Innovation and Commercialisation Strategies for Megaro Hotel Report

This report examines innovation and commercialisation strategies tailored for the Megaro Hotel, a boutique hotel in London. It begins with an introduction to innovation and its importance for organizational success, emphasizing the need for new ideas and creative thinking to improve services and customer satisfaction. The report explores the role of culture, vision, leadership, and teamwork in fostering innovation and commercialization. It delves into the 4Ps of innovation (Paradigm, Process, Position, Product) and the application of the innovation funnel to shape ideas, with a focus on frugal innovation and its implementation within the hotel. Furthermore, the report addresses the commercial funnel, new product development, and the creation of an innovation business case. Finally, it covers tools for developing, retaining, and protecting knowledge and intellectual property, providing a comprehensive overview of innovation management within the context of the hotel industry.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Innovation and its importance for the organisational..................................................................3
Role of culture, vision, leadership and teamwork in innovation and commercialisation...........4
LO 2.................................................................................................................................................6
4P's of innovation and use of innovation funnel that can shape innovative ideas......................6
Development in frugal innovation and examples of how it can be used in organisation............8
LO 3.................................................................................................................................................9
Importance of the commercial funnel and application of new product development.................9
Innovation Business Case.........................................................................................................11
LO 4...............................................................................................................................................12
Different tool for developing, retaining and protecting knowledge and intellectual property..12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is new idea or a creative thought which facilitate in resolving the issues or
making the simple. It can take place through the processes, technologies, products or the services
which are offered by the organisation to the customers. This helps the company to introduce new
ways in which they can satisfy their customers and open up new opportunities for them.
Commercialisation refers to the procedure that helps the company to introduce new products and
services in the market so that the organisation can efficiently attract the customers. It also
includes the production and the distribution of such new innovation that helps the company to
take the competitive advantage. For the report the organisation that is taken into consideration is
Megaro hotel which is a boutique hotel located in London. The hotel offers various augmented
services to the customers which helps them to satisfy the customers. In this report the concept
and importance of innovation, 4P's of innovation, commercialisation, usage of frugal innovation
and innovation funnel is considered which helps the organisation to understand and introduce the
change. Apart from this the product development process is also considered which will facilitate
the hotel to introduce the innovation and develop the service.
LO 1
Innovation and its importance for the organisational
Innovations is considered as an effective process which helps the company to develop a
new product or service with which they can meet up the demands and the changing requirements
of the customers. It helps the company to enhance the value of the products and services which
they offer to the customers.
For example: Megaro hotel is planning to introduce such a innovative service in their hotel
which can attract more of customers to their hotel. For this they decided to provide pod style
rooms in their hotel which is a unique services than any other hotel.
Importance of Innovation: Nowadays every businesses faces stiff competition which is
why they have to innovate their processes, products and services. Innovation facilitates the
organisation in resolving the issues faced by them, to tackle with the level of the competition,
enhance the productivity of the organisation. For Megaro hotel the innovation has various
importance which are given below:

 Market the business: Creative idea and innovation helps the businesses to easily
market their businesses by reflecting its benefits to the customers. The innovation in
Megaro hotel helps them to make their remember the innovative idea (Bogers and
West, 2012).
 Beat the competitors: The innovation helps the Megaro hotel to attract the customers
which helps them to take the competitive advantage. Also with the creativity the
customers can easily identify them which affects the business of the competitors.
 Solve the problems easily: Innovation comes for the problems faced by the companies
which helps them to solve such problems. Megaro hotel faces an issue of attractiveness
in their services which can be easily resolved by innovating the services.
Difference between Innovation and Invention
Basis Innovation Invention
Concept It is concerned with bring changes in
the existing products, services and
the processes.
While invention is creating and
developing a new idea for the first
time.
Skills required In innovation, various skills related
to marketing, strategy are useful as
they helps in implementation of such
innovation in the organisation.
It required specific skills related to
the subject matter in which the
invention is to be made such as
scientific skills, technical skills etc.
Concerned with It includes various activities,
products and services as a whole.
But the invention is specific towards
one products or services.
Role of culture, vision, leadership and teamwork in innovation and commercialisation
Commercialisation: Commercialisation is a process with the help of which an
organisation introduces new product or services in the organisation and thus make it available in
the marketplace. With the help of this various strategies are developed which helps the Megaro
Hotel to attain the commercial success.
Importance of commercialisation: It has various importance for the organisation as it
divides the entire process into different phases so that the implementation can be done easily. It
has various importance for the organisation as it helps them to benefit the society by providing

