Pearson BTEC HND in Business: Innovation and Commercialisation Report

This report provides a comprehensive analysis of innovation and commercialization, focusing on the context of Tesco, a major UK supermarket chain. It begins by defining innovation and invention, comparing their roles, and highlighting their importance to an organization's competitive advantage and customer satisfaction. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization efforts. It delves into the 4Ps of innovation (Paradigm, Product, Process, Position) and the application of the innovation funnel to refine innovative ideas. Frugal innovation is examined, with examples provided. Furthermore, the report outlines the importance of the commercialization funnel and the new product development (NPD) process for commercializing innovations. It also includes the construction of an innovation business case, including funding sources. Finally, the report evaluates various tools organizations can use to develop, retain, and protect knowledge and intellectual property, providing a well-rounded overview of the subject.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Explain innovation and determine importance to organisation in comparison with invention............3
P2 Explain How organisation vision, Leadership, culture and teamwork can shape innovation and
commercialisation....................................................................................................................................5
LO2.............................................................................................................................................................6
P3 Explain 4Ps of innovation and explain use of innovation funnel to examine and shape innovative
ideas........................................................................................................................................................6
P4 Explain developments in frugal innovation and provide example......................................................8
LO3.............................................................................................................................................................9
P5 Explain importance of commercial funnel and application of new product development processing
for commercialisation of innovation........................................................................................................9
P6 Build an innovation business case for organisation including ways to access funding.....................10
LO4...........................................................................................................................................................12
P7 Evaluate different tools the organisations can use to develop, retain and protect knowledge and
intellectual property...............................................................................................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Innovation and Commercialisation refers to a unique term that shows the process of
innovation with the aim of creating the business enterprise in a feasible model and that will
surrounds in the ecosystem of the organisation. In today’s modern and trending market
consumers are very much aware about their health and welfare for this business can focus on
introducing new products as per market demand so that they can beat the competition and earn s
a high amount of profits. This report is based on the Tesco which is the largest superstore in UK
where they sales varieties of products like foods, beverages, clothing, kids wear, furniture etc.
but as per the changing demand of the customers they can focus on innovating their food and
beverage products so that they can stay in the market and earns a high profits. It includes the
innovation, invention with their comparison and it also involves the various sources of
innovation and methods that is needed to commercialize and in this frugal innovation can also
useful with the NPD funnel. Further includes the business case and shows various types of
intellectual property rights that help in protect the goods from coping and creeping(Datta,
Mukherjee and Jessup, 2015).
LO1
P1 Explain innovation and determine importance to organisation in comparison with invention
Innovation and invention – Innovation refers to the new and creative ideas or thoughts
in the form of various methods, processes and devises. It is very useful for an organisation to
improve their application of products and services to offers the best goods to the customers as
per the demand of the market. On the other basis invention is the process of inventing something
that a firm is innovating. It shows the whole product development process that is helpful in
creating the object for sustaining in the market. In case of Tesco, innovation helps in creating the
new ideas for the market development and invention is the process of implement those ideas by
putting it into the product development process. Without both the concept company cannot
sustain in the market and cannot attracts the large base of customers(Bashmakov and et. al.,
2015).
Difference between innovation and invention

Basis Innovation Invention
Skills Innovation needs varieties of
skills such as marketing,
finance so that a person can
think to fulfill the demands
and earning the profits.
Invention requires the
scientific and engineering skill
that helps in developing the
products as per the creative
idea.
Activities Innovation is the broad term
that spread in the whole
organisation so that every
employee participate in think
creative and give unique ideas.
Invention is the restricted
process that is stay between
the research h and
development process.
Examples The best example of
innovation is if every
employees of Tesco to
improve their food and
beverage sector as per the
market demand. In this they
transform junk food to plant
organic food.
The best example of invention
when a production department
work for producing plant
organic food rather than junk
food to attracts the customers.
Importance of innovation and invention to organisation
 Gaining competitive advantage – The major importance of innovation and invention is
that it helps in gaining and attaining the rival firms in the market so that competitors feel
pressures to build the profits and survival growth. in case of Tesco company constantly
focus on thinking new idea and implement to it by satisfying the needs of customers so
that they can beat their competitors and maint5ains their high image in marketplace.
 Meeting needs of customers – It is an importance of innovation and invention because it
helps the organization to sustain in the market place by satisfying the needs and desires of
the customers. In Tesco, top level manager can innovate their food and beverage products
as per the demand of customers that helps in maximizing profits and beat the competition
in the industry(Hrdy, 2015).

