Unit 8: Innovation and Commercialisation Report for Sixteen South

This report, structured as a CEO's perspective for Sixteen South, a UK-based SME, delves into the critical aspects of innovation and commercialization. It elucidates the significance of innovation, contrasting it with invention, and emphasizes its importance for employee engagement and organizational growth. The report highlights how organizational vision, leadership, culture, and teamwork shape innovation and commercialization strategies. It further explores the 4Ps of innovation (position, paradigm, product, and process) and the innovation funnel to examine and shape innovative ideas. Additionally, it covers the commercial funnel, New Product Development (NPD) processing, and building an innovation Business Case, including funding access. The report also evaluates methods for protecting ideas and intellectual property, providing practical examples. The analysis draws parallels with successful companies like Apple and Virgin Group to illustrate real-world applications of innovation strategies.

UNIT 8
INNOVATION AND COMERCIALISATION
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Table of Contents
Introduction ..........................................................................................................................................3
Task 1.....................................................................................................................................................4
LO 1: Explaining the context for innovation and determine the difference between invention and
innovation..............................................................................................................................................4
P1 Explaining innovation and its importance to employees of your chosen organisations, with
examples from the given case study in comparison with invention .....................................................4
P2 Explaining to employees of your chosen organisation how organisational vision, leadership,
culture and teamwork can shape innovation and commercialisation, with supporting references from
the given case study .............................................................................................................................6
Task 2 ....................................................................................................................................................7
LO2: Explaining the different type of innovation to employees of your chosen organisation...............7
P3 Explaining the 4Ps of innovation and the use of the innovation funnel to examine and shape
innovative ideas to employees of your organisation, with supporting evidence from the given case...7
Task 3 ..................................................................................................................................................10
P5 Explaining the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation to employees of your chosen organisation,
with practical examples where necessary...........................................................................................10
P6Building an innovation Business Case for your chosen organisation, including ways to access
funding, as with the two businesses in the case study........................................................................11
Task 4 ..................................................................................................................................................12
LO4 Evaluating the range of methods for protecting ideas and understand their advantages and
disadvantages......................................................................................................................................12
P7 Evaluating the different tools that the chosen organisation can use to develop, retain and protect
knowledge and intellectual property with practical examples where necessary.................................12
Conclusion ..........................................................................................................................................14
Reference List......................................................................................................................................15
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Introduction
In this highly competitive world, business organisation incorporates various
techniques in order to compete with the other business organisations. Innovation is one such
technique that involves improving the marketing process of the organisation by many
methods like improving the quality of the products, by improving the services provided by
the organisation etc. In this assignment, the learner is playing the role of the CEO of an SME
organisation named as Sixteen South, which is an UK based organisation, will explain the
importance of innovation and the process of commercialisation. For explaining these
processes, the assignment has also taken the example of Apple and Virgin Group
companies. The assignment will also explain how this process of innovation can be used for
satisfying not only the stakeholders, but also the employees those who work for the growth of
the company.
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Figure 1: Logo of Sixteen South
(Source: Sixteensouth.tv, 2016)
Task 1
LO 1: Explaining the context for innovation and determine the difference between
invention and innovation
P1 Explaining innovation and its importance to employees of your chosen organisations, with
examples from the given case study in comparison with invention
The growing and developing world gives rise to many organisations in order to
balance the economic structure of the society. This greater rise in the number of the
organisations leads to huge competition within the business organisation. In the opinion of
Baycan (2013, p.45), each business organisation, work hard, in order to attain the superior
position in the field of competitive business world. Innovation is one such marketing
technique that is used by the business organisations in order to attain the pioneer position in
the competitive marketing world. Innovation refers to the improvement that a business
organisation does, either in the products or in the services provided by the organisation. In the
opinion of Bejou and Palmer (2013, p.52), innovation or creative improvement is very
important for the organisation to maintain their position in the world of competitive business.
