Innovation and Commercialisation Report: Apple and Virgin Case Study

This report delves into the concepts of innovation and commercialization, examining their significance for organizations. It uses Apple and Virgin as case studies. The report defines innovation and its importance compared to invention, highlighting how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It explains the 4Ps of innovation (Product, Process, Position, and Paradigm) and the innovation funnel. Furthermore, the report explores frugal innovation, the commercial funnel, and the application of New Product Development. It includes building an innovation business case and discusses tools for developing, retaining, and protecting knowledge and intellectual property. The report provides a comprehensive overview of these aspects, offering valuable insights into business development and strategy.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Define the innovation and its importance in comparison to the invention to the
organisation.................................................................................................................................1
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................3
TASK 2 ...........................................................................................................................................4
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel .......................4
P4 Explain developments in frugal innovation and how it is used in an organisational context
.....................................................................................................................................................6
TASK 3 ...........................................................................................................................................7
P5 The importance of the commercial funnel and the application of New Product
Development ..............................................................................................................................7
P6 Build an Innovation Business Case for an organisation, including ways to access funding. 7
TASK 4 ...........................................................................................................................................8
P7 Different tools that can use to develop, retain and protect knowledge and intellectual
property.......................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Innovation refers to fresh idea, new method, bran-new process. Innovation also determine
better solution to face challenges and meet requirements. In the context to market innovation
refers to bring product with more effective process and updated features. This can bring new
trends and new solutions in the society (Leeuwis, 2013). Commercialisation refers to process by
which new product, services, process bring in market. A company commercialise their new idea
to make available in the market.
The company which is taken in that particular report is apple . This company is one of the
manufacturing the iPhones and iPods. The company is famous for their innovative technology in
their each and every product. The another company which is taken in this report is virgin which
is into finance, travel and entertainment. This company establish as the smaller enterprise and
develop its operation according to time and become the famous organisation.
In this report the importance of an innovation has been explain to an organisation. It is
mention in this report how the company vision, culture, leadership can give shape to innovation
and commercialisation. The 4 PC's of innovation are discuss in this report. The different kind of
tools which company used to protect and retain the intellectual property.
TASK 1
P1 Define the innovation and its importance in comparison to the invention to the organisation
Innovation simple means creating the new ideas, process by which the company can
provide easy solution to its customers. Like apple introduce the iPod for the music lovers can
make convenient to the customers to listen songs anywhere without carry big devices.
Importance of the innovation
Innovation is very important for every organisation. If company is not innovating the its
products them consumer not by product because the product technology is out dated. Following
are importance of the innovation. Adapting to the change in the workplace: Innovation help the enterprise to adopt new
changes in the dynamic business environment. There are many challenges which
company is facing but if they bring an innovation in their process problems can be
solved in easy manner.

 Can response to the customer expectation: When the customers has high expectation
with a company to sustain that level the company brings the continuous innovation which
help to meet customer expectations. As an apple bring innovative products which other
company does not have this can increase the brand loyalty and satisfy customers
(Leeuwis and Aarts, 2011). Increase the global connectivity: As the company is continuous innovate its product.
There is scope for company to expand its business globally and serve customers world
wide. This can help a company to grow and also increase the revenue.
 Looking for the future: Innovation help to see future consequences in business
environment and try to solve problem for easy flow(Gustafsson, Kristensson and Witell,
2012) . There are many machines launch in the market which can make easy for the
consumers to use it and minimize their work. For example laws company are using the
artificial intelligence program which help the clients to solve their problems.
Difference between innovation and invention
Basis Invention Innovation
Meaning Invention refers to creating the idea,
process, method for first time with is
not made before.
Innovation refers to the
implementation of new ideas. Process
and methods for first time no other
person implement that idea before.
What is all
about?
Creating the new ideas Adding value to the exiting products.
Concept Theoretical idea of making solution Implement the idea in practical ways.
Occurrence Scientist gets the new idea Occur when company feel to improve
the existing products.
Concerned
with
Individual product and process Combination of many products and
process
Activities Do the limited research and
development
Cover all the part of the organisation