 Boosting the chance of success- The major benefit of invention and innovation is that it
helps the business firm to protect these creation with the helps in protection legal rights
this helps in boosting the sales and image of the company because other competitors
firms cannot use it without the permission of the firm.
P2 Explain How organisation vision, Leadership, culture and teamwork can shape innovation
and commercialisation
Innovation and commercialsation is an prominent term that assist the business
organisation to develop and maintain their new offerings by analyzing the customers demands
and competitors that was present to beat the firm. it helps in enhancing the profits and success of
company for this manager of Tesco can analyse their important framework internally so that
innovation and commercialsation will be easy.
Company Vision – The vision of the Tesco is to become a highly valued business in the
world by satisfying the customers and communities by their servings and earning loyal and
committed colleagues so that task can be completed within the time period and earning trust and
loyalty form the shareholders side by giving them maximum interest by earning more
profits(Henttonen and Lehtimäki, 2017).
Culture - It refers to the customs, values and preferences of the people in the society
about the products that is offered by the company. in this company want to analyse the
environment in which they operate so that they can know the culture of the customer so that firm
will offers the serving as per the demands. In case of Tesco i.e. operated in UK where people are
conscious about their healt5h due to this form need to innovate the food and beverage products.
to sustain in the market and earns high profits manager of Tesco follows the healthy culture
where they offers the different task to the employees as per their skills and knowledge so that no
conflicts can be arise and task can be done in an smooth way.
Leadership style – Leadership is an effective term that shows how a person can
influence and motivates other person to accomplish the task in a timely manner. In case of Tesco
leader follow the transformational leadership style so that employees can accept the change
easily and work according to that in doing the innovation within the firm it is an effective
leadership style that helps in gaining the competition and earns a high revenues in the market by

coordinating the team members of the company so that task can be achieved in a specified time.
in this they also get right to give their innovative suggestions so that manager can select the best
one as per maximizing the profits(Mollick and Robb, 2016).
Team work- It defines the coordination and cooperation between the groups of
individuals that is mutually collaborates to achieve the common goals so that they can enjoy the
large amount of returns and high market growth. Effective team work within the company can
boost the moral of individual to perform their best so that image of the company will be
enhanced. In context of Tesco effective team work helps in achieving the targets and enjoys high
amount of profits by completing the task in a productive way. Effective teamwork also
encourage innovation and invention so that company can beat the completion in the market and
enjoy the high market share and growth.
Sources of innovation
 Necessity- It is an important source of innovation because innovation and invention can
be born from necessity. In case of Tesco, needs of the customers always sets the unique
thinking. In this people of UK are change their needs from junk food to healthy food
because of this manage of Tesco can think to launch the new product and service so that
they get attracted towards it.
 Changing perception- This source of innovation can giving the birth to the innovation.
In case of Tesco, social perception of the people of UK are change due to high obesity so
that customers prefer the healthy food and beverage that consume low calories and vegan
features that helps in attracting the large base of people and earning high profits(Arora,
Cohen and Walsh, 2016).
LO2
P3 Explain 4Ps of innovation and explain use of innovation funnel to examine and shape
innovative ideas
There are four types of innovation that helps the firm can use to attract the large base of
customers so that they will enhance their profits and revenues. In case of Tesco, these four Ps