Innovation done by the organisation helps the organisation to attract the attention of
the customers to connect with the organisation. Moreover, innovation also encourages the
customers to be the permanent stakeholders of the organisation, and promote the growth and
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the development of the organisation. There are many examples in the world of business, those
who started as a small sized business enterprise, but have reached high level of success due to
incorporating the marketing technique of innovation. Such two companies are Apple (Apple
(United Kingdom), 2016), and Virgin Group (Virgin, 2016). Both these companies have
incorporated the marketing technique of innovation, thus they are in such a great position, at
this period in this competitive world of business. The Virgin Group, being a group of many
companies had used the marketing technique of innovation by creating new products of their
brand. This helped them increase their business. Another example is of Apple, this particular
company innovatively invented an instrument called the iPod, and for storing music, this
increased the popularity, as well as, the profit level of the company tremendously.
This assignment will deal with explaining the concept of innovation, and, how
innovation will affect the growth, and the development of the selected SME organisation
Sixteen South, which is based in UK. This organisation is meant for the production of
children shows. Innovation must be incorporated in this organisation for the growth of the
organisation. There are various types of innovation that a company may incorporate,
innovation such as Service innovation, Communication and brand innovation, Product
innovation, Process innovation, Marketing Model innovation, as well as, organisational
innovation. Therefore, for the growth of the company Sixteen South, the company will have
to inculcate this type of innovation within the marketing strategies of the organisation.
Innovation are not only meant for attracting the attention of the customers, rather it also is
important for attracting the attention of the employees, as well as, for increasing the level of
their productivity.
This marketing technique of innovation can be considered as a catalyst, in order to
increase the productivity, as well as, the creativity of the employees working for the
company. Therefore, for influencing the employees of the Sixteen South organisation, the
innovation that the company may incorporate includes formation of such an environment
within the organisation, which will encourage the employees to utilise their ideas, creativities,
skills in the fulfilment of their task.
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P2 Explaining to employees of your chosen organisation how organisational vision,
leadership, culture and teamwork can shape innovation and commercialisation, with
supporting references from the given case study
Innovation is affective not only for the organisation, rather it is also affective for the
employees those who are linked with the organisation. In the opinion of Breznitz and
Etzkowitz (2016, p.52), the growth of the employees is directly proportional to the growth of
the organisation. In this section of the assignment, the CEO of the Sixteen South
organisation will explain to the employees of the organisation the importance of innovation.
Moreover, this assignment will also deal with how the leadership, organisational vision,
culture, as well as, teamwork within the organisation helps in the structuring of innovation
and commercialisation. When these innovation and commercialisation marketing strategies
are inculcated in the decision- making process of the organisation, the growth of the
organisation is certain.
In the opinion of Schneider (2013, p.63), Leadership is a most important element for
the successful and the profitable development of the company. The leaders of the company
are always linked with the employees of the company. Therefore, they know the demands,
the needs, as well as, the skills of the employees, which the organisation can utilise.
Therefore, the leaders of the organisation will help the organisation to collect information
about the employees. This information can be used for the purpose of innovation in the
organisation. Organisational vision is also of utmost necessity for the formation of the
innovative strategies for the growth and development of the organisation Sixteen South. The
organisation vision actually refers to the objectives of the organisation, on which the
organisation will have to succeed. For the organisation Sixteen South to grow with
tremendous speed, the objectives of the organisation must be clear to the employees working
for the organisation.
These clear objectives will not only help the employees to work productively, rather it
will also encourage the innovative marketing strategies of the organisation to be created
according to the needs of the organisation, which will help the organisation to gain its
objectives. The Sixteen South organisation must remember that the culture surrounding the
organisation and the culture within the organisation are both necessary for the growth of the
organisation. Moreover, the culture plays a very significant role in shaping the innovative
marketing strategies for the organisation.
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Task 2
LO2: Explaining the different type of innovation to employees of your chosen
organisation
P3 Explaining the 4Ps of innovation and the use of the innovation funnel to examine and
shape innovative ideas to employees of your organisation, with supporting evidence
from the given case
In the opinion of Berg and Pietersma (2015, p.63), innovation is the most important
marketing technique, which the business organisation can utilise in order to grow
successfully in the field of business and marketing. Innovation technique can be inculcated
within an organisation by the process using innovation funnel. There are 4Ps of innovation
that the Sixteen South Company can utilise in order to succeed in the field of business and
marketing. Inculcation of these 4Ps is of utmost necessity for the organisation in order to
compete with the other competitors. The 4Ps of innovation are as follows:
Position Innovation
In the opinion of Alsanad and Razek (2016, p.59), position innovation is a kind of
innovation that the business organisation undertakes in order to grow productively and
successfully in the field of business and marketing. All the products are the major elements
that are used by the business organisation in order to captivate the attention of the customers.
