Brands2Life: Unit 8 Innovation and Commercialisation Report Analysis

This report provides a comprehensive analysis of innovation and commercialization strategies, using Brands2Life as a case study and drawing insights from the approaches of Apple and Virgin. It begins by defining innovation and its importance to organizations, emphasizing the difference between invention and innovation, and highlighting the role of innovation in SMEs. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization, emphasizing the need for a clear vision, effective leadership, and a supportive culture. Furthermore, it delves into different types of innovation, explaining the 4Ps of innovation (product, process, position, and paradigm) and the use of innovation funnels to shape and examine innovative ideas. The report also discusses examples of innovation within Apple and Virgin, showcasing their approaches to foster a culture of innovation and creativity within their organizations. The report is a useful resource for students of business development.

UNIT 8. INNOVATION AND COMMERCIALISATION
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Table of Contents
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The contemporary business scenario is experiencing an accumulation of various historical
events in relation to the innovation and commercialisation. These rapid changes appear
remarkable in changing the way each organisation is looking at innovation and
commercialisation. The organisations are considering innovation and commercialisation as an
effective tool to improve their position within the market.
At the same time, innovation and commercialisation play crucial role in improving the
performance standard of the small and medium-sized industries (SMEs). These SMEs are
considering and analysing the performance of the big firms of the industry in this regard. Further,
they are aiming at developing a holistic framework for innovation and commercialisation based
on their findings.
The prime objective of these organisations here is to come up with winning strategies and
develop competitive products. In this regard, this assignment considers the case of Brands2Life
and explaining their functioning and highlights the impact of the innovation and
commercialisation skills of Apple and Virgin on the organisation.
Task 1
LO 1: Explaining the context for innovation and determining the differences between
invention and innovation
P1 Explaining innovation and its importance to the employees of Brands2Life
In the modern era of continuous development, innovation plays the significant role in
setting the position of an organisation within the industry. Innovation refers to the ability of an
organisation to develop new ideas and approaches. In addition, the organisations need to put
these ideas and approaches into their organisational practices.
The fundamental motive of the organisations behind putting these approaches and ideas
into action is to ensure effective commercialisation. Success in innovation and
commercialisations can add value to the performance of an organisation (Carmeliet al. 2012,
p.341).
The business dictionary defines the term innovation as transforming ideas into product in
order to enhance the value of the product. The customers of an organisation pay for this
enhanced value of their required product or services. Therefore, the organisations aim at
analysing their ideas to realise them at an economical cost. That is, the innovation strategies of
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an organization must be cost efficient and specific. This, in turn enhances the value of the
developed products.
In this context, it is essential to mention that although innovation and invention are often
discussed simultaneously, there exists a structural difference between these two. The invention
refers to the development of a new product, whereas innovation is about developing new ideas
(Gokhberg and Meissner, 2013,p.313).
That is, innovation allows an organisation to turn invention into marketable products.
Precisely, innovation refers to bringing distinctive features in the inventions. Invention generates
demand for the product of an organisation (businessdictionary.com, 2016). Innovation, on the
other hand, allows an organisation to serve their customers in accordance with their specified
needs.
In contrast to the theories of innovation, invention refers to embodying new ideas
(businessdictionary.com, 2016). That is, it refers to the capability of an organisation to develop a
new product to the customer base of the organisation. Invention opens a new dimension to the
organisational operations of different companies.
However, considering the benefits of product invention, organisations aim at acquiring
the most from their innovations. In relation to this, the organisations rely on patents and
copyrights to protect their entities. For further understanding, it is effective to consider few
examples of innovation an invention. For instance, Apple opened the door to a new horizon in
the market of music systems by developing iPod.
The market already incorporated various music systems that demanded to offer the best
features to the customers. However, they all failed to accommodate a large variety of music in a
remarkably small sized device like Apple’s iPod. This refers to the innovative initiative of Apple.
On the other hand, when steam engine was discovered, there was no alternative of it in the
market. This indicates invention. An as the development on the functioning of steam engine
indicates, this invention opened door for further innovation.
Along with the big business bodies, the SMEs are considering innovation sincerely due to
its importance in improving the market position of the enterprises. In this regard, the employees
of Brands2Life need to understand this significance as well. Brands2Life is a multidisciplinary
agency in London (brands2life.com, 2016). This award-winning organisation shares an extensive
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global capability. To improve their industry position, the organisation needs to understand the
importance of innovation.
Brands2Life appears quite effective in this regard nevertheless. Their emphasis on
incorporating the strategic planners, creative thinkers, and people with great expertise in their
field reflect this effectiveness (brands2life.com, 2016). For example, in the context of the Virgin
Group, the innovation skills have been maintained, as the managers have developed the strategic
plans after consulting with the lower level employees and their innovation ideas have been
restored in many cases and have proved to be successful for the company.
