INNOVATION AND COMMERCIALISATION: Report on Product Development

This report comprehensively examines the concepts of innovation and commercialization, emphasizing their significance in product development and business success. It analyzes various aspects of innovation, including organizational vision, leadership, culture, and teamwork, and explores diverse sources of innovation. The report delves into the 4Ps of innovation and the application of the innovation funnel, with a specific case study on Big Belly, a company producing solar-powered compacting bins. It also discusses frugal innovation and its development, alongside the importance of the commercial funnel and the application of New Product Development (NPD). Furthermore, the report presents an innovative business case and evaluates tools for protecting intellectual property, providing a detailed overview of the strategies and challenges involved in bringing innovative products to market.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Explain the concept of innovation and analyse its importance in comparison to invention.......1
Explain how Organisational vision, leadership, culture and teamwork can shape innovative
ideas.............................................................................................................................................3
Analyse various sources of innovation and how it is helpful in developing the environment
and culture of innovation............................................................................................................4
Explain the 4P's of innovation and use of innovation funnel......................................................4
Explain the development of frugal innovation............................................................................5
Application of innovation funnel in Big Belly............................................................................5
PART 2............................................................................................................................................6
Importance of commercial funnel and application of New Product Development (NPD).........6
Innovative business case.............................................................................................................8
Evaluation of various tools for protecting intellectual property...............................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation occurs from invention as innovation termed as making changes and
modifications in the existing products and services in order to relaunch it. Innovation occurs for
the improvement or making suitable contribution in the existing products and services. It defines
the procedure which is concerned with the analysis of opportunities, development of ideas and so
on which consider marketing and testing of products within the market (Bandarian, 2019).
Despite of this, commercialisation is a process which depicts the introduction of new services
and goods at commercial level. Both the procedures are significant for company in order to run it
successfully and develop its goods and services to gain its position in the market. In this report,
Big Belly is considered which produce dustbins who gets charge with solar energy and
compacting bin produced by company. Presently, company develop its smart sensor waste
stations in order to take care of garbage and keep its record. Big Belly is working for the
development of broad range of creative products as this report is classified into two parts. First
part covers the application of innovation to develop its new product. Meanwhile, second part
covers the application of commercial funnel for the analysis of product and also use prominent
methods in order to protect the intellectual property of company.
PART 1
Explain the concept of innovation and analyse its importance in comparison to invention
Innovation: It refers to the procedure which makes changes and modifications in the
existing products and services which impacts the success of company. For this, many factors are
useful in carry forwarding the functioning of innovation which include creative thinking as it is
useful in driving the force of company (Exton and Totterdill, 2019).
Invention: It represents the process which is useful in providing new ideas to put it into
action and also determined as the another phase of developing a new product. It occurs only
when the new ideas came in the mind of single person and that ideas is transformed onto the final
product and also offer its first time in a while in front of customers. For this, it consider lots of
research to determine its market as it is considered as the lengthy process.
Comparison among innovation and invention
Basis Innovation Invention
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Purpose Its purpose is to generate more
values and productivity in its
current products and services.
Meanwhile, their objective is
to launch something new and
innovative and create
something new and fresh to
their potential customers.
Occurrence It happen only when an
organisation analyse that they
does not have more
competition and competitors.
It happens when the new idea
came in the mind of employees
and then they shape it in
finished product which is
useful in satisfying the
requirements of their
customers (Howson and et.,
al., 2019).
Innovation plays a significant role in the part of success of an organisation. For this,
penetration is useful in improving and developing the appropriate connection. Here, to develop
innovation in an organisation, they need to add some sort of values in it which carry lot of risk
and challenges. Its importance are discussed as under: Unique selling point (USP): By determining the competitors of market, competition is
high in business environment in considerations of Big Belly and for this, they use
innovative techniques to sell its products and services which is quite unique as it carry
and store five time more garbage. For this, the current innovation is done by company is
giving direct notification to garbage stations instead of alarm which generate noise
pollution and because of this, company need to be more creative and innovative in order
to promote its products and services.