Therefore, the organisation in order to grow in the market must improve the quality of the
products and undertake the proper positioning of the products in places where there are
sufficient interested customers to buy the products. Thus, the Sixteen South organisation
must position the improved product in such a way that the sales of the products are increased,
and in turn the growth of the organisation will occur.
Paradigm Innovation
In the opinion of Gomez and Luis (2011, p.19), Paradigm innovation is another kind
of innovation technique that is used by the various business organisations in order to prosper
in the competitive business environment. Sixteen South organisation also uses this technique
of Paradigm Innovation in order to succeed the competitors. Paradigm is nothing but the idea
of innovation. This is very necessary to understand that innovation of an organisation is not
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possible until the point the organisation do not completely believe on the idea of innovation.
This idea of innovation helps the organisation to take measurable steps towards the
innovation of the organisation, which will encourage the growth of the organisation. Thus, by
using Paradigm of innovation, Sixteen South, will plan a long-term innovation idea, then will
work on the idea. Thus, as per Virgin and Apple case given it could be assessed that such
businesses are focused upon improving business performance and thus it results in attaining
desired success.
Product Innovation
In the opinion of Anderson (2013, p.18), this type of innovation refers to the
improvement in the quality of the products that are created by the organisation. There is huge
competition in the business world; huge numbers of companies are working for the
production of same goods. Therefore, if the Sixteen South organisation wants to be in the
pioneer position among the competitor organisation, must regularly improve the quality of
their products. Both the companies Apple and Virgin Group use this same innovation
technique.
Process Innovation
In this opinion of Bryson et al. (2012, p.642), this innovation technique is also very
important for the development and the growth of the organisation. The business organisations
in order to perform the marketing of the products of the organisation follow many processes.
The processes that are followed by the organisation help the organisation to improve their
position in the market. Sixteen South will have to follow certain improved processes for the
spreading of the information of their company among the customers. The innovative
processes that the organisation must use can be improved modern technology, social
networking. Process Innovation also refers to the ways that the organisation sells its products
in the market. This process of selling products can be innovated by using online marketing.
Sixteen South, being an entertainment company may use Process Innovation, by using
various networking sight for the process of marketing their services to the customers.
P4 Explaining how your chosen organisation can develop frugal innovation. Provide
examples of how it is used in any of the two organisational mentioned in the case study.
In this assignment, the learner being the CEO of Sixteen South will explain the way Sixteen
South can develop frugal innovation for the growth of the organisation. In the opinion of
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Cosh et al. (2012, p.302), the cost of the products decides the perspectives of the customers,
whether to buy the products or not to buy the product. Therefore, the organisation tries to
reduce the cost of production by reducing most of the complexities that are involved in the
method of production. Once the cost of the production is reduced, the selling price of the
products can also be reduced by the organisation. This process of reduction of the cost of
production price of the products in order to sell the products to the customers at their desired
rates is known as frugal innovation. The Sixteen South Company, for the purpose of growth
and development can use this technique. For the proper functioning of these process the
Sixteen South organisation must incorporate the recruitment of the effective and capable
employees, those who can work productively and even help in the reduction of the extra
amount of money that is wasted on the process of production.
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Task 3
LO3 Discuss the process required to commercialise innovation in your chosen
organisation market with practical examples where necessary
P5 Explaining the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation to employees of your chosen
organisation, with practical examples where necessary
The process of commercialisation refers to the efficient and the profitable selling of
the products of an organisation. In the opinion of Cropley and Wengen (2015, p.65),
Commercialisation decides the growth of an organisation. The more products, which an
organisation is able to sell, the more the organisation is said to be developed. Sixteen South
also uses this method of commercialisation for the purpose, of selling of their products. The
main purpose of the organisation is to analyse the needs of the customers of the organisation.
