BTEC HND Business: Innovation and Commercialisation Report - Jan 2020

This report provides an overview of innovation and commercialization, focusing on the 4Ps of innovation, developments in frugal innovation, the innovation funnel within an organizational context, and the function of frugal innovation. It begins with an introduction to the concept of innovation, highlighting its role in creating value for customers. The report then delves into the 4Ps of Innovation (Paradigm, Product, Position, and Process), explaining how these elements contribute to the development and implementation of new products or services. It further discusses the concept of frugal innovation, emphasizing its importance in minimizing costs and complexities. The innovation funnel is presented as a mechanism for screening ideas and ensuring their successful implementation. The report also provides examples of organizations that have adopted frugal innovation. Finally, it examines the function of frugal innovation in launching new products and cutting down the complexness and the cost of production. The report concludes with a list of references. The report is based on the BTEC Higher National Diploma (HND) in Business Marketing Innovation and Commercialisation Unit 8 assignment brief from Mont Rose College, January 2020.

Innovation and Commercialisation

Table of content
 Introduction
 4Ps of Innovation.
 Developments in frugal innovation
 Innovation funnel in organisation context
 Function of frugal innovation
 References.

Introduction
Innovation is the process which converts idea, research which create value for the
customer. In other words, innovation involve deliberate application of information,
imagination and initiative to achieve desire goals and objectives in a well define
manner

4Ps of Innovation
 Innovation can be defined as the creating, developing and implementing a new
product or service in the market with the primary aim of improving effectiveness
and gain a competitive advantage against competitors.
 Paradigm – This is the first element of the model that helps in determining the
ways in which innovation is formulated by organisations in order to enhance the
overall functioning of their business operations.

Contd.
 Product – An innovative product is a new product that is launched in the market
with additional or new features in order to attract more customers. While
implementing the innovative idea of a digital finger print lock, the respective
company should make sure that the idea is unique and new as compared to other
players in the market.
 Position – This element explains the target area which is decided by the
organisation to position itself in. Since Bentley is launching a new idea in the
market, it should make sure that this message is communicate to the customers in
a very effective manner. This process will help in positioning the new concept in
the minds of people.

Contd..
 Process – The management of the firm should analyse and finalise the process it
will follow to manufacture the product. It should also decide the process through
which the product will be launched in the market. For this the company can make
use of different offline as well as online channels

Innovation funnel
 It can be defined as a mechanism that enables the constant flow of ideas that can
be screened for their ability to work in a successful manner.
 Investigation – The very first stage of an innovation funnel is investigation
wherein the managers of the company will analyse the market situation and will
then develop and plan the implementation of the idea of a digital finger print lock
accordingly.

Contd..
 Product Delivery – This is the last stage of the innovation funnel during which
the final product that is developed will be launched in the market. This step will
ensure that the objectives that were set for the project are attained and growth is
ensured.

Developments in frugal innovation
 Frugal Innovation can be defined as the process of minimising the cost as
well as complexity of a product and its production. In simpler words, it
refers to the removal of unnecessary features from a product.

Contd..
 There are various organisations like Unilever, GSK, Pearson and Renault that
have already implemented and follow the concept of frugal innovation
(Mohalajeng and Kroon, 2016). With the prices of resources going up gradually
and people becoming aware about innovations in the market, the concept of
frugal innovation will be used widely in the coming years since it is all about
delivering more value to the customers by involving as much low costs as
possible.

Innovation funnel in organisation context
 The innovation funnel is the method through which company generate new ideas
to reduce the cost and increase the value for the product. This funnel is been
applied by Bentley which help organisation to create new and realistic plan in
order to improve the sales and increase productivity by innovation.

Function of frugal innovation
 This aid in launching new product as to cut down the complexness and the cost of
production. When finger print technology included in the car which reduce the
risk of accidents and provide safety to consumer.