 Continuous improvement: This factor is useful for company for the uninterrupted
enhancement of the goods and services of company. For this, market and its related
products and environment is dynamic in nature (Malone and et., al., 2020). Due to this,
Big Belly face many changes in sale of its products and continuous modifications are
important as it is useful for both company and staff for their betterment.
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Explain how Organisational vision, leadership, culture and teamwork can shape innovative ideas
Innovation is a factor in which an organisation can easily attain its desired goals and
objectives and also become more productive in market. For this, different factors are present
which are helpful for an organisation and few things are discussed as under: Organisational vision: It represents the objectives and targets which are developed for
the completion of idea and it is set by the company. Thus, in order to shape innovative
ideas, employees of Big Belly plays a significant role. By analysing the innovation which
is done by Big Belly, it is required that they need to remove the sound of alarm and send
probable notification to the nearby stations for the collection of garbage. For this, the
vision of company is to make suitable contribution in order to eliminate garbage from
world and eliminate noise pollution also (Mazzarol and Reboud, 2020). Leadership: It is a process in which the leader of company provide guide and direction
and also choose suitable leadership style for their innovation which is situational
leadership. In addition to this, leaders of big Belly are more responsible and creative at
the time of performing its duties (Mazzarol and Reboud, 2020). To achieve vision of
company, leaders can opt democratic leadership style as due to this, employees over there
are motivated towards developing unique and creative ideas which tends to develop the
performance of company. In relation with this, if Big Belly opt autocratic leadership then
their employees get demotivated for doing and achieving something new. For this, good
leader should be honest and creative and must carry positive attitude and uniqueness and
also have probable competence to efficiently delegate work. In context of Big Belly, its
CEO is Brian Phillips and also use democratic leadership which is useful in advertising
innovation in an organisation in order to improve and enhance the reputation of company. Culture: It describe the way by which company offer its services in business
environment in order to develop their individual identity. It depicts the value and beliefs
in which company regulates and for this, Big Belly should be more flexible in terms of
developing unique products. Thus, it is helpful in achieving competitive advantage with
the increment in market competition. In relation with this, advertisement of innovation,
entity need to adopt probable culture which is more flexible for their workforce because it
helps in enhancing the productivity and performance of an organisation. In relation with
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Big Belly, company can adopt task culture as here its employees are more coordinated
and develop confidence among them.
 Teamwork: It represents the environment in which staff of an organisation work in
collective manner in order to attain goals and objectives. For this, it is quite better to
undertake the specialist and expertise in the development of business idea to attain better
result (Morrish and et., al., 2019). For this, effective team is the base of success of
company which include employees who have feeling to work on together basis and also
have proper coordination and cooperation among employees. In addition to this, effective
team is useful in improving the quality of work and helps in completing the work on
time. By this, Tuckman theory is helpful as here, leaders of Big Belly can properly form
team which helps in attaining the desired goals in effective manner and also helpful in
avoiding conflict among employees.
Analyse various sources of innovation and how it is helpful in developing the environment and
culture of innovation
In order to develop any sort of product, company use innovative and suitable resources
which are useful in innovating something new and also proved to have suitable innovation. Such
improvements make appropriate change in innovation as it is considered as the bigger term
which embraces different things and also consider seven components in it like unexpected
innovation, give rise to the existing market structure and also provide chance to innovation
(Özilgen, 2019). It also depicts the importance of innovation which is helpful in providing the
good side of ideas as it is depends on the demographic structure and segments which are
appropriate in terms of changing the mind of other individuals as it also offer adequate
knowledge concerning the product which is introduced in the market.
Explain the 4P's of innovation and use of innovation funnel Product: It is the basic element which is useful in defining regarding the new thing in
company and also provide it to their targeted customers with the aim of eliminating
waste. For this, they need to satisfy the requirements to create value of company as in
context of Big Belly, they have done probable innovation in the development of garbage
bins but they cannot reduce noise pollution in this context they make suitable innovation
which describes the when garbage bin gets full then it will give direct notification to the
stations for the collection of garbage which helps in reducing the noise of alarm.