new goods and services. Along with it helps them to retain their employees as they have various
opportunities which they can avail.
Impact of vision of the organisation, culture, leadership and teamwork on the innovation
for the organisation is given below:
 Vision: Visions are the base with which the organisation are established which helps the
employees of the organisation to determine their targets. The vision of the chosen
organisation Megaro hotel is to provide the quality, reliable and valuable services to the
customers. This will help them to introduce innovation in the organisation as to serve the
customer firstly they have to attract the customers to their hotel which can be done by
them through making their services creatine and innovative. This is how the vision of the
organisation shapes innovation (Hermans, Klerkx, and Roep, 2015).
 Leadership: Leaders of the organisation has the capabilities to influence the employees
which will help them to improves their performances. In Megaro hotel the leaders make
their employees analyse various opportunities which they can avail. They motivate the
employees and encourages them to participate in the organisational activities so that they
can get their opinions. This shape innovation in the organisation as the employees
understand the importance of it.
 Organisational culture: The culture of the organisation defines the values, beliefs and
the behaviour of the employees. Managers and the leaders in the organisation focuses on
managing the culture so that peace can be maintain and the environment of the workplace
becomes cooperative and contributing. This motivates the staff of Megaro hotel to adapt
the changes and innovation as they have understanding among each other which facilitate
easy sharing of ideas and thoughts. On the basis of such shared thoughts and beliefs the
innovation shapes in the organisation.
 Teamwork: People in the organisation works in team so that the achievement of the
target becomes possible. In Megaro hotel, the different team are working such as for
housekeeping, serving customers at the dining table, team of chef etc. The teams
determine their ways of reaching to the targets by taking the mutual consent of all. This
helps the organisation in shaping the innovation as the team collectively contribute to the
goals. Also they suggest various innovation and the means to implement them with the
benefits of such innovation (Aarikka-Stenroos, 2014).

This will help the company to develop the innovative culture in the organisation as the
employees has been given freedom to suggest the ways with which they can make their services
attractive. The Merago Hotel provides various trainings and conducts seminars, sessions which
make staff understand the importance of such innovation and changes. It make the environment
and the culture of the organisation innovative and active to adapt the changes.
Different sources of innovation and how can an innovative environment be developed
Sources of innovation: There can be various sources which exerts pressures on the
organisation to introduce innovation. Various such sources can be the changes which are taking
place in the business environment, changes in the demographics, taste and preferences of the
customers etc. Along with this the changes in the perception of the people also become a source
for which the organisation has to change.
LO 2
4P's of innovation and use of innovation funnel that can shape innovative ideas
Concept of innovation is very beneficial for an organisation as it helps them to keep their
position ahead from their competitors. Various types of innovation are existing in current
scenario such as incremental, radical and many others. In which, incremental innovation refers to
bring changes in existing products whereas radical innovation is based on something completely
new like business models, technologies and methods. In order to assess the requirements of
innovation in an specific area an organisation can use innovation mix model which is developed
by John Bessant and Joe Tidd. Here are describing 4Ps of innovation:
 Paradigm: It consist all the ways and methods which will help the organisation in
bringing innovation successfully in their products. By giving focus on this term, Megaro
hotel can determine that what and how they needs to implement all procedures so that
they can effectively provide hotel services to their guests (Kerschke 2015).
 Process: This define about those factors which have great impact on the delivering
methods of an organisation. In this stage, management of Megaro hotel needs to make
required changes in their production process so as to provide most effective experience to
its guests and to minimise the cost and maximise profitability.
 Position: It defines that where the new innovation of the firm is standing in market.
Herein, Megaro Hotel requires to make some effective changes in their process and to

