Innovation and Commercialization: Business Case & Funding Access

This report provides a comprehensive analysis of innovation and commercialization within organizations. It begins by differentiating between innovation and invention, emphasizing the importance of innovation for organizational sustainability and competitiveness. The report explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes. It delves into various sources of innovation and strategies for fostering an innovative environment. The 4Ps of innovation (Paradigm, Product, Process, Position) are explained, along with the application of the innovation funnel for shaping ideas. The report also examines frugal innovation, its developments, and its role in organizational contexts, using Mr. Green's healthy drinks as a case study. Furthermore, the importance of the commercial funnel and new product development (NPD) processes are discussed, along with building an innovation business case and accessing funding. The report concludes by evaluating tools for developing, retaining, and protecting knowledge and intellectual property, considering the wider business environment. The document is contributed by a student and available on Desklib, a platform offering study tools for students.

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
Task 1...........................................................................................................................................................1
P1. Explain innovation and determine its importance to organizations in comparison with invention. .1
P2. Explain how organizational vision, leadership, culture and teamwork can shape innovation and
commercialization....................................................................................................................................2
M1. Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation....................................................................................................3
Task 2...........................................................................................................................................................5
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.......................................................................................................................................5
P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..............................................................................................................................6
M2. Analyze and apply the innovation funnel in organizational context of Mr. Green’s healthy drinks
.................................................................................................................................................................7
M3. Evaluate the role of frugal innovation in organisational context of Mr Green’s healthy drinks.....8
Task 3...........................................................................................................................................................9
P5. Explain the 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
M4. Measure its overall effectiveness using appropriate techniques available to test, iterate and
improve..................................................................................................................................................11
Task 4.........................................................................................................................................................12
P7. Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge and
intellectual property...............................................................................................................................12

M5. Evidence-based evaluation of these different tools in the context of the wider business
environment...........................................................................................................................................13
Conclusion.................................................................................................................................................14
References..................................................................................................................................................15

LIST OF FIGURES
Figure 1: Frugal innovation framework based on pattern based approach..................................................6
Figure 2: Innovation funnel.........................................................................................................................7
Figure 3: Action point of the organization ti succeed in frugal innovation.................................................8
Figure 4: Intellectual property (IP) protection mechanisms......................................................................12