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 Process: This factor describes the process of development of product and how it will
reaches to customers. In relation to Big Belly, they want to provide direct notification to
the garbage stations to notify about the garbage and it becomes possible due to its smart
features which helps in saving the time and eliminating pollution from environment. Position: This cycle describes that when the product depends on comparing it with other
competitors in order to provide same kind of products in the market area (Rosemann and
Molyneux-Hodgson, 2020). Due to this innovation, Big Belly reduces waste and
windblown litters and also transforms the waste into aesthetics.
 Paradigm: It describe a procedure in which company face many modifications because
of generating creative and new ideas and also depicts that they should perform in accurate
manner in order to face new issues and challenges. In terms of Big Belly, they can
develop their suitable benchmark and standards for their respective competitors and also
make suitable changes in the business model as they came up with new idea within the
marketplace.
Explain the development of frugal innovation
This process is useful in improving the basic idea of redesigning it and eliminating the
noise pollution and offer it those who does not afford it. It include analysing the problems and
also develop the business structure in accordance with the value chain of change products to
acquire large market area (Rotstein, 2019). Here, this innovation is helpful in reducing waste
and windblown litters and also helps in recycling the products for the suitable benefits. For this,
its purpose is to create products which can hold polluted free environment and also reduces the
noise of alarm in order to decrease noise pollution. This concept relies on the effective ideas for
suitable production which is useful for the development of product.
Application of innovation funnel in Big Belly
It depicts introducing new concept within the market and also explains the overall
performance by using its various steps as it offer better services in effective way. It put emphasis
on the development of plans and convert it into developing plan and the choose best from them.
For this few factors are discussed as: Research: It is the primary step, before launching a product within the market place and
for this, each and every organisation need to conduct research about the market factors
and environment which is concerned with the requirements of targeted customers and
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also analyse the standard performance of its competitors who are competing within the
same market (Yazdimoghaddam, Owlia and Bandarian, 2019). Development: After analysing the market and its conditions, development is considered
as the second phase for the demand of market. For this, features of products and services
are designed and developed according to the need to customers. For example, the
notification or alarm noise of garbage bins are too high and for this, Big Belly take some
innovative standards by which direct notification is send to garbage collecting stations
without any noise.
 Shipping of products: It is considered as the final stage, which depicts the process of
shipping as it refers to procedure of transferring the products and services from one place
to another in order to target its market (Bandarian, 2019). Therefore, it include many
services such as transportation, its capacity and so on.
PART 2
Importance of commercial funnel and application of New Product Development (NPD)
New Product Development Process
This process describes the analysis of suitable tools and techniques which are significant
for the launch of product in new market. For this, suitable stages of new product development are
discussed as under: Idea generation: In order to develop product, need and requirements of society is
considered and for this, it is important to establish new initiatives and standards which
are concerned with current product (Exton and Totterdill, 2019). In terms of Big Belly,
smart garbage bins are developed in order to eliminate the flow of garbage and reduce
noise pollution and for this, they need to put emphasis on the production and cost. Concept definition: From this phase, company try to describe the features of product and
also offer suitable specification to respective customers. In terms of Big Belly, they
should consider this step as the representation of their product and its features in relation
of customers. For this, differentiation is useful which add suitable value in the products of
company and also depicts their value regarding their uniqueness. Market analysis: For this, it is significant to determine market and its conditions which is
concerned with the research and investigation and the demand of market is determined
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(Howson and et., al., 2019). In terms of this, company launch its smart garbage bins for
this target market as presently, Big Belly produce its product in New York and need to
expand themselves in terms of serving their services. For this, prices are set to analyse the
satisfaction level of customers. Product development: After analysing the market and its conditions, product is
developed as per the market and its conditions which is developed to attract more
customers base in an effective manner. For this, the appropriate innovation which is done
by company by Big Belly is determined as the demand of customers. Commercialisation: It consider promotional activities and also advertise the product in
the market and this step is performed after testing the product and developing it in market
in order to achieve more sales and growth for company.