The organisations main stakeholders are the customers, so the needs of the customers are of
the highest priority for the organisation. In the opinion of Dhewanto and Sohal (2015, p.339),
Commercial funnel is very important for an organisation, because it works towards the
growth of the organisation. Customers in this field of competitive business world such as
Apple and Virgin have huge number of options, thus the organisation in order to attract the
attention of the potential customers must incorporate some of the methods of
commercialisation, and one such method is referred as commercial funnel.
In this method, the organisation works towards recognising the needs, as well as, the
demands of the customers, and then making improvements in the marketing strategies of the
organisation in order to attract the customers. Therefore, in order improve the ways of
marketing Sixteen South organisation must understand the needs and the demands of the
customers by using commercial funnel. In the opinion of Do et al. (2015, p.1000), apart from
Commercial funnel another method that the organisation can incorporate in order to rise in
the field of business and marketing, is by the application of New Product Development
(NPD) processing. As there is huge competition in the field of business of Virgin and Apple
and marketing, many companies are known to produce same products for the customers.
Therefore, the organisation must try some of the techniques that will help them distinguish
their products from the products of the other competitive organisation. This method of either
improving the quality of the existing products or introducing new products in the
organisation, for the development of the organisation is known as New Product Development
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(NPD). Therefore, Sixteen South will be benefiting if uses these techniques of
commercialisation for the cause of business and marketing.
P6Building an innovation Business Case for your chosen organisation, including ways to
access funding, as with the two businesses in the case study
In this section of the assignment, the CEO of Sixteen South organisation will build an
innovation business care for the organisation named as Sixteen South, which will help the
organisation t grow fast in this growing and developing world of business and marketing. In
the opinion of McCann and Argiles (2013, p.187), the company in order to prosper in the
world of business and marketing must improve the technological devices that are used by the
organisation. Technology plays a significant role in the development of an organisation.
Moreover, for the purpose, of attracting the attention of the customers as well as the other
stakeholders the organisation must incorporate certain funding rules that will be beneficial for
the stakeholders. The organisation such as Apple and Virgin must try to think a bit from the
perspectives of the stakeholders, in order to satisfy the customers and the other stakeholders.
The organisation must incorporate creative tools for the growth of the organisation; the
interests of the employees must also be taken into consideration by the organisation for the
success of the organisation. These business care technique are even undertaken by both the
bigwig companies like Apple and Virgin Group.
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Task 4
LO4 Evaluating the range of methods for protecting ideas and understand their
advantages and disadvantages
P7 Evaluating the different tools that the chosen organisation can use to develop, retain and
protect knowledge and intellectual property with practical examples where necessary
In the opinion of Sorensen et al. (2013, p.1446), the actual meaning of intellectual
property refers to the lots of creative thoughts, which includes with the manuscripts of any
events and enjoyable and brainstorming events also. As an entertain provider company of
UK, Sixteen South takes very care about to provide sufficient protection of many talents and
knowledge of its employees. The management and the human resource section of the
organisation recruit such talented employees who able to exercise huge amounts of
innovative ideas. The concept of intellectual property refers to the intellect, talents, and the
capacities creating innovative ideas of its employees. In order to gain success, the managing
committee of Sixteen South can provide unique types of entertain to the children by
exercising intellectual properties. By exercising those talents, the organisation will be able
compete with its actual and active contemporary organisation also gain competitive benefits.
The organisation follows some laws and rules, which are passed by the respectable UK
government to provide security to these intellectual properties. To attach the entire
employees with the organisation and utilise their innovative ideas in the production the
management of Sixteen South organises an effective copyright policy, which helps them to
maintain its talents. By collecting the suggestion of the employees, the organisation will be
able to manage any problematic situations.
To enhance the organisation in the perspective of reputation and popularity, the
management recruits some suitable and appropriate fresher candidates who can understand
perfectly the psychology of the children and also display unique type of entertaining show
which becomes possible for its innovative minds. Through the effective optimist way, the
organisation can protect additional care about the talents of its employees. Sixteen South
provides perfect training not for only exercising its innovative ideas; it also helps them to
provide perfect solution against the demands of it service-users to build strong relationship
with them. So, the organisation should provide sufficient scope to its employees to improve
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