Example Apple brings the iPod first time in the
market so it is invention by company
After launching the first model of
iPod various model has been launch
that different range is innovation in
which company change the features
of products.
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Vision refers to the statement which shows where company want to them themselves in
the future. So it is very important to have the clear understanding about an enterprise vision and
mission of the organisation (Few, 2012). The business unit make the different strategy to achieve
these goals. Leadership refers to the certain qualities in the leader by which he/she can
effectively mange its team and encourage them to achieve the objectives. Leadership help its
followers to complete the task. Culture tends to sharing the company value, beliefs, norms
among the different groups. These all factors have the large impact on the innovation and
commercialisation as they are part of the enterprise. These elements have its own negative and
positive impact on the enterprise. Leadership help the employees to trained them in manner so
whatever the changes have to make in the product can make effectively. When the employees
has the good coordination the idea can properly executed.
Culture has important roles as their value influence employees behaviour in that case if
the employees can easy make change according to item it very easy to do commercialisation and
innovation in the enterprise (Lin and Chen, 2012).
The vision of apple to continuous innovate the products. To maker the great product their
their higher technology. The company believe in collaboration which allow them to innovate in
any way an enterprise want.
Mission of apple: To fulfil the vision they design new products like iPhone, iMac, iWork,
and iLife. The company is leading in music by having the products like iPod and iTunes.
The culture of apple enterprise is having the following feature.
 Top Excellence
 High creativity in employees
 Latest innovation adopted in organisation

 Maintaining the proper secrecy
The leadership style followed by apple is democratic in this company contribute the views, ideas
from every member of an organisation and decision is made by taking views of each and every
employees in an enterprise.
Vision and mission of virgin group
vision of virgin group is creating happy and fulfilling lives. This can give the
sustainability in the market.
Mission of the company is to become the leading brand by giving the dazzling customer
services and quality of products.
Virgin culture the employees which are working with virgin are more passionate about
their work. Company encourage creativity in the enterprise. Firms is very much into the CSR
activities. Staff of virgin group are enjoying fantastic adventures.
Virgin leadership follow innovation leadership styles. Employees of enterprise are free to
show their skills, abilities and capability to solve particular problem.
The team work means getting the work done by proper coordination of employees on
time. In this leader play a very important role in the team work. Leader give the proper direction
to their followers so that they can finish the work on time and with effective manner. There are
different kind of leadership styles which leader follow to face the situation such as inspirational
and transactional. Inspirational leader tends to the aspiration of the leader to do and complete the
task. In the leader is not individual complete the with whole team initiative they do the work and
complete it on time. On the other hand the transactional leadership tends someone who is more
likely command its team. This kind of leadership believes in more structure way to complete any
work. These kind of leader are more self motivated (Liedtke and et. all, 2012).
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel
Like the 4PC's of marketing mix there are also the 4PC'S of innovation. Following are
4PC'S of innovation. Product innovation: In the product innovation the enterprise make the change in the
existing products. The organisation needs to bring the regular changes in the products to
attract the customer and sustain the market. For example apple is making changes in the

iPod in terms of colours, features, size, prices, storage capacity, improve the quality.
This can increase the brand loyalty and add the value of the product. In context to the
case apple and virgin can make the change in the product range and make them more
better. They can also change the core value of the product and improve the version. Process innovation: It refer to the innovation in which company make changes in the
production of the product. The music devices and travel, entertainment company make
the changes in the process such as change the designs, packaging, prices, texture,
distribution so that it can make the better product (Hashim, 2015). Position innovation: In this the enterprise need to re-position their product to bring the
innovation. In context to the company there are having staff which makes products in the
in different kind of methods in this they can bring the innovation in products and re-
position its product. The enterprise also should conduct the seminar which help them to
attract more and more customers and they should go for the trades fair , exhibitions so
that the awareness can be generated among the customers.
 Paradigm innovation: This the final P of the innovation. In this company can make
changes in their structure, delivering of the product. This can help the employees to
understand the aims and objectives of the company and gives them motive to achieve
them (García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez, 2012.). The
employees has the clarity about for what they running the business.
Innovation funnels helps to the steps which take place to produce the product. The main
motive of the innovation funnel is company can create and design the product according to the
customers needs and requirements. This process involves three steps such as investigation,
development and delivering the product. In investigation process the company do the research
identify the target markets and their needs after that the company develop the product which can
meet the customer expectations. And after preparing the final product they deliver the product to
its customers.
Shape the innovation idea according to the external factors Political factors: In which the company is planning to buy the cocoa direct from the
farmers. Which can help the company to reduce the cost and bring the innovation. This
also help to build the relation between the farmers and enterprise.