helps in increasing the revenues and enhance the base of loyal customers. It can be shown
below(Libaers, Hicks and Porter, 2016).
 Paradigm – It is a primary stage that shows how the company will frame the change in
enhance the profits and market share. In context of Tesco, paradigm helps in improving
the living standard of people with following the huge change in order to develop the idea
for the betterment of the society so that they can earn high profits.
 Product- This process of innovation helps in showing the different types of goods and
services with the innovative idea that assist in achieving the overall goals of the
company. In case of Tesco, manager needs to develop their food product by vegan theme
or a plant-based food that the customers prefer without sacrificing the taste(Chun and et.
al., 2015).
 Process- It is an essential process that includes the planning activities of innovative
products. In this manager of Tesco can monitor and ensure all the process so that
innovation gives the effective results to the firm and business will earn high market share
and growth.
 Position- It shows the promotional activity of the innovative and creative products so that
manager of the Tesco can communicate with the customers very effectively about their
innovative offerings and attracts them so that they can buy the same.
Innovation funnel
It is an essential funnel that helps the innovation of the goods and services in an effective
way. It includes various steps that help the manager of Tesco to make plans according to the
market that can be shown below(Paradkar, Knight and Hansen,2015).
 Research- It is the first process of innovative funnel that helps in investigating the
offerings that was present in the market for the consumers. In case of Tesco, manager
needs to investigate the market so that they can focus on enhancing their market by
satisfying the needs of customers from their innovation.
 development- After research the market it is an essential term for the manger of Tesco to
develop the demands and awareness about their innovation in the people so that they can

attracted towards it and excited to buy that products due to this company will enjoy the
large profits(Jamil, Ismail and Mahmood, 2015).
 Shipping of goods- It is the last step in this organisation can focus on the transferring of
the goods and services so that potential customers can reach the products and service
easily. it also helps in targeted the business goals by earning more profits.
P4 Explain developments in frugal innovation and provide example
Frugal innovation- It refers to the process of eliminating the complexity in the cost present in
the goods and services. This help in reducing the non essential features that can damage or
enhance the cost of reduction of the offering goods. The main aim of frugal innovation is to sell
the goods with more value and less products it will set the mind of customers to buy this and
enjoy the offerings. It is the best method that is used by the Tesco to innovate their food range
i.e. “Tesco Vegan Moringa breads and rolls” which contains a good taste and consumers cannot
sacrifice with the taste. In this frugal innovation can remove the wastage and helps in achieving
the goals(Walsh, Lee, and Nagaoka, 2016).
Developments in frugal innovation
 Reduction in cost of production- It is the first step in the development of the frugal
innovation that can helps the manager of Tesco to remove the unwanted material so that
cost cannot be affected and company can enjoy the high profits.
 Application of new technologies- It is the next step that framing the overall changes in
the working environment as per the innovation in the technologies. This will enhance the
profits and efficiency of the product and the profits.
 Developing new features- This step helps the manager of Tesco to differentiate their
offerings to the rival firms so that organisation can gain the competitive advantage and
enhance their market share(Fini and et. al., 2018).

LO3
P5 Explain importance of commercial funnel and application of new product development
processing for commercialisation of innovation
Commercial funnel- It refers to a process of buying the product offerings by the customers of
the companies so that they can lead the market and qualifies towards earning the high amount of
profits. It can involve the various terms like customer support, sales and production, distributing
marketing etc. In case of Tesco, manager can attract the customers so that they buy the products
by using official websites of firm. Due to these customers can recognize the products of the
company so that organisation may enjoy the high sales with good loyalty customers and brand
image. it can shows the importance of commercial funnel below(Fernald, Pennings and Claassen,
2015).
 strategic and tactics- Commercial funnel helps the business to require more strategic
decisions so that it helps in sustaining the company in the market place with loyal
customers.
 Determining switching behavior- The major importance of commercial funnel is that it
helps in analyzing the behavior of the customers in the goods and services.
(Jamil, Ismail and Mahmood, 2015)
New product development
It refers to the process of bringing the new product offering into the market that is differ
from the competitor firm in the same industry. In case of Tesco, manager need to match the
demand of the customers by innovating their food sector to the” Tesco vegan Moringa breads
and rolls” that is free from artificial colors and no synthetic pesticides that is not good for health.
As people of UK are aware about their health due to this company focus on organic and vegan

