Innovation and Commercialisation Strategies for Infiniti Cars, UK

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Innovation and Commercialisation
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Table of Contents
Introduction................................................................................................................. 2
LO1............................................................................................................................. 3
LO2............................................................................................................................. 6
LO3............................................................................................................................. 9
LO4........................................................................................................................... 13
Conclusion................................................................................................................ 15
Reference List...........................................................................................................16
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Introduction
The most important aspect of any business is said to be innovation because
innovation only assure proper enhancement and development of a business and the
product and service provided by them to the customers. Commercialisation also
plays an immense role in flourishing of any business. This is the very reason
organization’s focuses on different approach of innovation and commercialisation for
enough establishments of their business and maximising overall outcome. This
assignment laid focus on the thin line of difference betwixt innovation and invention
and its brunt upon the business of an organization. Apart from this, it is quite
important from a business point of view to oblige certain business protocols in an
efficient way, which will make the whole workforce remain driven towards
organizational goals. In this dynamic market, implementation of different innovation
strategies to keep the consumers remain attracted towards a particular company’s
product is also quite important. The assignment also concentrates on application of
innovation funnel and frugal innovation on a workplace.
Infiniti Cars, UK is the organization that is chosen for further completion of this study.
The organization was established in 8th November 1989 and is now one of the
leading car companies of UK. The primary focus of the company is to launch cars
driven by artificial intelligence, which will keep the customers attracted towards the
product of the company (infiniti.co.uk, 2019).
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LO1
P1 Explain innovation and determine its importance to organisations in
comparison with invention.
In this dynamic market, the two major factors that should be enhanced by an
organization on regular basis are said to be Invention and Innovation. These two
factors are considered the backbone behind the development and enhancement of
products and services in any organization, which will keep the customers attracted
towards the organization. The current section of the study deals with the important
aspects connected to innovation, invention, and the thin line of difference between
them.
Invention
It is the process of acquiring new and updated technologies and methods among the
working ambience of an organization (Park, 2017). Various theories and concepts
are brought into play when employees make use of these types of technologies,
which cater to the updated needs of the customers. This helps a company to gain a
competitive advantage over their competitors, keep their loyal customers attracted
towards the company, and acquire new ones. The organization chosen for the study
Infiniti Cars, UK focuses on introducing self-driven cars in the market with the help of
artificial intelligence. The organization should focus on efficient development of the
product in such a manner that the customers get easily attracted towards the product
and tends to buy it during the initial stage.
Innovation
When a company decides to modify or develop one of their existing products in the
market and bring it from the ‘Dog Position’ to a ‘Star Position’ in the market
according to the BCG Matrix, it is known as innovation (Mohajan, 2017). The
modification is brought by proper application of updated technologies available in the
market. All the departments of the organization play an efficient role in this process
and they should work in a proper alignment to reach to the desired goal. Innovation
allows an organization to insure that they are developing their product in an efficient
rate to cater to the updated needs of the customers (Godin, 2016). This process also
helps an organization to monitor their growth rate. In recent times, the market
scenario is ever changing and it is very necessary for an organization to keep up
with the hopes of the customers to satisfy their needs and keep them biased towards
the organization. Innovation allows a company to maximise its productivity, which is
directly proportional to the annual turnover of the company.
The following section deals with the thin line of difference between Invention and
Innovation in a broader manner.
Basis of Comparison Innovation Invention
Concept With the incorporation of
invention among a working
ambience, a company is
able to add new features
to their existing product,
This process includes
usage of updated
technologies among the
working environment of an
organization to bring up
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which helps them keep
attracted the customers
towards them (Daabes et
al., 2018).
new products, which will
help them to cater to the
updated needs of the
customers.
Meaning In the following process,
the company looks
forward to introduce new
attributes to their existing
products in the market
with the implementation of
different theories.
The organization
introduces a very new
product in the existing
market with the help of
updated technologies to
keep the customers
attracted towards the
company.
Factors In the following case, the
company needs to analyze
certain factors so that they
do not have a harmful
effect on their business.