 Economic factors: The interest rate and inflation rates influence demand of product
(Mahr and Lievens, 2012). decreasing and increasing in the interest rate can impact on
the buying power of consumers. If inflation take place in enterprise the consumer not buy
the product because of its higher prices. So demand decreases in market. Social: The company make the product in more innovative way manner which the
customers and give them the different experiences of music and travelling the company
also customer get the small devices in which they can store thousand of songs. Technological: The technology which is used in making iPod is very high-tech. Apple is
coming with the product which are very unique in their own manner. The virgin group
using the technology in the travelling sector which give them comfort journey.
 Ecological: product produce by apple and virgin are eco friendly. Both the companies
promote the green environment. The packaging, offer and element which are used in
producing the product not harm nature.
P4 Explain developments in frugal innovation and how it is used in an organisational context
Frugal innovation means new business model, redesign the product which provides the
benefits to the customers in exchange for monetary terms (Gallouj and Djellal eds, 2011). In this
enterprise convert its constraints like limited resources, methods into the advantage. The frugal
innovation work on certain principles and these principals are given below. Find the opportunity in adversity: The company find out the problems and convert these
problems into opportunities. This can help the enterprise to over come from its threats. Do more with less: The second principal is the company needs use the redefine its
existing product in anew way so that it gives the better solution. Think and act flexibility: The company need to make its employees flexible rather than
being rigid in nature. This can generate the improvement in the company. Keep it simple: The company need to choose one simple way for the solutions. The multi
way which are more complex enterprise need to avoid it. Include the margins: It indicates the company should know about their people and also
have the problem solving approaches to perform beyond the limits.
 Follow the heart: The person should have the passion and determination to do the work.
Which can leads to create the innovation.

The objective of the frugal innovation is without using the maximum resources produce,
develop and delivery. This concept can help the enterprise to reduce the cost which brings the
efficiency in the operation activities (Chesbrough, Vanhaverbeke and West eds., 2014). This
concept follow the particular mission. In context to the case the workforce of the apple and
virgin group can apply the frugal innovation to the organisation. This can help the enterprise to
reduce the cost and also business unit can expand its operations to the others foreign countries. In
the above case study the apple redesign the MP3 into the iPod. This product have small design
and storage capacity which used my people who love music. Similar to the the chocolate
company can redesign the its product give the new taste, new flavours of their main products.
The enterprise should create its USP by recreating the product, increase in the demand and
reduce the cost. This can help the firms to gain the competitive advantage from the other
business units.
TASK 3
P5 The importance of the commercial funnel and the application of New Product Development
Funnel help the enterprise to understand and find the needs of the customers. The
product development and design is done according to the customer expectations. The enterprise
needs to generate the leads to find the potential customers. The funnel has the different meaning
from customer and sellers (Pérez-Luño and et. al, 2011). Following are importance of the funnel
for the business.
 Its help to know about the competitor product.
 To find the potential customers
 To increase the awareness among the customers
 Help to rise in sales
 To meet the customer needs and provide the product accordingly
 Helps to build the strong relation between sellers and buyers.
As the CEO of the apple and virgin find of the expectations of the customers and their
reason to buy the product. The enterprise need to understand needs of the customer and then
manufacturev the product accordingly. This can also help to rise the volume of the product
(Latonero and Shklovski, 2011). The another application is new product development which
company can use in this organisation has to make the changes or develop the new product in the