related products in the market. It includes various steps in context of Tesco and it can be shown
below(Ismail, Nor and Sidek, 2015).
 Generating ideas- It is the primary step that develops the ideas by analyzing the market
and the internal factors so that it is easy for Tesco manager to adopt the several
opportunities in the globe(Stojcic, Hashi, and Orlic, 2018).
 Idea screening- After examine the market it is easy to think the innovative products
where manager of Tesco now select the best and suitable idea that can fulfill the demands
of customers with low cost of production.
 Testing- It is an essential stage where the company can test the new offering in the
laboratory so that it cannot harm the peoples who buy it. In context of Tesco manager can
test the plant and vegan foods in lab so that customers cannot face issues regarding this.
 Implementing marketing strategy- It is another significant step of the manager of
Tesco so that they can implement various strategies and execute top beat the completion
ion the marketplace.
 Business analytics- In this step manger of Tesco can analyse the manpower as they
work effectively as per the innovation so that they can attracts the large base of customers
and enhance their brand image in the marketplace(Miller and French, 2016).
 Product development- In this step manager of Tesco can promote their innovative
products by using social media so that they can cover large number of people who can
buy their offerings.
 Test marketing- It is the step where Tesco manager can research the market about the
taste and preference of the customers so that they easily introduce the change.
 Commercialisation- In this stage Tesco can enjoy the large number of profits with high
demands of the new offering in the market. It also helps in capturing the new
opportunities in the market.
P6 Build an innovation business case for organisation including ways to access funding
It is an very important term to develop the business case so that manager of Tesco can
analyses where steps and make an appropriate strategies and identify the source of funding which
is an essentials for the company(Dutta and Folta, 2016).
Steps Detail information

Company overview Tesco is one of the largest British multinational
firms in UK that sales varieties of food
products, home products, furniture etc. in this
manager of company can enhance their sales
for this they can analyse the market and meets
the demands of the customers by offering the
innovative products related to the foods range.
Requirement As people of UK are very much aware about
their health due to high obesity they face so
that Tesco manager can introduce new type of
vegan breads and rolls by the name of Tesco
Moringa breads and rolls in which they can add
the Moringa flavors which is high in protein
and good in taste so that customer s cannot
sacrifice with the taste(Stojcic, Hashi, and
Orlic, 2018).
Solution To solve the problem of obesity in the people
of UK Tesco can introduce the solution so that
people cannot sacrifice the taste in consuming
the breads for this they can introduce a new
variety with a name of “Tesco Vegan Moringa
Breads and Rolls”.
Technique for testing In this Tesco can introduce the sanipolymer
technique so that their Moringa brands and
rolls and other vegan products are safe and
increase the durability of the products due to
this consumers can consumes it at any time.
this helps in enhancing the growth in the
marketplace.
Consumer analysis It is very essential to analyse the consumers

about the products so that company will earn
high amount of profits and revenues.
Sources of funding There are various sources of funds from which
a Tesco can operate the funds and enjoys the
innovation such as bank loan, crowd funding,
angel capital etc. but for Tesco Bank loan is an
effective tool, because it is a secured type of
loan and flexible in nature that also gives the
tax benefits to the company and also have a
major drawback that it requires lengthy
paperwork.
Benefits The benefit of this new offering of the Tesco to
the consumers is that they can enjoy the best
vegan new range of Bread and rolls with
Moringa organi8c flavor so that customers can
eat the healthy food with the good taste and
texture that everyone eats it. It helps in
enhancing the profits and market share of the
firm.
LO4
P7 Evaluate different tools the organisations can use to develop, retain and protect knowledge
and intellectual property
Intellectual property rights
It refers to that right which helps the business firm to protect their innovation and
creation from copying, creeping and manufacturing with the other competitors without the
permission with a certain period of time. It includes various types of protection so manger of
Tesco can analyse the best legal protection ri8ght from the following frameworks that can be
shown below(Shapira, Gök and Salehi, 2016).