In relation to this, it is essential to analyse the performance of the large organisations in
this case. For example, as world’s most innovation organisation Apple put emphasis on diversity
(apple.com, 2016). It allows the organisation to gather a varied perspective of innovation from a
large set of people with different ideas and approaches.
For example, it allowed the company to understand the market demand regarding music
player. This allowed them to develop iPod that claimed the no. 1 position in the market within
few months of its release. On the other hand, Virgin believes in keeping the curiosity alive
(virgin.com, 2016).
In this regard, the organisation encourages ideas from all their employees. Further, the
organisation believes that curiosity allows a person to take the risk. To ensure effective
innovation, willingness to work with risk is essential. However, the organisations need to assess
the risk while developing decisions as well.
As the multidisciplinary organisations, Brands2Life needs to encourage their employees
like Virgin. Further, they need to support the employees through innovativeness. This would
contribute to boosting the organisational image of Brands2Life.
P2 Explaining the way organisational vision, leadership, culture, and teamwork can shape
innovation and commercialisation
To understand the innovation and commercialisation effectively, it is essential to consider
each of the factors associated with organisational performance and analyse their influence on
innovation and commercialization. These are considered as the main sources of innovation. The
first to mention in this context is the organisational vision.
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To ensure efficacy in innovation and commercialisation, the organisations need to
develop a clear vision. That is, the authority needs to have a proper idea of their purpose.
Further, they need to promote this vision among the employees. This is essential to encourage
the employees and ensure innovativeness from their end.
For example, Virgin group has their organisational vision clear and they believe in
encouraging and supporting each other within the organisation to ensure innovation and boost
their performance (virgin.com, 2016). In this relation, it is essential to mention the importance of
teamwork and effective leadership.
Teamwork is one of the most commonly used organisational practices to encourage and
support the employees. In addition, as teamwork promote the cumulative effort, it appears
effective in developing the innovative idea (Davis and Marshall, 2014, p.223). In this regard, it is
essential to ensure strong leadership within the teams. Effective leadership is essential to
optimise productivity within the team (Bock et al. 2015, p.291).
Further, efficient leaders can encourage the team members to practice creative thinking
by sharing the passion with them. This creative thinking is a crucial factor in the context of
innovation.
On the other hand, culture is an important factor in this case. Each organisation needs to
ensure a culture that encourages and supports their employees. This would allow the employees
to share their ideas with others (Martín-de Castro et al. 2015, p.359). For example, the
organisational culture at Apple is based on diversity (apple.com, 2016). This allows the
organisation to gather ideas from people with diverse observations.
The innovation cultures may be restored in the company by inculcating the following
steps that includes the defining of the innovation cultures followed by the innovation
programme. The third step involves the determination of the plan that is generally followed by
the vision and leadership.
The fifth step is related to the leading of the plan from the present place; however, an
important consideration in this stage is the next stage of valuing the people that are important for
the companies or the organisations. The next stage is the process of analysing and nurturing of
the better ideas of the people of the company, followed by the reclaiming of the authority to
interrupt things for any precautionary measures.
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Redesigning the work environment and the improvement in the tools and techniques are
important. JFDI and the communication freedom are the concluding steps that are essentially
required for the innovation cultures to be maintained (Peretz et al. 2015, p.900).
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Task 2
LO 2: Explaining different types of innovation to the employees of Brands2Life
P3 Explaining the 4Ps of innovation and the uses of innovation funnel to shape and
examine innovative ideas to the employees of Brands2Life
Considering the importance of innovations, the research and development team of each
organisation is using several innovation theories to shape and examine the innovative ideas of the
employees. Innovation is often in the eye of the beholder the company what may be new ofr one
product, may be old product news for another. Company despite this identifying and innovation
with useful thinking that focus on the different innovation process in the products, process,
peoples and press. The 4Ps model to develop to provise a powerful tool for analysing the impact
of these elements in the business process.
Product innovation- The first factor is the product. The organisation needs to
consider their purpose and then the thing of the innovations they can make in the product to
make their mark in the market. For example, Apple considered the possibility of bringing
innovation in the music player market. Regarding this, they analysed the market to identify the
scopes of further improvement. Innovation in the products to change in the things of the products
and services that provide by the company. The company changes in the products and services to
changes in the designs, features, quality, prices and packing, there are may also innovation in the
products which help to achieve the humanitarian goals by the company. Apple company come
back after some the innovate the many products are Apple II, iPod, I phones and I pads. Is the
latest product launch by the company. The company innovation in the products by the apple have
been novel and crating new innovation in their products like high battery life of the products,
slim laptops and new touch technology features.
