Innovation and Commercialisation: A Report on Business Strategies

This report examines innovation and commercialization strategies for businesses, particularly focusing on the context of OAK Cash & Carry, a small wholesale grocery organization. It distinguishes between innovation and invention, emphasizing the importance of innovation for competitive advantage and the application of best business practices. The report explores the roles of organizational culture, mission, vision, and team performance in fostering innovation and commercialization. It also covers the 4Ps of innovation (process, product, position, and paradigm), the innovation funnel, and the concept of frugal innovation. Furthermore, the report discusses the commercial funnel, the role of New Product Development (NPD), the formulation of innovation business cases, and tools for protecting intellectual property rights. The analysis provides insights into how businesses can leverage these strategies to achieve growth, enhance market share, and build a strong brand image.

Innovation and
Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Distinguish between innovation and invention along with the importance of innovation3
P2 Role of organisations culture, mission, vision and team in innovation and
commercialisation...................................................................................................................5
TASK 2............................................................................................................................................6
P3 4P’s of innovation and contribution of innovation funnel in generation of innovative ideas
................................................................................................................................................6
P4 Developments in Frugal innovation..................................................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and role of NPD in innovation and commercialisation8
P6 Formulation of innovation business case..........................................................................9
TASK 4..........................................................................................................................................10
P7 Tools which helps to develop, retain and protect intellectual property rights and knowledge
..............................................................................................................................................10
CONCLUSION..............................................................................................................................11
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INTRODUCTION
Innovation is necessity in the today’s world to sustain in diversified business environment.
Every organisation whether large or small is required to innovate in business structure. It is much
needful for small organisations because high completion is present in market. Innovation in the
features and design of products helps to create the different identity in between customers.
Innovation is the wide concept and it is not only related to the development of product and
service. It includes improvement in many other aspects of organisation such s administration,
selling and distribution, accounting and marketing. Two way benefits are gathered by the
organization internal and external. Internal includes employees support, higher participation,
effective organisational structure and external includes high market share, competitive
advantage, good brand image etc. OAK Cash and Carry is small wholesale grocery organisation
(Baraldi and Waluszewski, 2011).
In the present report explain about, importance of innovation along with its difference
with invention, building of innovation through the support of organisations mission, vision and
team, 4P’s of innovation and Concept of Frugal innovation. Also, importance associated with
commercial funnel and role of NPD, preparation of innovation business case and tools which
helps to protect IPR.
TASK 1
P1 Distinguish between innovation and invention along with the importance of innovation
Importance of innovation
Innovation is the process which includes use of new methods and techniques which are in
trend in market and contributes in improvement of the different functional activities of
organisation. It is bring by OAK Cash and Carry to improve the internal strength of organisation
through make their administration, selling and distribution, marketing and production activities
better. Innovation in business motivates the employees is to work with passion they have the
opportunity to learn the new things and develop their personality and professional career. There
are much importance’s which are attained by OAK Cash and Carry is mentioned below:
Competitive advantage: The main aim of small organisation is to build their position in
market and improve their selling figures. This target is achievable by OAK Cash and Carry if
they bring competitiveness in operations. It helps to attain competitive advantage in market. So,
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innovation is only aspect which contributes in making of the existing activities more effective
and competitive. Administration department uses cloud technology to store large amount of
information at one place which improves their decision making. Similarly, selling and
distribution department is able to deliver their products timely to end customers or emergence of
new method of selling like online platforms etc. Marketing activities are also enhanced where
new options emerged for advertisement of products such as social media which is time saving
and cost efficient. So, it provides the opportunity to OAK Cash and Carry is to gather the support
of all departments in success of organisation through which are able to grab some good position
in market.
Application of best methods: Innovation helps to use best which is present in market for
operating their business operations. It improves the internal strength of organisation also helps to
attract new and skilful candidate whom are searching for jobs. It provides the opportunity is to
employ best candidate in the organisation which contributes most of their efforts in process of
making the organisation different from their competitors. As more chance are available for their
personal and professional growth. OAK Cash and Carry is provides grocery products. Through
implementation of innovative technologies quality and design of the products is improved and
also contributes in minimisation of cost. It provides opportunity is to set the low price to attract
the large number of customers (Bianchi and et. al., 2010).
Distinguish between invention and innovation
Both are different terms Innovation means development of the features of existing
product through application of unique methods of working and on the other hand invention
means development of something new which is different in all scenarios and emerged first time.
The different between both the terms is understood from the points which are defined below:
Innovation Invention
Process of making the existing product more
productive in terms of quality, features, design
through use of new technologies of working
Emerging new product which is not available
in market. It is the process which includes use
of new ideas and methods in development of
product which is having new features not
present in anywhere.
The main purpose behind the innovation is to
improve their quality of their business
It helps to fulfil the dream of expansion
through launching of new product line.
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operations through improvement in the
different departments like accounting,
administration, production etc.
For ex., use of innovation in improvement of
the grocery products of OAK Cash and Carry.
For ex., invention helps to expand business in
product line which is yet not available in
market.
