Innovation and Commercialisation: Strategies and Business Development

This report delves into the critical role of innovation and commercialization in business growth, emphasizing its importance in the electronics industry. It explores how organizational vision, leadership, culture, and teamwork shape innovation, and examines the 4Ps of innovation alongside the application of the innovation funnel. The report further discusses frugal innovation, the commercial funnel, and New Product Development, using BT Group as a case study, including ways to access funding. It also covers tools for knowledge and intellectual property protection. The report highlights the strategies of industry leaders like Apple and Virgin, and their effective planning in investing in multiple sectors with innovative ideas. The analysis includes a comparison of innovation and invention, and the importance of teamwork and cultural aspects of innovation.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance to organisations in comparison with invention................1
P2. The way organisational vision, leadership, culture and teamwork can shape innovation 2
TASK 2............................................................................................................................................4
P3. 4Ps of innovation and use of the innovation funnel.........................................................4
P4. Frugal innovation ............................................................................................................5
TASK 3............................................................................................................................................6
P5. Importance of commercial funnel and the application of New Product Development ...6
P6. Innovation Business Case for BT including ways to access funding...............................8
TASK 4............................................................................................................................................8
P7. Tools to develop, retain and protect knowledge and intellectual property......................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business innovation has an imperative role in the growth and success of every business
organisation. Innovation aids firm to generate new and innovative products and in gaining
competitive edge over others in the market. Electronics industry is one of the fastest blooming
industries in all over the globe and its global value is estimated in billions of dollars (Aarikka-
Stenroos and Sandberg, 2012). Apple and Virgin are the global leaders focus on innovation and
for doing so, they have a defined framework of organisational structure. It is observed that
implementing 4P's of marketing can increase sales and development of new product and
enhance processing technique of commercialisation. All the factors of innovations,
implementations and marketing policies, organisational structures have been discussed in details.
Many companies all over UK are keen to follow the strategies of these to big companies like BT
Group(British Telecom Group ) have their gained profit and able to compete with bigger
telecom industry like Vodafone.
TASK 1
P1. Innovation and its importance to organisations in comparison with invention
Innovation is an integral part of modern world (Bagchi-Sen, 2010). It has been said by
father of modern electronics that technology will double in 18 months so keeping pace with this
theory will assist in developing the business of an organisation . That is what leading giants like
Apple and Virgin has been able to do so, they have sensed opportunity to gain more profit and
increasing digitalisation has led to increase in demand of electronics products.
Importance of innovation in developing business.
 Enhances and improve productivity.
 Reduces cost of production. Maximizing competing ability in market. Increases the value
and recognisance of brand.
 New mergers and ventures have increased globally which helps in expansion.
 It grows the gross turnover and profit of organisation.
 Expansion in market share.
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Considering innovation Apple is able to be a front runner in market with innovative
products like Macantosh, I -pod, I-pad and the latest version of operating system in apple phones
this has made them tough competitor in market place .
Virgin is also not far back they have also implemented innovative ideas and are able to
make their mark in innovative world using creative manufacturing technique and made huge
profit in using innovative ideas and implementing in different subsidiaries like virgin mobile,
books, banking, travel agencies stores etc. They have effective planning in investing in multiple
sectors with innovative ideas.Both companies have set examples of using innovation to and
effect and fetch more profit out of it. They have efficacious analysis and survey of changing
demand of market and what customer are expecting (Bogers and West, 2010).
Following footsteps of the two giants other telecom company BT Group have also
hounded idea of accepting innovation to good effect and its implementing it, Petronaging this
policy it has helped the company to compete telecom giant Vodafone. The concoction of
innovation and expansion policy has helped graph of profit to take a steep positive curve in
recent past which was badly scuffling to gain profit.
Difference between innovation and invention
Factors Invention Innovation
Definition It is formation of ideas for
production and process.
It is regarded as
implementation of ideas
What it means New creation of product Adding value to existing
product
Concept Raw idea and its working
theory
Practically implementation
of new ideas
Skills Skills related to scientific skills. Making technical, strategic
and marketing skills.
Occurrence New ideas of a scientist Improving existing product
Concern Uni-level product process Combined value of process
and products.
Activity Concerned with ideas Highly focussed on research
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and development
P2. The way organisational vision, leadership, culture and teamwork can shape innovation
Innovation is necessary for every kind of organisation to remain in market and also for its
long term growth. It can be in term of development in products, process of management in Apple
and virgin group and also the way of work on going in the respective company. It is different
from creativity in many terms and play a vital role in growth of company, survival and for
success of the firm.
Vision- British Telecom vision is to provide easily communication facilities to country
and this become more easier with the help of innovation in their product like combo pack of data
and calling, some benefits in post-paid connections etc. this will attract customers and also help
the same company in fulfilling their vision. Innovation help BT in expansion and long term
success for their business (Bogers and West, 2012).
Leadership- In simple words it is an art of motivating individual or a group of people for
achieving goal of organisation. It involves decision making, innovation and creativity as per the
requirement of company. In leading group or a person there is requirement of innovation like
new techniques of guiding, training and development and leader is the person who create
working environment in company. Help in co-ordination of different department for smooth and
effective working of firm.