The various factors linked
with invention aims to
achieve customer
satisfaction with the
inclusion of new product in
the market.
Skills Required The employees associated
with the company should
be able to install and use
updated technologies and
should carry enough
scientific knowledge.
The employees associated
with this process should
be aware of the marketing
strategies and should
carry enough technical
skills to bring up a new
product.
Table 1: Difference between Innovation and Invention
(Source: Created by the learner)
P2 Explain how organisational vision, leadership, culture and teamwork can
shape innovation and commercialisation.
Due to the ever-changing scenario and a tough fight from the competitors, it is quite
difficult for any organization to maintain their position in the dynamic market. This is
the very reason that companies acquire innovation to develop new products, cater to
the updated needs of the customer, and maximise their annual turnover. Innovation
approaches can only be incorporated by an organization if they laid a primary focus
on their culture, teamwork, vision and leadership. The following piece focuses on
efficient roles disported by managers and leaders in acquiring innovative approaches
among the working environment of Infiniti Cars, UK. This will conclude in efficient
production of updated products in the market, which will cater to the refurbished
needs of the customers.
Company’s Vision and Leadership
The primary objective of the organization is to provide their customers with efficient
products and high quality services to cater to their refurbished needs. Motivators play
an effective role in the process of innovation. The leaders and managers play an
effective role in motivating the employees of Infiniti Cars, UK to incorporate this
process, which keep the entire workforce remain driven towards organizational goals
(Antonakis and Day, 2017). On the other hand, it is the primary goal of the
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management of the organization to keep a close eye on all the departments of the
organization to make sure they are working in the same alignment and providing
their valuable contribution towards organizational goal (Kirkpatrick, 2017). It is on the
part of the leaders that they make sure the employees are aware of the
organization’s mission and vision, which will keep the entire workforce remain driven
towards organizational goals.
Team and Importance of Teamwork
The organization should laid focus on building up distinguished team among the
workplace so that the allocation of task among the employees is done on a devised
manner (Salmon et al., 2017). This helps the manager to align the teams under
proper super vision among the workplace in a dynamic and competent manner. It is
on the part of the team members to work subsequently and effectively to provide
valuable contribution towards organizational goal. These processes are mandatory
to be followed by an organization whenever there is inclusion of new products in the
market.
Organizational culture and Structure
In order to achieve sustainability in market with the inclusion of new and updated
products it is very necessary for an organization to maintain a healthy working
ambience for their employees (Driskill, 2018). It is very essential for the employees
to follow the company’s protocol to remain driven towards the organizational goal.
The time a company ensure that, they have acquainted a well-devised organizational
culture the path of developing updated products becomes quite easy for them. This
helps them to remain aligned with the protocols of the company.
Hence, Infiniti Cars, UK should pursue this similar and efficient arrangement in order
to initiate the launch of AI driven cars on the European market, which will allow them
to meet refurbished needs of the customers and make them attracted towards
organizational goals.
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LO2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel
to examine and shape innovative ideas.
The process of innovation includes 4P’s that should be taken into consideration
whenever there is necessity to develop new products and launch them in the market
to cater to the updated needs of the customer (Resnick et al., 2016). The process of
implementing these 4P’s of innovation in an organization is bisected below.
Product
In order to achieve sustainable development, it is quite important for an organization
to develop new and innovative products, which will cater to the refurbished needs of
the customers. In the following phase of innovation, much focus is laid upon
development of new products. A huge section of customers tends to go for updated
technologies, so the factor of innovation and introduction of new products in the
market is considered one of the essential approaches to grab customer’s attention
and sustain in this dynamic market (Liu et al., 2017).
Process
Innovation and commercialisation also plays a key role in measuring the
development of a new product in the market and its key aspects. It is quite
necessary for an organization to appliance effective ideas and strategies among the
working ambience to develop a refurbished product in a fruitful manner (Kucuk,
2017). Election of effective process helps a company to acquire a new product within
a minimal cost and make the maximum out of it in the European market.