Commercial Funnel
It is also considered as the sales funnel as it depicts the purchasing process in which an
organisation achieve success because of their customers' purchasing (Malone and et., al., 2020).
This application is useful in determining the solution of suitable problem which are discussed as
under: Attract: This stage is related with the suitable advertisement and marketing of product to
the specific range of customers to attract them towards the commercial grooves. Here,
company need to promote its garbage bins by using social media because it is more
reliable for advertisement. Convert: This step is concerned with the transition of efforts of individual towards their
respective customers as it need probable offer of its products and services in the
particular market place by developing contact with them and acquiring suitable data with
them. For this, company need to provide catchy offers such as discounts, vouchers to
their customers. Close: This step is useful in determining the appropriate efforts of company in order to
encourage individuals to become their loyal customers. For this, sales person of company
came into role for making sure and bringing their customers towards the new product of
company.
 Delight: In this stage, the quality service is required in order to keep their consumers
more happy. For this, the service of customers and quality products are effective to keep
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suitable feedback and some of these methods are required to applied by company in this
stage (Mazzarol and Reboud, 2020).
For this, it is determined as the significant aspect of company as it offer best solution to
Big Belly in relation of market and selling of its products and services as it helps in solving the
basic and primary problem of society.
Innovative business case
Business case:
It refers to the verbal and written agreement or presentation that is implemented to
understand the decision maker and convince them to devise the some kind of activities. It is the
reasoning for initiating a task.
Steps Description
Executive summary This case states that company originally
produce a solar powered,rubbish-compacting
bin which is used in public places like park,
beaches, grocery industry and food service
operators. There are some competitors present
in the market with new concept and attract
more users.
Objectives The main objective of Bigbelly is to transform
the public space with a cloud-connected
system, which is very beneficial to
communities to optimised & streamlines
operations, reduces carbon footprints and give
beautiful public spaces.
Mission The mission of the company is to reduce the
fossil fuel consumption through new creative
approaches to old problems to which they
satisfy the user.
Source of innovation and solution Source of creativeness is modified and design
as per the welfare of the society. Here, the
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innovation occurred in terms of notification
like when the bin is full it notifies the nearby
station without alarming (Mazzarol and
Reboud, 2020). It is an effective plan because
of this there is no noise pollution created in the
city which design a healthy environment.
Innovation in product The innovation is created in the bin, when the
bin is full it notify the nearby station system
without any noise. This help the people to live
a healthy life in the society.
Target market Target areas of this bin is basically the public
places like parks, amusement parks, beaches,
universities, retail properties, grocery
industries and food services operators.
Positioning is done by using different
promotional tool like TV ads, newspaper,
social media etc.
Sources of funds There are different source of funds like bank
loan, crowdfunding and government assistance
but the company Big belly use bank loan,
because it is a very secured loan and it contains
low interest rate. It is very beneficial because it
helps in expanding and enhancing the
efficiency and profitability of the business.
Benefits The trump card of this is to reduce the garbage
collection up to 95% and easily measures the
garbage that is goes for the recycling instesd of
thrown away.
Monitoring and controlling In this stage company organising methods and
actions for making fragmentation and launch
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new product. There is a need of various
technique for complete the launching products.
In Bigbelly, it is very essential to determine
and measure actions to get the beneficial
outcomes. At the time of any imbalance
effective actions should be taken place.
Sources of funding
It refers to the act of providing resources to finance a particular project. It is usually in
monetary terms which is used by the company to satisfy the need of cash in fulfilling the task.
There are various sources of funding that involves bank loan, credit, venture capital, grants,
saving and taxes.
Bank loan: It is an amount of money loaned at some interest by the bank for a certain
period of time and it is most commonly used source of funding for businesses. In this lenders
require proper business plan, positive track record and ample of collateral (Morrish and et., al.,
2019). Mainly it is secured type of loan for any business enterprise as compared to other
financial institutions.
Government assistance: It refers to the action of government that is designed to provide
a monetary benefit to the business venture under certain criteria. The Government of UK provide
funds in terms of small business loans, grants etc. which is provided at low and nil interest rate.
