundai company majorly focuses
upon the positioning in the automobile industry where there it always analyses the scale of
growth that it has attained up on manufacturing certain product and releasing them into the
market.
Innovation funnel:
In order to implement idea, it is not a small task that can be completed at an instance. There
requires an amount of effort and dedication in order to establish a particular idea. Hyundai
focuses upon implementing these strategies in its workforce that will work upon and consider
different aspects in order to implement a particular idea. Steps in innovation funnel method:
The wide mouth: the first stage indicates the wide mouth which states that the company
Hyundai will allow all the thoughts and ideas of the workforce to adhere without an obstruction
that is offered. This will help the company to gain more knowledge.
The narrowing segment: the narrow segment in the funnel is an indicative to the screening
process where the management in the company will filter the ideas that are attained from the
prior stage.
Complete narrow segment: this is the stage where all the ideas that came across screening and
the access that is granted will therefore be selected with the appropriate measure and then the
management will consider one framework.

P4: Developments in frugal innovation
Frugal innovation is said to be one of the major aspect of every organisation. Frugal innovation
is a policy that will enhance the sales of the company because of the rise of product. There are
different segments in the market and the company identifies the ones that are best suitable for its
growth. For global innovation the company cannot all by itself extend its policies for overseas.

Therefore, the frugal distribution of the product will help the company in to increase its scope
globally. The different aspects of the company that fall under frugal innovation our quality,
distribution, output cost, adaptability, performance, servicing and input costs with regards to
research and development. The frugal innovation with respect to the company Hyundai is to
adhere the resources and use every resource carefully when it is only a mandatory to use. The
information that is attained about the market and the race that is happening in the market will be
known to the company. The major concern of the company of the firm is the customers and
therefore they only follow the steps to increase their productivity to meet the customer demands.
This will help the Hyundai services to be maximized to a certain extent. With frugal innovation
the company can be able to distribute its products in the different segments of the market. it can
also have a global expansion scope with frugal innovation.
COMMERCIALISATION OF INNOVATION
P5: Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
The importance of an innovation is to create a better working place and position in the marketing
world. It gives an impression to the customers which will last forever.
Commercial funnel:
Commercial funnel deals with the aspects of creating new strategies that will result in generating
profitability to the company. In order to increase the profitability of the commercial funnel will
focus upon the activities like marketing and the same. There are different stages that are involved
in the commercial funnel where the higher profits are aimed. The Hyundai company tries to
minimise the complexity of dealing with the situations therefore it becomes easier for the
company to deal with commercial funnel.
Importance:
Every organisation aims at the commercial Funnel in order to increase their success. the
manufacturers in the company will aim towards making better products of long-lasting durability
in this regard. With the proper information and the stipulated research that is performed upon
manufacturing a particular product at the company moves ahead in order to meet the customer
demands.
The different stages of product development are:

1. Ideation: The Hyundai company through this process of ideation will validate different
thoughts that will make up a perfect sense to product creation. The company will give
their workforce a more challenging aspect of validating ideas through which on will be
drawn.2. Research: The company aims at increasing its standards by going into research methods
to demonstrate the ideation using technological as well as the existing ones (Kun, L.,
2017). Every new feature that is launched into the market will be adopted as a formula by
the company and that is when the company is said to reach the mark of meeting people's
demand.3. Planning: After performing research, then the immediate option is to put into practice the
overall obtained data. The Hyundai company’s management will make sure to develop a
plan upon all the ordinances of product development.4. Experimental approach: This is something which is like a prototyping that is performed
prior to actual plan of action. Hyundai company will make sure to come up with a
prototype to understand detailed information involved in product development.5. Sourcing: Sourcing refers to the stage of enhancement that will let the company to make
sure about the resources that are required to work upon the product development. The
Hyundai company will let no stone untried in the process of sourcing.
6. Costing: Costing is the process of analysing the estimation or the budgeting that is
required to move ahead with the product development. The Hyundai company will
provide a brief of the costing that is required to analyse the prospects of product
development.
P6: Build an Innovation Business Case for an organisation, including ways to access funding1. Description of innovation: Innovation is regarded as one of the finest aspects that deals
with the prospects of growth where the company will include measures and the ways of
developing its product to a very next level. The management want to manage an effective
situation for the next generation to provide fuel battery that consumes less energy and
enhance fuel efficiency that offers effortless and comfortable driving.
2. Risk and challenges of innovation: There are various risks that are associated with the
innovation. Since the Hyundai company focused upon the innovation is its strategy to
enhance their growth, the innovations in its part constitute of technology. Technology is

considered to be one of the biggest risks that is associated with innovation. It is never
constant and that is the reason for it to be the greatest risk of all times.3. The challenges associated with innovation are that with regards to the ideas as well as the
practices that occur internally as well as externally. The ideas seem to be the greatest
intervention and the competition will fall upon enhancing them.
4. Innovation strategies:
5. Active: which means that the active participation of the members in the company is
involved which will help the company to stand firm with the product ideation strategy.
The crew is said to be one of the finest of all kinds in Hyundai that actively come up with
ideas.
6. Passive: passive type is when the company will partially look and take charge after the
innovations that are adopted by the company. Hyundai workforce is such that they are in
no ways considered to be passive.
7. Reactive: the innovation ideas that come under the process of reactive will help the
company survive upon the methods that are predominantly reactive.8. References: this type of innovation is carried by the referencing method that will bring
forth the challenges of other innovation ideas that act as reference to the company.9. Opportunities in market: Innovation has got a surplus market authority where the
customer demand for the most innovative product is said to draw more sales and
turnover. Being an automobile company where the entire automobile industry is regarded
as one of the best opportunity generating sector for innovation, the company is able to
monitor the other aspects that are related to competitive advantage that will help the
company flourish globally.
10. Funding: Funding is said to be the crucial stage in every organisation’s growth. For any
innovation or implementation there must be proper funding that is associated with the
company. If there is no proper funding according to the business norms then a particular
innovation cannot be implemented because a certain innovation will require resources
and mostly cost-effective (Zahedi and et.al, 2018). Hyundai company's funding sources
are based on the availability of global fund, net earnings and the previous profit that are
derived from its earnings. Hyundai company shareholders are the major assets of the

company who will hold funds in research-oriented programs. These funds are collected
externally where the sources are identified and preserved.
P7: The different tools that organisations can use to develop, retain and protect knowledge and
intellectual property
Patent:
The patent rights of any company will help the organisation to make sure that it has developed
few rights of its own over the policies that are adopted and are carried in the company. The
patent owned companies will pay Hyundai upon every product that is manufactured in the
formulating areas. For example, upon manufacturing a new car, the company have worked and
conducted a research the company will gain knowledge about the formula that is required to
make up the new product through innovation. Here the formula that is applied will have a patent
by other company who will in turn get that for a good amount after all.
 Advantages
The main benefit of this is that it gives protection for 20 years.
 Disadvantages
It takes large cost to take the registration of patent.
Copyright:
When there is a fraud that is taking place with the onset of the aspects that are related to the
techniques of innovation and the other company will without notice adopt all the policies of the
company Hyundai, then that comes under copyright issue. There seems to be a larger scope for
this in the auto-mobile industry where people are more towards grabbing the other people idea.
 Advantages
The benefit of this is that it provides protection to the idea even after the death of the author.
 Disadvantages
The innovation ideas main drawback is that one idea can be copied by the other organisations
that are operating in the same industry.
Trademark:
Trademark registration will help the company to get the complete license as well as the
ownership of the particular innovation that the company is dealing with. For example, the
innovation that is adopted by Hyundai is for manufacturing a car to which a strategy is adopted.