Paradigm
It is quite necessary for the company to choose an effective approach out of the all to
make sure that the newly introduced product do pretty well in the existing market and
allows them to expand their market area. The entire responsibility of the application
of these innovation approaches falls on the shoulder of the employees and they
should do it effectively to achieve the desired product in a minimal cost.
Position
It is the primary objective of the organization to find out their target customers and
the target regions to launch their newly developed product (Lei and Moon, 2015).
This is important from the company’s point of view because these have a direct
effect on acquiring and satisfying new and existing customers respectively, which
directly affects the annual turnover of the organization.
Hence, the necessity of 4P’s is specifically understood in introducing a new product
in the market. It plays an effective role in catering to the refurbished needs of the
customers. A company can reduce market related issues on following this 4P
strategy, which will make the process of business much smoother. Infiniti Cars, UK
can make the most out of this process and establish their firm grip over the market
by introduction their AI driven cars.
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Innovation Funnel also plays an effective in monitoring the business innovation of a
company and helps them to introduce innovative ideas and concepts to rebuild their
products in this dynamic market. This process allows an organization to penetrate in
the market in order to launch their product and make the best profit out of it (Yun,
2017). The importance of innovative funnel is bisected below.
Investigation in the market
The organization should take into account various methods and techniques, which
will allow them to develop relevant strategies among the working ambience and
sustain in this dynamic market (Keser et al., 2017). It is crucial for the management
of the company to lay much focus on the requirement of the European market before
launching their new product. This will allow the organization to know more about the
requirements of the customers in the European market, which will help them to
design their products in a much effective manner. Once, the product is designed
aligned with the customer needs it becomes much easier for the organization to
make the best profit out of it.
Products and Service Development
It is on the part of the company to conduct a detailed market research to know more
specifically about the customers need so that they can assign their updated products
with the required set of changes, which will be very appealing for the customers. This
process helps the organization to cater to the refurbished needs of the customer
(Tukker and Tischner, 2017).
Delivery of Innovative products
After the company is well versed of the customer needs, it becomes quite an easy
job for them to implement different techniques to develop new products. Once, a new
product is developed it is on the part of the company to make it reach out to the
customers. If the process of delivery is executed pretty well by the organization, it
directly affects the profitability and annual turnover of the organization.
Hence, Infiniti Cars, UK, should also acquire the approach of Innovative funnel to
sustain in this dynamic market gaining a competitive advantage over their
customers.
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Figure 1: Innovation Funnel Diagram
(Source: Wang, 2017)
P4 Explain developments in frugal innovation and provide examples of how it
is used in an organisational context.
A frugal innovation approach helps an organization to ensure that they are able to
include new features in their already available product in the marketplace and
enhance the path of business operation. It also provides the organization with a
competitive advantage over their competitors, which is very necessary in this
dynamic market. The company must ensure that they are utilizing their available
resources in an efficient way to make the best out of it and earn sustainable
development. Frugal innovation approach also makes room for the organization to
acquire advanced technologies within their workplace and make use of it as per their
plan and in an efficient way (Weyrauch and Herstatt, 2017). It is on the part of the
company to acquire updated technologies and make them work in an efficient way to
ease the process of business and overcome the hurdles coming in their way. The
company can develop their products and services in the following manner with the
help of Frugal Innovation.
 The company should acquire different business strategies to make sure their
process of developing business is unique and much efficient.
 Acquiring new technologies will also help the organization to build an
extrusive and advanced working ambience, which will be very effective in
motivating the employees and make them comfortable during the process of
developing the product or service provided by them.
 Multiple times, it has been seen that there are changes being done on the
management of the company during the development of a product or service
so, it is on the part of the employees to be adaptive with the situation, which
will, not harm the process of development of any particular product or services
(Knorringa et al., 2016).
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LO3
P5 Explain the importance of the commercial funnel and the application of new
product development (NPD) processing for commercialisation of innovation.
Commercial funnel
Commercial funnel is method for visualizing and experiencing and it helps the
company to gather leads and transform it to the customers who are paying. The
opening is wide at start by adding numerous amounts of customers and the funnel
ends in a narrow shape, where customers end their sale. The commercial funnel
helps in making customers aware about the existence of the company. Infiniti Car
can gain this by giving effort on the marketing and this funnel enables to gather in
gathering leads (Gutierrez-Gutierrez et al., 2018).