Introduction
Innovation means to improve the existing product or process with some new ideas concepts and values.
Presented report will discuss the concept of innovation and invention with discussion on the fact how
organization can shape innovation and commercialization through business vision and leadership. Also
report will discuss 4Ps of innovation with discussion of frugal innovation. Also the importance of the
commercial funnel and new product development will be discussed. Business case will be developed
with focus on the intellectual property protection tools.
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Task 1
P1. Explain innovation and determine its importance to organizations in comparison with invention
Definitions
Innovation can be defined as the process to translate the new ideas, method or product so that new
values can be created for the customers. It simply means to introduce something new in the product or
services those are adding values or importance to the existing values. Therefore, innovation is a process
to generate new ideas in economic cost to satisfy the customers in business. It can be implemented
through the imagination, application of information and initiative for more values through resources. In
context of business, innovation is considered as the approach to meet the new demands and satisfaction
points of the customers (Damanpour and Aravind, 2012).
At other side, invention can be defined as the idea for product or processes which was never introduced
before and it results as creation of new product. It is an original idea driven from the scientific skills and
mainly concerned to the single process or product.
Example
The concept to form the juice of oranges is an invention which has later promoted on other fruits to
create juice. However, the changes in the juice flavours and packaging are innovations over time to meet
the satisfaction of customers.
Importance to the organizations
Innovations helps the organizations to sustain in market and come from the competitive environment as
the customers are more inclined to the new or enhanced features to meet their demands. The
organizations also has importance of the innovation to add values to the products or services whereas
invention is essential to reduce the cost and efforts for the business practices and lead with high
profitability and efficiency (Gokhberg and Meissner, 2013).
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P2. Explain how organizational vision, leadership, culture and teamwork can shape innovation and
commercialization
Organizational structure and creative business environment impact the innovation and
commercialization because these are the major motivators for the innovative practices. For example, if
management has unique and creative goals whereas also demand new approaches to simply the
operations then employees also adopt the innovative approaches to support the business.
Vision
Healthy Juice has vision to sustain with new products those are improved over the existing products.
The vision of the organization helps to achieve the innovation in products because the market is
changing and competition in increasing (Damanpour and Aravind, 2012). Also the organization has to
commercialize the sustainability vision to convert the idea into the profitability for business.
Leadership
Effective leadership helps to engage the employees in business and simplify the efforts to achieve the
market objectives. Leadership for the high performance, creative solutions to the workplace issues and
product improvements results in the form of innovative outcomes. Motivating leadership can improve
the process of innovation and commercialization for faster outcomes. However, sticky behaviour for the
employee can hinder the innovation in business.
Culture
Healthy Juice can adopt the flexible and performance directed culture to foster the innovation.
Experimental culture at workplace supports the employees for creative solutions to the problems (Amit
and Zott, 2012). Culture can foster the innovation and commercialization but internal disputes can
impact the innovative directions of the business.
Teamwork
Good team always lead to better solution for the problems. Internal bounding can simplify the business
operations and products through the collaborative approaches. Also the teamwork reduced the cost and
time to meet the innovative solutions and commercialization but the poor teamwork can enhance the
cost and reduce the efficiency.
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M1. Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation
Peter Drucker has introduced seven sources of the innovative opportunities to the organization those can
be used by Healthy Juice to meet the competitive benefits and lead with high sustainability.
Unexpected: The organization can continuously study the market so that competitive scope can be
determined. Market study helps to cover the unexpected benefits through the timely solutions to the
customers.
The incongruity: The organization can make advantage of the gap between product and demand so that
desired product or service can be provided to the customers to attract the market and enhance the
profitability. Improved product can be introduced by organization to meet the sustainability objectives.
Process need: Healthy Juice can determine the potential weaknesses in the business process and solve
them through innovative solutions. It helps to reduce the cost and time and enhance the profitability
(Drucker, 2014).
Industry and market structure change: It is required to move with the market structure and industry
which has main impacts from the regulations. For example, the organization can change the market
structure according to new trends and demands.
Demographics: Income level, population, product preferences like demographic characteristic should be
analysed by the organization to become flexible according to market. It helps to achieve the right
solutions for the business operations.
Changes in perception, meaning, and mood: Changes in market or customer purchasing power should
be analysed to design the product or process which can meet customer satisfaction. It is required to
continuously monitor the market and customer expectations for sustainable changes.
New knowledge: Technological advancements have opened new doors for business expansion.
Therefore, new knowledge can be used to enhance the effectiveness of the business (West and Bogers,
2014).
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Therefore, the organizations can use the above approaches to foster the environment of innovation. For
example, Healthy Juice can use incongruity method to introduce new product with demanded features to
sustain. Also the organization can use new knowledge to enhance the market share.
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Task 2
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
The organization can use the following 4Ps of innovation so that possible enhancements can be made in
business or product to meet the goals and objectives:
Paradigm: The organization can analyse the paradigm of the business which means to change the way to
do business. For example, Healthy Juice can use online marketing in comparison of the traditional
physical marketing to enhance the customer base. Also the advertising of products can be made effective
and closed to the social values.
Product: The organization can improve the existing products for the customers to add values and attract
the market. It means to be innovative for continuous changes for betterment in product.
Process: Business operations to deliver the offerings to the customers can be analyzed and improved to
save the cost and time (Alsanad and Abdel-Razek, 2016). It can be used in innovative way to reduce the
human power and improve the efficiency. Process can be optimized for investment and enhance
profitability.
Position: Innovative thinking can be used to determine the potential market for the product. It helps to
determine the position to distribute the product and increase the sales.
Use of the innovation funnel
Innovation funnel is useful to describe the stages those can be used in product or process. It is used to
determine and create the process to meet the customer satisfaction in economic or manufacture-able
forms. For example, first stage of opportunities can be analysed with trends, perceptions so that second
stage, ideas, can be generated for product. Such ideas can be mapped with suitable technology to deliver
the final product.
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P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation can be defined as the process to find new business structure, configure the values
chains and make changes in the product so that resources constraints can be used positively to achieve
sustainability and scalability. It means to use resources in their most effective manner to provide
functional solutions (Neumann et al, 2017). Pattern based approaches can be used for the development
in the frugal innovation where following stages can be used for new product:
Figure 1: Frugal innovation framework based on pattern based approach
(Source: Author)
Example: Healthy Juice has introduced the combination of the fruits to create the multi flavour juice
products those are economic in price and has high quality. It is frugality for the better values to the
customers and attracts market for high profitability.
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Research on existing frugal innovations
Examine solutions
documentation
Identification of frugal
innovation
determine cmparable market services
Problem description
Documentation of problems
Deducation of problems
Applied solution
Abstraction of solution
Pattern documentation
Deducation of patterns
relation between frugal innovation, patterns and
problem
Analysis of relation
documentation of results
Deducation of pattern
systems

M2. Analyze and apply the innovation funnel in organizational context of Mr. Green’s healthy drinks
Mr. Green can use the innovation funnel with the detailed modularization of the stages so that resources
and capabilities can be utilized to launch the desired product in market.
During the idea development stage, the organization can communicate the challenges to the employees,
customers and shareholders and then help them to submit their ideas for new product to overcome the
challenges. In concept development stage, ideas can be synthesized to ensure that most of the
participants are satisfied and organization can meet scope in market. Once the concept of product is
determined, than organization can move toward the launch process where business plan and case can be
prepared with detailed activities for the outcome and then development of the product starts
(Hakkarainen and Talonen, 2014). The business can test and validate the product according to the
demand of customers. Product can be launched if it satisfactory.
Figure 2: Innovation funnel
(Source: Sopheon, 2018]
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