P2 Role of organisations culture, mission, vision and team in innovation and commercialisation
The culture, vision, mission and team performance plays an important role in development
of the innovation and commercialisation in organisation. All the aspects are important part of the
organisation, without them not possible to operate business.
Vision and mission are for the guidance of the employees is to clearly understood the
objectives of organisation and according to which design their activities. It motivates the
employees is to work with innovative ideas to accomplish goals in less period of time.
Culture includes about value, belief, norms which are present in organisation and followed
by the employees while performing tasks. It contributes to bring coordination and built effective
communication among the employees (Bradley, Hayter and Link, 2013). The relation of
employees become strong which improves their performance and positive working environment
is created at workplace. In such easy to perform by the employees continuously 8 to 9 hours as
they get the support of each other in difficult times. It is seemed that the conflicts are removed
through given resources are optimally utilised to attain best results. The number of mistakes
which are happen in organisation due to misunderstanding is reduced. Such positive and familiar
environment provides freedom to employees is to share their innovative views and ideas.
Team performance is important aspect as goals are not achieved through effort of single
employee. Support of many other members provides strength to the team is to use innovative
ways to complete their task which results in something productive which is not exist till now.
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Leadership is such aspect which helps in motivation of employees to use their skills and
knowledge to provide their optimum to organisation. In this regard, they have the duty is to lead
the employees from front and use approaches and strategies for their direction.
All such different provides their support in their own way in development of innovation and
commercialisation in OAK and Cash and Carry. The different benefits which they achieved
through this includes high market share, more customer base, high amount of profits, competitive
advantage etc. So, while adopting innovation in business need to focus on all such aspects which
are defined below:
Vision: The vision of OAK Cash and Carry is to bring diversity in their grocery products
and provides best quality products which cater the needs of customers having different
perception in mind. It helps improve their number of profits and sales figure.
Culture: The management of OAK Cash and Carry build value, belief ad norms for
employees to make their efforts more coordinated towards their goals of organisation.
Leadership: Leaders of OAK Cash and Carry is required to provide freedom to employees
to use their own ideas in performance of their functions. It helps to motivate the employees is
that they are important part of organisation (Caniëls and van den Bosch, 2011).
Team work: OAK Cash and Carry is required to provide more emphasis on team building
as it helps in removal of weaknesses through using the strengths of other employees. It creates
the familiar environment where employees enjoy to work.
TASK 2
P3 4P’s of innovation and contribution of innovation funnel in generation of innovative ideas
4P’s of innovation
Process innovation: It includes about converting the existing processes which are used
in the OAK Cash and Carry to attain some valuable outcomes. It has direct relation with the
strength of organisation structure and profit making capacity. OAK Cash and Carry need to bring
innovation in their distribution process to effectively meet out the demand of customers.
Product innovation: It is the process creation of innovative and unique products which
are different from rivals. It helps to grab the customer base of competitors also. In this regard,
OAK Cash and Carry required changing the features of their grocery items.
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Position innovation: It includes about brining of innovation in their brand name and logo
to build its position and identity in market. It has direct influence upon the behaviour and
perception of customers. In this regard, OAK Cash and Carry required to give some tag line and
logo through which their products are known in market.
Paradigm Innovation: It is the process of building structure of organisation where
freedom is provided to employees to share the views and ideas which contributes in creation of
familiar environment. It motivates the employees of OAK Cash and Carry is to work in the faith
of organisation.
Innovation funnel
It refers as the funnel where more emphasis is provided on development of exiting
products through continuous efforts of creating something valuable which is in demand in
current period of time. This funnel includes three steps which are mentioned below:
Wide of mouth: It includes collection of ideas through conducting research from
different sources such as competitors, employees and customers. It provides the opportunity is to
make changes in product as per their customer preferences and current market trends.
Selection of idea: Process of choosing best innovative option from various alternatives.
Before using it required to check the effectiveness of the alternative as per their business model.
Implementation of ideas: This will includes the work of implementation of alternative
which is selected above. The process of implementation is required to be so precise that it only
benefits are gathered (Cooper, Seiford and Zhu, 2011).
P4 Developments in Frugal innovation
Frugal innovation: It is just opposite from the basic meaning of innovation which includes
the process of adding up of new features. Here, more emphasis in provided on such feature of
product which proves as negative for their image and decrease the sales figures. So, as per frugal
innovation such kind of negative features are removed from the products such as colour, design
or pattern. In the present report, this technique is used by the management of OAK Cash and
Carry is reduce their cost of production for improve their number of profits. In this regard, need
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to remove such aspects from grocery products which are unwanted and only contributes in
improvement of cost of production. It can further provided the option that provide products as
per the spending power of customers to build relation with them. The various benefits attained by
OAK Cash and Carry are defined below:
Reduction in production cost: Frugal innovation includes identification of unwanted
feature which takes extra time and cost but contributes in influencing the behaviour of customer
in spite creates negative image of product. So, the removal of such feature helps to save the time
and cost (Gray, 2011).