Application of NPD
It is a method, by which a product can surface the market from the conception stage.
The process has various stages and these are –
Idea generation: This stage consists of thinking and approaching new ideas. The
main target is to form many ideas to generate a better conception.
Idea evaluation: This stage involves evaluating various ideas and the relativity of it
by focusing on markets, customers and their details and the expectation of them. If
the idea is appropriate, then the concept can get an approval.
Concept definition: This stage consists of considering various specifications like
market potential, design of a product, technical practicability and few others.
Excellent market research will help the organization to come up with better products
(Hamidizadeh et al., 2018).
Strategic analysis: The comparison of idea and strategy is necessary to understand
the feasibility of the idea. Therefore, it is necessary to analyze the demand in market,
operational costs and expense for developing products is necessary to understand
the notional profit margin.
Concept development: This is a very vital stage, as this will enable Infinity Car to
understand the needs of users. The concept in general focuses on various features
of the solution in proposal. It will include usability, handiness and performance of the
solution. The company needs to focus on describing the solution according to the
point of view of customers.
Market testing: This stage involves modification of latest products on the basis of
manufacture and customers feedback and it is also necessary to consider opinions
of other people who are associated with the company. Market testing is a very
efficient way to evaluate the new driving concept (Ernst et al., 2017).
Commercialisation: The pricing of the product is the main target of this stage and
the price is according to the market trend, price of competitors. The application of
marketing plan should be proper (Dincer, 2017).
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Product launch: Product launch is a very essential event, it requires specific plan,
and it includes distribution channels. This stage ends when a new product comes
into the concept.
Figure 1: Commercial funnel
(Source: Dincer, 2017)
P6 Build an innovation business case for an organisation, including ways to
access funding.
Business Case
Company background
Infinity car is a part of Nissan and it comes under the division of luxury cars. Nissan
have more than 50 countries worldwide. This will become an electric brand in future
and they are targeting to sell electric cars (nissan.co.uk, 2019).
Mission statement
The mission of this organization is to invent new and unique products, which will give
more value to stakeholders, customers, employees and all the people who are a part
of this organization or have a relation with it.
Product description
The company is planning to introduce AI driven car, which uses sensory functioning.
This feature takes the help of sound and vision to understand the condition of the
road. The feature is so efficient, that it obeys all the traffic rules and keeps the rider
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safe. The car will have various cognitive functions like intelligent thinking, ability of
decision-making, which will make it as capable as a human. The car will also have
sensors, system for communication, camera, which will enable it to asses a situation
correctly. This vehicle can be effective for decreasing the amount of road accidents
due to its advance technology and it will eliminate any human error (Li et al., 2018).
Target customers
This AI car will be popular amongst people who have certain types of disability,
which bars them from driving a car. It will be good if they target these types of
customers and it will attract young people, who like to follow latest advancement of
technologies.
Pricing
Due to its high level of equipments and technical specifications, the price of this car
will have high price. The company is thinking about applying premium-pricing
strategy and this will make consumers aware about the value of the product Nagle,
(T.T. and Müller, 2017).
Competitor analysis
There are many companies, who are also thinking and working on this idea to make
AI driven cars. The main competitors are Mercedes Benz, BMW and VOLVO. The
company should make cars of better quality to eliminate competition (Jin et al.,
2016).
Operational team
The company will need highly capable team with significant amount of experience
combine artificial intelligence with the system of the car. The system should be
effective in such a way, that it performs driving tasks under difficult scenarios.
Financial planning
Infiniti Car will require an amount of 19000 Euros to design the system. Cost
breakdown is given below through a chart.
Item Cost (Euros)
Human resource 2,900
R & D 7,600
Fixed Cost 3,400
Administrative Cost 3,200
Others 1,900
Total £18,500
Table 1: Budget
(Source: Created by the learner)
Methods to get funding
The company can get funding from its own resources and can take loan from banks
to implement this concept.
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