For this government reduce the tax rate so small business can make more innovative products to
rum their business proficiently.
Crowdfunding: It refers to the method of funding a project or venture by raising money
from numerous people who each contribute a small amount including the interest rates. It uses
social media where investors are easily available to invest in the project. It brings investor and
enterpriser together to initially increase entrepreneurship by expanding the pool of investors
(Özilgen, 2019).
In context of Big belly, managers suggest to collect funds by using bank loan method
because it is very secured loan from any other source of funding and low interest rates. Here, the
managers make a innovative plan to increase the profits and show it to the bank.
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Evaluation of various tools for protecting intellectual property
Intellectual property rights:
It refers to that right which includes to the intangible innovation of the individual
intellect. It is usually given to the creator an exclusive right over the use of that creation for a
certain period of time. There are many types of intellectual property that includes
trademark,copyright, patent and trade secrets.
Patent: It refers to that form of intellectual property that provide the creator the legal
right to exclude other persons from using, selling, making and importing that for a limited period
of years. It is an essential method to prevent the use of a innovative product from the
competitors and develops the market share and increase market growth (Rosemann and
Molyneux-Hodgson, 2020).
Trademark: It is a sign that is capable of differentiate the product offerings of one
business to another one. It protects the company band names and logos that is used on the goods
and services. In business context it is important to trademark the product and services to
differentiate it from others.
Copyright: It is an exclusive right to protect the original work of the authors exclusive
publication, distribution and its usages. It means whatever the writer created does not used by
others without permission of the innovator (Rotstein, 2019). It is different from country to
country but generally it last for the life of the author or 50 to 100 years. It includes various
example like poems , plays, songs, books artwork etc.
In context of Big belly company, managers use patent right to protect the innovation of
the products that will help company to earn more profits and increase growth and it also prevent
others to copy the creation by other competitors from selling, making, importing and using it for
a certain period of years. It also helps in achieving the wide market place all over the world.
CONCLUSION
From the above discussion, it is concluded that innovation is an important step which s
concerned with the betterment and appropriate use of products and services. For this, it is
essential to appropriately describe the importance of innovation in comparison to invention and
its also determine the various sources of innovation with appropriate explanation which is
described under 4P's in order to get better vision for company. For this, NPD and commercial
funnel is discussed which is useful in helping and providing a path for introducing a new product
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in market. At last, intellectual property is significant to protect the ideas of company and its
manpower.
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REFERENCES
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Howson and et., al., 2019, September. Bench to Bedside: A Tool to Support Life Science and
Health Innovation Management. In International Conference on Innovation and
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Malone and et., al., 2020. Skin Elements Ltd—The Importance of Knowledge Management in
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Springer, Cham.
Mazzarol, T. and Reboud, S., 2020. Risk Management in Innovation. In Entrepreneurship and
Innovation (pp. 227-263). Springer, Singapore.
Mazzarol, T. and Reboud, S., 2020. Work Book: Disruptive Innovations and the
Commercialisation of Technology. In Workbook for Entrepreneurship and
Innovation (pp. 97-104). Springer, Singapore.
Morrish and et., al., 2019. Incubator mediation in commercialising disruptive
innovation. Journal of Strategic Marketing, 27(2), pp.177-189.
Özilgen, M., 2019. Role of innovation in commercialisation of bioenergy research. International
Journal of Research, Innovation and Commercialisation, 2(2), pp.77-90.
Rosemann, A. and Molyneux-Hodgson, S., 2020. Industrial Biotechnology: To What Extent Is
Responsible Innovation on the Agenda?. Trends in biotechnology, 38(1), pp.5-7.
Rotstein, F., 2019, June. Commercialisation of intellectual property [Book Review].
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Society of Australia and New Zealand (No. 116, p. 56). Intellectual and Industrial
Property Society of Australia and New Zealand Inc.
Yazdimoghaddam, J., Owlia, M.S. and Bandarian, R., 2019. Development of a model for
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Innovation and Research, 19(3), pp.324-357.
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