Development of new feature: After removal of unwanted feature some amount of time and
cost is saved which in turn used in development of the new feature as per the preferences. It
improves the attraction of grocery items of OAK Cash and Carry.
TASK 3
P5 Importance of commercial funnel and role of NPD in innovation and commercialisation
Commercial funnel: This includes the activities related to the assistance provided by the
employees of organisation in choosing the best product through analysing their needs. Analysis
of needs helps to add the features in their products are not present which influence their buying
behaviour. The main aim behind the providence of such kind of activities is change the
perception of customers towards brand and retains them for longer period of time. In this regard,
OAK Cash and Carry required investing extra amount to make themselves effective from rivals.
Importance of commercial funnel
Importance of commercial funnel for OAK Cash and Carry is understood from the
following points which are defined below:
Improves quality of products: The quality of products is increased automatically while
adopt commercial funnel model as it includes influencing the mid of customers who can be
achieved if products is best in quality in comparison to their competitors.
Improvement goodwill: Provide assistance to select best product and also catering their
needs through development of their products helps to attain the trust and loyalty towards the
brand which results in improvement of their goodwill in market.
New product development
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While producing new product, OAK Cash and Carry is required to follow the steps which
mentioned below:
Generation of new idea: Here more emphasis is provided on thinking of new aspects of
product which helps to create something valuable (Guan and Chen, 2010).
Screening of idea: Selection process which includes choosing of best method from
various alternatives. Here, profit margin and sustainability power of product is analysed to make
choice.
Defining concept: Provide timely information to staff members to gather their views and
support.
Business analysis: Checking of the effectiveness of new product through analysing
condition present in business environment.
Product development: Process of selecting technique which is used further in
production of product which is emerged after innovative thinking.
Test marketing: New marketing plans are made to spread awareness in market in limited
period of time.
Commercialisation: Process of checking up past transaction to build future strategies
through which introduction phase of new product is effectively completed.
P6 Formulation of innovation business case
Innovative business is required to prepare with effective planning as it guides the employees
and includes the strategies which helps to come out in difficult time in future period of time. It is
observed that due to high competition in retail market many difficulties are faced by OAK Cash
and Carry to sustain in market. The only possible ways which assist to continue their business
operations in market includes acceptance of innovation. So, for its effective implementation need
to build innovative case which includes different steps which is defined below:
Executive summary: OAK Cash and Carry is retail organisation which deals in grocery
products at small level. Its aim is to become leading organisation through building innovative
products to cater the needs of customer through bring diversification in their offerings.
Marketing activities helps to create place in such high competitive business environment.
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Need: Identification of market trends, competitor’s offerings and attitudes of customer
towards their product to start working on making of various products which changes their
perception.
Solution: The process which helps to collect all the information required is through the
medium of research. It also assists in formulation of pricing policies.
Research of customers: Contributes to attain the views of customers about their existing
products and pricing policies. It helps to assess the current position in the market.
Designing of plan: Formulation of plan which includes strategies and approaches to guide
the employees to execute the activities in right form which contributes to make the current
offerings of organisation better.
Investment requirements: Raise adequate amount of funds from different internal and
external sources as per need arises (Huang and et. al., 2012).
TASK 4
P7 Tools which helps to develop, retain and protect intellectual property rights and knowledge
The process of innovation sometimes helps to invent something new which is yet not
present. Such kinds of inventions are required to protect by the organisation as there is lot of
threat of copying by the outsiders. In this regard, many tools are provided by the government
which helps to prevent their inventions such as trademark, copyright and patent. It is the
responsibility of the management of organisation is to choose tool which is most suitable for
securing their new invention in market. All the tools have a different regulation which serves
their function in different manner. There are many other benefits which are gathered by the
organisation like builds high brand image, removal of the threat of copying etc. The role of
different kind of tools in process of securing inventions of the OAK Cash and Carry is defined
below:
Patent: It is the tool which includes the regulation about protecting the new inventions. This
will restrict the other organisations and person is not use the same technique and methods which
is involved in the process of inventions. An organisation takes the patent to secure any kind of
aspects in which invention is evolved such as design, feature, colour etc. Through this OAK
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Cash and Carry is able to secure the invention made in grocery products. It can be taken by
effectively applying to government of UK.
Trade mark: It is helps to secure the tag line, symbol, logo or name of OAK Cash and
Carry through registering all such aspects. It brings restriction upon all the organisation not same
aspects anything which resembles to them.
Copyright: This tool provides the option to the investor is to delegate the right of use of
invention to any third party to produce the products through apply such new techniques and
methods. No other persons are allowed to use because such right is not given to them.
CONCLUSION
It has been concluded from the above report that innovation has important place in small
organisation development. Through effective use of the different aspects which are associated
with innovation helps to attain large number of benefits like competitive advantage, high
involvement of employees, more sales and profit etc. Vision, leadership, team performance are
such internal aspects through innovation is promoted in organisation. The process of innovation
involves four different P’s which has huge contribution in the development of innovative ideas.
There are many tool are required to use for protect their inventions and innovations such as
patent, copyrights and trademarks.
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REFERENCES
Books and Journals
Online
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