existing market to create the demand and serve the customer with something new. The enterprise
can adopt the new packaging, new methods of promoting the product. This application took
place when the demand of the good is decreased in the market and company wants retain its
customers. This product development took place in the business unit where marketing team
identify the changes which need to be make in the good. In the case study the iPod is the new
product development by the apple in order to meet the customers needs. By this company can
sustain its business for the longer run. Steps are steps followed by apple for new product
development.
 Idea generation: Apple need to generate the idea to make product concept. Idea can be
generate by different directions. The effective way to start is by conducting SWOT
analysis. This can help to identify strength, weakness, opportunities and threats of an
enterprise.
 Idea screening: After idea generation apple screen the best idea which is to taken for the
future steps. The enterprise make the objectives and see if they considered this idea. what
are the risk factors company need to face.
 Concept developing and testing: The idea which is finally selected is to tested in the
market to see whether product is able to meet the customers need or not.
 Product development: company develop new product according to the marketing
research. Enterprise gives the feature and design to product.
 Test marketing: The enterprise see the response of consumers and take feedback from
customer. If there are any changes company should make the enterprise address those
changes.
P6 Build an Innovation Business Case for an organisation, including ways to access funding
The main reason to make the business case is to understand the imperfect and unclear
ideas. So that the new idea cannot be blocked to come in the world of commercialisation. The
apple and virgin find the solution for the risk, accessing for fund, investment, problem solving
etc. the tag line of the apple is “think different”. This shows that how apple innovate the
product. The main aim of the company to serve the different product and services and satisfy
them. This music devices is smaller in design having the unique colours and features. This help it
to create the strong relation between the customers and company (Baiden and Price, 2011).

Following is business case of the company which shows the task , roles, resources and the time
to complete the task.
Tasks Roles Resources Time
Combine technology R&D department Chocolate technology 7 months
Product quality
improvement
Manufacturing
department
KPI monthly
Customer services Marketing department Staff recruitment 6 months
This business case focus on the focus on marketing the product by bringing new ideas so
that the customers gets attracted towards it. This business case help to find the potential investors
which can gives the funds to the company. The enterprise need to identify the opportunities in
the market and area where they can invest the investors funds. The organisation is focusing on
the cost benefits, market attractiveness. The organisation team calculate the ROI( return on
investment) to calculate the fund in proper place where they can get the maximum profits. The
business case help the business unit to allocated the resources in effective manner so that they
can achieve the objectives of the company. Apple and virgin prepare business case so that they
gain the goodwill in market. By this companies get lots of opportunities to expand their business
and retain their customers. Apple calculate their return by their various investments. Apple make
its product more innovative. They always come up with new design, new feature and technology
to establish goals. The brand loyalty of apple is very high.
TASK 4
P7 Different tools that can use to develop, retain and protect knowledge and intellectual property
The intellectual property gives the originality of creative work done by someone. This
property comes under the legal rights. This intellectual rights are very important for every
company so that duplication should not take place (Welch, 2011). These are different type of
intellectual properties which adopt by the business according to their different nature. The apple
and virgin can protect their business and their product by using the intellectually properties like
trade mark, copy right, utility model, product design by which they can protect business
activities and reduce the duplication. Utility model is similar like the patent for this is for the
shorter term. The firm is also using trade secrete to protect its business from unfair trade

practices. In trade secrete the company keep its information confidential. Copy right gives the
protection to the process and method of the production. In this they can sue any company fir they
adopt the same manufacturing process.
Trade mark refers to the name, symbol, work, logo by which company can protect its
brand name so that other company can not use the same name and sell its product in the market.
This can help the organisation to prevent the fake products (Goetsch and Davis, 2014). Apple use
the logo to protect its property. While virgin protect is property by having the name logo. Both of
the company is having copyright on their process.
CONCLUSION
The innovation and commercialisation is very important for every business. The
enterprise need regular innovate its product so that product sales never decrease and
commercialisation the product so more people can get aware of it. The innovation and
commercialisation go hand in hand. apple which making iPods and virgin which is into travel,
entertainment. The enterprise participated in the innovation by making effective use of its
resources. By this report we can say that the good team can bring the good results in the
innovation process. The organisation should have the clear understanding of their goals and
adoption of innovation to get the maximum growth and profit.