Culture- People love working with British Telecom because of their culture and working
environment. The same shows personality of organisation and governs employees working that
how to behave. Innovations in working culture of British Telecom help them in motivating
employees and reduce personnel turnover. Invention is the same have to be done after asking
questions and taking suggestions from the employees and manager of the same company.
Teamwork- It is an important part of organisation which help in dividing work load and
mainly in achieving goal with minimum time and resources consumption. Teamwork combine
individual’s strength and skill for a specific task and every member of team complement each
other. The same is important for every business because it improve productivity and efficiency
also provide great learning opportunities to every member and offers dissent views and
feedbacks.
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These four points requires day to day innovations in them for betterment of company and
also for employees. This is the only thing in British Telecom which help in smooth working and
achieving its goal.
TASK 2
P3. 4Ps of innovation and use of the innovation funnel
Innovation funnel is used for developing products and it include process of this also.
Purpose of innovation in goods and services is that it help in meeting market as well as
customer’s needs. In simple words, it provides a graph about current generation and their taste or
preferences also screen alternatives for production. Innovation is required in every area of
organisation for achieving its goals and objectives. Below 4Ps of innovation are explained:-
Illustration 1: 4Ps of innovation
(Source: 4ps of innovation, 2017)
4Ps of innovation-
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 Product- Mostly innovation is used in products and services for maximum profit or
according to customers’ needs and market demands (Ettlie and Rosenthal, 2012). The
same can be innovative after gathering data and with the help of market research.
Products play a crucial role is distinguish company from each other. If apple innovate
music players and LED this will help them in capturing market.
 Process- Innovation mainly focus on process by which products and services are created
or delivered. The same and invention is not easy task for every company this take time
for enhancing customers towards them. It focus on the steps through which products are
delivered to customers. Apple enhance its efficiency and effectiveness by converting its
process into process innovation (Wonglimpiyarat, 2010).
 Position Innovation- it highlights the position of organisation in market and what
innovation the respective company have to do for improving its image and position in
market. British telecom it has fast market growth and required day to day innovation in
products for customer satisfaction. The same have to learn techniques of attracting
customer or putting products in their minds. This all help in achieving organisation goals
with various techniques and innovations.
 Paradigm- this is the last model of innovation and the company has to learn all the
techniques and tools that help in innovations. For all these process organisation has to
analysis and do market and customer research. It is a kind of specific inventions required
in some special products.
These all Ps are not narrow in concept and it’s up to the organisation that they want to use
all of them together or some of them (Gambardella and McGahan, 2010). Innovation funnel is
necessary for product and process development and improvement in all these gives better
product results. If respective company is serving good quality products then they have their
position in market. All of the above have a single purpose it’s for betterment of organisation and
to be more profitable then past.
P4. Frugal innovation
Inventions in products and services help the firm in gaining accurate level of efficiency
and effectively. Frugal innovation help Apple and virgin group in reducing their cost of
production, goods and complexity. It removes features from long-lasting products that are not
required for minimum cost of products and that can be sell in developing country. The same
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invention help in filling the gap between actual and standard cost of products. For this budget is
also prepare so that can easily understand the cost occurring on production. There are some
points that manager should kept in mind while Frugal innovation these are explained below:-
 Team leaders should be made so that they can help in achieving respective organisation
goals in effective manner and the deserving person of the company should be the leader.
This is work of manager to placing right person at right place.
 Accurate plans and policies for innovation should be made so it can help manager of
Apple and Virgin group in easy achieving target and all they should have to provide
proper information to every employees related to innovation.
The given company use their resources in such a way or in limited quantity so that its
products and services don't cross price limits. Frugal innovation help Apple and Virgin group in
saving their time used in production purpose by this customer get their products on time and
there will be no excess consumption of electricity and funds (Godin, 2012). There are many
benefits of the same in company and some of them are explained below-
 Help in finding out best way to maximises profit or gaining profit for organisation.
 Help in filling gap between actual and standard consumption of resources and in
reduction of production cost.
 Frugal innovation help in implementation of latest plan and policies that help in
achieving company goals.
 It help in providing world class productivity so that it can be affordable to every budget
limit person.
 It provide information to managers and other top level peoples related to productivity
level of company and the employees working in it.
 Replanning and monitoring the pre decide goals and strategies includes cost that help in
achieving its goals and objectives (Walsh, 2012).
Frugal innovation reduces all the not useful expenses of production process which
increase cost of products and help company in achieving its target efficiently and effectively or
help in growth also.
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TASK 3
P5. Importance of commercial funnel and the application of New Product Development
Commercial funnels describe many research in various manner it is divided into three
parts starts from collecting data related to the needs of customers and then evaluate these data in
the last there is outcomes for development of new products. For satisfying customers’ needs and
wants, companies bring new products in market or do some creativity in existing products.
Goods should be designed in such a way so that it help in achieving benefits of competitive
market.