give their emphasis on providing quality services at affordable price so that they can
attain higher customers attention and can get leading position in the marketplace.
 Product: This define that it is essential for an organisation to make some required
changes in their products and services so as to meet the customers requirements
effectively. It is same applied to Megaro hotel that they must stay concern for providing
most effective stay facility to their guests so that their experience and satisfaction level
can be increased.
Innovation funnel : This is considered as most effective approach which is helpful for
the companies to make creative innovation and realistic action plan. It considers several steps
within that will help the organisation in introducing a new service or process in most significant
manner. Management of Megaro hotel can use this funnel in their organisation in such manner:
 Idea generation : This is first stage in which ideas related to innovation will formulate
by assessing all the opportunities and threats which are attach with it. For example,

herein Merago will depend on the R&D department to make all the ideas in an optimal
manner.
 Concept investigation : At this stage, Merago give ficus on evaluating all the ideas in
order to select best one. In this regard, they will check their ideas by considering
customers aspects and resources availability. For example, firm will see here that the
new idea i.e. provide Pod rooms to their customers will able to get success or not.
 Feasibility study : Herein, ideas will tested from various aspects like technically,
feasibly and profitability. Also, risk factor also will consider to make a most significant
plan (Miller and French, 2016).
 Development stage : In this phase, Megaro will finally release their new innovation in
market in terms to get profitability and sustainability.
 Post release phase : Herein, management will give their focus on taking feedbacks and
reviews form the customers so as to determine the success and failure of new
innovation.
Development in frugal innovation and examples of how it can be used in organisation
Frugal innovation is the concept that helps the organisation in reducing the cost of the
products and services offered by the company. Also it facilitate in reduction of the complexities
in the process of the organisation. It actually means to remove the unnecessary or non-essential
features from the products or services offered by the company to the customers as it increases the
durability of the products and reliability of the services.
For example : Megaro Hotel frugal innovation is so crucial as it will help them to eliminate
their non essential services which will save their cost and make their customer satisfied as they
provide the crucial services effectively.
Frugal innovation can be effectively be used by the Megaro Hotel as provides various
benefits to every organisation. Some of such benefits are :
 It helps to focus on the better quality by redesigning the products and services that are
offered by the hotel such as food, ambience etc.
 It facilitate in identifying the ways in which existing services can be provided to the
customers in more attractive manner so that their level of satisfaction can be improved.
 It helps in identifying the non essential activities and in developing models which can
offer various solutions (Qian, and Haynes, 2014).

The frugal innovation can be used in the organisation with the help of various stages:
 Seek opportunities in adversity: It refers to taking benefits when the situation s are not
favourable for the company. This can be done by introducing innovative products as it
reduces the impact of the adversity. For example, Megaro hotel can use their pod rooms
at affordable prices to attract the customers when the other are charging high prices.
 Do more with less: This says that the organisation must utilise their resources which are
limited effectively so that they can improve the customers level of satisfaction. Such as
Megaro hotel utilises their limited funds and space in providing the pod rooms.
 Think and act flexibly: In this stage of frugal innovation the Megaro hotel aims to
motivates their employees to think positively. Also they gives the authority to their
employees to act as per the situations.
 Keep it simple: This stage makes the company focused upon simplicity of the innovation
such as Megaro hotel develop pod rooms which are inspired from the spaces of
transportation vehicles.
 Include the margin: This stage make the Megaro hotel understand that the innovation
must be customer focussed which will help them to improve their customer base.
 Follow your heart: This stage of innovation frugal represents the mindset of the
managers and the leaders of the Megaro hotel which helps them to take decisions as per
what they have analysed from the situations (Walsh, 2012).
Role of frugal innovation in an organisation
The frugal funnel can be used by Megaro hotel so that the innovative services can be
provided to customers at a low price which will help people belonging to all the classes of
society to afford the services provided by the hotel. This model help in designing improved
products which can be offered to uplift the conditions of people and also help in development of
the nation. This model can thus help the hotel in providing innovative services to the customers
at low prices so that its sales can be increased.
Critical analysis of how innovation can be developed, embedded and measured
Innovation plays an important role in making any organisation grow and develop in the
competitive marketplace by dealing efficiently with the changing needs and demands of
customers which help in seeking their attention and increasing the company profits. The results
of innovation can be measured by evaluating the value which the new product or service is able