Process innovation- To ensure effective innovation, the organisation needs to
analyse the process requirement effectively. This includes analysing both internal and external
processes. Company innovate the new ideas that focus on the process include the products are
creating and delivered to the end customers. The company's many products are use in the relief
settings for initially development for the non-relief context that focus on the innovation of the
humanitarian to considering a products exiting after the use. Process innovation of apple
company has been made to available the music to be purchased by the customer through the
online. Innovation in the apple company process to searching the new opportunities for selecting
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the best option, option implementation and create the new benefits for the process of the business
supply and creating the products.
Position innovation- The next factor position is essential to analyse the organisational
perception of their performance. This is referred as the position factor. Apple company involves
the innovation in the positioning to establishing by the products or process context. This
innovation refer to the changes in the specific product or its process to perceived the
symbolically and how they used it by the end users.
Figure 1: 4Ps of innovation
(Source: Martín-de Castro et al. 2015, p.361)
Paradigm innovation- The last factor, paradigm focuses on the required changes to
appear successful in bringing innovation. Apple changes in the paradigm from starting products
manufacturers to create the new products. This innovation related to the mental model to sahpe
to the company.
Another theory that appears effective in this case is the innovation funnel. The
fundamental idea of innovation funnel is to collect ideas from the employees (Vanhaverbeke,
2013, p.6). The model further provides the guideline to turn the ideas into products and
commercialise them. In this context, the model highlights the importance of assessing the ideas
and tests them to identify their efficiency in improving the market position of the organisation.
Once a product successfully passes the test, gate, the organisation launches the product in
the market. The application of innovation funnel is evident in the organisational practice of
Virgin (virgin.com, 2016). Virgin Group encourages ideas from all their employees. Further, the
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organisation believes that curiosity allows a person to take the risk. To ensure effective
innovation, willingness to work with risk is essential. However, the organisations need to assess
the risk while developing decisions as well. Once it passes the assessment gate, the organisation
tests the product and finally launches it.
Figure 2: Innovation funnel
(Source: Vanhaverbeke, 2013, p.6)
Knowledge may be an important source of innovation. It involves the knowledge of the
economy of the company and the markets that are related to the company. Moreover, the
materialistic knowledge together with the other aspects provides an essential source of
innovation. Another source of innovation is the Incongruity. In this method, the need for the
change is the major factor that drives the way for the effective innovation in the different
companies and the organisations (Link et al. 2014, p.111). These methods may have an
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important step forward for the company to have the desired levels of innovation to be established
within the companies or the organisations.
P4 Examining the way Brands2Life can develop frugal innovation
The basic utility from developing the frugal innovation is it allows the organisations to
minimise cost by eliminating the non essential features of the products or services the
organisations produce. Along with cutting the cost, it appears effective in reducing the
complexity of production.
As a multidisciplinary organisation, Virgin group has a high chance of lacking proper
innovation (virgin.com, 2016). However, the organisation is excelling in that field due to their
strategic thinking. Along with providing exotic services to their customers, the organisations are
paying sincere attention to the cost-conscious customers. Their innovative commercialisation of
mobile phones, internet services is evidence in this regard.
Brands2Life needs to take inspiration from the performance strategy of Virgin group. As
the organisations provide B2B and communication services to their customer, the organisation
needs to analyse the features of their services. This would allow them to identify areas that have
scopes of simplification. Simplifying the services would allow them to cut their expenses and at
the same time reduce the complexity.
The Frugal innovation is advantageous for the companies and the organisations in a
finite number of ways. This method reduces the complexity of the different products and the
services of the company. In the context of the different companies, the demography of the area
may be factor that leads to the frugal innovation to be introduced in the products of the
companies, that may allow them to sell their products as desired by the people and at lower costs
as well (Zeschky et al. 2014, p.24).
The Frugal innovation is involved with the defining of a number of parameters. These
include the method of engaging and iterating where the researches are made to identify the
aesthetics of the general people of the area. As mentioned by Tiwari et al. (2017, p.25), Flexing
the assets is involved with the development of the relationships with the partners to improve the
methods of their productions.
Creating the solutions at the sustainable levels allows the company to adopt the methods
of protecting the environment, thereby improvising the better brand trust and loyalty among the
customers. Shaping the behaviour of the customers is another frugal method of innovation,
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where the customer behaviour trends are analysed and their products or services are made
accordingly to modify the behavioural pattern of the customers.
Creating the values is another method that is generally implemented by the companies,
to improve their overall profits in an area of service or business. The company in the other
aspects may improve their business methods by increasing the levels of their alliances with
others, to have a supportive environment for the company at the time of their recessions.
Principles-
Engage and iterate- A company using the insular research and developing the thise
department that rely on educated about the customers needs. Company start the observing the
clients behaviour in the company environment. Its give a better solution that focused on the
market that use research and development model to starting with the good solutin base
involvements of the customers.
Flex the assets- New products use the new material, tools and supply chain techniques
reduce the demand gad of the supply and increases the procurement.
Create sustainable solution- Company create a sustainability in the work environment
for their workers and and provide a eco-friendlily products fort he costumers.
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