Apple and virgin group has to make its strategies in such a way so that it will reduce risk
and become more profitable for them. When Apple brings I pod in market it change the script of
music industry. Commercial funnel help the same company in identifying obstruction and
mistake that can be arises in future.
The core concept of new product development is consists to provide something new and
unique to customers that is able to fulfil their needs and wants in an effective manner. Before
launching any product in market, it is essential for managers to conduct a market research so as
to recognise current market trends and generate products according (Huizingh, 2011). It would
be assistive in attaining and retaining customers towards BT for long time of span.
Company can updated their new product development process by following eight steps-
 Idea Generation- Market research are done for finding customers’ needs and wants for
generating new ideas for innovation or product development according to current trend,
taste and preferences.
 Idea screening- This is the work of idea committees in organisation they select the best
from the all. It is essential for new products and to see that when new innovation to be
introduced in market.
 Concept testing- This is the process of after screening for this some consumers are
selected. Company give them full information about the products they will launch and
take feedback from them about their ideas for products.
 Business Analysis- In this company see that to launch new product will be profitable for
them or not (Kim and et.al., 2011 ).In this all the quaries about the cost and demand of
new product,competitors, substitute of products are answered
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 Product Development- this is crucial step to introduce new product in market and
marketing department decide various selling and promotion tools and finance provided
by the department for the same products.
 Test marketing- in this product will be tested by introducing in small market at micro
level. If it will be successful then they will think for the same to launched in large market.
 Commercialisation- if the above step is successful than the company launch its product
at macro level in large market. Company make huge investment at this level in
advertisement.
 Review of market performance- Reviews of market are taken by company whether this
product is accepted by customers or not, consumers are satisfied with the after sales
services? Many more questions are there in the mind of company (Lindič and et.al.,
2011).
P6. Innovation Business Case for BT including ways to access funding
This business case is prepared to identify goal of British Telecom and how to arrange
them so that they can be easily achievable. There are some cases related to innovation explained
below-
Organisation's vision- every organisation has to make its vision to achieve success this
is the first step for company and then afterwards they have to work on it or make strategies to
achieve them. Vision of company gives dedication and sincerity to employees for making value
in market.
Target- setting target and after that working on it help in achieving objectives easily. In
innovation company examine their products that it is required innovation or not (Thore, 2012).
Customer research- it is useful for bringing new product in market because customer
are the person who gives review about products in market and can build or damage brand image.
Most important they are the mouth publisher of products. Changes can be made according to
customer’s needs.
Funding- financial support is necessary for introducing new product this can be in many
ways. There are several sources of funds- Banks- it is the source through which business get funds or also can take loans. They
provide funds after taking securities. Financial institutions- these are for financial help to business at higher rate of interest.
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 Government- they provide financial supports to many start-up ups who are under them.
TASK 4
P7. Tools to develop, retain and protect knowledge and intellectual property
Intellectual properties help in protecting organisation from else. These are taken from
government by giving some amount to them (Snow and et. al., 2011). The same help
organisation in protecting their products are services no other in can produce same in the
environment. These are intangible rights given to owner of the company and if someone produce
copy product than owner of the organisation have right to sue them in court. Some of the
intellectual properties are explained below-
Copyrights- it is an exclusive right given for a limited period and after that they have to
renew the same. It can be applied to creativity, intellectual or to artistic form. This is provided to
tangible links only.
Patents- this is provided to the person who invent some new product. It gives right to the
inventor that they can stop others to invent or produce same products without their permission. If
government allows or give patent rights then it can be the property of the person who invent
(Teece, 2010).
Trademarks- it is used for symbols and logo. Trade mark can be provided to the name
of business, their tag lines, can be to devices or slogs also. Main aim of this is to distinguish
brand or products from others.
Industrial design rights- it is used by the companies which are under production
function to secure their products from others in term of shape, size, colour or it can be
combination of different patterns.
It improve market value of business and convert their ideas into profit making assets.
Help in marketing of business products and services of respective company. Main benefit of
intellectual property is to rise finance for business and introduce some export opportunities for
same business.
CONCLUSION
This project has explained that innovation is necessary for every kind of organisation to
remain in the competitive environment or for gaining profit. The same helps in development of
products and services and recognising strengths or weaknesses of products. This report is based
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on British Telecom which used innovation techniques in goods and services provided by them in
their old products. This technique helps them in making value of their company and gain benefits
in business environment. Apart from this, innovation and invention helps company to attain and
retain more customers from the target market. It has been assessed that it increased the sales
revenue and profitability.
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REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
commercialization through networks. Journal of Business Research. 65(2). pp.198-206.
Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1). pp.61-75.
Ettlie, J.E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp.440-454.
Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2).
pp.262-271.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kim, S. K. and et.al., 2011. The effect of R&D, technology commercialization capabilities and
innovation performance. Technological and Economic Development of Economy. (4).
pp.563-578.
Lindič, J., and et.al., 2011. Deploying information technologies for organizational innovation:
Lessons from case studies. International Journal of Information Management. 31(2).
pp.183-188.
Snow, C.C. and et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management. 28(1). pp.3-16.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Thore, S.A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
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