to create for customers. Also the increase in sales and profits of company after implementation of
innovation can be a measure for improvements that is brought in the products which helps in
creating high value for customers.
LO 3
Importance of the commercial funnel and application of new product development
Commercialisation of innovation is a process which helps to identify the viable idea. On
the basis of which the research can be conducted on the product and services of the company,
also on their processes.
Commercial Funnel : Commercial funnel is a funnel which help to understand the
buying process in which the focus is on the customers who are making purchases of goods and
services . It will help the company to improve their sales they will get to know the factors which
are crucial and considered by the customers while they make any purchase. It will be beneficial
for Megaro Hotel as it will help them to analyse the factors which the customer focusses upon
while booking the hotels.
Importance of commercial funnel : To understand the commercial funnel is important
for the companies as it helps them to understand and identify various factors:
 it will facilitate the managers and the employees of the Megaro Hotel to formulate the
marketing strategy
 all the models are not perfect so they cannot be used by the companies as it is, so the
commercial funnel will help them to develop a new model which can increase the
customers satisfaction
 it will create an understanding for the customers as they have been focussing on their
behaviour
New Product Development : New development process is the one which helps the companies
to introduce new products in the marketplace. The Megaro Hotel has been developing a different
types of rooms for which they have to evaluate various stages of the new product development
process:
 Idea Generation : It is the first stage in which the ideas are welcomed from the
employees of the Megaro Hotel. It will help the management and the teams to gather
various ideas out of which by taking a final call they will decide the one or some most

suitable for the hotel. As the organisation is into hotel industry so they have to consider
the feedbacks of the customers to generate any idea. On the basis of various suggestion
the Megaro Hotel developed the idea of pod rooms in the hotel(Xiao and Liu, 2016).
 Idea Screening : This is the next phase of the process in which the idea so generated has
to be analysed. Such analysis can be done in context of the profitability that it will
contribute to the total profits. Along with this various resources of the Megaro Hotel will
be identified which can support the idea. Basically in this step the mangers of the
Megaro Hotel will identify that whether the idea so identified is viable for the businesses
in terms of profitability, resources available etc.
 Testing Concepts : Testing concept is one of the most crucial and effective stage of the
process as in this they will identify the compatibility of the idea with the taste and
preference of the customers. On the basis of this various features and attributes will be
determined by the Megaro Hotel which they can add on in their services such as with pod
rooms they can provides small screen on which they can either connect their gadgets or
can use system of the hotel, a window from where they can have an amazing view etc.
Such identification will helps the managers of the Megaro Hotel to satisfy the customer
effectively.
 Analysing the need of product development : In this step, various strategies will be
formulated by the management with the help of various team leaders. Megaro Hotel has
various team leaders which take reviews from their staff for the responses of the
customers. It will facilitate them to make their marketing strategies such as promotional
mix, various services which are required and demanded by the customers (De Mooij,
2018).
 Commercialisation : This is final step of new product development in which the
Megaro Hotel has to consider all the factors and need to analyse them effectively in detail
in order to ensure the success of the innovation. They have to consider the financial
projections, various reporting framework with which they can take further steps. On the
basis of commercialisation the non essential steps will be eliminated by the company
which will help them to reduce the cost for the company.